AudioCodes (NASDAQ:AUDC) Releases Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Key Points

• AudioCodes missed Q1 EPS expectations, reporting $0.09 vs. a $0.16 consensus (a $0.07 miss) on revenue of $62.1M (+2.9% YoY), with profitability pressured by conversational AI investments (non‑GAAP EPS $0.14; adjusted EBITDA margin 9.4%).
• The company’s conversational Voice AI business grew >50% YoY and management is targeting 40–50% growth in 2026 with goals of roughly $25M in 2026 and $50M by 2028; recurring revenue momentum produced an $80M ARR exit and a $79M backlog.
• Cash generation and shareholder returns remain strong, with operating cash flow of $12.8M in Q1, $68.1M in cash and investments, a $0.20 dividend and ~1.7M shares repurchased for ~$13.7M.

AudioCodes (NASDAQ:AUDC - Get Free Report) posted its earnings results on Tuesday. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.07), Zacks reports. AudioCodes had a return on equity of 6.46% and a net margin of 3.65%.

Here are the key takeaways from AudioCodes' conference call:

• AudioCodes grew its conversational Voice AI business >50% YoY in Q1 and is targeting 40–50% growth for the segment in 2026, with goals of roughly $25M in 2026 and $50M by 2028.
• Recurring-revenue momentum strengthened — Live managed services plus Voice AI contributed to an $80M ARR exit (up ~20% YoY) and backlog rose to $79M (≈15% YoY), supporting future revenue visibility.
• Q1 revenue was $62.1M, up 2.9% YoY, with services making up 54.7% of sales and Microsoft-related business growing 6%.
• Profitability was pressured by higher investments in conversational AI — non‑GAAP EPS fell to $0.14 (from $0.15) and adjusted EBITDA margin declined to 9.4% as operating expenses rose to support growth initiatives.
• Strong cash generation and shareholder returns — operating cash flow was $12.8M in Q1, cash and investments totaled $68.1M, management paid a $0.20 dividend and repurchased ~1.7M shares for ~$13.7M.

AudioCodes Stock Performance

Shares of AUDC traded down $1.86 on Tuesday, reaching $8.28. The stock had a trading volume of 126,129 shares, compared to its average volume of 129,947. The firm has a market capitalization of $224.33 million, a price-to-earnings ratio of 26.95 and a beta of 0.95. The company has a 50-day simple moving average of $8.43 and a 200-day simple moving average of $8.60. AudioCodes has a 12-month low of $6.95 and a 12-month high of $11.50.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen cut AudioCodes from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 7th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, AudioCodes currently has an average rating of "Hold" and an average price target of $12.50.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AUDC. Raymond James Financial Inc. purchased a new position in AudioCodes during the second quarter valued at $43,000. Barclays PLC raised its stake in AudioCodes by 3,621.4% during the fourth quarter. Barclays PLC now owns 7,294 shares of the communications equipment provider's stock valued at $64,000 after buying an additional 7,098 shares during the last quarter. Jump Financial LLC purchased a new position in AudioCodes during the second quarter valued at $127,000. NewEdge Advisors LLC purchased a new position in AudioCodes during the fourth quarter valued at $150,000. Finally, SIH Partners LLLP purchased a new position in AudioCodes during the third quarter valued at $170,000. Hedge funds and other institutional investors own 68.05% of the company's stock.

AudioCodes Company Profile

AudioCodes Ltd is a global provider of advanced voice networking and media processing solutions for enterprises and service providers. The company designs and manufactures a comprehensive portfolio of products, including session border controllers (SBCs), media gateways, IP phones, management and monitoring software, and cloud-based communications microservices. Its offerings support a wide range of unified communications (UC) and contact center deployments, enabling secure, high-quality voice connectivity across on-premises, hybrid and cloud environments.

Founded in 1993 and headquartered in Rosh Ha'Ayin, Israel, AudioCodes serves customers in North America, Europe, Asia-Pacific and Latin America.

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