AudioCodes (NASDAQ:AUDC) Issues Earnings Results, Hits Expectations

Key Points

• AudioCodes met EPS expectations at $0.16 and beat revenue estimates, reporting $64.14 million. Third-quarter revenue rose 4.2% year over year, with services revenue up about 20%.
• Voice AI remained a growth driver: revenue climbed nearly 50% year over year, and management reaffirmed its $25 million 2026 target and $50 million 2028 goal.
• Profitability weakened: non-GAAP operating income fell to $4.8 million from $5.8 million, and diluted EPS declined from $0.17 to $0.16. AudioCodes reiterated 2026 revenue guidance of $251 million–$256 million.

AudioCodes (NASDAQ:AUDC - Get Free Report) issued its quarterly earnings results on Wednesday. The communications equipment provider reported $0.16 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.16, FiscalAI reports. The firm had revenue of $64.14 million during the quarter, compared to analyst estimates of $63.40 million. AudioCodes had a return on equity of 6.79% and a net margin of 2.83%.

Here are the key takeaways from AudioCodes' conference call:

• Positive Sentiment: Third-quarter revenue rose 4.2% year over year to $64.1 million, while services revenue grew about 20% and reached 57.8% of total revenue. Recurring revenue from managed services and Voice AI totaled $87 million, up 16% year over year.
• Positive Sentiment: Voice AI revenue grew nearly 50% year over year, and management said it remains on track for its $25 million 2026 target and $50 million goal by 2028. VoiceAI Connect bookings and new opportunities also grew strongly, and the company cited Deutsche Telekom’s selection of the product as strategic validation.
• Negative Sentiment: Despite higher GAAP net income, profitability weakened on several measures: GAAP operating income fell to $3.4 million from $4.1 million, while non-GAAP operating income declined to $4.8 million from $5.8 million and non-GAAP diluted EPS slipped to $0.16 from $0.17.
• Neutral Sentiment: AudioCodes reiterated its 2026 guidance of $251 million–$256 million in revenue and $0.60–$0.75 in non-GAAP diluted EPS. The company also repurchased 1.5 million shares for about $15.1 million during the quarter.

AudioCodes Price Performance

NASDAQ AUDC traded down $2.04 during midday trading on Wednesday, hitting $8.31. 164,659 shares of the company traded hands, compared to its average volume of 121,309. AudioCodes has a 52 week low of $6.95 and a 52 week high of $11.74. The company's 50-day simple moving average is $10.63 and its 200-day simple moving average is $9.32. The company has a market cap of $200.71 million, a PE ratio of 31.97 and a beta of 0.98.

Insiders Place Their Bets

In related news, EVP Lior Aldema sold 2,812 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $9.98, for a total transaction of $28,063.76. Following the sale, the executive vice president owned 104,065 shares of the company's stock, valued at $1,038,568.70. This trade represents a 2.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Zehava Simon sold 27,000 shares of AudioCodes stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $9.91, for a total value of $267,570.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 39,562 shares of company stock valued at $393,201 over the last 90 days. 48.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of AudioCodes in a research report on Monday. One analyst has rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold".

AudioCodes Company Profile

AudioCodes Ltd. NASDAQ: AUDC is an Israeli provider of advanced voice and communications technologies for enterprises, service providers and telecommunications operators. The company develops solutions that enable organizations to deploy, manage and optimize business voice services across private, public and hybrid communications networks.

Its portfolio includes session border controllers, media gateways, voice network products, professional services and cloud-based communications solutions.

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