AudioCodes Ltd. Reports First‑Quarter 2026 Results
Date of Report: May 5 , 2026Exchange: Nasdaq (NASDAQ: AUDC)Currency: USD
1. Financial Highlights
| Metric | Q1 2026 | Q1 2025 | YoY Change |
|---|---|---|---|
| Revenue | $62.1 M | $60.4 M | +2.9 % |
| Services Revenue | $34.0 M | – | +4.3 % YoY |
| GAAP Gross Margin | 66.2 % | – | – |
| GAAP Operating Margin | 5.4 % | – | – |
| GAAP Net Income | $2.0 M ( $0.07 per diluted share ) | $4.0 M ( $0.13 per diluted share ) | – |
| Non‑GAAP Net Income | $3.8 M ( $0.14 per diluted share ) | $4.7 M ( $0.15 per diluted share ) | – |
| Non‑GAAP Gross Margin | 66.3 % | – | – |
| Non‑GAAP Operating Margin | 7.7 % | – | – |
- Non‑GAAP EPS of $0.14 missed the analyst estimate of $0.16 by $0.02.
- Revenue of $62.1 million beat the consensus estimate by $0.6 million.
2. Cash Position
- Net cash provided by operating activities: $12.8 M for the quarter.
- Cash & equivalents as of 31 March 2026: $68.1 M (down from $75.7 M at 31 December 2025).
- The decline was largely due to share repurchases and a cash dividend, partially offset by operating cash flow.
3. Share Repurchase Activity
- Shares repurchased: 1,740,329 ordinary shares.
- Aggregate cost: $13.7 M.
4. Strategic Commentary
CEO Shabtai Adlersberg highlighted:
- A continuing transformation toward an AI‑driven hybrid‑cloud software and services model.
- Strong momentum in two growth pillars:
- Live suite of managed services for UCaaS and CX.
- Conversational AI (CAI) business, which grew over 50 % YoY.
- Annual Recurring Revenue (ARR) for these segments reached $80 M, an increase of nearly 20 % compared to the same period a year earlier.
5. Market Context
- Stock price at the close on 3 May 2026: $10.14.
- 52‑week high: $11.50 (17 July 2025).
- 52‑week low: $6.95 (17 February 2026).
- Market capitalization: $263.3 M.
- Price‑to‑earnings ratio: 28.41.
AudioCodes continues to serve global clients with a portfolio that includes signal processor chips, VoIP communication boards, and custom modules for OEM customers. The company’s recent results demonstrate modest revenue growth and a focus on expanding its AI‑enabled services, although profitability metrics remain below the market expectation for the quarter.
