AudioCodes (NASDAQ:AUDC) Releases Quarterly Earnings Results, Meets Estimates

AudioCodes (NASDAQ:AUDC) announced its quarterly earnings data on Wednesday. The communications equipment provider reported $0.16 EPS for the quarter, meeting the consensus estimate of $0.16, FiscalAI reports. AudioCodes had a net margin of 2.83% and a return on equity of 6.79%. The firm had revenue of $64.14 million during the quarter, compared to analyst estimates of $63.40 million.

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 Trading Down 19.7%

AUDC traded down $2.04 during midday trading on Wednesday, hitting $8.31. 164,659 shares of the company were exchanged, compared to its average volume of 121,309. The company’s 50 day simple moving average is $10.63 and its 200 day simple moving average is $9.32. The firm has a market capitalization of $200.71 million, a price-to-earnings ratio of 31.97 and a beta of 0.98. AudioCodes has a 1-year low of $6.95 and a 1-year high of $11.74.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “hold (c)” rating on shares of AudioCodes in a report on Monday. One equities research analyst has rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold”.

Insider Activity

In other news, EVP Lior Aldema sold 2,812 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $9.98, for a total value of $28,063.76. Following the sale, the executive vice president owned 104,065 shares in the company, valued at $1,038,568.70. This represents a 2.63% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Zehava Simon sold 27,000 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $9.91, for a total value of $267,570.00. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 39,562 shares of company stock valued at $393,201. Insiders own 48.80% of the company’s stock.

About AudioCodes

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.