Core Viewpoint - AudioCodes Ltd. is a significant player in the enterprise voice and VoiceAI business solutions sector, providing advanced communication software and products to enhance business communication efficiency globally [1] Financial Performance - On February 3, 2026, AudioCodes reported an earnings per share (EPS) of $0.16, aligning with estimates, and achieved revenue of approximately $62.6 million, surpassing the estimated $62 million, marking a 1.7% year-over-year increase [2] - Despite revenue growth, the company faced challenges with EBITDA, which decreased to $4.9 million in Q4 from $5.2 million in the same period of 2024, indicating increased operational costs or financial pressures [3][5] - On a Non-GAAP basis, Q4 EBITDA was $6.5 million, down from $8.5 million the previous year, further highlighting financial pressures [3] Shareholder Value - AudioCodes declared a semi-annual dividend of 20 cents per share, reflecting its commitment to returning value to shareholders despite a net income drop [3][5] Valuation Metrics - The company maintains a price-to-earnings (P/E) ratio of approximately 15.28, indicating market valuation of its earnings [4] - The price-to-sales ratio stands at about 0.88, suggesting investor willingness to pay per dollar of sales [4] - With a debt-to-equity ratio of around 0.22, AudioCodes shows a relatively low level of debt compared to equity, indicating financial stability [4]

On a GAAP basis, fourth-quarter gross margin was 65.6% versus 66.2% a year ago. Operating income was $3.7 million (6% of revenue), down from $4.1 million (6.7%) in the prior-year quarter. GAAP net income fell to $1.9 million , or $0.07 per diluted share, from $6.8 million, or $0.22 per diluted share, in Q4 2024.By geography in the quarter, revenue was split 47% North America, 35% EMEA, 13% Asia Pacific, and 5% Central and Latin America. Baruch said the top 15 customers represented 58% of fourth-quarter reve ...

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $62.6 million, a 1.7% increase from $61.6 million in Q4 2024. Full year 2025 revenues were $245.6 million, up 1.4% from $242.2 million in 2024 [8][10] - Services revenues for Q4 2025 were $34.6 million, accounting for 55.3% of total revenues, with a 1% increase year-over-year. Annual services revenues reached $130.7 million, a 0.4% increase from $130.2 million in 2024 [8][10] - GAAP gross margin for Q4 2025 was 65.6%, down from 66.2% in Q4 2024. Operating income for Q4 was $3.7 million, or 6% of revenues, compared to $4.1 million, or 6.7% of revenues in Q4 2024 [9][10] - Full year 2025 net income was $9 million, or $0.31 per diluted share, down from $15.3 million, or $0.15 per diluted share in 2024 [10][11] Business Line Data and Key Metrics Changes - The connectivity business accounted for approximately 93% of total revenue, maintaining a stable operating margin above 14% in 2025, with a long-term target of 16%-18% [18][19] - The Voice AI business generated about 7% of total revenue, growing from over $12 million in 2024 to nearly $17 million in 2025, representing a 35% year-over-year increase [19][30] - Annual recurring revenue from the combined live managed services and Voice AI business reached $79 million at the end of 2025, reflecting a 22% growth year-over-year [15][16] Market Data and Key Metrics Changes - Revenue by geographical region for Q4 2025: North America (47%), EMEA (35%), Asia Pacific (13%), and Central and Latin America (5%) [9] - The backlog for live services reached $75 million at the end of 2025, compared to $69 million at the end of 2024 [17] Company Strategy and Development Direction - The company aims to transition from a focus on connectivity solutions to an AI-first, Voice AI-led business application model, targeting significant growth in the Voice AI sector [15][19] - Continued investment in sales and marketing for Voice AI is expected to drive further growth, with a goal of reaching $50 million in revenue by 2028 [19][30] - The company plans to maintain revenue growth and margin expansion while strengthening its leadership in Voice AI-driven applications for UCaaS and CX markets [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the connectivity business and the growth trajectory of the Voice AI segment, with expectations of continued strong annual recurring revenue momentum [14][15] - The company anticipates revenues for 2026 to be in the range of $247 million to $255 million, with non-GAAP diluted earnings per share projected at $0.60 to $0.75 [13][24] Other Important Information - The company declared a cash dividend of $0.20 per share, totaling approximately $5.4 million, to be paid on March 6, 2026 [12] - The company ended 2025 with 981 employees, an increase from 946 at the end of 2024 [22] Q&A Session Summary Question: Is the 40%-50% annual growth for conversational AI intended to be a CAGR through 2028? - Management expects growth to come from both new customer acquisition and increased spending per customer, with significant investments in R&D for Voice AI [42][44] Question: How has the shift in market expectations around AI impacted pipeline visibility? - Management noted improved visibility and size of the pipeline as customers move from testing to broader adoption of voice AI products [46] Question: What impact from tariffs should be considered for 2026 financials? - Tariff impacts are expected to decrease from $2.7 million in 2025 to approximately $2.3 million in 2026, with gross margins anticipated to improve due to a shift towards software and services [47][49]

AudioCodes (NasdaqGS:AUDC) Q4 2025 Earnings call February 03, 2026 08:30 AM ET Company ParticipantsJoshua Reilly - Managing DirectorNiran Baruch - VP of Finance and CFORoger Chuchen - VP of Investor RelationsShabtai Adlersberg - CEOOperatorGood morning, ladies and gentlemen. Please remain on the line. Your conference will begin in just a few moments. Please remain on the line. Your conference will begin in just a few moments. Greetings. Welcome to AudioCodes' Fourth Quarter and Full Year 2025 Earnings Confe ...

AudioCodes (NasdaqGS:AUDC) Q4 2025 Earnings call February 03, 2026 08:30 AM ET Speaker2Good morning, ladies and gentlemen. Please remain on the line. Your conference will begin in just a few moments. Please remain on the line. Your conference will begin in just a few moments. Greetings. Welcome to AudioCodes' fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should ...

This presentation also includes certain guidance on non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performanc ...

OR YEHUDA, Israel, Feb. 3, 2026 /PRNewswire/ -- Fourth Quarter and Full Year 2025 Highlights Details AudioCodes (NASDAQ: AUDC), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the fourth quarter and full year period ended December 31, 2025. Revenues for the fourth quarter of 2025 were $62.6 million compared to $61.6 million for the fourth quarter of 2024. Revenues were $245.6 million in 2025 compared to $242.2 million in 2024. EBITDA for the four ...

AudioCodes now offers an end-to-end portfolio of certified voice solutions for Webex Calling, from Cloud Connect PSTN connectivity to analog gateways and desk phones OR YEHUDA, Israel, Feb. 2, 2026 /PRNewswire/ -- Highlights Details AudioCodes (NASDAQ: AUDC), a global leader in enterprise voice and VoiceAI business solutions, today announced that it has expanded its certified portfolio of voice solutions for Webex Calling, Cisco's cloud-based unified communications platform. In addition to PSTN connectivity ...

Core Viewpoint - AudioCodes is set to release its financial results for the Fourth Quarter and Full Year 2025 on February 3, 2026, before the market opens on NASDAQ, covering the period ending December 31, 2025 [1] Financial Results Announcement - The financial results will be disseminated via news wires and made available on the corporate website [1] - A conference call to discuss these results will take place on February 3, 2026, at 8:30 a.m. Eastern Time, hosted by the President and CEO, Shabtai Adlersberg, and CFO, Niran Baruch [2] Conference Call Details - Investors can participate in the call by dialing 888-506-0062 in the USA or +1 973-528-0011 internationally, or via webcast on the AudioCodes investor website [3] - A replay of the conference call will be accessible on the investor website approximately two hours after the call concludes [3] Company Overview - AudioCodes is a global leader in enterprise voice solutions and voice AI innovation, helping organizations maximize the value of voice interactions [5] - The company has over 30 years of experience and is trusted by 65 of the Fortune 100 companies, focusing on voice connectivity, unified communications, and next-generation voice AI applications [5]

Core Insights - AudioCodes, in collaboration with Go2Uno and Atento, has successfully modernized a major healthcare organization's Voice Agent and Conversational IVR systems in record time, showcasing the effectiveness of their partnership [2][3][8] Group 1: Project Overview - The deployment of the new AI-powered Conversational IVR was completed in just a few weeks, setting a record for projects of this scale [3][8] - The solution supports over 500 concurrent voice agents, replacing legacy IVR systems and enhancing voice networking capabilities [3][8] Group 2: Partnership and Execution - The collaboration between AudioCodes, Go2Uno, and Atento demonstrated exceptional execution in modernizing complex call flows and integrating multiple carrier systems [4][5] - The project was completed in 30 days, significantly faster than the projected timeline of three to six months, highlighting the efficiency of the teams involved [5] Group 3: Technology and Benefits - The new system incorporates intelligent, AI-powered routing to improve customer experience, efficiency, and resiliency [4][6] - Advanced analytics and performance reporting provide real-time visibility into voice agent performance and customer interactions, enabling deeper insights [4][8] Group 4: Future Readiness - The deployment establishes a scalable, future-ready platform for Atento, positioning the company for continued growth and innovation in AI-driven customer experience [5][6] - The solution enhances call containment, reduces handling times, and lays a foundation for future AI enhancements [6]