GICS Sector : Technology
AudioCodes Ltd.provides advanced communications software, products, and productivity solutions for the digital workplace.The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business.
AudioCodes Ltd. reported Q4 2025 revenues of $62.6 million, a 1.7% increase from $61.6 million in Q4 2024, while full-year 2025 revenues reached $245.6 million, up 1.4% from $242.2 million in 2024. Services revenues accounted for 55.3% of total revenues in Q4 2025. The company's non-GAAP gross margin for Q4 2025 stood at 65.9%, and non-GAAP operating income was $5.4 million, or 8.6% of revenues. Non-GAAP net income for Q4 2025 was $4.5 million, or $0.16 per diluted share, in line with estimates.
Publication Date: Mar -08
The company's Voice AI business experienced significant growth, with conversational AI revenue increasing by over 50% year-over-year in Q4 2025. Live Hub, a Voice CPaaS self-service cloud platform, saw a substantial 150% increase in monthly recurring revenue compared to Q4 2024. Vocacy achieved revenue growth of over 55% in 2025, with more than 200 enterprise customers worldwide. The company expects continued momentum in 2026, driven by investments in life managed services and Voice AI areas.
For 2026, AudioCodes expects revenues to range from $247 million to $255 million, with non-GAAP EPS projected between $0.60 and $0.75. This guidance assumes continued strong growth of 40-50% in the Voice AI business and a stable connectivity outlook. The company anticipates its gross margin will improve due to a shift towards software and services, targeting a range of 65-68% gross margins.
With a P/E Ratio of 24.68 and a Dividend Yield of 4.96%, the stock appears to offer a relatively attractive income stream. The company's declaration of a cash dividend of $0.20 per share, totaling approximately $5.4 million, is expected to be paid on March 6, 2026. Analysts estimate next year's revenue growth at 2.2%, slightly higher than the current year's growth rate.
The Voice AI agent market is estimated to reach $8-15 billion by 2028 and double by 2030, presenting a significant growth opportunity for AudioCodes. The company's Meeting Insights Cloud Edition has seen consistent increases in new customer acquisitions, total meetings, and unique active users, further supporting its growth prospects.
Short Interest in AudioCodes Ltd. (NASDAQ:AUDC) Decreases By 44.6%
Mar -01
AudioCodes Ltd. (AUDC) Q4 2025 Earnings Call Transcript
Feb -03
AudioCodes Reports Fourth Quarter and Full Year 2025 Results and Declares Semi-Annual Dividend of 20 cents per share
Feb -03
AudioCodes Expands Its Voice Solution Portfolio for Webex Calling
Feb -02
AudioCodes Ltd. (NASDAQ:AUDC) Short Interest Update
Jan -21
AudioCodes Announces Fourth Quarter and Full Year 2025 Reporting Date
Jan -06
AudioCodes Announces a Large-Scale Voca CIC Voice Agent Deployment with Atento
Dec -15
AudioCodes Ltd. (AUDC) Q3 2025 Earnings Call Transcript
Nov -04
AudioCodes' 3.5% growth is driven by increasing demand for advanced communication solutions, particularly in the Microsoft Teams and Zoom ecosystems. The company's software and products, such as session border controllers and voice network solutions, are experiencing strong adoption. Additionally, the growing need for productivity solutions and the shift to cloud-based communications are contributing to the company's growth.
AudioCodes' 2.5% growth driven by increasing demand for cloud-based unified communication solutions, expansion in 5G networks, and growing adoption of Microsoft Teams and Zoom. Additionally, the company's focus on innovation, strategic partnerships, and geographic expansion contribute to its growth momentum.
AudioCodes' SBCs provide secure, scalable, and highly available VoIP connectivity for service providers, enterprises, and contact centers.
AudioCodes' media gateways enable the integration of TDM and IP networks, providing a smooth transition to IP-based communications.
AudioCodes' IP phones offer high-quality voice and video communications, with advanced features and intuitive user interfaces.
AudioCodes' WebRTC solutions enable real-time communication and collaboration over the web, with advanced features and scalability.
AudioCodes' DSCs provide scalable and secure Diameter signaling for LTE and IMS networks, ensuring high-quality voice and data services.
AudioCodes' VoIP network management solutions provide real-time monitoring, troubleshooting, and optimization of VoIP networks.
AudioCodes Ltd. faces moderate threat from substitutes, as customers have limited alternatives for its voice and data networking products.
AudioCodes Ltd. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.
AudioCodes Ltd. relies on a few key suppliers for components, giving them some bargaining power, but the company's size and diversification mitigate this risk.
The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with AudioCodes Ltd.
The telecommunications industry is highly competitive, with many established players, leading to intense rivalry and pricing pressure on AudioCodes Ltd.
| Value | |
|---|---|
| Debt Weight | 17.27% |
| Debt Cost | 6.52% |
| Equity Weight | 82.73% |
| Equity Cost | 8.18% |
| WACC | 7.89% |
| Leverage | 20.88% |
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