AudioCodes (NASDAQ:AUDC) Releases Earnings Results, Misses Estimates By $0.07 EPS

AudioCodes (NASDAQ:AUDC) announced its quarterly earnings results on Tuesday. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.07), Zacks reports. AudioCodes had a net margin of 3.65% and a return on equity of 6.46%.

Here are the key takeaways from AudioCodes’ conference call:

• AudioCodes grew its conversational Voice AI business >50% YoY in Q1 and is targeting 40–50% growth for the segment in 2026, with goals of roughly $25M in 2026 and $50M by 2028.
• Recurring-revenue momentum strengthened — Live managed services plus Voice AI contributed to an $80M ARR exit (up ~20% YoY) and backlog rose to $79M (?15% YoY), supporting future revenue visibility.
• Q1 revenue was $62.1M, up 2.9% YoY, with services making up 54.7% of sales and Microsoft-related business growing 6%.
• Profitability was pressured by higher investments in conversational AI — non?GAAP EPS fell to $0.14 (from $0.15) and adjusted EBITDA margin declined to 9.4% as operating expenses rose to support growth initiatives.
• Strong cash generation and shareholder returns — operating cash flow was $12.8M in Q1, cash and investments totaled $68.1M, management paid a $0.20 dividend and repurchased ~1.7M shares for ~$13.7M.

AudioCodes Price Performance

Shares of AUDC stock traded down $1.59 during trading hours on Tuesday, hitting $8.55. The stock had a trading volume of 355,698 shares, compared to its average volume of 132,074. The firm has a market capitalization of $231.62 million, a PE ratio of 27.58 and a beta of 0.95. AudioCodes has a twelve month low of $6.95 and a twelve month high of $11.50. The stock’s 50 day moving average is $8.43 and its 200 day moving average is $8.60.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded AudioCodes from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 7th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $12.50.

Institutional Investors Weigh In On AudioCodes

Large investors have recently modified their holdings of the company. Dimensional Fund Advisors LP boosted its holdings in shares of AudioCodes by 5.2% in the third quarter. Dimensional Fund Advisors LP now owns 252,768 shares of the communications equipment provider’s stock valued at $2,407,000 after acquiring an additional 12,428 shares during the period. ARK Investment Management LLC boosted its stake in shares of AudioCodes by 23.2% during the fourth quarter. ARK Investment Management LLC now owns 221,966 shares of the communications equipment provider’s stock worth $1,938,000 after buying an additional 41,802 shares during the period. Marshall Wace LLP boosted its stake in shares of AudioCodes by 12.3% during the second quarter. Marshall Wace LLP now owns 179,371 shares of the communications equipment provider’s stock worth $1,761,000 after buying an additional 19,629 shares during the period. Jane Street Group LLC boosted its stake in shares of AudioCodes by 35.5% during the fourth quarter. Jane Street Group LLC now owns 101,122 shares of the communications equipment provider’s stock worth $883,000 after buying an additional 26,520 shares during the period. Finally, JPMorgan Chase & Co. boosted its stake in shares of AudioCodes by 38.3% during the second quarter. JPMorgan Chase & Co. now owns 39,306 shares of the communications equipment provider’s stock worth $386,000 after buying an additional 10,877 shares during the period. 68.05% of the stock is owned by institutional investors and hedge funds.

About AudioCodes

AudioCodes Ltd is a global provider of advanced voice networking and media processing solutions for enterprises and service providers. The company designs and manufactures a comprehensive portfolio of products, including session border controllers (SBCs), media gateways, IP phones, management and monitoring software, and cloud-based communications microservices. Its offerings support a wide range of unified communications (UC) and contact center deployments, enabling secure, high-quality voice connectivity across on-premises, hybrid and cloud environments.

Founded in 1993 and headquartered in Rosh Ha’Ayin, Israel, AudioCodes serves customers in North America, Europe, Asia-Pacific and Latin America.