AudioCodes (NASDAQ:AUDC) Issues Earnings Results, Meets Expectations

AudioCodes (NASDAQ:AUDC) announced its quarterly earnings results on Wednesday. The communications equipment provider reported $0.16 earnings per share for the quarter, hitting analysts’ consensus estimates 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 analysts’ expectations 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 Stock Performance

Shares of AUDC stock traded down $2.04 on Wednesday, hitting $8.31. The stock had a trading volume of 165,840 shares, compared to its average volume of 121,322. The stock’s 50 day moving average is $10.63 and its 200-day moving average is $9.32. The firm has a market capitalization of $200.81 million, a price-to-earnings ratio of 31.98 and a beta of 0.98. AudioCodes has a 52-week low of $6.95 and a 52-week high of $11.74.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a “hold (c)” rating on shares of AudioCodes in a research note on Monday. One research analyst has rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold”.

Insider Buying and Selling at AudioCodes

In other AudioCodes news, EVP Lior Aldema sold 2,812 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $9.98, for a total value of $28,063.76. Following the completion of the transaction, the executive vice president directly owned 104,065 shares of the company’s stock, valued at $1,038,568.70. This represents a 2.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at 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 firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $9.91, for a total value of $267,570.00. The SEC filing for this sale provides additional information. Insiders have sold a total of 39,562 shares of company stock worth $393,201 in the last ninety days. 48.80% of the stock is currently owned by insiders.

AudioCodes Company Profile

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.