AUDC

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Roger Chuchen President and Chief Executive Officer - Shabtai Adlersberg Vice President of Finance and Chief Financial Officer - Niran Baruch Need a quote from a Motley Fool analyst? Email [email protected] Operator: Greetings. Welcome to the AudioCodes Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Roger Chuchen, Vice President of Investor Relations. You may begin. Roger Chuchen: Thank you, operator. Hosting the call today are Shabtai Adlersberg, President and Chief Executive Officer; and Niran Baruch, Vice President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to AudioCodes' business outlook, future economic performance, product introductions, plans and objectives related thereto. And statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are forward-looking statements as the term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following, the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets, in particular, including governmental undertakings to address such conditions, shifts in supply and demand, market acceptance of new products and the demand for existing products, the impact of competitive products and pricing on AudioCodes and its customers' products and markets. Timely product and technology development, upgrades, the advent of artificial intelligence and the ability to manage changes in market conditions and evolving regulatory regimes as applicable, possible need for additional financing, the ability to satisfy covenants in AudioCodes financing agreements, possible impacts and disruptions from AudioCodes acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions. Any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel and any other factors described in AudioCodes filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information. In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided a full reconciliation of the non-GAAP net income and net income per share to its net income and net income per share according to GAAP in the press release that is posted on its website. Before I turn the call over to management, I'd like to remind everyone that this call is being recorded. An archived webcast will be made available on the Investor Relations section of the company's website at the conclusion of the call. With all that said, I'd like to turn the call over to Shabtai. Shabtai, please go ahead. Shabtai Adlersberg: Thank you, Roger. Good morning and good afternoon, everybody. I would like to welcome all to our second quarter 2026 conference call. With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance of AudioCodes. Niran will start off by presenting a financial overview of the quarter. I will then review the business highlights and summary for the quarter and discuss trends and developments in our business and industry. We will then turn it into the Q&A session. Niran? Niran Baruch: Thank you, Shabtai, and hello, everyone. Before I start my formal remarks, I would like to remind everyone that in conjunction with our earnings release this morning, we will post shortly on our Investor Relations website and earnings supplemental deck. On today's call, we will be referring to both GAAP and non-GAAP financial results. The earnings press release that we issued earlier this morning contains a reconciliation of the supplemental non-GAAP financial information that I will be discussing on this call. Revenues for the second quarter were $63 million, an increase of 3.1% over the $61.1 million reported in the second quarter of last year. Services revenues for the second quarter were $34.6 million, an increase of 6.2% over the year ago period. Services revenues in the second quarter accounted for 54.9% of total revenues. Revenue by geographic region was as follows, North America, 50%; EMEA, 33%; Asia Pacific, 14%; and Central and Latin America, 3%. Our top 15 customers represented an aggregate of 55% of our revenues in the second quarter, of which 37% was attributed to our 10 largest distributors. GAAP results are as follows, gross margin for the quarter was 65.7% compared to 64.1% in Q2 2025. Operating income for the second quarter was $3.2 million or 5.1% of revenues compared to operating income of $2.6 million or 4.3% of revenues in Q2 2025. Net income for the quarter was $0.5 million or $0.02 per diluted share compared to net income of $0.3 million or $0.01 per diluted share for Q2 2025. Non-GAAP results are as follows, non-GAAP gross margin for the quarter was 65.8% compared to 64.5% in Q2 2025. Non-GAAP operating income for the second quarter was $4.6 million or 7.4% of revenues compared to $4.4 million or 7.2% of revenues in Q2 2024. Non-GAAP net income for the second quarter was $3.9 million or $0.15 per diluted share compared to $4.1 million or $0.14 per diluted share in Q2 2025. At the end of June 2026, cash, cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments totaled $64.2 million. Net cash provided by operating activities was $6.1 million for the second quarter of 2026. Days sales outstanding as of June 30, 2026, were 107 days. In May 2026, we received court approval in Israel to purchase up to an aggregate amount of $25 million of additional ordinary shares. The court approval also permits us to declare a dividend of any part of this amount. The approval is valid through November 12, 2026. During the quarter, we acquired 950,000 of our ordinary shares for a total consideration of approximately $8.9 million. Earlier this morning, we also declared a cash dividend of $0.20 per share. The aggregate amount of the dividend is approximately $4.8 million. The dividend will be paid on September 3 to all of our shareholders of record at the close of trading of August 19. Now to provide an update on our guidance. We reiterate our guidance for non-GAAP diluted net income per share for 2026 to be in the range of $0.60 to $0.75. We are now raising our revenue guidance to a range of $251 million to $256 million compared to the previous range of $247 million to $255 million. I will now turn the call over to Shabtai. Shabtai Adlersberg: Thank you, Niran. Second quarter financial results were solid. Most important, they reflect steady progress on our strategic initiative to transform and reposition AudioCodes as a valued AI-driven cloud and edge software and services company. Our top line growth has maintained its track, driven by ongoing momentum in 2 primary growth engines, our Live Managed Services and Voice AI. Combined, these 2 units contributed to $84 million annual recurring revenue exit second quarter '26, growing 20% year-over-year and highlighting the increasing contribution of recurring high-quality revenue to our model. Annual recurring revenue has doubled in the last 3 years. That provides a strong foundation for future growth. We delivered strong performance in the Microsoft Teams phone business. In addition to achieving 5% year-over-year growth, we saw pipeline expansion, increasing momentum in newly created opportunities and growth in the total contract value of opportunities signed. Performance across our 2 primary segments was in line with expectations with our strong cash-generating connectivity business showing stability and Voice AI business revenue growing again over 50% year-over-year. The strong growth puts us on track to achieve our stated goal of 40% to 50% growth year-over-year for the Voice AI segment for the full year of 2026, targeting to reach $50 million by the end of 2028. Notably, the strong momentum in Voice AI business with new opportunities, new emerging applications and delivering state-of-the-art solution ahead of competition provides us with further incentive to continue to increase investments in this area. Now to highlights of the second quarter. Revenue growth accelerated to 3.1% year-over-year. Enterprise accounted to over 90% of revenues, led by 5% growth in the Microsoft Teams Phone business with a healthy mix of Live Managed Services bookings across Microsoft and Contact Center connectivity. Connectivity business comprised of the business lines of gateways, SBCs and CPE has held nicely in terms of revenue. Services grew 6.2% and now represents roughly 55% of total revenues. Product revenues were about flat. Strength came from our dual growth engines, the Live family of UCC and CX, connectivity services and conversational AI. Backlog reached nearly $90 million, up 23% from $73 million a year ago. The growing Live and Managed Services backlog converts to revenue in coming quarters, keeping top line visibility robust. Together, this dynamic supports continued Live services annual recurring revenue momentum. Stepping back from the quarter, I'd like to spend a few minutes discussing one of the key trends shaping our industry. As generative AI continues to advance and with agentic AI emerging as key trend in recent years, we are seeing growing evidence that voice is becoming the most natural, comfortable and preferred medium for humans to interact with large language models in order to automate verbal communications. This shift is accelerating the adoption of conversational AI across the enterprise with virtual agents and agent- assist solution emerging as some of the fastest-growing use cases. This trend further underlines our pursuit of expanding our business by adding investment in conversational AI technology and solution on top of our traditional voice connectivity business. AudioCodes is uniquely positioned to capitalize on this opportunity. Our long-standing leadership in voice infrastructure, including gateways and session border controls, is complemented by deep expertise in orchestration and application layers that convert and connect enterprise voice environments with AI services. This unique combination enables organizations to seamlessly integrate AI capability into existing communication environments while maintaining the reliability, security and compliance requirements of enterprise voice networks. At the core of our Voice AI agents and agent-assist offering is VoiceAI Connect, a mature and field-proven technology and platform built through years of innovation and customer deployments. Built on our market-leading SBC technology, VoiceAI Connect enables enterprises to connect virtually any voice or telephony environment with leading cognitive voice services and both frameworks. As innovation across the conversational AI ecosystem continues at a rapid pace, enterprises increasingly require flexibility to support heterogeneous environments consisting of both frameworks and cognitive services from various vendors. VoiceAI Connect is uniquely positioned to address this need, as the leading pure-play voice AI orchestration platform in the market, it offers the industry's most comprehensive libraries of pre-integrated APIs and connectors and multiple deployment options, no matter whether it's deployed on-prem, private, public cloud. This enables customers to rapidly and flexibly deploy and evolve Voice AI solution without being tied to a single AI vendor architecture. This open flexible approach aligns well with the dynamic nature of conversational AI landscape and play directly into AudioCode's strength in voice interrogability, orchestration and enterprise communication. Now to the activity in the Microsoft space. I do remember, please, that last year, we ended with revenues of about $245 million, while revenues from the Microsoft area were about $160 million. So, this is our major business activity. And therefore, understanding how that has been evolving and developing in the second quarter does give you some idea as to the future. So we exited 2025 with Microsoft Teams revenue above $160 million. In the second quarter of 2026, revenue grew 5% year-over-year and first half growth reached 5.6%, putting us on track for roughly $170 million by year-end, about 66% of our total company planned revenue. Pipeline momentum was equally encouraging. New created opportunities in the space grew 14% year-over-year, pointing to a healthy demand environment ahead. Total contract value tied to Microsoft Teams activity rose 73% year-over-year to more than $20 million in the second quarter, a strong evidence of the potential in this segment. I'm also pleased to report that a higher than $10 million plus opportunity that we won several years ago with our strongest channels in the U.S. has finally gone into production, adding several millions of those products every year over the next 3 years, meaning the level of revenue coming from connectivity, from gateways and other stuff is going substantially up with like another 3 million or 4 million every year. Overall, the Microsoft Teams voice ecosystem remains healthy. Teams Phone still accounts for only a small share of the more than 320 million monthly active Teams users. And as voice grows more central to an AI-driven copilot workplace, we believe our long-term outlook in these markets remains favorable. Some representative wins in the quarter include the following: one, in the area of IR education, you received follow-on purchase orders with a major state university with over 50 campuses totaling over $1 million, consisting of Live for Teams managed services, professional services and CapEx purchases for phones and video conferencing systems. This amount represents the latest wave of commitment of additional schools as part of the master agreement signed with the IT administrator. In another area, we signed a contract with a global logistics company. In conjunction with the renewal of Teams Live Services, a long-standing global logistics customer located in Europe, has broadened its engagement by adopting our technology globally in place of traditional toll-free numbers. This expanded deployment is expected to generate meaningful cost savings and improve customer service outcomes. Now to conversational AI activity, which was very strong in the second quarter. Glad to report that we have successfully executed our Voice AI growth strategy, delivering another quarter of more than 50% growth year-over-year. In fact, first half '26 revenue grew close to 100% over first half '25. This level of performance brings us closer to achieving our target of growing close to 50% for the overall 2026. Our success in the conversational AI segment reflects the strength of our large enterprise customer base and our unique combination of expertise across telephony, networking, security, cloud and edge computing, collaboration technologies and AI-driven solutions. Let me now turn to a more detailed discussion of the major business line within this segment. Let's begin with the VoiceAI Connect and Live Hub area. Getting back to it. We delivered a record-breaking quarter, driven by continued strong growth in VoiceAI Connect solution and our Live Hub self-service cloud platform. Momentum was broad-based, supported by an accelerating pipeline, steady new logo wins and meaningful expansion across our existing customer base. Revenue growth in first half of '26 supports our target to grow this line of business over 50% year-over-year, similar to the growth achieved in previous year in 2025. Growth in the quarter was primarily driven by significant capacity expansion from existing customers, underscoring the scalability and mission-critical nature of our platform. A key highlight was a Tier 1 health care provider in the U.S., where we have supported a steady ramp in virtual agent and agent deployments over the past 3 years. During the quarter, we secured a purchase order that more than doubled their existing capability, driven largely by increased adoption of virtual agents. We also saw a follow-on win with a major North American retail conglomerate, which selected VoiceAI Connect to power virtual agent experiences for its primary business unit. This builds on the success we reported last quarter with one of its subsidiaries and reflects growing enterprise-wide adoption. These wins reinforce our view that Gen AI-enabled virtual agent and agent-assist solution have reached enterprise-grade maturity and may now be entering the beginning of a broader adoption, accelerating the cycle. To summarize this section, our pipeline continues to build with large more strategic deployments. Sales cycles for new opportunities have shortened in some cases, to approximately 6 months compared to historical range of 12 to 24 months, which points to the maturity of the overall space and existing customers are expanding capacity and increasing pace. Next, to our AI-first contact center solution for Microsoft Teams. The product is called Voca CIC. We continue to experience strong operational momentum in the quarter, driven by new customer wins, expansion with our current existing customers and growing adoption of AI-powered solution. Expanding presence in the financial services, following the Swiss banking Microsoft Teams contact center win highlighted last quarter, our Voca CIC contact center solution was selected by a leading Asian bank, replacing a major legacy incumbent. This competitive win underscores the maturity of our platform and its ability to meet the stringent security, compliance and data protection requirements. It also highlights the broader opportunity in this vertical as financial services organization increasingly standardize on Microsoft Teams, creating a significant potential for Voca CIC. We are seeing an increasing number of existing customers who originally adopted Voca CIC as part of their migration from legacy contact center to the cloud, now expand their engagement with us by adding AI capabilities. This dynamic represents a significant increase in revenue potential of each enterprise customer. One example from the quarter, a major European airport logistics provider added our agent insights and omnichannel capabilities as part of the renewal, significantly increasing the total contract value of the engagement. Several months ago, we launched Voca CIC AI Receptionist, a new solution targeting the small businesses. An AI-powered solution that supports multiple voice platforms, including Microsoft Teams, et cetera. Customer interest has been encouraging, particularly among organizations seeking to modernize customer interaction as part of a broader contact center strategy. As part of this initiative, Microsoft announced Teams Phone Agent at the InfoComm 2026 trade show in June, opening Teams Phone to third-party voice agents based on Copilot. AudioCodes was the only third-party solution naming Microsoft announcement with our voice agent generally available at launch. This recognition underscores our position as a category leader in the Microsoft Teams customer experience and our deep expertise in the Teams phone ecosystem. While AI receptionist is multi-platform by design, it goes deepest on Microsoft Teams, where our installed base and partnerships are strongest. Short after that, Voca CIC became the first solution listed under Microsoft new Teams Voice Agent certification program. Voca CIC was already certified by Microsoft as a Team contract center on the unified integration model with the second certification, Voca CIC now holds Microsoft certification for both a Microsoft Teams contact center and an AI voice agent that sits in front of it. As of today, we know of no other vendor that is listed with both like us. At the heart of this offering is Microsoft Teams specific version of AI receptionist delivered under Voca CIC and build end-to-end on the Microsoft technology. Microsoft Call Automation orchestrates this interaction and Microsoft Copilot is the AI agent driving the voice agent. The entire call path runs the Microsoft stack for enterprises building their cloud and AI strategy on Microsoft that removes a lot of friction. One technology stack, one security and compliance review, one accountable provider for implementing an ongoing support under a fully managed service. Together, these 2 milestones extend our leadership position in the Microsoft Teams customer experience category with Voca CIC. Microsoft Teams Phone continues to expand its footprint in the enterprise and every Teams phone is potentially home for both Teams native contact center and a Teams native voice agent. We expect this to translate into a stronger pipeline as enterprises move from evaluating AI voice agents to deploying them at scale. Moving on to Meeting Insights Cloud Edition. Meeting Insight Cloud Edition maintained strong momentum during the quarter with continued growth across key operating metrics. Meeting volume was -- has doubled basically over the year ago quarter. Monthly recurring revenues grew close to 150% and the active users number reached a new record level, growing 50% year-over-year. The sales focus of Meeting Insight until now has primarily been concentrated to 2 or 3 countries. We now plan to expand the sales activity into substantially more markets, which as you can imagine, can substantially grow revenues substantially further. Exit second quarter 2026, Meeting Insight is a mature and proven cloud platform built through years of innovation and customer deployments. Our strategy of delivering tailored workflow solution for specific vertical markets continues to gain traction and is translating into meaningful commercial and operational momentum. On the product innovation front, we further enhanced this platform with automatic language, multi-language operation and smart search, which enables users to query meeting insight using natural language. These capabilities improve the effectiveness of the solution to management teams and help customers extract greater value and intelligence from their meeting data. Moving on to MIA Edge. MIA Edge is our next-generation MIA OP, MIA on-prem, which provides secured meeting analysis and intelligence extraction. MIA OP has proved market demand for Air gap off-cloud and secured meeting insights, intelligent extraction targeting mainly government and defense use cases. We have also found much interest in this unique solution in the health care and finance sector seeking increased security. Currently, it supports cloud, on-premise, hybrid and air gap deployment models. MIA Edge has been designed for regulated customers that cannot use AI on public clouds. It was designed to provide ultimate ownership and access control, data sovereignty and not less, the ability to control AI operation costs, which are mounting these days as a result of the ever-growing use of AI workloads by organization year-over-year. One key effort in the second quarter and ongoing is the alignment of the solution to feed different customer environments such as Microsoft Teams, Cisco Jabber, Skype for Business, Google Meet, Zoom and Phone calls. At this stage, we have more than 25 active accounts with 10 in production and the rest in proof of concept and implementation. And with that, I'd like to wrap up my presentation just to say that we had a good operational momentum in the second quarter of 2026, particularly with the continued strong growth for our 2 primary engines, the Live family of Managed Services and Voice AI. With the progress we are making in increasing our recurring revenues, we are on track with our target of delivering improved healthy top line growth in 2026 and beyond. And with that, I'd like to move the call to the Q&A session. Operator? Operator: [Operator Instructions] We have reached the end of the question-and-answer session, and I will now turn the call over to Shabtai for closing remarks. Shabtai Adlersberg: Thank you, operator. I would like to thank everyone who attended our conference call today. With continued good business momentum in our UCaaS and CCaaS operations and continued growth in our emerging Voice AI business, we believe we are on track to continue our growth in the next coming years. We look forward to your participation in our next quarterly conference call. Thank you all. Have a nice day. Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. 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Interested in AudioCodes Ltd.? Here are five stocks we like better. AudioCodes reported solid Q2 growth: Revenue rose 3.1% year over year to $63 million, while services revenue increased 6.2% to $34.6 million. Gross margin and GAAP operating income also improved from the prior-year quarter. The company raised its 2026 revenue outlook to $251 million-$256 million while maintaining non-GAAP EPS guidance of $0.60-$0.75. AudioCodes also announced a $0.20-per-share dividend and repurchased approximately $8.9 million of shares during the quarter. Managed services and VoiceAI remain key growth drivers: Combined annual recurring revenue increased 20% to an $84 million exit rate, backlog rose 23% to nearly $90 million, and VoiceAI revenue grew more than 50% year over year. AudioCodes (NASDAQ:AUDC) reported second-quarter 2026 revenue of $63 million, up 3.1% from $61.1 million a year earlier, as growth in managed services and voice artificial intelligence offerings supported its results. The company raised its full-year revenue outlook while reiterating its non-GAAP earnings-per-share guidance. Services revenue increased 6.2% year over year to $34.6 million and represented 54.9% of total quarterly revenue. Revenue distribution by region was 50% from North America, 33% from Europe, the Middle East and Africa, 14% from Asia-Pacific, and 3% from Central and Latin America. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Financial Officer Niran Baruch said AudioCodes generated $6.1 million in operating cash flow during the quarter and ended June with $64.2 million in cash equivalents, short-term bank deposits, marketable securities and long-term financial investments. On a GAAP basis, gross margin rose to 65.7% from 64.1% in the second quarter of 2025. Operating income increased to $3.2 million, or 5.1% of revenue, from $2.6 million, or 4.3% of revenue, a year earlier. Net income was $0.5 million, or $0.02 per diluted share, compared with $0.3 million, or $0.01 per diluted share, in the prior-year period. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? Non-GAAP gross margin was 65.8%, compared with 64.5% a year earlier. Non-GAAP operating income was $4.6 million, or 7.4% of revenue, versus $4.4 million, or 7.2% of revenue, in the year-ago quarter. Non-GAAP net income was $3.9 million, or $0.15 per diluted share, compared with $4.1 million, or $0.14 per diluted share, in the second quarter of 2025. AudioCodes’ days sales outstanding stood at 107 days as of June 30. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Baruch said the company now expects 2026 revenue of $251 million to $256 million, raising the lower end of its previous $247 million to $255 million range. AudioCodes maintained its forecast for non-GAAP diluted earnings per share of $0.60 to $0.75 for the year. In May, AudioCodes received Israeli court approval to purchase up to $25 million of additional ordinary shares or declare a dividend from that amount. The authorization remains valid through Nov. 12, 2026. During the second quarter, the company repurchased 950,000 ordinary shares for approximately $8.9 million. The company also declared a cash dividend of $0.20 per share, totaling approximately $4.8 million. The dividend is scheduled to be paid Sept. 3 to shareholders of record as of Aug. 19. President and Chief Executive Officer Shabtai Adlersberg said the company’s Live managed-services business and VoiceAI operations generated a combined annual recurring revenue exit rate of $84 million at the end of the second quarter, up 20% from a year earlier. He said annual recurring revenue has doubled over the past three years. AudioCodes’ backlog reached nearly $90 million, up 23% from $73 million a year earlier. Adlersberg said the expanding Live managed-services backlog is expected to convert into revenue in coming quarters. Enterprise customers represented more than 90% of quarterly revenue, according to Adlersberg. The company’s Microsoft Teams Phone business grew 5% year over year during the quarter and 5.6% during the first half. AudioCodes exited 2025 with more than $160 million in Microsoft Teams revenue and is targeting roughly $170 million by the end of 2026, he said. New Microsoft Teams-related opportunities increased 14% year over year, while total contract value associated with Teams activity rose 73% to more than $20 million in the quarter. Adlersberg also said a previously won opportunity valued at more than $10 million had entered production and is expected to add several million dollars of product revenue annually over the next three years. A major state university with more than 50 campuses placed follow-on orders totaling more than $1 million for Live Pro Teams managed services, professional services, phones and video conferencing systems. A European global logistics customer renewed Teams Live services and expanded its use of Voca technology globally to replace traditional toll-free numbers. Adlersberg said VoiceAI revenue grew more than 50% year over year in the second quarter and nearly 100% in the first half. The company said it remains on track for 40% to 50% VoiceAI growth for the full year and is targeting $50 million in VoiceAI revenue by the end of 2028. AudioCodes’ VoiceAI Connect and Live Hub operations recorded what Adlersberg described as a record quarter, driven largely by capacity expansions among existing customers. A U.S. tier-one healthcare provider more than doubled its existing VoiceAI capability during the quarter, while a North American retail conglomerate selected VoiceAI Connect for virtual-agent experiences at its primary business unit. The company said sales cycles for certain new VoiceAI opportunities have shortened to about six months from a historical range of 12 to 24 months. Adlersberg said this trend reflects growing maturity in the conversational AI market and increasing enterprise adoption of virtual-agent and agent-assist technology. AudioCodes also highlighted momentum for its Voca CIC contact-center platform, including a selection by a leading Asian bank to replace a legacy provider. Microsoft named AudioCodes as the only third-party solution in its June announcement of Teams Phone Agent, according to Adlersberg. Voca CIC subsequently became the first solution listed in Microsoft’s Teams Phone Agent certification program, he said. In its Meeting Insights Cloud Edition business, AudioCodes reported monthly recurring revenue growth of nearly 150% and active-user growth of 50% from a year earlier. The company plans to expand sales activity beyond the two or three countries that have been its primary markets for the product. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "AudioCodes Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

OR YEHUDA, Israel, Aug. 4, 2026 /PRNewswire/ -- Second Quarter Highlights Quarterly revenues increased by 3.1% year-over-year to $63 million; Quarterly services revenues increased by 6.2% year-over-year to $34.6 million; GAAP results:- Quarterly GAAP gross margin was 65.7%;- Quarterly GAAP operating margin was 5.1%;- Quarterly GAAP net income was $0.5 million, or $0.02 per diluted share. Non-GAAP results:- Quarterly Non-GAAP gross margin was 65.8%;- Quarterly Non-GAAP operating margin was 7.4%;- Quarterly Non-GAAP net income was $3.9 million, or $0.15 per diluted share; Net cash provided by operating activities was $6.1 million for the quarter. AudioCodes repurchased 950,133 of its ordinary shares during the quarter at an aggregate cost of $8.9 million. Details AudioCodes (NASDAQ: AUDC) (the "Company"), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the second quarter ended June 30, 2026. Revenues for the second quarter of 2026 were $63 million compared to $61.1 million for the second quarter of 2025. Net income was $0.5 million, or $0.02 per diluted share, for the second quarter of 2026 compared to net income of $0.3 million, or $0.01 per diluted share, for the second quarter of 2025. On a Non-GAAP basis, net income was $3.9 million, or $0.15 per diluted share, for the second quarter of 2026 compared to $4.1 million, or $0.14 per diluted share, for the second quarter of 2025. Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin exclude: (i) share-based compensation expenses and (ii) amortization expenses related to intangible assets. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures are provided in the tables that accompany the condensed consolidated financial statements contained in this press release. Net cash provided by operating activities was $6.1 million for the second quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $64.2 million as of June 30, 2026, compared to $75.7 million as of December 31, 2025. The decrease in cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments was the result of the use of cash for the continued repurchase of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the first quarter. This was partially offset by cash generated from operating activities and proceeds from the maturity of marketable securities. "I am pleased to announce strong financial results for the second quarter of 2026, reflecting well on the execution of our strategic initiative to transform AudioCodes into a voice AI-driven cloud software and services company," stated Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. Second-quarter results were propelled again by sustained momentum across our two principal growth pillars: the Live suite of managed services for UCaaS and CX, alongside our Conversational AI business. Collectively, these segments advanced Annual Recurring Revenue (ARR) to $84 million, marking an increase of 20% compared to the year ago period. Notably, our Microsoft Teams business maintained its strong momentum, growing 5% year over year. Consistent with the first quarter of this year, our Conversational AI business grew by more than 50% year over year in the second quarter, reflecting strong and broad-based demand across our Voice AI portfolio. The growing adoption of voice as the most natural and preferred medium for business communication and collaboration is becoming the experience of many and strengthens our confidence in the long-term growth potential of the business. During the quarter, Voice AI Connect and Live Hub delivered record bookings, driven by an accelerating pipeline, consistent new logo acquisition, and significant expansion within our existing customer base. These solutions support both virtual agent and agent-assist capabilities across the growing contact center market, in both cloud and on-premises deployments. Voca CIC, our Microsoft Teams-certified contact center solution has also generated good business progress. In addition, Meeting Insights, our enterprise-grade meeting intelligence solution for cloud and on-premises environments, continues to gain traction as customer interest grows and the opportunity pipeline steadily expands. "Overall, we achieved our operational and financial targets through maintaining budgetary and managerial discipline. The ongoing investments in Live services and Voice AI have significantly contributed to our current success and position us favorably for continued healthy top-line growth throughout the remainder of 2026," concluded Mr. Adlersberg. Share Buy Back Program In May 2026, the Company received court approval in Israel to purchase up to an aggregate amount of $25 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through November 12, 2026. During the quarter ended June 30, 2026, the Company acquired 950,133 of its ordinary shares under its share repurchase program for a total consideration of $8.9 million. As of June 30, 2026, the Company had $17.4 million available under this approval for the repurchase of shares and/or declaration of cash dividends. As of June 30, 2026, the total outstanding shares of the Company are 24,590,849. Cash Dividend AudioCodes also announced today that the Company's Board of Directors has declared a semi-annual cash dividend in the amount of 20 cents per share. The aggregate amount of the dividend is approximately $4.8 million. The dividend is payable on September 3, 2026, to all of the Company's shareholders of record at the close of trading on the NASDAQ Global Select Market on August 19, 2026. In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital, the withholding rate is 30%. The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Company's Board of Directors. Conference Call & Web Cast Information AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's second quarter of 2026 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers: United States Participants: 888-506-0062 International Participants: +1 (973) 528-0011 The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby. Follow AudioCodes' social media channels: AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube. About AudioCodes AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a global leader in enterprise voice and VoiceAI business solutions. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward. For more information on AudioCodes, visit http://www.audiocodes.com. Statements concerning AudioCodes' business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as the term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular, including governmental undertakings to address such conditions; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades, the advent of artificial intelligence, and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes' financing agreements; possible impacts and disruptions from AudioCodes' acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and any other factors described in AudioCodes' filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release. ©2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice. Logo - https://mma.prnewswire.com/media/2391462/audiocodes_Logo.jpg View original content:https://www.prnewswire.com/news-releases/audiocodes-reports-second-quarter-2026-results-and-declares-semi-annual-dividend-of-20-cents-per-share-302842022.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is successfully repositioning the company from legacy hardware to an AI-driven cloud and edge software provider, with recurring revenue now a primary growth engine. Performance was driven by the 'dual growth engines' of Live Managed Services and Voice AI, which reached a combined annual recurring revenue (ARR) of $84 million, a 20% year-over-year increase. The Microsoft Teams business remains a core pillar, contributing 66% of total planned revenue and benefiting from a 73% surge in total contract value tied to Microsoft Teams activity. Voice AI revenue grew over 50% year-over-year, supported by the emergence of 'agentic AI' where voice is becoming the preferred medium for human interaction with large language models. The connectivity business (gateways and SBCs) has stabilized and continues to generate strong cash flow, acting as a foundational layer for higher-margin AI orchestration services. Operational efficiency improved as services now represent approximately 55% of total revenues, shifting the mix toward higher-quality, predictable income streams. Management raised 2026 revenue guidance to a range of $251 million to $256 million, reflecting increased confidence in the Voice AI and Microsoft Teams pipelines. The company is targeting $50 million in Voice AI revenue by the end of 2028, supported by plans to increase investments in conversational AI technology. Sales cycles for Voice AI solutions have shortened significantly to approximately 6 months, down from a historical range of 12 to 24 months, indicating maturing market adoption. Expansion plans for 'Meeting Insight' involve moving beyond the current 2-3 core countries into substantially more global markets to scale monthly recurring revenue. A major $10 million plus connectivity win is moving into production, expected to add $3 million to $4 million in annual revenue over the next three years. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company received Israeli court approval to repurchase up to $25 million in shares or declare dividends through November 2026, signaling confidence in cash flow sustainability. A cash dividend of $0.20 per share was declared, totaling approximately $4.8 million to be paid in September 2026. Management highlighted geopolitical risks, noting that current or future hostilities involving Israel could potentially disrupt operations or personnel availability. The 'MIA Edge' solution was launched to address specific risks and regulatory requirements for 'air-gapped' or off-cloud AI deployments in government and defense sectors.

This article first appeared on GuruFocus. Revenue: $63 million, up 3.1% year-over-year from $61.1 million. Services Revenue: $34.6 million, up 6.2% year-over-year, representing 54.9% of total revenues. GAAP Gross Margin: 65.7%, compared to 64.1% in Q2 2025. GAAP Operating Income: $3.2 million, or 5.1% of revenues, compared to $2.6 million (4.3% of revenues) in Q2 2025. GAAP Net Income: $0.5 million, or $0.02 per diluted share, compared to $0.3 million ($0.01 per diluted share) in Q2 2025. Non-GAAP Gross Margin: 65.8%, compared to 64.5% in Q2 2025. Non-GAAP Operating Income: $4.6 million, or 7.4% of revenues, compared to $4.4 million (7.2% of revenues) in Q2 2025. Non-GAAP Net Income: $3.9 million, or $0.15 per diluted share, compared to $4.1 million ($0.14 per diluted share) in Q2 2025. Cash and Investments: Totaled $64.2 million at the end of June 2026. Operating Cash Flow: $6.1 million for the second quarter of 2026. Days Sales Outstanding: 107 days as of June 30, 2026. Share Repurchases: Acquired $950,000 of ordinary shares during the quarter. Dividend: Declared a cash dividend of $0.20 per share, approximately $4.8 million in aggregate. Annual Recurring Revenue (ARR): Combined live managed services and voice AI units contributed $84 million in ARR exiting Q2 2026, growing 20% year-over-year. Microsoft Teams Phone Revenue: Grew 5% year-over-year in Q2 2026. Voice AI Revenue Growth: Grew over 50% year-over-year in Q2 2026; first half 2026 revenue grew close to 100% over first half 2025. Backlog: Reached nearly $90 million, up 23% from $73 million a year ago. Meeting Insights Cloud Edition: Monthly recurring revenues grew close to 150% year-over-year; active users grew 50% year-over-year. 2026 Guidance: Revenue guidance raised to $251 million to $256 million; non-GAAP diluted EPS guidance reiterated at $0.60 to $0.75. Warning! GuruFocus has detected 6 Warning Signs with AUDC. Is AUDC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AudioCodes Ltd (NASDAQ:AUDC) reported solid Q2 2026 results with revenue growth of 3.1% year-over-year, driven by strong momentum in its two primary growth engines: Live managed services and Voice AI. The company's Voice AI business grew over 50% year-over-year in Q2, with first-half 2026 revenue growing close to 100% compared to the first half of 2025, positioning it well to achieve its full-year growth target of 40-50%. Annual recurring revenue (ARR) from Live managed services and Voice AI reached $84 million, growing 20% year-over-year and doubling over the last three years, highlighting the increasing contribution of high-quality recurring revenue. Backlog reached nearly $90 million, up 23% year-over-year, providing strong top-line visibility for future quarters. The company achieved significant milestones in the Microsoft ecosystem, including being the only third-party solution named in Microsoft's Teams Phone Agent announcement and becoming the first solution listed on Microsoft's new Teams Voice Agent Certification Program. AudioCodes Ltd (NASDAQ:AUDC) raised its full-year 2026 revenue guidance to $251-$256 million, up from the previous range of $247-$255 million, reflecting increased confidence in its growth trajectory. Non-GAAP net income for Q2 2026 declined to $3.9 million from $4.1 million in the year-ago quarter, despite revenue growth, indicating margin pressure. Day sales outstanding (DSO) remained elevated at 107 days as of June 30, 2026, which could indicate potential cash flow collection challenges. The company's overall revenue growth of 3.1% remains modest, and product revenues were roughly flat year-over-year, suggesting limited growth in the traditional hardware business. AudioCodes Ltd (NASDAQ:AUDC) faces ongoing risks related to its operations in Israel, including potential disruptions from regional hostilities and military service obligations of personnel. The company's GAAP net income was only $0.5 million for the quarter, reflecting significant expenses and charges that reduce profitability compared to non-GAAP results. While the company is investing heavily in Voice AI, it acknowledges the need to continue increasing investments in this area, which could pressure near-term profitability. Q: Can you provide more details on the company's revenue guidance raise and the factors driving the improved outlook for 2026?A: Niran Baruch (CFO) confirmed the company is raising its 2026 revenue guidance to a range of $251 million to $256 million, up from the previous $247 million to $255 million. This upward revision is supported by strong momentum in the company's two primary growth enginesLive managed services and Voice AIwhich together contributed to an $84 million annual recurring revenue (ARR) exit rate for Q2 2026, growing 20% year-over-year. The company reiterated its non-GAAP diluted EPS guidance of $0.60 to $0.75 for the full year. Q: What is the current performance and outlook for the Voice AI business segment?A: Shabtai Adlersberg (CEO) reported that the Voice AI business grew over 50% year-over-year in Q2, with first-half 2026 revenue growing close to 100% compared to the first half of 2025. This strong performance puts the company on track to achieve its stated goal of 40% to 50% growth for the full year 2026, targeting $50 million in revenue by the end of 2028. The growth is driven by significant capacity expansion from existing customers, new logo wins, and the accelerating adoption of generative AI-enabled virtual agents and agent assist solutions. Q: How is the Microsoft Teams phone business performing, and what is the significance of the recent Microsoft certifications?A: Shabtai Adlersberg (CEO) noted that Microsoft Teams revenue grew 5% year-over-year in Q2, with first-half growth reaching 5.6%, putting the company on track for roughly $170 million by year-end. The total contract value tied to Microsoft Teams activity rose 73% year-over-year to over $20 million in Q2. The CEO highlighted that Voca CIC became the first solution listed on Microsoft's new Teams Voice Agent Certification Program, and it holds certifications for both a Microsoft Teams contact center and an AI voice agent. This dual certification is a unique competitive advantage, as no other vendor is listed with both. Q: Can you elaborate on the progress and market reception of the Meeting Insights Cloud Edition?A: Shabtai Adlersberg (CEO) reported strong momentum for Meeting Insights Cloud Edition, with meeting volume stabilizing over the year-ago quarter, monthly recurring revenues growing close to 150%, and active users reaching a new record level with 50% year-over-year growth. The company plans to expand sales activity from its current focus on two or three countries into substantially more markets, which is expected to drive further revenue growth. The platform has been enhanced with automatic multi-language operation and smart search capabilities. Q: What is the status of the Mia Edge product, and what is its target market?A: Shabtai Adlersberg (CEO) described Mia Edge as the company's next-generation, on-premise solution for secured meeting analysis and intelligence extraction, targeting government, defense, healthcare, and finance customers that cannot use AI on public clouds. The solution supports cloud, on-premise, hybrid, and air-gapped deployment models, providing data sovereignty and control over AI operation costs. Currently, there are more than 25 active accounts, with 10 in production and the rest in proof of concept or implementation phases. Q: How is the company addressing the trend of voice becoming a preferred medium for interacting with large language models?A: Shabtai Adlersberg (CEO) explained that the company is uniquely positioned to capitalize on the shift toward voice as the most natural medium for human interaction with LLMs. AudioCodes' longstanding leadership in voice infrastructure, combined with its expertise in orchestration and application layers, enables organizations to seamlessly integrate AI capabilities into existing communication environments. The company's Voice AI Connect platform is a mature, field-proven technology that connects virtually any voice or telephony environment with leading cognitive voice services, offering the industry's most comprehensive libraries of pre-integrated APIs and connectors. Q: What are the key drivers behind the strong performance in the Voice AI Connect and Live Hub area?A: Shabtai Adlersberg (CEO) attributed the record-breaking quarter to continuous strong growth in Voice AI Connect and the Live Hub self-service cloud platform. Momentum was broad-based, supported by an accelerating pipeline, new logo wins, and meaningful expansion across the existing customer base. A key highlight was a tier-one healthcare provider in the U.S. that secured a purchase order more than doubling their existing capability, driven by increased adoption of virtual agents. Sales cycles for new opportunities have shortened to approximately six months, compared to the historical range of 12 to 24 months. Q: Can you provide details on the recent wins in the Voca CIC Contact Center business?A: Shabtai Adlersberg (CEO) highlighted a competitive win with a leading Asian bank, which selected Voca CIC to replace a major legacy incumbent, underscoring the platform's ability to meet stringent security, compliance, and data protection requirements. The company is also seeing existing customers expand their engagements by adding capabilities like agent insights and omnichannel features. A major European airport logistics provider added these capabilities as part of a renewal, significantly increasing the total contract value of the engagement. Q: What is the significance of the $10 million-plus opportunity that recently went into production?A: Shabtai Adlersberg (CEO) reported that a significant opportunity won several years ago with the company's strongest channel in the U.S. has finally gone into production. This win is expected to add several million dollars in revenue from connectivity, gateways, and other products each year over the next three years, substantially increasing the level of recurring revenue from this customer. Q: How is the company's overall financial performance in Q2 2026, and what is the cash position?A: Niran Baruch (CFO) reported Q2 2026 revenues of $63 million, a 3.1% increase year-over-year. Services revenues grew 6.2% to $34.6 million, representing 54.9% of total revenues. Non-GAAP operating income was $4.6 million (7.4% of revenues), and non-GAAP net income was $3.9 million, or $0.15 per diluted share. The company ended the quarter with $64.2 million in cash, equivalents, and investments, and For the complete transcript of the earnings call, please refer to the full earnings call transcript.

OR YEHUDA, Israel, July 6, 2026 /PRNewswire/ -- AudioCodes (NASDAQ: AUDC), a leading provider of voice, contact center and conversational AI applications and services for enterprises, today announced that it will release financial results for its Second Quarter 2026 on August 4, 2026, before the market open on NASDAQ, reflecting the quarterly period ended June 30, 2026. AudioCodes' financial results will be released over the news wires and will also be posted on its corporate website. On Tuesday, August 4, 2026, at 8:30 a.m. Eastern Time, AudioCodes will conduct a conference call to discuss the Second Quarter 2026 results, which will be webcasted simultaneously. The call will be hosted by Shabtai Adlersberg, AudioCodes' President and Chief Executive Officer, and Niran Baruch, AudioCodes' Chief Financial Officer. Investors are invited to listen to the call live by dialing 888-506-0062 in the USA or +1 973-528-0011 internationally or via webcast on the AudioCodes investor website at http://www.audiocodes.com/investors-lobby. Please visit the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the call will be available on the AudioCodes investor website approximately two hours after the conference call has ended. Follow AudioCodes' social media channels: AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube. About AudioCodes AudioCodes Ltd. (NASDAQ: AUDC) (TASE: AUDC) is a global leader in enterprise voice solutions and voice AI innovation. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward. For more information on AudioCodes, visit http://www.audiocodes.com. Statements concerning AudioCodes' business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular, including governmental undertakings to address such conditions; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades, the advent of artificial intelligence and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes' financing agreements; possible impacts and disruptions from AudioCodes' acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and any other factors described in AudioCodes' filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release. ©2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice. Company Contacts Niran Baruch,Chief Financial OfficerAudioCodesTel: [email protected] Roger L. ChuchenVP, Investor RelationsAudioCodesTel: [email protected] Logo: https://mma.prnewswire.com/media/2391462/audiocodes_Logo.jpg View original content:https://www.prnewswire.com/news-releases/audiocodes-announces-second-quarter-2026-reporting-date-302818223.html

Management is pivoting the company from a traditional voice infrastructure provider into a voice AI-driven hybrid cloud software and services entity. Top-line growth was primarily driven by the 'dual growth engines' of Live Managed Services and Voice AI, which reached an $80 million annual recurring revenue (ARR) exit rate. The Conversational AI segment grew over 50% year-over-year, now representing approximately 8% of total revenue as enterprise uptake of Voice AI offerings accelerates. Strategic reallocation of R&D and sales investments into Voice AI is intended to leverage the existing enterprise installed base through cross-selling value-added services. Management identified a shift toward hybrid architectures, noting that data sovereignty, security, and latency concerns are driving demand for edge computing over cloud-only solutions. The Microsoft business ecosystem remains a core pillar of strength, growing 6% year-over-year and serving as a primary vehicle for attaching new AI-driven contact center solutions. Operational expenses increased due to targeted investments in the conversational AI business, which management views as the primary growth engine for the coming years. Management reiterated full-year 2026 revenue guidance of $247 million to $255 million and non-GAAP EPS of $0.60 to $0.75. The company targets 50% growth for the Voice AI segment in 2026 to reach $25 million, with a long-term goal of reaching $50 million in business for this unit by 2028. A growing backlog of $79 million in Live and Managed Services is expected to convert into revenue in the coming quarters, providing high visibility into recurring growth. Strategic focus is shifting toward 'Agent Insights,' an AI-driven summarization service that management believes represents a meaningful upsell opportunity, accounting for over 50% of agency value. Expansion plans for the 'MIA OP' on-premise meeting intelligence solution include targeting government, defense, and healthcare sectors where edge-based deployments are critical for privacy. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The company reported a record backlog of $79 million, representing a 15% increase compared to the year-ago period. AudioCodes returned capital to shareholders through a $0.20 per share cash dividend and the repurchase of 1.7 million ordinary shares for approximately $13.7 million. Geopolitical factors in Israel were cited as a catalyst for increased demand for edge computing and secure on-premise transcription services like MIA OP. Workforce increased to 1,000 full-time employees from 920 in the previous quarter to support the scaling of the conversational AI business. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Tuesday, May 5, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Shabtai Adlersberg Vice President of Finance and Chief Financial Officer — Niran Baruch Shabtai Adlersberg, President and Chief Executive Officer; and Niran Baruch, Vice President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to AudioCodes' business outlook, future economic performance, product introductions, plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are forward-looking statements as the term is defined under U.S. securities law. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets, in particular, including governmental undertakings to address such conditions, shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes and its customers' products and markets; timely product and technology development upgrades, the advent of artificial intelligence and the ability to manage changes in market conditions and evolving regulatory regimes as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes' financing agreements, possible impacts and disruptions from AudioCodes acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions, any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel and any other factors described in AudioCodes filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information. In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided a full reconciliation of the non-GAAP net income and net income per share to its net income and net income per share according to GAAP in the press release that is posted on its website. Before I turn the call over to management, I'd like to remind everyone that this call is being recorded. An archived webcast will be made available on the Investor Relations section of the company's website at the conclusion of the call. With all that said, I'd like to turn the call over to Shabtai. Shabtai, please go ahead. Shabtai Adlersberg: Thank you, Roger. Good morning and good afternoon, everybody. I would like to welcome all to our first quarter 2026 conference call. With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance of AudioCodes. Niran will start off by presenting a financial overview of the quarter. I will then review the business highlights and the summary and discuss trends and developments in our business and industry. We will then turn it into the Q&A session. Niran? Niran Baruch: Thank you, Shabtai, and hello, everyone. Before I start my formal remarks, I would like to remind everyone that in conjunction with our earnings release this morning, we will post shortly on our Investor Relations website an earnings supplemental deck. On today's call, we will be referring to both GAAP and non-GAAP financial results. The earnings press release that we issued earlier this morning contains a reconciliation of the supplemental non-GAAP financial information that I will be discussing on this call. Revenues for the first quarter were $62.1 million, an increase of 2.9% over the $60.4 million reported in the first quarter of last year. Services revenues for the first quarter were $34 million, an increase of 4.3% over the year ago period. Services revenues in the first quarter accounted for 54.7% of total revenues. Revenues by geographical region for the quarter were split as follows: North America 49%; EMEA 34%; Asia-Pacific 13%; and Central and Latin America 4%. Our top 15 customers represented an aggregate of 53% of our revenues in the first quarter, of which 34% was attributed to our eight largest distributors. GAAP results are as follows: Gross margin for the quarter was 66.2% compared to 64.8% in Q1 2025. Operating income for the first quarter was $3.4 million or 5.4% of revenues compared to operating income of $3.6 million or 6% of revenues in Q1 2025. Net income for the quarter was $2 million or $0.07 per diluted share compared to net income of $4 million or $0.13 per diluted share for Q1 2025. Non-GAAP results are as follows: Non-GAAP gross margin for the quarter was 66.3% compared to 65.2% in Q1 2025. Non-GAAP operating income for the first quarter was $4.8 million or 7.7% of revenues compared to $5.4 million or 8.9% of revenues in Q1 2025. And non-GAAP net income for the first quarter was $3.8 million or $0.14 per diluted share compared to $4.7 million or $0.15 per diluted share in Q1 2025. At the end of March 2026, cash, cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments totaled $68.1 million. Net cash provided by operating activities was $12.8 million for the first quarter of 2026. Days sales outstanding as of March 31, 2026, were 104 days. On February 3, 2026, we declared a cash dividend of $0.20 per share. The dividend in aggregate amount of approximately $5.3 million was paid on March 6, 2026. During the quarter, we acquired 1.7 million of our ordinary shares for a total consideration of approximately $13.7 million. We reiterate our guidance for revenues for 2026 to be in the range of $247 million to $255 million and non-GAAP earnings per diluted share of $0.60 to $0.75. I will now turn the call over to Shabtai. Shabtai Adlersberg: Thank you, Niran. I'm pleased to report solid first quarter results, reflecting continued effective execution against our strategic priorities as we continue our transformation into a voice AI-driven hybrid cloud software and services company. Our top line growth accelerated during the quarter, driven by ongoing momentum in our two primary growth engines, our Live Managed Services and Voice AI. Combined, these two units contributed to $80 million annual recurring revenue exit first quarter '26, growing nearly 20% year-over-year and highlighting the increasing contribution of recurring high-quality revenue to our model. By segment, our connectivity business sustained well in the quarter, while conversational AI business grew above 50% and accounted in the first quarter for roughly 8% of revenue, underscoring the rapid uptake of our Voice AI offerings. As discussed previously, over the past several quarters and more so in the first quarter '26, we have reallocated and increased investments in Voice AI in both R&D and sales and marketing in order to scale our channel presence and better leverage our enterprise installed base through cross-selling of value-added services. These initiatives are clearly delivering tangible results and returns and our strong start to the year on the Voice AI puts us on track to achieve our target of 40% to 50% growth for this segment in '26 and to ultimately reach roughly $80 million of business in 2028. First quarter growth improved to 2.9% year-over-year. Enterprise revenues accounted for over 90% of revenues in the quarter, highlighted by ongoing strength in the Microsoft business, which grew 6% year-over-year. Overall, first quarter product revenues were about flat, while services grew 4.3% and accounted now for 55% of total revenues. Within services, the strength was driven by strong traction in our dual growth engines, namely the live family of UCaaS and CaaS, connectivity services and conversational business. We are growing ever more optimistic about the continued strong annual recurring revenue momentum and growth prospects for the overall company, fueled by a recent next-gen live platform wins and meaningful pipeline of opportunities; and second, growing demand for productivity-enhancing GenAI value-added services. This conviction is further reinforced by the growing backlog of Live and Managed Services that will convert to revenues in coming quarters. We exited first quarter '26 backlog with backlog at $79 million compared to $67 million from the year ago period, growth of close to 15%. Now to our business strategy. Modern enterprise communications are highly fragmented with the organization relying on a mix of telephony, networking, security, cloud and edge computing architectures, collaboration tool like Microsoft Teams and Zoom and emerging AI-driven technologies. As voice remains the main channel for real-time interactions, ensuring seamless, reliable, secure and compliant, integration across these diverse environments is increasingly challenging. This highlights the growing need for a unified strategy to orchestrate voice, cloud and AI application effectively and this is where AudioCodes is service. AudioCodes utilizes a 3-layer architecture comprising infrastructure, platforms and applications to address modern voice communication and collaboration challenges. The infrastructure layer delivers secure and reliable voice communication through SBCs, gateways and devices. The platform layer enables integration and orchestration of telephony networking, cloud communication platform and AI systems supporting environments of market leaders such as Microsoft Teams, Zoom Phone, Cisco Webex and Genesis Cloud. The application layer provides AI-driven solutions for business outcomes, including contact center functionality, compliance analytics, recording and meeting intelligence. As such, AudioCodes is transforming from a traditional voice infrastructure provider into a leader in an AI-driven voice communication by integrating advanced voice and conversational AI technologies. This approach enables enterprises to adopt AI solution without disrupting existing systems, reducing complexity and accelerating Voice AI adoption. This positions AudioCodes at the forefront of the evolving enterprise voice communication landscape where voice and AI are becoming increasingly interconnected. Now to Edge Computing. Lately, cloud computing has captured most of the workload moving from premises computing. And so while cloud remains an important deployment modality, there's a growing consensus that not all workloads belong into cloud, particularly when considering data sovereignty, security, latency and cost. This becomes even more critical as we move towards an enterprise authentic AI environment where complex multistep workflows are autonomously executed by AI systems and latency directly impacts performance and reliability. This shift from a cloud-first or cloud-only philosophy towards a hybrid architecture optimized by use case is well-articulated in a recent report published by a leading industry analyst firm called Aragon Research. In its report titled 2026 Edge Computing Pivot, Privacy, Control and Latency, Aragon provides in-depth analysis of edge computing as a fundamental trend shaping the future of enterprise software. The report further highlights key verticals such as government, defense, health care and financial services as early adopters, areas that are also core targets for our meeting insights on-prem solution. We were early in the game addressing this market need, having launched MIA OP service in Israel over 8 months ago. Today, we are in the leading -- we are a leading provider of organizational meeting intelligence for edge-based deployments. Customer interest has accelerated meaningfully with a notable expansion in pipeline opportunities initially in Israel and increasingly across other geographies. In summary, our on-prem GenAI capabilities, combined with a broad and mature portfolio of cloud-based offering uniquely position us to capture the AI opportunity regardless of how customers choose to consume our services, cloud or edge. Before turning to some of our business lines, let me quickly shift to our profitability metrics. As mentioned earlier, last quarter revenue totaled $62.1 million and grew 2.9% year-over-year. Non-GAAP gross margin for the quarter of 66.3% is within our long-term target range of 65% to 68% compared to 65.2% in the first quarter '25 and 65.9% in the previous quarter. First quarter non-GAAP operating expenses of $36.4 million compared to $35 million in the first quarter -- fourth quarter of '25 and $34 million from the year ago period. On a year-by-year basis, the higher expenses are attributable mainly to targeted investment planned to support long-term growth in the conversational AI business, our main growth engine for coming years. In terms of workforce, we have concluded first quarter with 1,000 full-time employees, representing an increase of 2% from the 920 employees in the previous quarter and 960 employees in the year ago quarter. Adjusted EBITDA for the quarter was $5.8 million, reflecting a 9.4% margin compared to $6.2 million or 10.2% in the year ago quarter. Non-GAAP EPS was $0.14 compared to $0.15 in the year ago quarter and in line with our plans for the year. Net cash provided from operating activities was $12.8 million for the quarter. As you can see, we have a long list of core behind us, each generating positive cash flow. Let's go to Microsoft highlights. First quarter Microsoft business increased 6%. This was driven by ongoing health of our live business and connectivity franchise, coupled with increasing attach rate of Voca CIC, our Teams-certified contact center solution. Some representative wins in the quarter include the following: we signed a 48-month contract with a Tier 1 system integrator to deliver SBCs and gateways on a recurring revenue basis. The solution supports a global Teams voice deployment of a European multinational company. Important to note that following an architectural review of the required solution, the end customer determined that its existing approach is no longer meeting its operational requirements and goals based on our assessment and recommendation, the customer transitioned to a direct routing architecture to better align with its global voice strategy. Turning to our live platform. During first quarter, we signed a multiyear low single digit million-dollar agreement with an existing Tier 1 global care customer to transition their on-premise deployment of our services to our cloud-based service. This managed service deployment will enable this carrier to seamlessly provision connectivity service for its enterprise clients. Finally, in first quarter '26, we recognized bookings for our initial phase of migration covering 20,000 users to the on-premise Live Pro platform for Teams voice supporting high security prison facilities in the major countries. Upon full completion of the migration, we expect the platform to support at least 70,000 users alongside gateways, SBCs and incremental IP phone sales. Our sales team will also be looking to cross-sell our conversational AI services on top of the existing platform. Now to Conversational AI. First quarter '26 was very successful in growing our Voice AI business. Quarterly business grew above 50% compared to the year ago quarter. We believe we are creating a strong growth engine for years to come. Just to remind everybody that the revenue trend in that business, the Voice AI business was about $12 million in 2024, grew 40% to $16.7 million last year in 2025 and we now plan to grow by 50% and achieve $25 million at the end of this year. Ultimately, we aim to achieve business revenue of $50 million by 2028 with strength in telephony, networking, security, cloud and edge computing, collaboration tools and AI-driven technologies. We believe we are well-positioned for growth and success in this market. Let's now shift to a detailed discussion of each of those major business lines in the conversational AI business. Let's start first with VoiceAI Connect and Live Hub. We delivered another strong quarter, led by continued growth in our VoiceAI Connect service and our Live Hub self-service platform. Momentum remained broad-based with steady new logo wins across the U.S., Europe and APAC, alongside meaningful expansion within our existing customer base. Main highlights of the first quarter on the opportunity side were substantial increases of bookings, more than 80% year-over-year and steep growth in new creative opportunities of about 100% compared to the year ago quarter. So very strong uptake in bookings and newly created opportunities. Let me mention a few notable wins. This quarter, we secured a Tier 1 win with a major North American retail conglomerate adopting VoiceAI Connect to power its virtual agent customer experience. We also see a clear path to expanding this use case into additional division. On the Live Hub front, we continue to see encouraging traction, including traditional purchases from a multinational insurance carrier that has now tested and deployed our full suite of conversational AI capabilities, namely virtual agent, Agent Insights, IVR and code summarization. More broadly, seeing Tier 1 enterprises adopt Live Hub underscores the strength, scalability and appeal of our all-in-one platform. Live Hub's financial performance reflects this with annual recurring revenues growing more than 20% sequentially and more than 100% year-over-year. Overall, our VoiceAI Connect and Live Hub offerings are scaling rapidly and we are well positioned to build on this momentum as the voice agent market keeps -- continues expanding substantially in coming years. Now to Voca CIC. We reported record invoicing in first quarter '26, growing more than 60% year-over-year. Key highlights include: first, a new contact center as a service entry in Europe, a Swiss banking institution selected Voca CIC as its exclusive platform for customer service engagement on top of Microsoft Teams, replacing its legacy contact center system. We beat out a major Swiss contact center as a service competitor to secure this win. The selection underscores the maturity of our platform and validates its ability to meet the stringent security and data protection requirements demanded by leading banking institutions. Extending our momentum in higher education in the U.S. was another point to mention. We further extended our leadership in North American higher education segment with the addition of another U.S. university customer who selected Voca CIC omnichannel CCaaS solution as part of a broader Microsoft Teams deployment. This marks our 10th university customer in the region, reinforcing Voca CIC position as a trusted CCaaS provider for complex multi-stakeholder environments where Microsoft Teams is the leading ecosystem. On the new product front, following the recent launch of Agent Insights in fourth quarter '25, our AI-driven summarization and sentiment analysis service, we successfully deployed the solution across multiple existing enterprise customers. Early customer feedback has been highly positive, particularly around the value of custom AI-generated summaries and in surfacing actionable insight and triggering downstream CRM workflows that improve end customer outcomes. Importantly, Agent Insights represents a meaningful upsell opportunity with this service accounting for more than 50% of agency's value. Agent Insight has been deployed with some large enterprises, including universities, airports and manufacturing facilities. Feedback so far has been extremely positive, particularly around the customer AI summary capability, which allows contact center managers to tailor and surface specific insights from customer interaction using this new generative AI-based add-on. We identified a hot entry-level AI use case for the SMB market. We have created a stand-alone offering purely focused on the AI receptionist use case, namely providing support for automatic call routing, Q&A-based documents and web by scroll, CRM integration, appointment scheduling and outbound SMS. Moving on to Meeting Insights Cloud Edition. Meeting Insight Cloud Edition maintained strong momentum this quarter with continued growth across key metrics. Both the number of meetings and active users again reached record levels, contributing to strong year-over-year monthly recurring revenue growth exiting March 2026. This operational momentum was supported by ongoing product innovation. Following the extension of support with Google Meet in the fourth quarter, we expanded the platform this quarter by integrating Cisco WebEx. With this milestone, Meeting Insight is now positioned as the go-to meeting intelligence service across all the 4 top leading UCaaS systems. We have launched new features to boost enterprise efficiency and productivity, including pre-built templates for specific roles and personas and customizable tools for business verticals. Positive customer feedback is driving increased adoption. These value-added features, combined with our continued focus on customer workflow solutions for verticals such as higher education, municipalities, local governments, HR and finance position us well for sustained momentum in the foreseeable future. Moving on to MIA OP. In first quarter, we experienced a significant pickup in business opportunity in both Israel and international markets with the recent geopolitical environment acting as a further catalyst to already emerging demand for edge computing. In Israel, we signed several new customers across diverse public sector organization, each with meaningful expansion potential. We executed an agreement with one of Israel's largest health care service organization to provide transcription services for both meetings as well as customer conversation within its contact center. We also inked an initial purchase order with the Israel national regulatory and centralized purchasing entity municipalities for municipalities. Assuming successful implementation, this customer is expected to recommend MIA OP and make it broadly available to municipal organization via its internal procurement marketplace, creating a scalable distribution channel across 200 municipalities. Additionally, we signed a contract with a regional IDF command responsible for civilian production during emergencies. Under this engagement, MIA OP will deliver transcription and summarization services for all incoming citizen interactions, further validating our solution in mission-critical environments. Outside of Israel, our direct sales efforts complemented by strategic channel relationships are gaining traction and driving awareness of MIA OP as a differentiated innovative solution. As an example, we are working closely with a prominent system integrator in North America that operates a proprietary UC system serving major U.S. government agencies. Recently initiated an MIA OP proof-of-concept trial to provide meeting transcription and summarization. Subject to successful results, we expect this relationship to serve as an entry point into broader adoption of service across large U.S. government agencies. And with that, I'd like to wrap up my portion of the call. We had good operational momentum in the first quarter of 2026, particularly with the continued strong growth of our 2 primary engines, our live family of managed services and Voice AI. With the progress we are making in increasing our recurring revenue, we are on track with our target of delivering improved healthy top line growth in 2026 and beyond. And I would like to turn now the call to operator. Thank you. Operator: [Operator Instructions] We have reached the end of the question-and-answer session, and I will now turn the call over to Shabtai for closing remarks. Shabtai Adlersberg: Thank you, operator. I would like to thank everyone who attended our conference call today. With continued good business momentum in our UCaaS and CCaaS operation and continued growth in our emerging Voice AI business, we believe we are on track to continue growth in the next coming years. We look forward to your participation in our next quarterly conference call. Thank you all. Have a nice day. Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation. Before you buy stock in AudioCodes, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AudioCodes wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AudioCodes (AUDC) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Q1 revenue was $62.1 million, up 2.9% year‑over‑year, with non‑GAAP EPS of $0.14 (vs. $0.15 a year ago), and the company reiterated full‑year 2026 guidance of $247–$255 million revenue and $0.60–$0.75 non‑GAAP EPS. AudioCodes is shifting to managed services and voice AI—services now represent 54.7% of revenue and the company exited Q1 with $80 million ARR (nearly 20% YoY growth); conversational AI grew over 50% and the company is targeting 40–50% segment growth in 2026. Balance sheet and capital return moves: cash and equivalents were $68.1 million, the company paid a $0.20 per‑share dividend (~$5.3M) and repurchased 1.7 million shares for about $13.7M, while backlog rose to $79 million (up ~15%). Interested in AudioCodes Ltd.? Here are five stocks we like better. AudioCodes (NASDAQ:AUDC) reported first-quarter fiscal 2026 revenue of $62.1 million, up 2.9% from $60.4 million in the prior-year period, citing accelerating momentum in managed services and voice AI offerings. The company also reiterated its full-year 2026 outlook for revenue of $247 million to $255 million and non-GAAP earnings per diluted share of $0.60 to $0.75, according to Chief Financial Officer and Vice President of Finance Niran Baruch. Baruch said services revenue rose 4.3% year over year to $34.0 million and represented 54.7% of total revenue. Geographic revenue mix for the quarter was 49% North America, 34% EMEA, 13% Asia Pacific, and 4% Central and Latin America. AudioCodes’ top 15 customers represented 53% of revenue, with 34% attributed to its eight largest distributors. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook On a GAAP basis, gross margin was 66.2% compared with 64.8% in the year-ago quarter. GAAP operating income was $3.4 million, or 5.4% of revenue, compared with $3.6 million, or 6.0% of revenue, a year earlier. GAAP net income was $2.0 million, or $0.07 per diluted share, down from $4.0 million, or $0.13 per diluted share, in the first quarter of 2025. On a non-GAAP basis, gross margin was 66.3% versus 65.2% a year earlier. Non-GAAP operating income was $4.8 million, or 7.7% of revenue, compared with $5.4 million, or 8.9% of revenue, in the prior-year quarter. Non-GAAP net income was $3.8 million, or $0.14 per diluted share, compared with $4.7 million, or $0.15 per diluted share, in the first quarter of 2025. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Baruch said the company ended March 2026 with $68.1 million in cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments. Net cash provided by operating activities was $12.8 million in the quarter, and days sales outstanding were 104 days. AudioCodes paid a $0.20 per share cash dividend during the quarter. Baruch said the dividend, totaling approximately $5.3 million, was paid on March 6, 2026, after being declared on Feb. 3, 2026. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries The company also repurchased shares. “During the quarter, we acquired 1.7 million of our ordinary shares for a total consideration of approximately $13.7 million,” Baruch said. President and Chief Executive Officer Shabtai Adlersberg described the quarter as reflecting continued execution on a strategy to transform AudioCodes into “a voice AI-driven hybrid cloud software and services company.” He said the company’s “two primary growth engines,” live managed services and voice AI, together contributed to an $80 million annual recurring revenue (ARR) exit at the end of the first quarter of 2026, growing “nearly 20% year-over-year.” Adlersberg said conversational AI grew “above 50%” and accounted for roughly 8% of quarterly revenue. He added that the company has increased investments in voice AI across research and development and sales and marketing to scale its channel presence and drive cross-selling into its enterprise installed base. He said those initiatives are “delivering tangible results and returns,” and that the company’s start in voice AI puts it on track for a 40% to 50% growth target for the segment in 2026. AudioCodes said enterprise revenue represented “over 90%” of total revenue in the quarter, with Adlersberg highlighting ongoing strength in Microsoft-related business, which he said grew 6% year over year. He also said product revenue was about flat while services revenue grew 4.3% and now accounts for about 55% of total revenue. Adlersberg pointed to an expanding managed services backlog as a support for future revenue conversion. The company exited the first quarter with backlog of $79 million, up from $67 million a year earlier, which he said represents growth of close to 15%. Adlersberg said the company’s non-GAAP gross margin of 66.3% was within its long-term target range of 65% to 68%. He also cited first-quarter non-GAAP operating expenses of $36.4 million, compared with $35.0 million in the fourth quarter of 2025 and $34.0 million in the year-ago quarter. The year-over-year increase was attributed “mainly to targeted investment plan to support long-term growth in the conversational AI business,” which he called the company’s main growth engine for coming years. AudioCodes ended the quarter with 1,000 full-time employees, up from 920 in the prior quarter and 960 in the year-ago quarter, Adlersberg said. Adjusted EBITDA was $5.8 million, representing a 9.4% margin, compared with $6.2 million and a 10.2% margin in the prior-year quarter. Adlersberg detailed several customer wins and product developments during the quarter, including activity tied to Microsoft Teams deployments and growth in AI-related offerings. Microsoft-related wins: Adlersberg said the company signed a 48-month contract with a tier 1 system integrator to deliver session border controllers (SBCs) and gateways on a recurring revenue basis to support a global Teams voice deployment for a European multinational. He also said AudioCodes signed a multi-year “low single-digit million-dollar agreement” with an existing tier 1 global carrier customer to transition an on-premises deployment to a cloud-based service, enabling the carrier to provision connectivity services for enterprise clients. In addition, he said the company recognized bookings for an initial phase of a 20,000-user migration to the on-premises Live Pro platform for Teams Voice supporting high-security prison facilities, with expectations that the platform will ultimately support at least 70,000 users. VoiceAI Connect and Live Hub: Adlersberg said bookings in the quarter increased by more than 80% year over year and newly created opportunities grew by about 100% compared with the year-ago quarter. He cited a “tier 1 win” with a major North American retail conglomerate adopting VoiceAI Connect to power virtual agent customer experience. He also said Live Hub annual recurring revenue grew more than 20% sequentially and more than 100% year over year. Voca CIC contact center offering: Adlersberg said AudioCodes recorded “record invoicing” for Voca CIC in the quarter, growing more than 60% year over year. He highlighted a Swiss banking institution selecting Voca CIC as its exclusive platform for customer service engagement on top of Microsoft Teams, replacing a legacy contact center system. He also said the company added another U.S. university customer, marking its 10th university customer in North America for Voca CIC. Meeting Insights Cloud Edition: Adlersberg said the service reached record levels for number of meetings and active users, contributing to strong year-over-year monthly recurring revenue growth exiting March 2026. He noted the platform integrated Cisco Webex during the quarter following earlier support expansion to Google Meet, positioning Meeting Insights across what he called the four top UCaaS systems. Mia-OP and edge/on-premise GenAI: Adlersberg said the company saw a “significant pickup” in opportunities in Israel and internationally, with geopolitical dynamics acting as a catalyst to demand for edge computing. He cited new customers in Israel’s public sector, including an agreement with a large healthcare services organization for transcription services and an initial purchase order tied to a centralized municipal purchasing entity. He also said the company signed a contract with a regional IDF command for transcription and summarization services for incoming citizen interactions. Outside Israel, he described a proof-of-concept trial with a North American system integrator serving major U.S. government agencies. No analyst questions were taken during the call, as the operator noted the company reached the end of the question-and-answer session without any questions in the queue. In closing remarks, Adlersberg said AudioCodes sees continued momentum in its UCaaS and CCaaS operations and ongoing growth in voice AI, adding that the company believes it is “on track to continue our growth in next coming years.” 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. The article "AudioCodes Q1 Earnings Call Highlights" was originally published by MarketBeat.

OR YEHUDA, Israel, May 5, 2026 /PRNewswire/ -- First Quarter Highlights Quarterly revenues increased by 2.9% year-over-year to $62.1 million; Quarterly services revenues increased by 4.3% year-over-year to $34.0 million; GAAP results: Quarterly GAAP gross margin was 66.2%; Quarterly GAAP operating margin was 5.4%; Quarterly GAAP net income was $2.0 million, or $0.07 per diluted share. Non-GAAP results: Quarterly Non-GAAP gross margin was 66.3%; Quarterly Non-GAAP operating margin was 7.7%; Quarterly Non-GAAP net income was $3.8 million, or $0.14 per diluted share; Net cash provided by operating activities was $12.8 million for the quarter. AudioCodes repurchased 1,740,329 of its ordinary shares during the quarter at an aggregate cost of $13.7 million. Details AudioCodes (NASDAQ: AUDC) (the "Company"), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the first quarter ended March 31, 2026. Revenues for the first quarter of 2026 were $62.1 million compared to $60.4 million for the first quarter of 2025. Net income was $2.0 million, or $0.07 per diluted share, for the first quarter of 2026 compared to net income of $4.0 million, or $0.13 per diluted share, for the first quarter of 2025. On a Non-GAAP basis, net income was $3.8 million, or $0.14 per diluted share, for the first quarter of 2026 compared to $4.7 million, or $0.15 per diluted share, for the first quarter of 2025. Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin exclude: (i) share-based compensation expenses and (ii) amortization expenses related to intangible assets. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures are provided in the tables that accompany the condensed consolidated financial statements contained in this press release. Net cash provided by operating activities was $12.8 million for the first quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $68.1 million as of March 31, 2026 compared to $75.7 million as of December 31, 2025. The decrease in cash and cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments was the result of the use of cash for the continued repurchasing of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the quarter. This was partially offset by cash generated from operating activities. "I am pleased to announce strong financial results for the first quarter of 2026, reflecting effective execution of our strategic initiatives. In the first quarter of 2026, we made important progress in our transformation into an AI-driven hybrid cloud software and services organization," stated Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. The first-quarter results were propelled by sustained momentum across our two principal growth pillars: the Live suite of managed services for UCaaS and CX, alongside our Conversational AI (CAI) business. Collectively, these segments advanced Annual Recurring Revenue (ARR) to $80 million, marking an increase of nearly 20% compared to the year ago period. Conversational AI business grew by over 50% year-over-year, underscoring extensive demand for our Voice AI portfolio. Voca CIC, our Teams-certified contact center solution, achieved record revenues for the quarter. Additionally, our VAIC and Live Hub products secured significant new client acquisitions and expansions within the existing customer base, driven by the rising adoption of virtual agent and agent assist applications. Meeting Insights, our enterprise-grade cloud meeting intelligence platform, continues to experience substantial interest and increasing opportunities. The On-Prem version of Meeting Insights has also witnessed growing demand, fueled by the need for edge computing solutions, which provides enhanced control of data sovereignty, improved service availability, and cost reduction. "We have seen continued strong positive operational cash flow. We believe that our increased investments in the Voice AI market will prove beneficial to our business expansion in the coming years. Overall, we achieved our operational and financial targets through maintaining budgetary and managerial discipline. The ongoing investments in Live services and Voice AI have significantly contributed to our current success and position us favorably for continued healthy top-line growth throughout the remainder of 2026," concluded Mr. Adlersberg. Share Buy Back Program and Cash Dividend In October 2025, the Company received court approval in Israel to purchase up to an aggregate amount of $25 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval was valid through April 27, 2026. On February 3, 2026, the Company declared a cash dividend of 20 cents per share. The dividend, in the aggregate amount of approximately $5.3 million, was paid on March 6, 2026, to all of the Company's shareholders of record on February 20, 2026. During the quarter ended March 31, 2026, the Company acquired 1,740,329 of its ordinary shares under its share repurchase program for a total consideration of $13.7 million. As of March 31, 2026, the Company had $1.6 million available under this approval for the repurchase of shares and/or declaration of cash dividends. As of March 31, 2026, the total outstanding shares of the Company are 25,453,614. Conference Call & Web Cast Information AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's first quarter of 2026 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers: United States Participants: 888-506-0062 International Participants: +1 (973) 528-0011 The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby. Follow AudioCodes' social media channels: AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube. About AudioCodes AudioCodes Ltd. (NASDAQ: AUDC) (TASE: AUDC) is a global leader in enterprise voice and VoiceAI business solutions. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward. For more information on AudioCodes, visit http://www.audiocodes.com. Statements concerning AudioCodes' business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes' industry and target markets in particular, including governmental undertakings to address such conditions; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes' and its customers' products and markets; timely product and technology development, upgrades, the advent of artificial intelligence and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes' financing agreements; possible impacts and disruptions from AudioCodes' acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes' business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and any other factors described in AudioCodes' filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release. ﾩ2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice. Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information. The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Logo - https://mma.prnewswire.com/media/2391462/5953001/audiocodes_Logo.jpg View original content to download multimedia:https://www.prnewswire.com/news-releases/audiocodes-reports-first-quarter-2026-results-302762234.html