AudioCodes (NASDAQ:AUDC) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

AudioCodes (NASDAQ:AUDC) released its earnings results on Tuesday. The communications equipment provider reported $0.14 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.02), FiscalAI reports. AudioCodes had a return on equity of 6.46% and a net margin of 3.65%.The company had revenue of $62.14 million during the quarter, compared to the consensus estimate of $61.50 million.

Here are the key takeaways from AudioCodes’ conference call:

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

AudioCodes Stock Performance

Shares of NASDAQ AUDC traded up $0.10 during midday trading on Wednesday, reaching $8.61. The stock had a trading volume of 33,094 shares, compared to its average volume of 132,898. The stock has a 50-day moving average of $8.46 and a 200-day moving average of $8.59. The company has a market capitalization of $233.11 million, a price-to-earnings ratio of 27.76 and a beta of 0.95. AudioCodes has a 12-month low of $6.95 and a 12-month high of $11.50.

Analysts Set New Price Targets

Separately, Wall Street Zen cut AudioCodes from a “strong-buy” rating to a “buy” rating in a research report on Saturday, February 7th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $12.50.

Institutional Trading of AudioCodes

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. NewEdge Advisors LLC bought a new stake in AudioCodes during the 4th quarter valued at approximately $150,000. XTX Topco Ltd bought a new stake in AudioCodes during the 4th quarter valued at approximately $202,000. Quadrature Capital Ltd bought a new stake in AudioCodes during the 4th quarter valued at approximately $229,000. Millennium Management LLC raised its stake in AudioCodes by 101.6% during the 4th quarter. Millennium Management LLC now owns 284,951 shares of the communications equipment provider’s stock valued at $2,488,000 after purchasing an additional 143,632 shares during the period. Finally, Engineers Gate Manager LP grew its stake in AudioCodes by 29.4% during the fourth quarter. Engineers Gate Manager LP now owns 26,871 shares of the communications equipment provider’s stock valued at $235,000 after acquiring an additional 6,098 shares in the last quarter. Institutional investors own 68.05% of the company’s stock.

About AudioCodes

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

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