AudioCodes Ltd.
- Open
- 9.83
- Day high
- 9.95
- Day low
- 9.80
- Prev close
- 9.68
- Volume
- 38K
- Mkt cap
- $246M
- P/E (TTM)
- 38.6
- EPS (TTM)
- $0.26
- P/B
- 1.6
- P/S
- 1.0
- Yield
- 4.13%
- Per share
- $0.40
- ▼Insiders net selling -$120K over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions mixed (13F)
AudioCodes Ltd. (AUDC) is a Technology company listed on NASDAQ. The stock is up 1% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4).
AudioCodes Ltd. (AUDC) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AUDC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.16 | $0.14 | -12.5% | $62M | +1.0% |
| Feb 3, 2026 | $0.16 | $0.16 | +0.0% | $63M | +1.8% |
| Nov 4, 2025 | $0.10 | $0.17 | +75.2% | $62M | -0.7% |
| Jul 29, 2025 | $0.17 | $0.14 | -17.6% | $61M | +0.7% |
| Feb 4, 2025 | $0.22 | $0.37 | +68.2% | $62M | +0.5% |
| Nov 2, 2023 | $0.18 | $0.25 | +38.9% | $62M | +0.1% |
| Aug 1, 2023 | $0.09 | $0.16 | +77.8% | $60M | -0.6% |
| Feb 7, 2023 | $0.39 | $0.36 | -7.7% | $71M | -2.2% |
| Nov 2, 2022 | $0.35 | $0.32 | -8.6% | $70M | -1.0% |
| Aug 2, 2022 | $0.34 | $0.34 | +0.0% | $68M | -0.1% |
| May 2, 2022 | $0.36 | $0.33 | -8.3% | $66M | +0.1% |
| Feb 1, 2022 | $0.39 | $0.39 | +0.0% | $66M | +0.8% |
AUDC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 11, 2026 | Baruch Niranofficer: Chief Financial Officer | Sell | 1,875 | $8.34 |
| May 11, 2026 | Aldema Liorofficer: EVP and Chief Business Officer | Sell | 2,813 | $8.34 |
| May 7, 2026 | Aldema Liorofficer: EVP and Chief Business Officer | Sell | 2,813 | $8.56 |
| May 7, 2026 | Baruch Niranofficer: Chief Financial Officer | Sell | 1,875 | $8.57 |
| May 5, 2026 | Baruch Niranofficer: Chief Financial Officer | Grant | 30,000 | — |
| May 5, 2026 | Aldema Liorofficer: EVP and Chief Business Officer | Grant | 45,000 | — |
| Apr 29, 2026 | Baruch Niranofficer: Chief Financial Officer | Sell | 1,875 | $8.71 |
| Apr 29, 2026 | Aldema Liorofficer: EVP and Chief Business Officer | Sell | 2,813 | $8.71 |
| Aug 5, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| Jul 30, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| Jul 11, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| Jun 25, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| May 16, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| Mar 14, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
| Feb 19, 2008 | SOROS FUND MANAGEMENT LLC10 percent owner | Buy | 0 | $18.71 |
Source: AUDC SEC Form 4 filings, latest May 11, 2026. For informational purposes only — not investment advice.
See the full AUDC insider & 13F page →AudioCodes Ltd. company profile
Overview
AudioCodes Ltd. (NASDAQ:AUDC) is an Israeli technology company founded in 1992 and headquartered in Lod, Israel. The company went public in 1999 and has evolved from a traditional communications equipment manufacturer into a software and services provider focused on unified communications, contact centers, and AI-powered voice solutions. AudioCodes primarily serves enterprises and service providers globally, with a strong presence in North America (47% of revenue), Europe, Middle East and Africa (34%), and Asia-Pacific regions. The company has been undergoing a strategic transformation over the past few years, shifting from hardware-centric product sales to recurring software and managed services, particularly within the Microsoft Teams ecosystem.
Business
AudioCodes operates in the enterprise communications technology sector, providing solutions that enable businesses to modernize their voice and collaboration infrastructure. The company's core business revolves around Voice over Internet Protocol (VoIP) technology, which allows voice communications to be transmitted over internet networks rather than traditional phone lines, offering cost savings and enhanced functionality. The company operates through two primary business segments. The Connectivity Business represents approximately 95% of total revenue and includes session border controllers (network security devices that protect and manage VoIP traffic), media gateways (devices that convert between different communication protocols), IP phones, and network routing solutions. These products essentially serve as the "plumbing" that enables modern digital communications systems to function securely and reliably. The Value-Added Services Business comprises the remaining 5% of revenue but represents the company's primary growth focus. This segment includes AudioCodes Live, a managed services platform that helps organizations deploy and manage Microsoft Teams phone systems, and Conversational AI solutions that provide meeting transcription, call analytics, and automated customer service capabilities. The company's Voice AI offerings include products like Meeting Insights (which provides real-time meeting summaries and action items) and contact center solutions that use artificial intelligence to analyze customer interactions and improve service quality. AudioCodes has built particular expertise in the Microsoft Teams ecosystem, where it provides the technical infrastructure and services that enable enterprises to use Teams as their primary phone system, replacing traditional desk phones and private branch exchange (PBX) systems.
Revenue model
AudioCodes generates revenue through multiple streams reflecting its business model transition. Product sales still constitute the largest portion, generating approximately 45% of revenue through hardware sales of session border controllers, media gateways, IP phones, and networking equipment sold to enterprises, system integrators, and service providers. Recurring services revenue represents about 55% of total revenue and is growing rapidly, comprising managed services subscriptions, software licensing, and professional services. The company's AudioCodes Live platform generates Annual Recurring Revenue (ARR) of $65 million as of 2024, growing 35% year-over-year. This subscription-based model provides predictable income streams as customers pay monthly or annual fees for cloud-based Teams phone services, device management, and AI-powered analytics. The company's professional services include implementation, training, and ongoing support, typically generating one-time project fees ranging from hundreds of thousands to low seven-figure amounts for large enterprise deployments. Several factors influence AudioCodes' margins and profitability. Positive margin drivers include the ongoing shift toward higher-margin software and services (targeting 65-70% gross margins compared to 40-50% for hardware), the scalable nature of cloud-based offerings, and strong positioning in the growing Microsoft Teams market. Margin pressures come from component cost inflation, tariff impacts (estimated at $3-4 million annually), competitive pricing in hardware segments, and significant R&D investments in AI technologies (approximately $9 million annually). The company's transformation toward recurring revenue models provides more predictable cash flows but requires upfront investment in platform development and customer acquisition.
Competitive moat
AudioCodes possesses a moderate but narrowing moat built primarily on technical expertise and ecosystem positioning rather than fundamental competitive advantages. The company's strongest defensive position lies in its deep integration with the Microsoft Teams ecosystem, where it has established relationships, technical certifications, and specialized knowledge that create switching costs for customers already deployed on AudioCodes infrastructure. The company benefits from technical complexity barriers in enterprise voice communications, where the integration of legacy phone systems with modern cloud platforms requires specialized expertise that AudioCodes has developed over three decades. This creates some customer stickiness, particularly for large enterprises with complex deployments. However, the moat faces significant challenges. The commoditization of VoIP technology has reduced differentiation in core connectivity products, while major technology companies like Microsoft, Cisco, and cloud providers are increasingly offering native solutions that could bypass traditional vendors. The shift toward software-defined networking and cloud-native architectures reduces the need for specialized hardware appliances that historically provided AudioCodes' competitive advantage. The company's AI and conversational services represent an attempt to build new moats, but this market is highly competitive with well-funded competitors including established players like Genesys and emerging AI-first companies. AudioCodes' relatively small scale (under $250 million revenue) limits its ability to compete with larger technology companies in R&D spending and market reach. The competitive threat is particularly acute from hyperscale cloud providers who can offer integrated communications solutions at scale, potentially marginalizing specialized vendors like AudioCodes. The company's survival depends on successfully transitioning to higher-value services and maintaining relevance in evolving enterprise communication architectures.
Risks & safety
AudioCodes presents a moderate margin of safety with solid financial fundamentals but facing strategic transition risks. **Liquidity and Solvency:** - Strong cash position: $58.7 million in cash and short-term investments - Healthy current ratio: 2.09x indicating good short-term liquidity - Low debt burden: Debt-to-equity ratio of 0.19x - Positive free cash flow: $11.0 million annually, though volatile quarter-to-quarter - No immediate solvency concerns with $186 million in stockholders' equity **Valuation Metrics:** - P/E ratio: 19.2x (reasonable for a technology company) - EV/EBITDA: 12.9x (moderate for the sector) - Price-to-book: 1.53x (slight premium to book value) - Graham number suggests potential undervaluation at current levels **Other Considerations:** - Revenue volatility and recent flat growth trends create uncertainty - Tariff exposure adds $3-4 million annual cost pressure - Heavy R&D investment requirements for AI initiatives strain near-term profitability - Transformation risks as company shifts from product to service model
Recent development
AudioCodes has undergone significant strategic transformation over the past several years, pivoting from a traditional hardware manufacturer to a software and services company. The most notable development is the company's focus on the Microsoft Teams ecosystem, where it has built the AudioCodes Live managed services platform that achieved $65 million in Annual Recurring Revenue by 2024, growing 35% year-over-year. The company has made substantial investments in Conversational AI and Voice AI technologies, spending approximately $9 million annually on development. Key products include Meeting Insights for real-time meeting transcription and analytics, Voca CIC contact center solutions, and various AI-powered voice applications. The Voice AI business grew 30% in 2024 and now represents about 5% of total revenue, with management targeting it to become a second major growth engine. Operational restructuring has been significant, with the company reducing headcount by 6% while reallocating resources toward high-growth areas. AudioCodes has also been diversifying its manufacturing footprint away from China to mitigate tariff risks, moving production to other Asia-Pacific countries and Israel. Recent product launches include next-generation Live platform capabilities integrating GenAI-based business voice applications, certification for Cisco WebEx Calling Cloud Connect (expanding beyond Microsoft), and Meeting Insights On-Premises solutions for security-sensitive environments. The company has also achieved significant customer wins including multinational banks, government contracts, and industrial equipment dealers, with individual contracts reaching low seven-figure values. The strategic goal is to achieve a 70% software and services revenue mix (currently at about 55%) while maintaining the connectivity business as a stable foundation, targeting 20-26% growth in connectivity and over 40% growth in value-added services bookings.
AUDC company profile · for informational purposes only — not investment advice.
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