AudioCodes Reports Third Quarter 2025 Results

OR YEHUDA, Israel, Nov. 4, 2025 /PRNewswire/ --

Highlights

Details

AudioCodes (NASDAQ: AUDC), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the third quarter ended September 30, 2025.

Revenues for the third quarter of 2025 were $61.5 million compared to $60.2 million for the third quarter of 2024.

EBITDA for the third quarter of 2025 was $5.2 million compared to $5.9 million for the third quarter of 2024.

On a Non-GAAP basis, EBITDA for the third quarter of 2025 was $6.9 million compared to $7.9 million for the third quarter of 2024.

Net income was $2.7 million, or $0.10 per diluted share, for the third quarter of 2025 compared to net income of $2.7 million, or $0.09 per diluted share, for the third quarter of 2024.

On a Non-GAAP basis, net income was $4.9 million, or $0.17 per diluted share, for the third quarter of 2025 compared to $4.9 million, or $0.16 per diluted share, for the third quarter of 2024.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (iv) tax impact which relates to our Non-GAAP adjustments; and (v) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.

Net cash provided by operating activities was $4.1 million for the third quarter of 2025. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities, and long-term financial investments were $79.7 million as of September 30, 2025 compared to $93.9 million as of December 31, 2024. The decrease in cash and cash equivalents, short-term bank deposits, long and 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 each of the first and third quarters of 2025. This was partially offset by cash generated from operating activities.

"I am pleased to report that we delivered a strong third quarter, which highlights our commitment to our strategic priorities and our ongoing transformation into an AI-driven, hybrid cloud software and services company," said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. "This quarter's success was driven by ongoing momentum across our two primary growth engines: the Live family of services for Unified Communications and Collaboration (UCC) and Contact Center (CX) connectivity and conversational AI (CAI) business.

"One of the standout achievements this quarter was the impressive 50% growth in our CAI business, which keeps us on track to achieve a 40%-50% growth for the entire year of 2025. Combined, these two units propelled our Annual Recurring Revenue (ARR) to $75 million by the end of the third quarter, marking a significant 25% year-over-year increase and setting us up well to meet our full-year target of $78-$82 million.

"The recent launch of our Live Platform has already borne fruit, as we secured a landmark agreement with a tier-1 system integrator. This agreement covers managed connectivity services for all major UC/CX systems and opens up exciting opportunities for cross-selling value-added solutions. Moreover, our Voice AI Connect and Live Hub, the conversational AI enablement services, delivered outstanding results, propelled by a high number of new logo wins and significant expansions within our existing customer base.

"Shifting our focus to conversational AI, our new service, Meeting Insights On-Prem (Mia OP), made noteworthy advancements during the quarter. Our leading position in Israel was further solidified by being awarded a contract under Project Nimbus, the Israeli government's multi-year cloud migration initiative. Additionally, we launched sales efforts in the US during the third quarter and have witnessed strong customer interest in Mia OP beyond the government sector in Israel.

"Overall, we executed well on our business priorities. The increased investments in our Live platform and CAI over the past several quarters have significantly contributed to the record-breaking Live and conversational AI bookings this quarter. We remain steadfast in our commitment to investing in high-growth areas, which we believe will drive sustained top-line growth improvement in the medium term", concluded Mr. Adlersberg.

Share Buy Back Program and Cash Dividend

On July 29, 2025, the Company declared a cash dividend of 20 cents per share. The dividend, in the aggregate amount of approximately $5.6 million, was paid on August 28, 2025, to all of the Company's shareholders of record on August 14, 2025.

During the quarter ended September 30, 2025, the Company acquired 1,267,436 of its ordinary shares under its share repurchase program for a total consideration of $12.7 million.

As of September 30, 2025, the Company had $1.7 million available under this approval for the repurchase of shares and/or declaration of 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 is valid through April 28, 2026.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's third quarter of 2025 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 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.

©2025 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.

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

September 30 ,

December 31,

2025

2024

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 48,925

$58,749

Short-term bank deposits

233

210

Short-term marketable securities

24,806

3,426

Trade receivables, net

68,474

56,016

Other receivables and prepaid expenses

19,476

13,012

Inventories

24,099

31,463

Total current assets

186,013

162,876

LONG-TERM ASSETS:

Long-term Trade receivables

$ 13,668

$ 15,753

Long-term marketable securities

2,456

28,518

Long-term financial investments

3,258

3,008

Deferred tax assets

8,844

9,838

Operating lease right-of-use assets

30,309

32,534

Severance pay funds

20,237

18,004

Total long-term assets

78,772

107,655

PROPERTY AND EQUIPMENT, NET

29,369

27,321

GOODWILL, INTANGIBLE ASSETS AND OTHER, NET

37,650

38,049

Total assets

$ 331,804

$ 335,901

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables

10,181

7,543

Other payables and accrued expenses

27,772

25,823

Deferred revenues

44,785

38,438

Short-term operating lease liabilities

6,394

5,954

Total current liabilities

89,132

77,758

LONG-TERM LIABILITIES:

Accrued severance pay

$ 17,906

$ 16,387

Deferred revenues and other liabilities

20,024

19,434

Long-term operating lease liabilities

31,002

30,508

Total long-term liabilities

68,932

66,329

Total shareholders' equity

173,740

191,814

Total liabilities and shareholders' equity

$ 331,804

$ 335,901

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

Nine months ended

Three months ended

September 30,

2025

2024

2025

2024

(Unaudited)

Revenues:

Products

$ 86,896

$ 84,647

$ 30,606

$ 27,750

Services

96,103

95,975

30,941

32,493

Total Revenues

182,999

180,622

61,547

60,243

Cost of revenues:

Products

33,086

34,123

11,150

11,380

Services

31,370

29,057

10,112

9,563

Total Cost of revenues

64,456

63,180

21,262

20,943

Gross profit

118,543

117,442

40,285

39,300

Operating expenses:

Research and development, net

39,087

39,780

13,188

12,666

Selling and marketing

57,318

52,427

18,942

17,607

General and administrative

11,832

12,146

4,094

4,155

Total operating expenses

108,237

104,353

36,224

34,428

Operating income

10,306

13,089

4,061

4,872

Financial income (expenses), net

586

(195)

(614)

Income before taxes on income

10,892

12,894

4,125

4,258

Taxes on income, net

(3,838)

(4,358)

(1,393)

(1,579)

Net income

$ 7,054

$ 8,536

$ 2,732

$ 2,679

Basic net earnings per share

$ 0.24

$ 0.28

$ 0.10

$ 0.09

Diluted net earnings per share

$ 0.24

$ 0.28

$ 0.10

$ 0.09

Weighted average number of shares used in computing basic

net earnings per share (in thousands)

28,858

30,239

28,169

30,218

Weighted average number of shares used in computing diluted

net earnings per share (in thousands)

29,356

30,769

28,672

30,778

AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME

U.S. dollars in thousands, except per share data

Nine months ended

Three months ended

September 30,

2025

2024

2025

2024

(Unaudited)

GAAP net income

$ 7,054

$ 8,536

$ 2,732

$ 2,679

GAAP net earnings per share

$ 0.24

$ 0.28

$ 0.09

Cost of revenues:

Share-based compensation (1)

319

274

Amortization expenses (2)

366

122

Lease expenses (5)

304

685

944

216

221

Research and development, net:

Share-based compensation (1)

1,127

1,642

398

471

Lease expenses (5)

342

1,127

1,984

398

471

Selling and marketing:

Share-based compensation (1)

1,802

2,255

581

783

Amortization expenses (2)

Lease expenses (5)

1,835

2,326

592

794

General and administrative:

Share-based compensation (1)

1,653

2,113

552

679

Lease expenses (5)

1,653

2,189

552

679

Financial expenses (income):

Exchange rate differences (3)

1,310

)754(

392

Income taxes:

Taxes on income, net (4)

422

Non-GAAP net income

$ 13,664

$ 15,647

$ 4,882

$ 4,899

Non-GAAP diluted net earnings per share

$ 0.45

$ 0.50

$ 0.17

$ 0.16

Weighted average number of shares used in computing

Non-GAAP diluted net earnings per share (in thousands)

30,094

31,534

29,437

31,480

(1) Share-based compensation expenses related to options and restricted share units granted to employees and others.

(2) Amortization expenses related to intangible assets.

(3) Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.

(4) Tax impact which relates to our non-GAAP adjustments.

(5) In Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters.

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.

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Nine months ended

Three months ended

September 30,

2025

2024

2025

2024

(Unaudited)

Cash flows from operating activities:

Net income

$ 7,054

$ 8,536

$ 2,732

$ 2,679

Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,096

2,788

1,183

1,004

Amortization of marketable securities premiums and accretion of discounts, net

312

885

115

270

Increase in accrued severance pay, net

(714)

(699)

(790)

(220)

Share-based compensation expenses

4,901

6,284

1,625

2,032

Decrease in deferred tax assets, net

708

826

401

762

Cash financial loss (income), net

137

(17)

Decrease in operating lease right-of-use assets

3,292

4,755

1,093

1,198

Decrease in operating lease liabilities

(133)

(3,931)

(555)

(496)

Increase in trade receivables, net

(10,373)

(6,014)

(7,237)

(2,247)

Increase in other receivables and prepaid expenses

(6,464)

(2,704)

(2,020)

(2,939)

Decrease in inventories

7,261

10,119

2,285

4,172

Increase (decrease) in trade payables

2,761

(2,077)

2,674

377

Increase (decrease) in other payables and accrued expenses

7,027

(594)

277

1,011

Increase in deferred revenues

6,471

1,631

2,256

266

Net cash provided by (used in) operating activities

25,236

19,942

4,054

7,852

Cash flows from investing activities:

Proceeds from short-term deposits

(23)

(5)

Proceeds from financial investment

243

Proceeds from redemption of marketable securities

5,200

3,450

2,000

Proceeds from sales of marketable securities

9,991

Purchase of financial investments

(442)

(675)

Purchase of property and equipment

(4,830)

(20,768)

(1,571)

(5,505)

Net cash provided by (used in) investing activities

148

(7,916)

489

3,844

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Nine months ended

Three months ended

September 30,

2025

2024

2025

2024

(Unaudited)

Cash flows from financing activities:

Purchase of treasury shares

(24,514)

(8,340)

(12,696)

(3,586)

Cash dividends paid to shareholders

(10,934)

(10,896)

(5,608)

(5,443)

Proceeds from issuance of shares upon exercise of options

240

186

Net cash used in financing activities

(35,208)

(19,050)

(18,237)

(9,023)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(9,824)

(7,025)

(13,694)

2,672

Cash, cash equivalents and restricted cash at beginning of period

58,749

30,546

62,619

20,849

Cash, cash equivalents and restricted cash at end of period

$ 48,925

$ 23,522

$ 48,925

$ 23,522

Company Contacts

Niran Baruch

Roger L. Chuchen

Chief Financial Officer

VP, Investor Relations

AudioCodes

Tel: +972-3-976-4000

Tel: 732-764-2552

niran.baruch@audiocodes.com

roger.chuchen@audiocodes.com

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SOURCE AudioCodes