Exhibit 1

 

 

Company Contacts

 

Niran Baruch, Roger L. Chuchen
Chief Financial Officer VP, Investor Relations
AudioCodes AudioCodes
Tel: +972-3-976-4000 Tel: +1-732-764-2552
niran.baruch@audiocodes.com roger.chuchen@audiocodes.com

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share

 

Or Yehuda, Israel – August 4, 2026 -

 

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:

 

oQuarterly GAAP gross margin was 65.7%;

 

oQuarterly GAAP operating margin was 5.1%;

 

oQuarterly GAAP net income was $0.5 million, or $0.02 per diluted share.

 

Non-GAAP results:

 

oQuarterly Non-GAAP gross margin was 65.8%;

 

oQuarterly Non-GAAP operating margin was 7.4%;

 

oQuarterly 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.

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 1 of 9

 

 

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.

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 2 of 9

 

 

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.

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 3 of 9

 

 

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.

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 4 of 9

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

    June 30,     December 31,  
    2026     2025  
    (Unaudited)     (Unaudited)  
ASSETS            
CURRENT ASSETS:            
Cash and cash equivalents   $ 51,414     $ 45,282  
Short-term bank deposits     255       239  
Short-term marketable securities     10,001       27,350  
Trade receivables, net     62,877       67,358  
Other receivables and prepaid expenses     18,581       19,064  
Inventories     23,764       22,032  
Total current assets     166,892       181,325  
                 
LONG-TERM ASSETS:                
Long-term Trade receivables   $ 10,785     $ 13,065  
Long-term financial investments     2,492       2,790  
Deferred tax assets     7,026       7,773  
Operating lease right-of-use assets     31,573       30,077  
Severance pay funds     23,057       21,163  
Total long-term assets     74,933       74,868  
                 
PROPERTY AND EQUIPMENT, NET     29,636       29,248  
                 
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET     37,560       37,579  
Total assets   $ 309,021     $ 323,020  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
                 
CURRENT LIABILITIES:                
Trade payables     9,439       6,416  
Other payables and accrued expenses     29,640       30,284  
Deferred revenues     41,466       38,243  
Short-term operating lease liabilities     7,430       6,635  
Total current liabilities     87,975       81,578  
                 
LONG-TERM LIABILITIES:                
Accrued severance pay   $ 19,097     $ 18,278  
Deferred revenues and other liabilities     22,230       20,517  
Long-term operating lease liabilities     33,938       31,348  
Total long-term liabilities     75,265       70,143  
                 
Total shareholders’ equity     145,781       171,299  
Total liabilities and shareholders’ equity   $ 309,021     $ 323,020  

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 5 of 9

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

   Six months ended
June 30,
   Three months ended
June 30,
 
   2026   2025   2026   2025 
   (Unaudited)   (Unaudited) 
Revenues:                
Products  $56,508   $56,290   $28,378   $28,515 
Services   68,593    65,162    34,580    32,563 
Total Revenues   125,101    121,452    62,958    61,078 
Cost of revenues:                    
Products   20,160    21,936    10,249    10,919 
Services   22,455    21,258    11,348    11,035 
Total Cost of revenues   42,615    43,194    21,597    21,954 
Gross profit   82,486    78,258    41,361    39,124 
Operating expenses:                    
Research and development, net   27,354    25,899    13,296    12,873 
Selling and marketing   40,664    38,376    20,984    19,815 
General and administrative   7,906    7,738    3,883    3,836 
Total operating expenses   75,924    72,013    38,163    36,524 
Operating income   6,562    6,245    3,198    2,600 
Financial income (expenses), net   (2,141)   522    (1,759)   (1,194)
Income before taxes on income   4,421    6,767    1,439    1,406 
Taxes on income, net   (1,991)   (2,445)   (962)   (1,100)
Net income  $2,430   $4,322   $477   $306 
Basic net earnings per share  $0.09   $0.15   $0.02   $0.01 
Diluted net earnings per share  $0.09   $0.15   $0.02   $0.01 
Weighted average number of shares used in computing basic net earnings per share (in thousands)   25,826    29,202    25,185    28,877 
Weighted average number of shares used in computing diluted net earnings per share (in thousands)   26,322    29,699    25,753    29,353 

 

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

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

 

   Six months ended   Three months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
   (Unaudited)   (Unaudited) 
Gross profit  $82,486   $78,258   $41,361   $39,124 
Gross margin   65.9%   64.4%   65.7%   64.1%
Share-based compensation (1)   153    225    75    130 
Amortization expenses (2)   -    244    -    122 
Non-GAAP gross profit   82,639    78,727    41,436    39,376 
Non-GAAP gross margin   66.1%   64.8%   65.8%   64.5%
Operating income  $6,562   $6,245   $3,198   $2,600 
Operating margin   5.2%   5.1%   5.1%   4.3%
Share-based compensation (1)   2,811    3,276    1,422    1,688 
Amortization expenses (2)        266         133 
Non-GAAP operating income   9,392    9,787    4,628    4,421 
Non-GAAP operating margin   7.5%   8.1%   7.4%   7.2%
Net income  $2,430   $4,322   $477   $306 
Net earnings per share  $0.09   $0.14   $0.02   $0.01 
Share-based compensation (1)   2,811    3,276    1,422    1,688 
Amortization expenses (2)   19    266    8    133 
Exchange rate differences (3)        918         1,953 
Non-GAAP net income  $7,648   $8,782   $3,887   $4,080 
Non-GAAP diluted net earnings per share  $0.28   $0.29   $0.15   $0.14 
Weighted average number of shares used in computing Non-GAAP diluted net earnings per share (in thousands)   27,075    30,422    26,430    30,120 

 

 

(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.

 

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.

 

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

 

   Six months ended   Three months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
   (Unaudited)   (Unaudited) 
Cash flows from operating activities:                
Net income  $2,430   $4,322   $477   $306 
Adjustments required to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization   2,212    1,913    1,131    959 
Amortization of marketable securities premiums and accretion of discounts, net   122    197    44    93 
Decrease (increase) in accrued severance pay, net   (1,075)   76    (823)   (57)
Share-based compensation expenses   2,811    3,276    1,422    1,688 
Decrease in deferred tax assets, net   690    307    165    (312)
Cash financial loss (income), net   407    22    168    (31)
Decrease in operating lease right-of-use assets   2,263    2,199    1,057    1,453 
Decrease (increase) in operating lease liabilities   (374)   422    786    1,965 
Decrease (increase) in trade receivables, net   6,761    (3,136)   (2,905)   (3,922)
Decrease (increase) in other receivables and prepaid expenses   483    (4,444)   850    (6,827)
Decrease (increase) in inventories   (1,866)   4,976    (911)   2,121 
Increase in trade payables   2,883    87    1,269    1,376 
Decrease in other payables and accrued expenses   (4,150)   6,750    2,009    9,345 
Increase in deferred revenues   5,320    4,215    1,357    (432)
Net cash provided by operating activities   18,917    21,182    6,096    7,725 
                     
Cash flows from investing activities:                    
Proceeds from short-term deposits   (16)   (18)   (13)   (19)
Proceeds from financial investment   122    178    88    65 
Proceeds from maturity of marketable securities   17,377    3,200    14,377    - 
Purchase of financial investments   (135)   (442)   (135)   - 
Purchase of property and equipment   (2,296)   (3,259)   (1,051)   (1,785)
Net cash provided by (used in) investing activities   15,052    (341)   13,266    (1,739)

 

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AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

 

   Six months ended   Three months ended 
   June 30,   June 30, 
   2026   2025   2026   2025 
   (Unaudited)   (Unaudited) 
Cash flows from financing activities:                
Purchase of treasury shares   (22,548)   (11,818)   (8,876)   (6,610)
Cash dividends paid to shareholders   (5,289)   (5,326)   -    - 
Proceeds from issuance of shares upon exercise of options   -    173    -    110 
Net cash used in financing activities   (27,837)   (16,971)   (8,876)   (6,500)
Net increase (decrease) in cash and cash equivalents   6,132    3,870    10,486    (514)
Cash and cash equivalents at beginning of period   45,282    58,749    40,928    63,133 
Cash and cash equivalents at end of period  $51,414   $62,619   $51,414   $62,619 

 

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per sharePage 9 of 9