Earnings release
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Page 1 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release Company Contacts Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 niran.baruch@audiocodes.com Roger L. Chuchen VP, Investor Relations AudioCodes Tel: +1-732-764-2552 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: o Quarterly GAAP gross margin was 65.7%; o Quarterly GAAP operating margin was 5.1%; o Quarterly GAAP net income was $0.5 million, or $0.02 per diluted share. • Non-GAAP results: o Quarterly Non-GAAP gross margin was 65.8%; o Quarterly Non-GAAP operating margin was 7.4%; o 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.
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Page 2 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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 202 6 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 currencie s. 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.
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Page 3 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release “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.
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Page 4 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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.
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Page 5 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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 Insi de 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. Al l other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
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Page 6 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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
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Page 7 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release AUDIOCODES LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 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) 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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Page 8 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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) 19 266 8 133 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) 2,388 918 1,980 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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Page 9 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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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Page 10 of 10 AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share AudioCodes Press Release 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