AudioCodes (AUDC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue rose 1.7% year-over-year to $62.6 million, with full-year revenue up 1.4% to $245.6 million.

• Strong growth in VoiceAI and Live managed services, with VoiceAI revenue up 35% year-over-year to nearly $17 million and ARR from Live managed services and VoiceAI reaching $79 million, up 22%-25%.

• Conversational AI and related segments grew over 50% year-over-year in Q4, with Microsoft Teams business up 7% sequentially.

• The company is transitioning to an AI-driven hybrid cloud software and services model, with strong client acquisition and product expansion.

• Declared a $0.20 per share dividend and repurchased 667,193 shares for $6.1 million in Q4.

Financial highlights

• Q4 gross margin was 65.6% (GAAP) and 65.9% (non-GAAP), with operating margin at 6% (GAAP) and 8.6% (non-GAAP).

• Q4 net income was $1.9 million (GAAP) and $4.5 million (non-GAAP); full-year net income was $9 million (GAAP) and $18.1 million (non-GAAP).

• Q4 non-GAAP EPS was $0.16, down from $0.37 in Q4'24, which included a $0.21 per share tax benefit.

• Adjusted EBITDA for 2025 was $24.8 million (10.1% margin); Q4 non-GAAP EBITDA was $6.2–$6.5 million.

• Cash and equivalents totaled $75.7 million at year-end; net cash from operations was $29.4 million for 2025.

Outlook and guidance

• 2026 revenue guidance is $247 million–$255 million, with non-GAAP EPS of $0.60–$0.75.

• VoiceAI business expected to grow 40%-50% annually, aiming for $50 million revenue by 2028.

• Annual recurring revenue projected to grow 20% in 2026, reaching $92–$98 million.

• Management expects continued healthy top-line growth in 2026 and beyond, driven by investments in Live services and Conversational AI.

• Tariff-related costs expected to decrease to $2.3 million in 2026.