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AudioCodes Financial Results for Q4 and Full Year 2025

AudioCodes, a prominent player in the enterprise voice and VoiceAI business solutions market, recently published its financial results for the fourth quarter and full year period ending December 31, 2025. The company reported impressive numbers that highlight a positive growth trajectory amidst challenging market conditions.

Financial Performance Overview

In the fourth quarter of 2025, AudioCodes achieved revenues of $62.6 million, marking a 1.7% increase from the previous year. For the entire year, total revenues reached $245.6 million, up 1.4% from $242.2 million in 2024. This growth was partially driven by the services revenue, which increased by 1.0% year-over-year to $34.6 million in Q4, and by 0.4% for the year, totaling $130.7 million.

GAAP Results Highlights

• - Gross Margin (GAAP): The gross margin for the fourth quarter stood at 65.6%, and the operating margin was 6.0%.
• - Net Income: Net income for Q4 was $1.9 million or $0.07 per diluted share, compared to $6.8 million or $0.22 per diluted share for Q4 2024. For the full year, net income was $9.0 million or $0.31 per diluted share.
• - EBITDA: The EBITDA for Q4 was $4.9 million, as opposed to $5.2 million in the same quarter last year. Yearly EBITDA totaled $18.3 million.

Non-GAAP Performance Metrics

On a non-GAAP basis, the fourth quarter results showcased even better performance:

• - Non-GAAP net income was $4.5 million, equating to $0.16 per diluted share, versus $11.6 million or $0.37 per diluted share in Q4 2024.
• - Total non-GAAP net income for the year reached $18.1 million or $0.61 per diluted share.

The adjustments made under non-GAAP include various expenses such as share-based compensation and amortization expenses, reflecting a clearer operational picture for stakeholders.

Share Buyback and Dividend Announcement

In a strategic move to enhance shareholder value, AudioCodes announced a semi-annual dividend of $0.20 per share. This decision follows the company’s buyback of 667,193 ordinary shares at a total cost of $6.1 million during Q4. The dividend payout is scheduled for March 6, 2026, underscoring AudioCodes' commitment to returning capital to its shareholders despite the fluctuating market conditions.

CEO Shabtai Adlersberg expressed satisfaction with the financial results, noting, “The fourth quarter reflects our successful transition to a Voice AI-focused hybrid cloud software and services model. We’ve seen strong growth in our annual recurring revenue (ARR), which climbed to $79 million—a 22% increase year-over-year.” Adlersberg attributed this growth to robust demand across their Live family of managed services for UCaaS and CX (Customer Experience) and their conversational AI portfolio.

Future Outlook

Looking ahead, AudioCodes is optimistic about continuing to scale its operations, particularly in the Voice AI sector, where the company experienced over 50% growth in Q4 alone. The rising demand for business voice applications in the enterprise market positions AudioCodes favorably as it seeks to maintain this momentum into 2026 and beyond.

As the company prepares to discuss its fourth-quarter performance in an upcoming conference call, investors and market analysts alike will be keen to explore the strategies that will keep AudioCodes at the forefront of the enterprise voice communication landscape.

For more information on AudioCodes, visit their official website.