#Israel #VoiceAI #UCaaS #AudioCodes #Or Yehuda

AudioCodes Reports Impressive Q3 2026 Results

On November 4, 2026, AudioCodes Ltd. (NASDAQ AUDC) released its financial results for the third quarter ended September 30, 2026, signaling a period marked by accelerated growth and a positive outlook. The company recorded quarterly revenues of $64.1 million, which represents a 4.2% increase from the previous year. This growth was fueled notably by a remarkable 19.9% rise in service revenues, amounting to $37.1 million.

CEO Shabtai Adlersberg commented on the strong performance, stating, "Our positive financial results reflect the successful strategic transition we have undergone, aimed at enhancing our position as a leader in voice AI and cloud software services." The third quarter results not only underscore AudioCodes' operational efficiency but also highlight the ongoing investments in its flagship offerings, including the Live suite of managed services for Unified Communication as a Service (UCaaS) and Customer Experiences (CX).

Key Financial Highlights

• - GAAP Gross Margin: 65.7%
• - GAAP Operating Margin: 5.3%
• - Net Income: $3.6 million, equating to $0.15 per diluted share.
• - Non-GAAP Net Income: $4.0 million, or $0.16 per diluted share.
• - Cash Flow from Operations: $4.1 million.

The increase in revenues from the third quarter of 2025, which stood at $61.5 million, indicates a consistent upward trajectory in the company's financial health. The quarterly net income expanded significantly compared to the previous year's figure of $2.7 million. In addition, the non-GAAP measures show a healthy operational baseline, with a gross margin of 65.8% before adjusting for share-based compensation and amortization expenses.

Share Buyback and Dividend Program

During the third quarter, AudioCodes returned value to shareholders by repurchasing 1,517,568 ordinary shares for $15.1 million under its share repurchase program. This is part of an ongoing strategy approved by the Israeli court, allowing the company to buy back shares up to $30 million by March 2027. Furthermore, the company declared a cash dividend of 20 cents per share, amounting to a total of approximately $4.8 million, paid on September 3, 2026.

Growth Drivers in VoiceAI and UCaaS

AudioCodes' talented teams have seen substantial development in its VoiceAI solutions, which have grown by 50% year-over-year in the first three quarters of 2026. New offerings like VoiceAI Connect and Live Hub have performed notably well, supported by a robust pipeline and new client engagements. The revenue from its Microsoft Teams-certified contact center solution, Voca CIC, alone grew more than 40% from the same quarter last year, showcasing the rising adoption of their advanced communication solutions.

The outlook for 2027 looks promising, especially as the UCaaS and CX connectivity sectors contribute to over 85% of the company's overall business. Future growth in these areas is anticipated due to ongoing demand and market robustness.

In summary, AudioCodes' third quarter results not only demonstrate success in financial metrics but also illuminate a successful alignment with market trends towards cloud communications and voice AI. As companies pivot towards digital transformation, AudioCodes appears well-positioned to leverage these advancements, ensuring sustainable growth well into 2027 and beyond.

For more insights or to engage further with AudioCodes' strategic initiatives, check out their investor resources or join the company on social media platforms such as LinkedIn and YouTube.