AudioCodes Achieves Impressive Growth in Q2 2026 and Declares Dividend

AudioCodes Reports Strong Financial Performance in Q2 2026

In a noteworthy financial report, AudioCodes Ltd. (NASDAQ: AUDC), a leader in enterprise voice and VoiceAI solutions, announced its results for the second quarter of 2026. The company demonstrated a strong performance with revenues increasing by 3.1% year-over-year to reach $63 million, up from $61.1 million in Q2 2025. This growth underscores the robust demand for AudioCodes' services, particularly in the thriving sectors of Unified Communications as a Service (UCaaS) and Conversational AI.

Year-Over-Year Revenue Growth

The quarterly revenue received a substantial boost from services, which increased by 6.2% to $34.6 million, showcasing the company's focus on enhancing its service offerings. The gross margin reported under Generally Accepted Accounting Principles (GAAP) was 65.7%, while the operating margin stood at 5.1%. Moreover, the company reported a net income of $0.5 million, equivalent to $0.02 per diluted share, reflecting a notable increase from the $0.3 million, or $0.01 per diluted share, recorded in the previous year.

When adjusted for non-GAAP figures, the net income for this quarter was $3.9 million, or $0.15 per diluted share, compared to $4.1 million or $0.14 per diluted share in Q2 2025. This difference highlights the impact of certain non-recurring expenditures, such as share-based compensation and amortization.

Growth Drivers and Strategic Initiatives

President and CEO Shabtai Adlersberg commented on the results, emphasizing that the performance reflects AudioCodes' successful execution of its strategic initiatives to transition into a voice AI-centric cloud software and services company. The annual recurring revenue (ARR) from the principal growth pillars, namely managed services for UCaaS and the Conversational AI business, reached $84 million, marking a 20% increase compared to the same quarter last year.

One significant contributor to this revenue growth was the company's Microsoft Teams business, which experienced a year-over-year growth of 5%. Additionally, the Conversational AI sector displayed remarkable growth, soaring by over 50% year-over-year.

During the quarter, innovations such as Voice AI Connect and Live Hub garnered significant bookings, driven by a consistent influx of new customers as well as expansion within the existing customer base. Notably, the Voca CIC, a contact center solution certified by Microsoft Teams, has also shown commendable business progression.

Dividend Declaration and Share Repurchase Program

In line with its financial achievements, AudioCodes' Board of Directors declared a semi-annual cash dividend of $0.20 per share, approximating an aggregate amount of $4.8 million. This dividend is set to be payable on September 3, 2026, to shareholders recorded by August 19, 2026. This decision aligns well with the company's commitment to returning value to its shareholders amidst growth.

Moreover, the company has been actively repurchasing shares, buying back a total of 950,133 ordinary shares during the quarter for a total expenditure of approximately $8.9 million. The share repurchase program, with court approval to buy up to $25 million worth of shares, reflects confidence in the company's long-term prospects.

Conclusion

Looking ahead, AudioCodes intends to maintain its strategic investments in live services and Voice AI capabilities, aiming for sustained top-line growth for the remainder of 2026. With a calculated approach to budget and managerial discipline, the company is well-positioned to navigate the evolving landscape of voice communication technologies. As the demand for integrated communication solutions grows, AudioCodes continues to transform every interaction—whether between humans or AI—into a strategic business asset.

In conclusion, AudioCodes not only reported solid financial results for Q2 2026 but also made strategic moves to enhance shareholder value through dividends and share buybacks, ultimately positioning itself for continued growth in the future.