AudioCodes Ltd (NASDAQ: AUDC) shares fell 11.80% to $7.52 during Tuesday’s trading session. The price movement followed the company’s publication of its financial results for the fourth quarter and full year ended December 31, 2025. The stock opened at $8.10 and reached an intraday low of $7.32 before stabilizing at the current level.
Market Capitalization
As of February 3, 2026, AudioCodes Ltd maintains a market capitalization of approximately $203.6 million.
Latest Quarterly Results
AudioCodes reported consolidated revenue of $62.6 million for the fourth quarter of 2025, representing a 1.7% increase compared to $61.6 million in the same period of 2024. GAAP net income for the quarter was $1.9 million, or $0.07 per diluted share, down from $6.8 million, or $0.22 per diluted share, in the prior-year quarter. On a non-GAAP basis, net income stood at $4.5 million, or $0.16 per diluted share.
The company’s service revenue reached $34.6 million, accounting for 55.3% of total quarterly turnover. In strategic segments, the Microsoft Teams business recorded a 7% sequential increase. The Conversational AI business segment grew by more than 50% year-over-year. Annual Recurring Revenue (ARR) from the “Live” family of managed services and VoiceAI reached $79 million, a 22% increase from the previous year.
Financial Trends
Full-Year Results Context
For the full year 2025, AudioCodes reported total revenue of $245.6 million, an increase of 1.4% over the $242.2 million generated in 2024. GAAP net income for the year was $9.0 million, compared to $15.3 million in 2024. The results indicate a trend of revenue stability alongside contraction in net profitability.
Business & Operations Update
The company declared a semi-annual cash dividend of $0.20 per share, totaling approximately $5.4 million. This dividend is payable on March 6, 2026, to shareholders of record as of February 20, 2026. Management identified its transition toward an AI-driven hybrid cloud software and services model as a primary operational focus.
M&A or Strategic Moves
During the fourth quarter of 2025, AudioCodes repurchased 667,193 of its ordinary shares at an aggregate cost of $6.1 million. The company reported that $20.6 million remains available under the current board-approved program for future share repurchases or dividend declarations through April 2026.
Equity Analyst Commentary
Institutional researchers noted that while the non-GAAP earnings per share of $0.16 exceeded consensus estimates of $0.14, margin compression remained a point of observation. Analysts highlighted the growth in VoiceAI Connect and Live Hub revenues, which increased by over 50% year-over-year, while citing broader market conditions and potential regulatory costs as factors influencing investor sentiment.
Guidance & Outlook
For the full year 2026, AudioCodes issued revenue guidance in the range of $247 million to $255 million. Non-GAAP diluted earnings per share are projected between $0.60 and $0.75. The company expects its total ARR to reach between $92 million and $98 million by the end of 2026. Management noted potential profitability impacts from estimated tariffs of $2.3 million during the upcoming fiscal year.
Performance Summary
AudioCodes stock declined 11.80% today. Quarterly revenue grew 1.7% to $62.6 million, though net profit decreased to $1.9 million. Growth in the Conversational AI and Microsoft Teams segments provided the primary contribution to the top line.
