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what it is
AudioCodes sells the gear and software that help companies move phone calls over internet networks instead of old phone lines.
how it gets paid
Last year Audiocodes made $242M in revenue. Session Border Controllers was the main engine at $72.0M, or 30% of sales.
what just happened
Last quarter EPS came in at $0.16, beating the $0.14 estimate by 14.29%, while gross margin held at 65.3%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
65/100 earnings predictability — reasonably predictable
11.5x trailing p/e — the market's not buying it — or you found a deal
4.9% dividend yield — cash in your pocket every quarter
14.2% return on capital — nothing to write home about
xvary composite: 50/100 — below average
What they do
AudioCodes sells the gear and software that help companies move phone calls over internet networks instead of old phone lines.
AudioCodes wins because ripping out voice infrastructure is annoying, risky, and expensive. VoIP (voice over internet protocol) → phone calls over data networks → once your call routing, gateways, and security boxes are installed, switching vendors hurts. That helps a 946-employee company hold a 65.3% gross margin, which is unusually fat for hardware-heavy tech.
How they make money
$242M
annual revenue
Session Border Controllers
$72.0M
0.0%
Media Gateways
$58.0M
1.0%
IP Phones & Devices
$39.0M
0.0%
Professional Services
$32.6M
+3.4%
Applications & Media Servers
$24.4M
+1.0%
Routers & Residential Gateways
$16.0M
2.0%
The products that matter
secures enterprise voice traffic
Session Border Controllers
$~170M product base
This sits inside the roughly $170M products business. It keeps customers on the platform, but the growth problem is obvious: the segment is flat.
core infrastructure
voice automation and analytics
VoiceAI Services
40–50% target growth
Management is guiding this business to grow 40–50%. On a $220M market cap, a real software-growth layer would matter a lot. It just has to become real first.
the bull case
phones, gateways, and support
IP Phones, Media Gateways & Services
$~72M services bucket
The services and support side is roughly $72M and grew 3.4%. That's better than flat hardware, but not enough by itself to force the market to pay up.
mix shift watch
Key numbers
11.5x
trailing p/e
P/E (price-to-earnings) → how much investors pay for each dollar of profit → you are paying a small-company multiple for a profitable tech business.
4.9%
dividend yield
Dividend yield → cash paid back to shareholders each year → you are getting paid while waiting for the business to prove it can grow faster.
13.0%
operating margin
Operating margin → profit after running the business, before interest and taxes → AudioCodes is profitable, not just adjusted-profitable on a slide deck.
14.2%
return on capital
Return on capital → profit earned on the money invested in the business → this is decent, but not high enough to excuse slow growth forever.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 35 / 100
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for AUDC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Last quarter EPS came in at $0.16, beating the $0.14 estimate by 14.29%, while gross margin held at 65.3%.
The beat was small in dollars but mattered because AudioCodes is a $220M company trading on credibility. Quarterly revenue was not provided in the source set, so the cleaner proof point is that earnings still came in above expectations on a $242M trailing revenue base.
$242M
ttm revenue
$0.16
last eps
65.3%
gross margin
the number that mattered
The key number was the 14.29% EPS beat, because a low-multiple stock only rerates when it keeps clearing low expectations.
source: company earnings report, 2026
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What could go wrong
the top risk is VoiceAI growth failing to outrun a flat products base.
med
The pivot stays smaller than the pitch
Management is talking about 40–50% growth in VoiceAI while the wider company sits at $242M of revenue and just 1.4% growth. That's a narrow path.
If the new layer does not scale fast, the market keeps valuing AUDC on its flat $~170M products base instead.
med
Hardware remains the center of gravity
Roughly 70% of revenue still comes from products, and that segment is flat. You do not rerate into a software multiple while the box business still dominates the mix.
A flat products segment can absorb a lot of good news coming from a smaller services line.
med
Margin pressure eats the transition story
The page already flags tariff-related costs and higher SG&A pressure. On a business running around a 13% operating margin, that does not leave a huge buffer.
If margins compress while revenue stays near the low end of $247M–$255M guidance, the stock can look cheap and still go nowhere.
med
Bigger cloud players set the pace
This market is moving toward cloud communication and software layers where larger platforms have more scale, distribution, and room to invest.
That can turn AudioCodes into a useful niche vendor rather than the growth platform investors are hoping for.
If the roughly $72M services bucket does not accelerate meaningfully while the roughly $170M product base stays flat, the stock remains a low-multiple value name. That is the bear case in one sentence.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Expected May 12, 2026. You want to see whether the full-year guide of $247M–$255M still looks realistic after one quarter.
trend
VoiceAI growth versus company growth
Management is aiming for 40–50% growth in VoiceAI while the wider business grew 1.4% last year. That gap is the rerating story.
metric
Services mix
Services and support are roughly $72M today and grew 3.4%. If that stays low single digits, the transition narrative weakens fast.
capital return
$25M share buyback versus dividend discipline
Management is buying back stock and paying a 4.9% yield while funding a business shift. Good capital allocation looks smart here. Bad capital allocation looks like denial.
Analyst rankings
earnings predictability
65 / 100
Earnings are reasonably readable, but not reliable enough to treat every quarter like a formality. In human-speak, you should expect some noise.
price stability
35 / 100
The business may look steady on paper, but the stock does not. Small-cap positioning and a wide $7–$12 trading range explain why.
source: institutional data
Institutional activity
institutional ownership data for AUDC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$8
current price
n/a
target midpoint · n/a from current
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