Second Quarter Highlights
- Quarterly revenues increase by 1.3% year-over-year to $61.1 million;
- Quarterly service revenues increased by 1.9% year-over-year to $32.6 million;
- GAAP results:
- Quarterly GAAP gross margin was 64.1%;
- Quarterly GAAP operating margin was 4.3%;
- Quarterly GAAP EBITDA was $3.6 million;
- Quarterly GAAP net income was $0.3 million, or $0.01 per diluted share.
- Non-GAAP results:
- Quarterly Non-GAAP gross margin was 64.5%;
- Quarterly Non-GAAP operating margin was 7.2%;
- Quarterly Non-GAAP EBITDA was $5.2 million;
- Quarterly Non-GAAP net income was $4.1 million, or $0.14 per diluted share.
- Net cash provided by operating activities was $7.7 million for the quarter.
- AudioCodes repurchased 715,732 of its ordinary shares during the quarter at an aggregate cost of $6.6 million.
Details
Or Yehuda, Israel – July 29, 2025 – AudioCodes (NASDAQ: AUDC) Press Release
AudioCodes, a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the second quarter ended June 30, 2025.
Revenues for the second quarter of 2025 were $61.1 million compared to $60.3 million for the second quarter of 2024.
EBITDA for the second quarter of 2025 was $3.6 million compared to $6.2 million for the second quarter of 2024.
On a Non-GAAP basis, EBITDA for the second quarter of 2025 was $5.2 million compared to $8.3 million for the second quarter of 2024.
Net income was $0.3 million, or $0.01 per diluted share, for the second quarter of 2025 compared to net income of $3.8 million, or $0.12 per diluted share, for the second quarter of 2024.
On a Non-GAAP basis, net income was $4.1 million, or $0.14 per diluted share, for the second quarter of 2025 compared to $5.5 million, or $0.18 per diluted share, for the second quarter of 2024.
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (iv) tax impact which relates to our Non-GAAP adjustments; and (v) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities was $7.7 million for the second quarter of 2025. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments were $95.3 million as of June 30, 2025 compared to $93.9 million as of December 31, 2024. The increase in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of cash generated from operating activities. This was partially offset by use of cash for the continued repurchasing of the Company's ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the first quarter.
"I am pleased to report solid second quarter 2025 progress and results. Second quarter top-line growth was fueled mainly by growth of our Live managed services in the UCaaS and CX markets coupled with cross-selling our AI-powered business applications," said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
We saw strong demand in UC, CX, and conversational AI, with Microsoft business rising 6.5% this quarter. Conversational AI remains a key growth area, supporting our 40%-50% segment growth outlook for 2025. Live managed services also grew, driving Annual Recurring Revenues (ARR) to $70 million, a 25% year-over-year increase.
This quarter, we launched Live Platform, our integrated UCaaS and CX solution. With Webex Calling certification and Live CX services, it now supports comprehensive UC and CX features for all major global UCC vendors.
In Conversational AI, we launched the Meeting Insights On-Prem (Mia OP) solution, which delivers secure meeting intelligence for enterprises detached from the cloud and/or the internet. Designed primarily for sectors like government, defense, healthcare, and finance, Mia OP has active customers in Israel with a growing number of proof-of-concept trials underway. The team is expanding international outreach and has received positive feedback from industry analysts.
Operationally, we experienced increased expenses due to the implementation of new tariffs on US imports amounting to $1 million additional costs as well as a significant rise in costs within EMEA region driven by the strengthening of the Euro against the US dollar. These two factors impacted our net income generation in the quarter.
Overall, we delivered on our business priorities in the quarter, making the necessary investments in product and sales with an eye towards accelerating our growth in revenues in our Conversational AI products and solutions. We believe these investments position us well for an improved top-line growth in the medium term," concluded Mr. Adlersberg.
Share Buy Back Program
During the quarter ended June 30, 2025, the Company acquired 715,732 of its ordinary shares under its share repurchase program for a total consideration of $6.6 million.
In July 2025, the Company received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through December 30, 2025.
Cash Dividend
AudioCodes also announced today that the Company's Board of Directors has declared a cash dividend in the amount of 20 cents per share. The aggregate amount of the dividend is approximately $5.7 million. The dividend is payable on August 28, 2025, to all of the Company's shareholders of record at the close of trading on the NASDAQ Global Select Market on August 14, 2025.
In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital, the withholding rate is 30%.
The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Board.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's second quarter of 2025 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers:
- United States Participants: 888-506-0062
- International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at www.audiocodes.com/investors-lobby.
Read More | Download Earnings Call Supplementary Slides
