AudioCodes Reports Third Quarter 2025 Results
Nov 04, 2025
Third Quarter Highlights
- Quarterly revenues increase by 2.2% year-over-year to $61.5 million;
- Services revenues for the quarter were $30.9 million and accounted for 50.3% of total revenues;
- GAAP results:
- Quarterly GAAP gross margin was 65.5%;
- Quarterly GAAP operating margin was 6.6%;
- Quarterly GAAP EBITDA was $5.2 million;
- Quarterly GAAP net income was $2.7 million, or $0.10 per diluted share.
- Non-GAAP results:
- Quarterly Non-GAAP gross margin was 65.8%;
- Quarterly Non-GAAP operating margin was 9.5%;
- Quarterly Non-GAAP EBITDA was $6.9 million;
- Quarterly Non-GAAP net income was $4.9 million, or $0.17 per diluted share.
- Net cash provided by operating activities was $4.1 million for the quarter.
- AudioCodes repurchased 1,267,436 of its ordinary shares during the quarter at an aggregate cost of $12.7 million.
Details
Or Yehuda, Israel – November 4, 2025 – AudioCodes (NASDAQ: AUDC) Press Release
AudioCodes, a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the third quarter ended September 30, 2025.
Revenues for the third quarter of 2025 were $61.5 million compared to $60.2 million for the third quarter of 2024.
EBITDA for the third quarter of 2025 was $5.2 million compared to $5.9 million for the third quarter of 2024.
On a Non-GAAP basis, EBITDA for the third quarter of 2025 was $6.9 million compared to $7.9 million for the third quarter of 2024.
Net income was $2.7 million, or $0.10 per diluted share, for the third quarter of 2025 compared to net income of $2.7 million, or $0.09 per diluted share, for the third quarter of 2024.
On a Non-GAAP basis, net income was $4.9 million, or $0.17 per diluted share, for the third quarter of 2025 compared to $4.9 million, or $0.16 per diluted share, for the third 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 $4.1 million for the third quarter of 2025. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities, and long-term financial investments were $79.7 million as of September 30, 2025 compared to $93.9 million as of December 31, 2024. The decrease in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of the 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 each of the first and third quarters of 2025. This was partially offset by cash generated from operating activities.
“I am pleased to report that we delivered a strong third quarter, which highlights our commitment to our strategic priorities and our ongoing transformation into an AI-driven, hybrid cloud software and services company,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes. This quarter’s success was driven by ongoing momentum across our two primary growth engines: the Live family of services for Unified Communications and Collaboration (UCC) and Contact Center (CX) connectivity and conversational AI (CAI) business.
One of the standout achievements this quarter was the impressive 50% growth in our CAI business, which keeps us on track to achieve a 40%-50% growth for the entire year of 2025. Combined, these two units propelled our Annual Recurring Revenue (ARR) to $75 million by the end of the third quarter, marking a significant 25% year-over-year increase and setting us up well to meet our full-year target of $78-$82 million.
The recent launch of our Live Platform has already borne fruit, as we secured a landmark agreement with a tier-1 system integrator. This agreement covers managed connectivity services for all major UC/CX systems and opens up exciting opportunities for cross-selling value-added solutions. Moreover, our Voice AI Connect and Live Hub, the conversational AI enablement services, delivered outstanding results, propelled by a high number of new logo wins and significant expansions within our existing customer base.
Shifting our focus to conversational AI, our new service, Meeting Insights On-Prem (Mia OP), made noteworthy advancements during the quarter. Our leading position in Israel was further solidified by being awarded a contract under Project Nimbus, the Israeli government’s multi-year cloud migration initiative. Additionally, we launched sales efforts in the US during the third quarter and have witnessed strong customer interest in Mia OP beyond the government sector in Israel.
Overall, we executed well on our business priorities. The increased investments in our Live platform and CAI over the past several quarters have significantly contributed to the record-breaking Live and conversational AI bookings this quarter. We remain steadfast in our commitment to investing in high-growth areas, which we believe will drive sustained top-line growth improvement in the medium term”, concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
On July 29, 2025, the Company declared a cash dividend of 20 cents per share. The dividend, in the aggregate amount of approximately $5.6 million, was paid on August 28, 2025, to all of the Company's shareholders of record on August 14, 2025.
During the quarter ended September 30, 2025, the Company acquired 1,267,436 of its ordinary shares under its share repurchase program for a total consideration of $12.7 million.
As of September 30, 2025, the Company had $1.7 million available under this approval for the repurchase of shares and/or declaration of cash dividend.
In October 2025, the Company received court approval in Israel to purchase up to an aggregate amount of $25 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through April 28, 2026.
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's third 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.
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