AUDC AUDIOCODES LTD
Price Chart
Executive Summary
AudioCodes reported Q1 2026 results with revenue up 2.9% YoY to $62.1M, but GAAP net income fell 51% to $2.0M ($0.07/diluted share) from $4.0M ($0.13/diluted share) a year ago. Operating income declined 7.7% to $3.4M, and GAAP operating margin contracted to 5.4% from 6.0%. The company repurchased $13.7M in shares and paid a $5.3M dividend, reducing cash reserves.
Actionable Insight
Revenue growth of 2.9% is anemic and GAAP earnings halved despite aggressive share buybacks. The 20% ARR growth in Live/CAI segments is promising but not yet flowing through to profitability. Monitor the Q2 2026 6-K for any margin recovery or guidance — if operating margins continue to compress, the stock could re-rate lower given the current 86% analyst bullish consensus.
Key Facts
- Q1 2026 revenue $62.1M, up 2.9% YoY from $60.4M
- GAAP net income $2.0M ($0.07/diluted), down 51% from $4.0M ($0.13/diluted) YoY
- GAAP operating income $3.4M, down 7.7% from $3.6M YoY
- GAAP operating margin 5.4%, down from 6.0% YoY
- Non-GAAP net income $3.8M ($0.14/diluted), down from $4.7M ($0.15/diluted) YoY
- Non-GAAP operating margin 7.7%, down from 8.9% YoY
- Net cash from operations $12.8M, down from $13.5M YoY
- Cash and equivalents fell to $40.9M from $45.3M at year-end 2025
- Repurchased 1,740,329 shares for $13.7M during the quarter
- Paid $5.3M cash dividend ($0.20/share) on March 6, 2026
- Outstanding shares reduced to 25,453,614 as of March 31, 2026
- ARR reached $80M, up nearly 20% YoY; Conversational AI grew over 50% YoY
Financial Impact
GAAP net income halved to $2.0M from $4.0M YoY; operating income down 7.7%; cash burn from buybacks and dividends reduced cash by $4.4M
Risk Factors
- GAAP net income halved YoY despite only 2.9% revenue growth — cost growth outpacing revenue
- Operating expenses rose 6.4% ($37.8M vs $35.5M) while gross profit grew only 5.1%
- Cash reserves declining due to aggressive buyback/dividend program ($18.9M used in financing activities)
- Financial income swung to a $0.4M loss from $1.7M gain YoY, pressuring bottom line
- Share count reduction masks underlying earnings deterioration on an absolute basis
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001185185-26-001710 |
| Document: audltd6k050426.htm | 0001185185-26-001710 |
| Document: 0001185185-26-001710-index-headers.html | 0001185185-26-001710 |
| Document: 0001185185-26-001710-index.html | 0001185185-26-001710 |
| Document: 0001185185-26-001710.txt | 0001185185-26-001710 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 7, 2026
4w ago
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6-K
| $8.35 $10.05 | ▲ +20.36% | ▲ +17.22% | $9.52 (+14.01%) |
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May 6, 2026
5w ago
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Insider Cluster
| $8.54 $10.05 | ▲ +17.68% | ▲ +14.90% | $9.52 (+11.48%) |
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May 5, 2026
5w ago
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6-K
| $8.51 $10.15 | ▼ −19.27% | ▼ −14.32% | $9.52 (−11.87%) |
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May 5, 2026
5w ago
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Insider Cluster
| $8.51 $10.15 | ▲ +19.27% | ▲ +14.32% | $9.52 (+11.87%) |
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Apr 28, 2026
6w ago
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Insider Cluster
| $8.75 $9.08 | ▲ +3.77% | ▼ −1.70% | $9.52 (+8.80%) |
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Apr 28, 2026
6w ago
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Insider Cluster
| $8.75 $9.08 | ▲ +3.77% | ▼ −1.70% | $9.52 (+8.80%) |
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Apr 28, 2026
6w ago
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Insider Cluster
| $8.75 $9.08 | ▲ +3.77% | ▼ −1.70% | $9.52 (+8.80%) |
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Apr 28, 2026
6w ago
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Insider Cluster
| $8.75 $9.08 | ▲ +3.77% | ▼ −1.70% | $9.52 (+8.80%) |
US Market Status
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