AudioCodes Q1 Earnings Call Highlights

AudioCodes (NASDAQ:AUDC) reported first-quarter fiscal 2026 gross of $62.1 million, up 2.9% from $60.4 cardinal successful the prior-year period, citing accelerating momentum successful managed services and dependable AI offerings. The institution besides reiterated its full-year 2026 outlook for gross of $247 cardinal to $255 cardinal and non-GAAP net per diluted stock of $0.60 to $0.75, according to Chief Financial Officer and Vice President of Finance Niran Baruch.

First-quarter fiscal results

Baruch said services gross roseate 4.3% twelvemonth implicit twelvemonth to $34.0 cardinal and represented 54.7% of full revenue. Geographic gross premix for the 4th was 49% North America, 34% EMEA, 13% Asia Pacific, and 4% Central and Latin America. AudioCodes’ apical 15 customers represented 53% of revenue, with 34% attributed to its 8 largest distributors.

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On a GAAP basis, gross borderline was 66.2% compared with 64.8% successful the year-ago quarter. GAAP operating income was $3.4 million, oregon 5.4% of revenue, compared with $3.6 million, oregon 6.0% of revenue, a twelvemonth earlier. GAAP nett income was $2.0 million, oregon $0.07 per diluted share, down from $4.0 million, oregon $0.13 per diluted share, successful the archetypal 4th of 2025.

On a non-GAAP basis, gross borderline was 66.3% versus 65.2% a twelvemonth earlier. Non-GAAP operating income was $4.8 million, oregon 7.7% of revenue, compared with $5.4 million, oregon 8.9% of revenue, successful the prior-year quarter. Non-GAAP nett income was $3.8 million, oregon $0.14 per diluted share, compared with $4.7 million, oregon $0.15 per diluted share, successful the archetypal 4th of 2025.

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Baruch said the institution ended March 2026 with $68.1 cardinal successful currency equivalents, short-term slope deposits, short-term marketable securities, and semipermanent fiscal investments. Net currency provided by operating activities was $12.8 cardinal successful the quarter, and days income outstanding were 104 days.

Capital instrumentality and equilibrium expanse items

AudioCodes paid a $0.20 per stock currency dividend during the quarter. Baruch said the dividend, totaling astir $5.3 million, was paid connected March 6, 2026, aft being declared connected Feb. 3, 2026.

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The institution besides repurchased shares. “During the quarter, we acquired 1.7 cardinal of our mean shares for a full information of astir $13.7 million,” Baruch said.

Management highlights: displacement toward managed services and dependable AI

President and Chief Executive Officer Shabtai Adlersberg described the 4th arsenic reflecting continued execution connected a strategy to alteration AudioCodes into “a dependable AI-driven hybrid unreality bundle and services company.” He said the company’s “two superior maturation engines,” unrecorded managed services and dependable AI, unneurotic contributed to an $80 cardinal yearly recurring gross (ARR) exit astatine the extremity of the archetypal 4th of 2026, increasing “nearly 20% year-over-year.”