AudioCodes Ltd.

Revenue for Q2 2026 was $63 million, up 3.1% from $61.1 million in Q2 2025. Services revenue was $34.6 million, up 6.2% year over year, and accounted for 54.9% of total revenue. GAAP gross margin was 65.7% versus 64.1% a year ago; GAAP operating income was $3.2 million, or 5.1% of revenue, versus $2.6 million, or 4.3% last year; GAAP net income was $0.5 million, or $0.02 per diluted share, versus $0.3 million, or $0.01 per diluted share. Non-GAAP gross margin was 65.8% versus 64.5%; non-GAAP operating income was $4.6 million, or 7.4% of revenue; and non-GAAP net income was $3.9 million, or $0.15 per diluted share, versus $4.1 million, or $0.14 per diluted share. Cash, cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments totaled $64.2 million at quarter-end, and operating cash flow was $6.1 million. The company bought back 950,000 shares for about $8.9 million and declared a $0.20 per share dividend totaling about $4.8 million. For 2026, AudioCodes raised revenue guidance to $251 million-$256 million from $247 million-$255 million and reiterated non-GAAP diluted EPS guidance of $0.60-$0.75.

Shabtai Adlersberg said the quarter showed steady progress in the company’s transformation into an AI-driven cloud and edge software and services business. He emphasized that the main growth engines are Live Managed Services and Voice AI, with combined annual recurring revenue of $84 million, up 20% year over year and doubled over three years. His tone was upbeat on Voice AI, saying growth was over 50% year over year and that the business is ahead of schedule toward the company’s long-term targets.

Niran Baruch focused on the quarter’s financial performance: revenue of $63 million, services revenue of $34.6 million, GAAP gross margin of 65.7%, and non-GAAP gross margin of 65.8%. He highlighted $64.2 million of cash and investments at June 30, $6.1 million of operating cash flow, and days sales outstanding of 107 days. He also detailed capital allocation actions, including repurchasing 950,000 shares for about $8.9 million and declaring a $0.20 per share dividend; he then raised full-year revenue guidance to $251 million-$256 million while keeping non-GAAP EPS guidance at $0.60-$0.75.

There was no analyst Q&A in the transcript; the operator moved directly from management remarks to closing statements. As a result, no specific analyst concerns were raised on the call, and no additional back-and-forth guidance clarification was provided beyond management’s prepared remarks.