AudioCodes Ltd.

Second-quarter revenue 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 represented 54.9% of total revenue. GAAP gross margin was 65.7% versus 64.1% last year; GAAP operating income was $3.2 million, or 5.1% of revenue, versus $2.6 million, or 4.3% a year ago. GAAP net income was $0.5 million, or $0.02 per diluted share, versus $0.3 million, or $0.01 per diluted share in Q2 2025. Non-GAAP gross margin was 65.8% versus 64.5%; non-GAAP operating income was $4.6 million, or 7.4% of revenue, versus $4.4 million, or 7.2% in Q2 2024; 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 in Q2 2025. Cash, cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments totaled $64.2 million at June 30, 2026, and operating cash flow was $6.1 million. Guidance for 2026 was raised on revenue to $251 million-$256 million from $247 million-$255 million, while non-GAAP diluted EPS guidance was reiterated at $0.60-$0.75.

The CEO framed the quarter as evidence that AudioCodes is steadily transforming into an AI-driven cloud and edge software and services company. He emphasized that the two main growth engines, Live Managed Services and Voice AI, are expanding recurring revenue, with combined ARR at $84 million and up 20% year over year. His tone was constructive and confident, pointing to stronger pipeline, accelerating Voice AI adoption, and a favorable long-term opportunity as voice becomes more central to enterprise AI workflows.

The CFO highlighted a solid quarter with revenue of $63 million, services revenue of $34.6 million, and gross margin improvement to 65.7% GAAP and 65.8% non-GAAP. He also cited $3.2 million of GAAP operating income, $4.6 million of non-GAAP operating income, $0.5 million of GAAP net income, and $3.9 million of non-GAAP net income, plus $6.1 million of operating cash flow. On capital allocation, he noted $64.2 million of cash and investments, 107 days sales outstanding, repurchases of 950,000 shares for about $8.9 million, a new court approval to buy back up to $25 million more of shares through November 12, 2026, and a declared cash dividend of $0.20 per share, or about $4.8 million.

There was no analyst Q&A in the transcript, so no external questions or management responses were presented. The most notable incremental guidance from management was the raised 2026 revenue range and reiterated EPS range. Management also used the prepared remarks to stress that Voice AI and Microsoft Teams pipeline momentum were improving, with some sales cycles shortening to around 6 months from a historical 12 to 24 months.