AudioCodes revenue rises as VoiceAI business gains momentum

November 4, 2026, 08:00Source: PR Newswire

AudioCodes closed the third quarter of 2026 with revenue of $64.1 million, up 4.2% year on year. The company’s services revenue grew faster, rising 19.9%, while its VoiceAI business expanded 50% in the first nine months of the year.

Key points

AudioCodes’ third-quarter revenue rose to $64.1 million.
Services revenue increased 19.9% year on year.
VoiceAI revenue grew 50% in the first nine months of 2026.
The company repurchased 1 517 568 of its own shares for $15.1 million.
The combined ARR of the two main growth businesses reached $87 million.

Revenue and net income rise

AudioCodes released its financial results for the quarter ended September 30 on November 4. The company reported revenue of $64.1 million, compared with $61.5 million in the third quarter of 2025. Services revenue totaled $37.1 million, an increase of 19.9% year on year.

GAAP gross margin was 65.7%, while operating margin was 5.3%. Net income reached $3.6 million, or $0.15 per diluted share, compared with $2.7 million, or $0.10 per share, a year earlier.

Non-GAAP net income was $4 million, or $0.16 per diluted share. That was down from the $4.9 million reported in the third quarter of 2025 and the $0.17 per-share figure recorded at the time. The company’s non-GAAP measures exclude, among other items, share-based compensation expenses, amortization of intangible assets and certain foreign-exchange effects.

VoiceAI and cloud services drive growth

Shabtai Adlersberg, chairman and CEO of AudioCodes, said the results showed that the company’s transformation into a cloud software and services company built around voice-based artificial intelligence was continuing. “The third-quarter results were supported by the continued momentum of our two key growth pillars: the Live managed services portfolio in UCaaS and CX, and our VoiceAI business,” he said.

The combined annual recurring revenue, or ARR, of the two businesses rose to $87 million, up 16% year on year. The Microsoft Teams-related business grew 4%, while the UCaaS and CX connectivity business now accounts for more than 85% of total business.

VoiceAI revenue in the first three quarters of the year was 50% higher than a year earlier. VoiceAI Connect and Live Hub recorded record orders during the quarter. Revenue from the Microsoft Teams-certified Voca CIC contact center solution grew by more than 40%, while revenue from Meeting Insights and Mia Edge more than doubled year on year.

Share buybacks and dividend

AudioCodes generated net cash of $4.1 million from operations during the quarter. The combined value of cash, short-term bank deposits, short-term marketable securities and long-term financial investments was $47.1 million as of September 30, compared with $75.7 million on December 31, 2025.

The decline was primarily caused by share buybacks and cash dividends paid in the first and third quarters. During the quarter, the company repurchased 1 517 568 of its own shares for a total of $15.1 million.

On August 4, AudioCodes announced a dividend of $0.20 per share. The payment, totaling approximately $4.8 million, was made on September 3. In September, the company received approval from an Israeli court for share buybacks of up to $30 million, or for paying dividends from that amount. As of September 30, $26.7 million remained available under the authorization, which is valid until March 9, 2027.

The company said investments in Live services and VoiceAI were creating a favorable foundation for the growth expected during the remainder of 2026 and in 2027. Investors heard more about operations, financial results and the outlook during AudioCodes’ conference call on November 4.