AudioCodes (AUDC) investor relations material

Executive summary

• Q2 2026 revenues reached $63 million, up 3.1% year-over-year, driven by growth in managed services, Live Managed Services, and Conversational/VoiceAI segments.

• Annual recurring revenue (ARR) rose 20% year-over-year to $84 million, with Microsoft Teams Phone business growing 5% year-over-year.

• Non-GAAP gross margin improved to 65.8%, and non-GAAP operating margin reached 7.4%.

• Non-GAAP net income was $3.9 million ($0.15/share); GAAP net income was $0.5 million ($0.02/share).

• VoiceAI segment revenue grew over 50% year-over-year, on track for 40%-50% full-year growth.

Financial highlights

• Q2 2026 revenues were $63 million, up 3.1% year-over-year.

• Services revenues grew 6.2% to $34.6 million, representing 54.9% of total revenues.

• GAAP gross margin was 65.7%; GAAP operating income $3.2 million (5.1% margin); GAAP net income $0.5 million ($0.02/share).

• Non-GAAP gross margin was 65.8%; non-GAAP operating income $4.6 million (7.4% margin); non-GAAP net income $3.9 million ($0.15/share).

• Cash and investments totaled $64.2 million; net cash from operations was $6.1 million.

Outlook and guidance

• Raised 2026 revenue guidance to $251–$256 million (previously $247–$255 million).

• Reiterated non-GAAP diluted EPS guidance for 2026 at $0.60–$0.75.

• VoiceAI segment targeting $50 million revenue by 2028.

• Management expects continued healthy top-line growth for the remainder of 2026, supported by investments in Live services and Voice AI.