AudioCodes Ltd. (NASDAQ: AUDC), a prominent provider of unified communications and conversational AI solutions, has announced its financial results for the second quarter of 2025, revealing a year-over-year revenue increase of 1.3% to $61.1 million. The company also declared a semi-annual dividend of 20 cents per share, amounting to approximately $5.7 million.
For the quarter ending June 30, 2025, AudioCodes reported quarterly service revenues of $32.6 million, reflecting a 1.9% increase compared to the same period in 2024. The company’s generally accepted accounting principles (GAAP) results indicated a gross margin of 64.1% and an operating margin of 4.3%. GAAP net income stood at $0.3 million, or $0.01 per diluted share.
On a non-GAAP basis, AudioCodes reported a gross margin of 64.5% and an operating margin of 7.2%. Non-GAAP net income was $4.1 million, equivalent to $0.14 per diluted share, down from $5.5 million, or $0.18 per diluted share, in the same quarter last year.
Operational Insights and Growth Areas
Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes, expressed satisfaction with the company’s performance, highlighting strong demand in unified communications (UC), customer experience (CX), and conversational AI sectors. Notably, business with Microsoft grew by 6.5% this quarter.
AudioCodes achieved an annual recurring revenue (ARR) of $70 million, a significant 25% increase from the previous year. The company launched its Live Platform, integrating UCaaS and CX solutions, which received certification from Webex Calling. This platform enhances comprehensive communication capabilities across major global vendors.
In the conversational AI domain, AudioCodes introduced the Meeting Insights On-Prem (Mia OP) solution. This product offers secure meeting intelligence for enterprises, particularly in sectors such as government and finance. Currently, Mia OP has active customers in Israel and is undergoing several proof-of-concept trials.
Despite these successes, the company faced increased operational costs due to new tariffs on U.S. imports, amounting to an additional $1 million. Additionally, a rise in costs in the Europe, Middle East, and Africa (EMEA) region, driven by the strengthening Euro against the U.S. dollar, impacted net income generation for the quarter.
Adlersberg noted, “Overall, we delivered on our business priorities in the quarter, making the necessary investments in product and sales with an eye towards accelerating our growth in revenues in our Conversational AI products and solutions.”
Share Repurchase and Dividend Declaration
During the second quarter, AudioCodes repurchased 715,732 of its ordinary shares for a total consideration of $6.6 million. In July 2025, the company received court approval in Israel to buy back up to $20 million in additional ordinary shares, which also allows for dividend declarations from these funds.
The declared dividend of 20 cents per share is payable on August 28, 2025, to shareholders recorded as of August 14, 2025. In accordance with Israeli tax law, this dividend will be subject to withholding tax at a rate of 25%, with a higher rate of 30% applicable to holders of 10% or more of the company’s share capital.
AudioCodes will hold a conference call at 8:30 A.M. ET to discuss its second-quarter performance and future outlook. Interested parties can join the call by dialing the designated numbers for U.S. and international participants.
As AudioCodes continues to expand its offerings and enhance its market position, stakeholders will be watching closely to see how the company navigates the challenges and opportunities ahead.
