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AudioCodes Ltd(AUDC)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
2-STAR RATING
Consider higher Upturn Star rating
BUY for 4 days
PROFIT SINCE LAST BUY
+2.4% ▲
LAST CLOSE
$10.66
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for AUDC

09/25/2026: AUDC (2-star) has a low Upturn Star Rating. Not recommended to BUY.

AudioCodes Ltd is a specialized provider of voice communication hardware, software, and managed services, primarily serving businesses integrated with Microsoft Teams and other collaboration platforms. The company's strengths lie in its high-quality connectivity infrastructure and a longstanding, deep-rooted partnership with Microsoft. Its primary growth opportunity rests in scaling AI-driven voice analytics and managed cloud services to diversify revenue away from legacy hardware. Key risks include significant dependence on third-party platform ecosystems and potential competition from platform-native tools. AudioCodes may suit investors seeking a solid balance sheet and steady dividend returns, though shareholders should monitor platform ecosystem changes that could impact its competitive moat.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitSteady growth is driven by UCaaS trends but faces competition from platform providers.
Momentum investorWeak fitThe stock often trades in ranges rather than aggressive momentum patterns.
Value investorStrong fitThe company often trades at reasonable valuation multiples relative to its cash position.
Dividend investorStrong fit while signal remains positiveConsistent dividend payments and buybacks make it attractive for income-focused portfolios.
Low-risk investorMixed fitWhile the balance sheet is strong, technological disruption in voice markets adds complexity.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can react sharply to quarterly earnings fluctuations in the UCaaS segment.
Valuation riskLowConservative valuation metrics provide a relative buffer against market corrections.
Competition risk (Platform Providers)HighMicrosoft and Zoom building native tools poses a long-term threat to third-party infrastructure.
Business qualityMediumHigh-quality engineering is countered by dependence on external partner ecosystems.
Dividend incomeLowThe dividend is supported by strong cash flow, making it reliable.
Execution riskMediumTransitioning successfully to AI-heavy revenue streams is critical for long-term relevance.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -5.44%
Avg. Invested days 34
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
AUDC receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
AUDC has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid cash generation (FCF margin 9.3%) is partially offset by negative earnings growth (-41.5%), moderate revenue growth (+1.4%), soft profitability (net margin 3.6%).

Financial Health Rating

★★★★★
AUDC's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 30.9%). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is AUDC's strongest growth driver at +108.6% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (+1.4%, moderate) and earnings growth (-41.5%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 39.9% and approximately 59.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 30.48% supports management-shareholder alignment.

Top 5 Institutional Investors

Value Base Ltd. 10.88%
Acadian Asset Management LLC 4.82%
Morgan Stanley - Brokerage Accounts 4.49%
Heartland Advisors Inc 3.80%
Arrowstreet Capital Limited Partnership 3.07%

Unit Economics (Per $1K Revenue)

★★★★★
AUDC generates approximately $650 of gross profit, $57 of operating income, and $93 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 34.05%

Quantitative Style Profile

★★★★★
AUDC has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Small / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 257.47M USD
Price to earnings Ratio 42.64
1Y Target Price 12.5
Price to earnings Ratio 42.64
1Y Target Price 12.5
Volume (30-day avg) 105.8K shares
Beta 0.98
52 Weeks Range 6.62 - 10.77
Updated Date 09/26/2026
52 Weeks Range 6.62 - 10.77
Updated Date 09/26/2026
Dividends yield (FY) 3.81%
Basic EPS (TTM) 0.25

How Company Makes Money

Business areaWhat it includesRetail investor read
ServicesProfessional and managed services for UCaaS deployments.This is a stable, recurring revenue stream as businesses outsource the management of their communications.
Network ProductsSession Border Controllers, gateways, and IP phones.This is the foundational hardware business which provides reliable cash flow but slower growth.
Voice AIConversational AI software and analytics platforms.This represents the growth engine focused on high-margin software sales.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 42.64
Forward PE 13.05
Enterprise Value 236.71M
Price to Sales(TTM) 1.03
Enterprise Value 236.71M
Price to Sales(TTM) 1.03
Enterprise Value to Revenue 0.92
Enterprise Value to EBITDA 12.26
Shares Outstanding 24.15M
Shares Floating 14.26M
Shares Outstanding 24.15M
Shares Floating 14.26M
Percent Insiders 30.48
Percent Institutions 39.92

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About AudioCodes Ltd

Exchange NASDAQ
Headquarters -
IPO Launch date 1999-05-28
Co-Founder, President, CEO & Director Mr. Shabtai Adlersberg
Sector Technology
Industry Communication Equipment
Full time employees 981
Full time employees 981

AudioCodes Ltd. provides voice communications solutions for enterprises, contact centers, and service providers in the United States, Europe, Eastern Asia, and Israel. The company offers voice networking infrastructure and devices; cloud-based platforms and management solutions; and Voice AI applications. It also provides AudioCodes Live Platform, a cloud-based service delivery platform that enables the provisioning, management, and operation of voice connectivity and AI-based communication services across communications and contact center environments; Meeting Insights, an enterprise solution that enables users to record audio and video meeting generated content and creates meeting minutes for Microsoft Teams, Zoom, and Google Meet meetings; Interaction Insights that offers updates, architecture, and feature deployment per tenant; Voca CIC, an omnichannel contact center solution for Microsoft Teams with built-in conversational AI; and VoiceAI Connect and Live Hub. In addition, the company offers solutions for enterprise and services provider business; networking products, such as hardware and software platforms, media gateways, and multi-service business routers; IP phones and meeting room device solutions; RX suite; and professional services and managed service solutions. Further, it provides management and operational solutions comprising AudioCodes One Voice Operations Center, a management platform for voice network devices and services; AudioCodes Device Manager, a lifecycle management solution; and AudioCodes Routing Manager, a centralized call routing management solution for enterprise voice networks. It markets and sells its products through a direct sales force and sales representatives to original equipment manufacturers, network equipment providers, systems integrators, enterprises, carriers, and distributors in the telecommunications and networking industries. AudioCodes Ltd. was incorporated in 1992 and is headquartered in Or Yehuda, Israel.