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Upturn AI Summary - About
AudioCodes Ltd(AUDC)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for AUDC
10/23/2026: AUDC (2-star) has a low Upturn Star Rating. Not recommended to BUY.
AudioCodes Ltd is a specialized provider of voice networking and conversational AI solutions, historically known for its high-performance connectivity infrastructure. The company has successfully pivoted its focus toward high-margin software and recurring managed services, particularly within the Microsoft Teams ecosystem. While this transition to a SaaS-centric model is a key growth opportunity, the company faces competitive risks from much larger infrastructure giants and potential platform shifts. AudioCodes may suit value-oriented investors seeking profitable niche tech with an income component, provided they are comfortable with the inherent execution risks of a hardware-to-software business transition. Potential investors should monitor the growth of the firm's AI-based services against its legacy revenue declines.
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Revenue growth is steady but slow, requiring the AI and services pivot to accelerate significantly to appeal to pure growth investors. |
| Momentum investor | Mixed fit | Momentum depends on the success of the VoiceAI portfolio; currently, the stock lacks the high-volatility, high-growth profile sought by pure momentum traders. |
| Value investor | Strong fit | The company trades at reasonable valuation multiples relative to its earnings and possesses a solid, profitable business model. |
| Dividend investor | Mixed fit | The company offers a consistent dividend, making it attractive for income-focused investors looking for tech exposure with cash returns. |
| Low-risk investor | Mixed fit | While profitable and established, the company's reliance on a few key partners and the ongoing tech transition introduces moderate risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | As a small-cap tech stock, it is susceptible to swings in market sentiment regarding the broader communications sector. |
| Valuation risk | Medium | While currently reasonably priced, failure to meet high expectations for AI growth could lead to multiple compression. |
| Competition risk (Microsoft/Cisco dependence) | High | Heavy dependence on Microsoft Teams and competition from giants like Cisco creates a concentrated vulnerability. |
| Business quality | Medium | The business has high-quality, high-margin software components but is still evolving away from legacy hardware revenue. |
| Dividend income | Low | Dividends are a nice bonus but are not the primary driver of total returns for this type of technology stock. |
| Execution risk | Medium / high | Success depends on the company's ability to successfully transition to a recurring SaaS revenue model. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit -0.76% | Avg. Invested days 36 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 273.17M USD | Price to earnings Ratio 43.5 | 1Y Target Price 12.5 |
Price to earnings Ratio 43.5 | 1Y Target Price 12.5 | ||
Volume (30-day avg) 118.4K shares | Beta 1.02 | 52 Weeks Range 6.62 - 11.60 | Updated Date 10/24/2026 |
52 Weeks Range 6.62 - 11.60 | Updated Date 10/24/2026 | ||
Dividends yield (FY) 3.54% | Basic EPS (TTM) 0.26 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Connectivity & Networking | Session Border Controllers (SBCs), media gateways, and routers. | This is the 'plumbing' that keeps voice networks running; it provides the core infrastructure demand. |
| Live Platform & SaaS | Managed services for UCaaS migrations (Microsoft Teams/Zoom). | This provides recurring subscription income and is a key driver for long-term profit stability. |
| Voice AI & Productivity | Conversational AI tools, meeting insights, and contact center automation. | This is the high-growth frontier; success here is critical for modernizing the company's product portfolio. |
| Geography | North America, Europe, Asia-Pacific, and Israel operations. | Revenue is well-diversified, with North America serving as the largest regional market. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 43.5 | Forward PE 13.05 | Enterprise Value 219.93M | Price to Sales(TTM) 1.1 |
Enterprise Value 219.93M | Price to Sales(TTM) 1.1 | ||
Enterprise Value to Revenue 0.92 | Enterprise Value to EBITDA 12.26 | Shares Outstanding 24.15M | Shares Floating 14.07M |
Shares Outstanding 24.15M | Shares Floating 14.07M | ||
Percent Insiders 30.48 | Percent Institutions 39.43 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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