Revenue growth of 2.9% is anemic and GAAP earnings halved despite aggressive share buybacks. The 20% ARR growth in Live/CAI segments is promising but not yet flowing through to profitability. Monitor the Q2 2026 6-K for any margin recovery or guidance — if operating margins continue to compress, the stock could re-rate lower given the current 86% analyst bullish consensus.
Price Chart
Executive Summary
AudioCodes reported Q1 2026 results with revenue up 2.9% YoY to $62.1M, but GAAP net income fell 51% to $2.0M ($0.07/diluted share) from $4.0M ($0.13/diluted share) a year ago. Operating income declined 7.7% to $3.4M, and GAAP operating margin contracted to 5.4% from 6.0%. The company repurchased $13.7M in shares and paid a $5.3M dividend, reducing cash reserves.
Key Facts
- Q1 2026 revenue $62.1M, up 2.9% YoY from $60.4M
- GAAP net income $2.0M ($0.07/diluted), down 51% from $4.0M ($0.13/diluted) YoY
- GAAP operating income $3.4M, down 7.7% from $3.6M YoY
- GAAP operating margin 5.4%, down from 6.0% YoY
- Non-GAAP net income $3.8M ($0.14/diluted), down from $4.7M ($0.15/diluted) YoY
- Non-GAAP operating margin 7.7%, down from 8.9% YoY
- Net cash from operations $12.8M, down from $13.5M YoY
- Cash and equivalents fell to $40.9M from $45.3M at year-end 2025
- Repurchased 1,740,329 shares for $13.7M during the quarter
- Paid $5.3M cash dividend ($0.20/share) on March 6, 2026
- Outstanding shares reduced to 25,453,614 as of March 31, 2026
- ARR reached $80M, up nearly 20% YoY; Conversational AI grew over 50% YoY
Financial Impact
GAAP net income halved to $2.0M from $4.0M YoY; operating income down 7.7%; cash burn from buybacks and dividends reduced cash by $4.4M
Risk Factors
- GAAP net income halved YoY despite only 2.9% revenue growth — cost growth outpacing revenue
- Operating expenses rose 6.4% ($37.8M vs $35.5M) while gross profit grew only 5.1%
- Cash reserves declining due to aggressive buyback/dividend program ($18.9M used in financing activities)
- Financial income swung to a $0.4M loss from $1.7M gain YoY, pressuring bottom line
- Share count reduction masks underlying earnings deterioration on an absolute basis
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001185185-26-001710 |
| Document: audltd6k050426.htm | 0001185185-26-001710 |
| Document: 0001185185-26-001710-index-headers.html | 0001185185-26-001710 |
| Document: 0001185185-26-001710-index.html | 0001185185-26-001710 |
| Document: 0001185185-26-001710.txt | 0001185185-26-001710 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | 6-K | $9.69 | awaiting T+60 | — | $11.70 (+20.74%) |
Sep 9, 2026 6w ago | 6-K | $9.73 | awaiting T+60 | — | $11.70 (+20.25%) |
Aug 5, 2026 11w ago | 6-K | $9.88 | awaiting T+60 | — | $11.70 (+18.42%) |
Aug 4, 2026 12w ago | 6-K | $10.04 | awaiting T+60 | — | $11.70 (+16.53%) |
May 7, 2026 24w ago | 6-K | $8.35 $9.80 | ▲ +17.37% | ▲ +13.53% | $11.70 (+40.12%) |
May 6, 2026 24w ago | Insider Cluster | $8.54 $9.58 | ▲ +12.18% | ▲ +10.12% | $11.70 (+37.00%) |
May 5, 2026 25w ago | 6-K | $8.51 $9.25 | ▼ −8.70% | ▼ −5.96% | $11.70 (−37.49%) |
May 5, 2026 25w ago | Insider Cluster | $8.51 $9.25 | ▲ +8.70% | ▲ +5.96% | $11.70 (+37.49%) |
Apr 28, 2026 26w ago | Insider Cluster | $8.75 $9.53 | ▲ +8.91% | ▲ +4.92% | $11.70 (+33.71%) |
Apr 28, 2026 26w ago | Insider Cluster | $8.75 $9.53 | ▲ +8.91% | ▲ +4.92% | $11.70 (+33.71%) |
US Market Status
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