AudioCodes (NASDAQ:AUDC) reported fourth-quarter and full-year 2025 results on Tuesday that highlighted a steady transition toward high-margin software and artificial intelligence services.
The Israel-based provider of voice networking and conversational AI solutions posted Q4 revenue of $62.6 million, a 1.7% increase over the prior year, while full-year revenue reached $245.6 million.
A key highlight of the report was the momentum in the company’s "Voice AI" business.
Annual Recurring Revenue (ARR) grew to $79 million by the end of December, up 22% year-over-year, landing comfortably within the company's previously stated target range.
Conversational AI revenues surged by more than 35% for the full year, as enterprises increasingly adopted the company's "Voca CIC" and "Live" platforms to automate voice-based workflows and improve contact center efficiency.
Despite the top-line progress, net income was impacted by the ongoing strategic shift from hardware to recurring software models.
GAAP net income for the fourth quarter was $1.9 million ($0.07 per diluted share), down from $6.8 million in the year-ago period.
On a non-GAAP basis, which excludes non-recurring items, quarterly net income was $4.5 million ($0.16 per share).
For the full year, non-GAAP net income totaled $18.1 million ($0.61 per share), meeting the company's revised 2025 guidance.
Reinforcing its commitment to shareholder returns, the company's board declared a semi-annual cash dividend of $0.20 per share, payable on March 6, 2026.
AudioCodes also remained aggressive with its buyback program, repurchasing 667,193 shares for $6.1 million during the fourth quarter.
The company ended the year with a solid cash and investment position of $75.7 million.