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).