AudioCodes revenue ticks up as conversational AI and managed services surmount $80M ARR

AudioCodes (NASDAQ:AUDC) reported financial results for the first quarter ended March 31, 2026, characterized by a strategic pivot toward software-as-a-service (SaaS) and artificial intelligence.

The communications specialist recorded quarterly revenue of $62.1 million, representing a 2.9% increase compared to the first quarter of 2025.

The company’s shift toward more predictable revenue streams reached a milestone this period, with Annual Recurring Revenue (ARR) hitting $80 million, an increase of nearly 20% year-over-year.

This momentum was driven primarily by the "AudioCodes Live" managed services and the company’s Conversational AI (CAI) portfolio, the latter of which grew more than 50% compared to the prior-year period.

During the period under review, AudioCodes reported GAAP net income of $2 million, or $0.07 per diluted share.

On a non-GAAP basis, net income was $3.8 million, or $0.14 per diluted share.

Management noted that the Voca CIC contact center solution achieved record revenues during the quarter, benefiting from increased demand for automated customer experience tools integrated with Microsoft Teams and Zoom environments.

The company also maintained a solid balance sheet, concluding the quarter with $68.1 million in cash, cash equivalents, and short-term investments.

Meanwhile, the quarter was marked by an aggressive return of capital to shareholders.

AudioCodes utilized $13.7 million to repurchase 1,740,329 of its ordinary shares.

Additionally, the company distributed a cash dividend of $0.20 per share, totaling approximately $5.3 million.