Revenue of $63.0M in 2026Q2 grew just 3.1% year-over-year while a 16% rise in SG&A to $24.9M since 2024Q2 pushed operating margin down to 5.1% and net margin to 0.8%, suggesting negative operating leverage is now offsetting the durability of its 65.7% gross margin.
AudioCodes Ltd. (AUDC) annual income statement — 28-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 251.85M | 245.6M | 242.18M | 244.38M | 275.09M | 248.92M | 220.77M | 200.29M | 176.22M | 156.74M | 145.57M | 139.76M | 151.58M | 137.23M | 127.49M | 155.83M | 150.04M | 125.89M | 174.74M | 158.24M | 147.35M | 115.83M | 82.76M | 44.23M | 27.19M | 35.73M | 71.8M | 31.2M | 9.2M |
| Revenue Growth % | 2.98% | 1.42% | -0.9% | -11.16% | 10.51% | 12.75% | 10.23% | 13.66% | 12.43% | 7.67% | 4.16% | -7.8% | 10.45% | 7.64% | -18.18% | 3.86% | 19.18% | -27.96% | 10.43% | 7.38% | 27.22% | 39.96% | 87.11% | 62.67% | -23.91% | -50.23% | 130.09% | 239.17% | - |
| Cost of Goods Sold | 86.14M | 85.97M | 84.02M | 86.03M | 96.31M | 78.03M | 70.96M | 105.33M | 65.62M | 58.89M | 57.23M | 56.97M | 62.59M | 58.56M | 54.29M | 64.16M | 66.14M | 56.19M | 77.45M | 69.19M | 61.24M | 46.99M | 34.38M | 20.04M | 13.01M | 21.94M | 27.1M | 11.52M | 3M |
| COGS % of Revenue | - | 35% | 34.69% | 35.2% | 35.01% | 31.35% | 32.14% | 52.59% | 37.24% | 37.57% | 39.31% | 40.76% | 41.29% | 42.68% | 42.59% | 41.17% | 44.08% | 44.64% | 44.32% | 43.72% | 41.56% | 40.57% | 41.54% | 45.3% | 47.84% | 61.4% | 37.75% | 36.91% | 32.61% |
| Gross Profit | 165.71M | 159.63M | 158.16M | 158.35M | 178.78M | 170.89M | 149.82M | 94.96M | 110.61M | 97.84M | 88.34M | 82.79M | 88.99M | 78.67M | 73.2M | 91.67M | 83.9M | 69.7M | 97.29M | 89.05M | 86.11M | 68.83M | 48.38M | 24.19M | 14.18M | 13.79M | 44.7M | 19.69M | 6.2M |
| Gross Margin % | 65.8% | 65% | 65.31% | 64.8% | 64.99% | 68.65% | 67.86% | 47.41% | 62.76% | 62.43% | 60.69% | 59.24% | 58.71% | 57.32% | 57.41% | 58.83% | 55.92% | 55.36% | 55.68% | 56.28% | 58.44% | 59.43% | 58.46% | 54.7% | 52.16% | 38.6% | 62.25% | 63.09% | 67.39% |
| Gross Profit Growth % | - | 0.93% | -0.12% | -11.43% | 4.62% | 14.07% | 57.77% | -14.15% | 13.04% | 10.76% | 6.71% | -6.97% | 13.12% | 7.48% | -20.15% | 9.26% | 20.38% | -28.36% | 9.25% | 3.41% | 25.1% | 42.27% | 100% | 70.56% | 2.83% | -69.14% | 127.04% | 217.52% | - |
| Operating Expenses | 152.04M | 145.59M | 140.97M | 143.93M | 147.46M | 131.37M | 111.47M | 104.51M | 94.25M | 88.19M | 80.59M | 80.08M | 85.49M | 75.93M | 76.93M | 84.44M | 73.47M | 69.88M | 91.71M | 93.24M | 81.85M | 56.36M | 44.75M | 34.08M | 30.66M | 32.7M | 24.71M | 11.14M | 5.7M |
| OpEx % of Revenue | - | 59.28% | 58.21% | 58.89% | 53.6% | 52.77% | 50.49% | 52.18% | 53.48% | 56.27% | 55.36% | 57.3% | 56.4% | 55.33% | 60.34% | 54.19% | 48.96% | 55.51% | 52.48% | 58.93% | 55.54% | 48.66% | 54.08% | 77.05% | 112.78% | 91.52% | 34.41% | 35.71% | 61.96% |
| Selling, General & Admin | 97.74M | 93M | 88.84M | 86.76M | 87.62M | 77.97M | 65.39M | 63.31M | 59.59M | 57.85M | 51.45M | 52.09M | 53.21M | 47.73M | 48.25M | 52.29M | 43.28M | 39.93M | 53.88M | 52.54M | 46.43M | 31.95M | 24.74M | 18.6M | 17.64M | 18.9M | 14.12M | 5.93M | 3.3M |
| SG&A % of Revenue | - | 37.87% | 36.69% | 35.5% | 31.85% | 31.32% | 29.62% | 31.61% | 33.81% | 36.91% | 35.34% | 37.27% | 35.1% | 34.78% | 37.85% | 33.56% | 28.84% | 31.72% | 30.83% | 33.2% | 31.51% | 27.58% | 29.9% | 42.06% | 64.88% | 52.88% | 19.67% | 18.99% | 35.87% |
| Research & Development | 54.3M | 52.59M | 52.13M | 57.17M | 59.84M | 53.4M | 46.07M | 41.2M | 34.66M | 30.35M | 29.14M | 28M | 32.27M | 28.19M | 28.68M | 32.15M | 30.19M | 29.95M | 37.83M | 40.71M | 35.42M | 24.41M | 20.01M | 15.48M | 13.02M | 13.81M | 10.59M | 4.81M | 2.1M |
| R&D % of Revenue | - | 21.41% | 21.52% | 23.39% | 21.75% | 21.45% | 20.87% | 20.57% | 19.67% | 19.36% | 20.02% | 20.03% | 21.29% | 20.54% | 22.49% | 20.63% | 20.12% | 23.79% | 21.65% | 25.72% | 24.03% | 21.08% | 24.18% | 34.99% | 47.89% | 38.64% | 14.75% | 15.42% | 22.83% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 403K | 300K |
| Operating Income | 13.67M | 14.04M | 17.19M | 14.42M | 31.32M | 39.52M | 38.35M | -9.55M | 16.36M | 9.65M | 7.75M | 2.71M | 3.5M | 2.74M | -3.73M | 7.23M | 10.44M | -184K | -79.44M | -4.19M | 4.26M | 12.47M | 3.63M | -9.89M | -16.48M | -18.91M | 19.06M | 8.54M | 500K |
| Operating Margin % | 5.43% | 5.72% | 7.1% | 5.9% | 11.38% | 15.88% | 17.37% | -4.77% | 9.28% | 6.16% | 5.33% | 1.94% | 2.31% | 2% | -2.93% | 4.64% | 6.96% | -0.15% | -45.46% | -2.65% | 2.89% | 10.77% | 4.39% | -22.36% | -60.61% | -52.92% | 26.55% | 27.38% | 5.43% |
| Operating Income Growth % | - | -18.34% | 19.18% | -53.94% | -20.76% | 3.06% | 501.4% | -158.4% | 69.52% | 24.45% | 186.55% | -22.71% | 27.82% | 173.33% | -151.65% | -30.71% | 5772.28% | 99.77% | -1794.47% | -198.31% | -65.8% | 243.55% | 136.71% | 40% | 12.86% | -199.22% | 123.08% | 1608.8% | - |
| EBITDA | 18.19M | 18.27M | 21.07M | 17.02M | 34.3M | 41.96M | 40.62M | -7.51M | 18.67M | 12.09M | 10.65M | 5.67M | 6.73M | 5.79M | -852K | 10.5M | 14.8M | 5.09M | -71.88M | 3.84M | 10.23M | 16.22M | 6.7M | -6.8M | -14.25M | -16.98M | 20.18M | 8.95M | 800K |
| EBITDA Margin % | 7.22% | 7.44% | 8.7% | 6.96% | 12.47% | 16.86% | 18.4% | -3.75% | 10.59% | 7.71% | 7.31% | 4.06% | 4.44% | 4.22% | -0.67% | 6.74% | 9.86% | 4.04% | -41.14% | 2.43% | 6.94% | 14% | 8.1% | -15.37% | -52.4% | -47.51% | 28.1% | 28.67% | 8.7% |
| EBITDA Growth % | -2.19% | -13.29% | 23.82% | -50.38% | -18.24% | 3.29% | 640.85% | -140.23% | 54.43% | 13.54% | 87.79% | -15.78% | 16.33% | 779.11% | -108.12% | -29.06% | 190.86% | 107.08% | -1972.9% | -62.49% | -36.91% | 141.94% | 198.6% | 52.28% | 16.08% | -184.14% | 125.52% | 1018.38% | - |
| D&A (Non-Cash Add-back) | 4.53M | 4.24M | 3.88M | 2.6M | 2.98M | 2.43M | 2.27M | 2.04M | 2.31M | 2.44M | 2.89M | 2.96M | 3.23M | 3.05M | 2.88M | 3.26M | 4.36M | 5.27M | 7.55M | 8.03M | 5.97M | 3.75M | 3.07M | 3.09M | 2.23M | 1.94M | 1.12M | 403K | 300K |
| EBIT | 13.39M | 13.77M | 15.39M | 15.94M | 36.38M | 41.91M | 37.3M | -10.71M | 16.85M | 9.93M | 7.86M | 3.43M | 3.72M | 3.45M | -2.38M | 8.03M | 10.66M | 2.3M | -75.9M | -4.19M | 10.13M | 17.59M | 5.77M | -9.89M | -16.48M | -18.91M | 19.99M | 8.54M | 475K |
| Net Interest Income | -1.95M | -461K | 2.61M | 129K | 2.45M | 428K | 255K | 410K | 241K | 642K | 1.3M | 1.74M | 1.15M | 448K | 441K | 1.45M | 5K | -2.74M | -3.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.24M | 0 | 2.91M | 3.37M | 2.8M | 2.69M | 1.25M | 1.01M | 1.13M | 1.21M | 1.85M | 2.3M | 1.77M | 1.1M | 1.99M | 1.93M | 600K | 2.48M | 3.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.19M | 461K | 296K | 3.24M | 358K | 2.26M | 1M | 600K | 884K | 567K | 545K | 564K | 620K | 617K | 900K | 346K | 694K | 4.74M | 2.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.95M | -461K | -2.1M | -52K | 2.86M | 123K | -1.7M | -1.76M | 228K | -10K | -160K | 442K | -196K | 96K | 453K | 423K | -94K | -2.74M | 1.18M | 2.67M | 2.9M | 1.76M | 1.65M | -404K | 2.62M | 5.64M | 8.06M | 2.47M | 200K |
| Pretax Income | 11.72M | 13.58M | 15.1M | 14.37M | 34.18M | 39.65M | 36.65M | -11.31M | 16.59M | 9.64M | 7.59M | 3.15M | 3.31M | 2.83M | -3.28M | 7.66M | 10.34M | -2.93M | -78.25M | -2.62M | 7.17M | 14.23M | 5.28M | -10.29M | -13.86M | -13.27M | 27.12M | 11.02M | 700K |
| Pretax Margin % | 4.65% | 5.53% | 6.23% | 5.88% | 12.43% | 15.93% | 16.6% | -5.65% | 9.41% | 6.15% | 5.22% | 2.25% | 2.18% | 2.07% | -2.57% | 4.91% | 6.89% | -2.33% | -44.78% | -1.66% | 4.86% | 12.29% | 6.38% | -23.27% | -50.97% | -37.14% | 37.77% | 35.3% | 7.61% |
| Income Tax | 3.75M | 4.62M | -215K | 5.59M | 5.72M | 5.9M | 9.4M | -15.29M | 3.09M | 5.61M | -8.64M | 2.78M | 3.39M | -1.4M | 541K | 238K | -1.89M | -445K | 505K | 1.26M | 289K | 799K | 273K | -1.48M | 0 | 0 | 438K | 355K | 100K |
| Effective Tax Rate % | 32.02% | 34.05% | -1.42% | 38.91% | 16.72% | 14.87% | 25.65% | 135.15% | 18.65% | 58.2% | -113.83% | 88.37% | 102.6% | -49.52% | -16.48% | 3.11% | -18.22% | 15.2% | -0.65% | -48.28% | 4.03% | 5.61% | 5.17% | 14.37% | 0% | 0% | 1.62% | 3.22% | 14.29% |
| Net Income | 7.97M | 8.96M | 15.31M | 8.78M | 28.47M | 33.75M | 27.25M | 3.98M | 13.49M | 4.03M | 16.24M | 366K | -86K | 4.22M | -4.18M | 7.16M | 12.13M | -2.08M | -81.34M | -3.88M | 6.88M | 13.44M | 5.01M | -8.43M | -13.86M | -13.27M | 26.68M | 10.66M | 600K |
| Net Margin % | 3.16% | 3.65% | 6.32% | 3.59% | 10.35% | 13.56% | 12.34% | 1.99% | 7.66% | 2.57% | 11.15% | 0.26% | -0.06% | 3.07% | -3.28% | 4.6% | 8.08% | -1.66% | -46.55% | -2.46% | 4.67% | 11.6% | 6.05% | -19.07% | -50.97% | -37.14% | 37.16% | 34.16% | 6.52% |
| Net Income Growth % | -42.37% | -41.51% | 74.39% | -69.16% | -15.66% | 23.87% | 585.14% | -70.53% | 234.81% | -75.18% | 4336.61% | 525.58% | -102.04% | 200.98% | -158.31% | -40.92% | 681.58% | 97.44% | -1993.69% | -156.49% | -48.82% | 168.4% | 159.35% | 39.14% | -4.4% | -149.75% | 150.27% | 1676.67% | - |
| Net Income (Continuing) | 7.97M | 8.96M | 15.31M | 8.78M | 28.47M | 33.75M | 27.25M | 3.98M | 13.49M | 4.03M | 16.24M | 366K | -86K | 4.24M | -4.18M | 7.16M | 12.23M | -3.22M | -85.79M | -2.79M | 6.88M | 13.44M | 5.01M | -8.43M | -13.86M | -13.27M | 26.68M | 10.66M | 600K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -244K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.33 | 0.31 | 0.50 | 0.28 | 0.88 | 1.00 | 0.83 | 0.13 | 0.45 | 0.13 | 0.45 | 0.01 | -0.00 | 0.11 | -0.11 | 0.17 | 0.30 | -0.05 | -1.97 | -0.09 | 0.16 | 0.31 | 0.12 | -0.22 | -0.36 | -0.37 | 0.62 | 0.30 | 0.03 |
| EPS Growth % | -32.13% | -38% | 78.57% | -68.18% | -12% | 20.48% | 538.46% | -71.11% | 246.15% | -71.11% | 4400% | - | -101.82% | 200% | -164.71% | -43.33% | 678.03% | 97.37% | -2088.89% | -156.25% | -48.39% | 158.33% | 154.55% | 38.89% | 2.7% | -159.68% | 106.67% | 900% | - |
| EPS (Basic) | - | 0.31 | 0.51 | 0.28 | 0.89 | 1.03 | 0.87 | 0.14 | 0.47 | 0.13 | 0.46 | 0.01 | -0.00 | 0.11 | -0.11 | 0.17 | 0.30 | -0.05 | -1.97 | -0.09 | 0.16 | 0.33 | 0.13 | -0.22 | -0.36 | -0.44 | 0.68 | 0.35 | 0.03 |
| Diluted Shares Outstanding | 24.5M | 28.98M | 30.64M | 31.58M | 32.5M | 33.85M | 32.92M | 30.8M | 30.22M | 32.17M | 35.78M | 40.56M | 42.29M | 39.1M | 39.13M | 41.94M | 40.96M | 40.21M | 41.2M | 43.17M | 42.98M | 43.34M | 41.72M | 37.51M | 38.77M | 36.16M | 43.05M | 36.16M | 15.31M |
| Basic Shares Outstanding | 23.94M | 28.89M | 30.2M | 31.4M | 31.85M | 32.7M | 31.44M | 29.25M | 28.93M | 31.1M | 35.17M | 40.18M | 42.29M | 38.24M | 37.97M | 41.44M | 40.56M | 40.21M | 41.2M | 43.17M | 42.98M | 40.72M | 38.51M | 37.51M | 38.52M | 30.4M | 39.27M | 30.4M | 15.31M |
| Dividend Payout Ratio | - | 122.1% | 71.16% | 129.83% | 40.58% | 32.19% | 30.98% | 168.97% | 42.7% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying AUDC stock.
For fiscal year 2025, AudioCodes Ltd. (AUDC) reported total revenue of $245.6M. This represents a 2569.6% increase compared to $9.2M in 1998.
AudioCodes Ltd. (AUDC) is profitable, generating $9.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.6%.
AudioCodes Ltd. (AUDC) reported an operating income of $14.0M, resulting in an operating profit margin of 5.7%. This margin reflects the operational efficiency of the business before interest and taxes.
AudioCodes Ltd. (AUDC) generated $159.6M in gross profit for the year, representing a gross profit margin of 65.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Operating leverage deterioration
Revenue Growth Settles Into Low Gear
AudioCodes' revenue reached $63.0M in 2026Q2, marking only a 3.1% year-over-year increase after several quarters of sub-2% growth, per the company's reported income statements, suggesting the top line has settled into a low-growth plateau rather than reacceleration.
The ten-quarter series shows revenue oscillating between $60.1M and $63.0M, with no single quarter clearing 3.1% growth, which implies demand is tied to replacement cycles rather than incremental capacity build-outs. The uptick to 2.9% and 3.1% in the last two quarters could be read as stabilization, but two data points appear insufficient to establish a reacceleration thesis. Given peers are posting similarly muted growth (Ribbon at 1.3%, Bandwidth at 0.7%), the durability question for investors centers on whether AUDC can outgrow the sector's low-single-digit backdrop at all.
Gross Margins Hold Above 65%
Based on AudioCodes' reported figures, gross margin held at 65.7% in 2026Q2, roughly 19 percentage points above Ribbon Communication's 47.0%, indicating durable pricing power in its voice networking franchise even as revenue growth remains modest.
Gross margin has printed within a tight 64.1%-66.2% band across all ten quarters, which suggests COGS scales almost proportionally with volume and that the company is not experiencing material mix or input-cost distortion. This structural positioning looks advantaged relative to the peer set (Bandwidth at 35.8%, Ribbon at 47.0%), yet the advantage is not translating into expanding operating margins, which implies the value capture problem sits below the gross line rather than in product economics. The narrowness of the band also means any single-digit erosion in gross margin would flow almost entirely to operating income.
SG&A Outpaces Revenue, Squeezing Margins
SG&A expenses climbed to $24.9M in 2026Q2 from $21.4M in 2024Q2 — a 16% increase — while revenue rose only 4.5% over the same period, according to quarterly income statement data, implying operating leverage has turned negative.
Operating income has drifted from $4.9M in 2024Q3 and 2024Q2 down to $3.2M in 2026Q2 even as gross profit rose from $39.3M to $41.4M, which indicates overhead absorption — not pricing or product mix — is the binding constraint on profitability. R&D has been held relatively steady near the $13M level, so the burden sits squarely with SG&A, whose upward trajectory while revenue growth stays in the low single digits warrants further investigation. If this ratio persists, the operating margin appears capable of compressing further despite the resilient gross margin structure.
Net Income Volatility Masks Core Earnings
Net income fell to $477.0K in 2026Q2, a 0.8% net margin versus 11.0% in 2024Q4, with diluted EPS of $0.02 as reported in the income statements, pointing to non-operating items or below-the-line swings driving headline earnings rather than core profitability.
The gap between a 5.1% operating margin and a 0.8% net margin in 2026Q2 appears too wide to be explained by operations alone, suggesting material below-the-line items are influencing reported results, though the data provided does not disaggregate their composition. The pattern looks recurring rather than one-off: net margin has printed below 4.5% in five of the last seven quarters, which implies 2024Q4's 11.0% figure and the associated 83.3% EPS growth reading should be treated as an outlier rather than an anchor. Investors may want to avoid underwriting valuation on peak-style EPS prints until the source of this volatility is clarified.
Thin Net Margins Offer Little Cushion
AUDC's 0.8% net margin in 2026Q2 compares with a 6.7% reading just five quarters earlier, and with peers like 8x8 at 0.2%, suggesting the market may be rewarding gross margin durability that recent earnings are no longer confirming.
If SG&A continues to compound at its recent rate while revenue remains in the low single digits, operating margin could plausibly drift below 4%, which would effectively erase the earnings base supporting the current multiple. The bear case also hinges on the gross margin pillar: at 65.7%, the headline valuation story appears to rest on pricing power that has, so far, failed to produce expanding bottom-line results. A short-seller would likely focus on the divergence between the stability of gross profit and the erosion of net income, arguing that reported profitability is more fragile than the top-line and gross-margin tables suggest.