AudioCodes Ltd. Q2 2026 Earnings Call Summary

AudioCodes Ltd. Q2 2026 Earnings Call Summary Moby Intelligence Tue, August 4, 2026 at 11:01 PM GMT+2 2 min read NVDA AUDC AudioCodes Ltd. Q2 2026 Earnings Call Summary - Moby Strategic Pivot to AI-Driven Software and Services Our analysts just identified a stock with the potential to be the next Nvidia.

Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is successfully repositioning the company from legacy hardware to an AI-driven cloud and edge software provider, with recurring revenue now a primary growth engine.

Performance was driven by the 'dual growth engines' of Live Managed Services and Voice AI, which reached a combined annual recurring revenue (ARR) of $84 million, a 20% year-over-year increase. The Microsoft Teams business remains a core pillar, contributing 66% of total planned revenue and benefiting from a 73% surge in total contract value tied to Microsoft Teams activity. Voice AI revenue grew over 50% year-over-year, supported by the emergence of 'agentic AI' where voice is becoming the preferred medium for human interaction with large language models.

The connectivity business (gateways and SBCs) has stabilized and continues to generate strong cash flow, acting as a foundational layer for higher-margin AI orchestration services. Operational efficiency improved as services now represent approximately 55% of total revenues, shifting the mix toward higher-quality, predictable income streams. 2026 Outlook and AI Expansion Strategy Management raised 2026 revenue guidance to a range of $251 million to $256 million, reflecting increased confidence in the Voice AI and Microsoft Teams pipelines.

The company is targeting $50 million in Voice AI revenue by the end of 2028, supported by plans to increase investments in conversational AI technology. Sales cycles for Voice AI solutions have shortened significantly to approximately 6 months, down from a historical range of 12 to 24 months, indicating maturing market adoption. Expansion plans for 'Meeting Insight' involve moving beyond the current 2-3 core countries into substantially more global markets to scale monthly recurring revenue.

A major $10 million plus connectivity win is moving into production, expected to add $3 million to $4 million in annual revenue over the next three years. One stock. Nvidia-level potential.

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Capital Allocation and Market Risks The company received Israeli court approval to repurchase up to $25 million in shares or declare dividends through November 2026, signaling confidence in cash flow sustainability. A cash dividend of $0. 20 per share was declared, totaling approximately $4.

8 million to be paid in September 2026. Management highlighted geopolitical risks, noting that current or future hostilities involving Israel could potentially disrupt operations or personnel availability. The 'MIA Edge' solution was launched to address specific risks and regulatory requirements for 'air-gapped' or off-cloud AI deployments in government and defense sectors.