AudioCodes, a prominent provider of unified communications and AI services, announced its financial results for the second quarter of 2025, revealing a revenue increase of 1.3% year-over-year to $61.1 million. The company also declared a semi-annual dividend of $0.20 per share, amounting to approximately $5.7 million, payable on August 28, 2025, to shareholders registered by August 14, 2025.
Revenues for the quarter rose from $60.3 million in the same period last year. Service revenues alone increased by 1.9% year-over-year to $32.6 million. Despite this growth, the company’s GAAP net income fell to $0.3 million, or $0.01 per diluted share, compared to $3.8 million, or $0.12 per diluted share, in Q2 2024.
In terms of operational metrics, the GAAP gross margin stood at 64.1%, while the GAAP operating margin was 4.3%. For a clearer view of ongoing performance, the non-GAAP results indicated a gross margin of 64.5% and an operating margin of 7.2%. Non-GAAP net income was reported at $4.1 million, or $0.14 per diluted share, down from $5.5 million, or $0.18 per diluted share, year-over-year.
According to Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes, “I am pleased to report solid second quarter 2025 progress and results.” He noted that the revenue growth was primarily driven by the expansion of their Live managed services in the UCaaS and CX markets, as well as increasing demand for AI-powered business applications. “We saw strong demand in UC, CX, and conversational AI, with Microsoft business rising 6.5% this quarter.” Adlersberg also highlighted the launch of the Live Platform, integrating UCaaS and CX capabilities, which has been certified for Webex Calling.
The company reported that its annual recurring revenues (ARR) reached $70 million, a 25% increase from the previous year. The new Meeting Insights On-Prem (Mia OP) solution was also introduced, catering to sectors requiring enhanced security, such as government and finance, and has seen positive engagement in Israel.
Despite these advancements, AudioCodes faced increased operational costs due to new tariffs on U.S. imports, which added around $1 million to expenses. The strengthening of the Euro against the U.S. dollar further impacted costs in the EMEA region, influencing overall net income.
In addition to its financial results, AudioCodes reported a share repurchase program, acquiring 715,732 ordinary shares for $6.6 million during the quarter. Following recent court approval in Israel, the company is permitted to buy back up to an additional $20 million in shares, valid through December 30, 2025.
AudioCodes will discuss its operating performance and outlook in a conference call scheduled for July 29, 2025, at 8:30 A.M. Eastern Time. Interested parties can access the call via the AudioCodes investor website.
As a global leader in unified communications and AI solutions, AudioCodes serves numerous enterprises, including 65 Fortune 100 companies, enhancing their productivity and collaboration capabilities. For further information, visit AudioCodes’ official website.
