AudioCodes, a prominent provider of unified communications and AI solutions, 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, with a total payout of approximately $5.7 million, scheduled for distribution on August 28, 2025.
The quarterly report, released on July 29, 2025, highlights growth in various sectors, particularly in managed services within the UCaaS (Unified Communications as a Service) and CX (Customer Experience) markets. Service revenues rose by 1.9% year-over-year, reaching $32.6 million. Despite these positive figures, the company reported a drop in EBITDA, which stood at $3.6 million, down from $6.2 million in the same quarter last year.
Financial Performance Overview
In terms of net income, AudioCodes recorded $0.3 million, equating to $0.01 per diluted share, a significant decrease compared to $3.8 million, or $0.12 per diluted share, from the previous year. Non-GAAP measures presented a clearer picture; the company’s non-GAAP net income was $4.1 million, or $0.14 per diluted share, compared to $5.5 million, or $0.18 per diluted share, a year prior.
The company’s strong performance in the UC, CX, and conversational AI segments was particularly notable, with business from Microsoft increasing by 6.5% this quarter. AudioCodes aims to maintain its growth trajectory, projecting a segment growth outlook of 40%-50% for conversational AI in 2025.
Strategic Initiatives and Share Buyback
In an effort to bolster shareholder value, AudioCodes repurchased 715,732 ordinary shares during the quarter at an aggregate cost of $6.6 million. This initiative is part of a broader strategy approved by the Israeli court, allowing the company to repurchase up to $20 million in additional shares by December 30, 2025.
The company also launched its Live Platform, an integrated UCaaS and CX solution, enhancing its portfolio. The platform now supports Webex Calling certification and is designed to provide comprehensive features for major global UCC vendors. Furthermore, the introduction of the Meeting Insights On-Prem (Mia OP) solution, which focuses on secure meeting intelligence for sectors such as government and finance, has begun generating interest among enterprise customers.
Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes, expressed satisfaction with the progress made in the second quarter. He noted the impact of new tariffs on US imports, which added approximately $1 million in costs, as well as rising expenses in the EMEA region due to currency fluctuations. These factors have influenced the company’s net income, yet Mr. Adlersberg remains optimistic about the company’s strategic investments aimed at accelerating revenue growth in its conversational AI products.
Overall, AudioCodes continues to navigate a competitive landscape while focusing on innovation and customer experience. The company’s solid financial foundation and proactive measures position it well for future growth, as it aims to leverage its capabilities in unified communications and AI to enhance enterprise productivity globally.