AudioCodes Reports Q2 2025 Results, Declares Dividend of $0.20
AudioCodes, a prominent provider of unified communications and conversational AI applications, has reported its financial results for the second quarter of 2025, revealing a modest increase in revenues and a semi-annual dividend declaration. The company announced revenues of $61.1 million for the quarter ending June 30, 2025, marking a 1.3% increase compared to $60.3 million during the same period in 2024.
The quarterly results, disclosed on July 29, 2025, show that service revenues grew by 1.9% year-over-year, reaching $32.6 million. Despite this growth, the company reported a decline in earnings before interest, taxes, depreciation, and amortization (EBITDA), which fell to $3.6 million from $6.2 million in the second quarter of 2024. On a non-GAAP basis, EBITDA was $5.2 million, down from $8.3 million a year earlier.
Net income for the second quarter stood at $0.3 million, or $0.01 per diluted share, significantly lower than the $3.8 million, or $0.12 per diluted share, reported in the prior year. 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, in Q2 2024.
Operational Highlights and Strategic Investments
AudioCodes generated $7.7 million in net cash from operating activities during the quarter. The company had cash and cash equivalents, alongside marketable securities, totaling $95.3 million as of June 30, 2025, an increase from $93.9 million at the end of 2024. This growth is attributed to cash generated from operations, although the company also faced pressures from share repurchases and dividend payments.
During this quarter, AudioCodes repurchased 715,732 of its ordinary shares at a cost of $6.6 million. A recent court approval allows the company to purchase up to an additional $20 million in ordinary shares, which will be valid until December 30, 2025.
President and Chief Executive Officer Shabtai Adlersberg expressed satisfaction with the company’s progress, stating that revenue growth was mainly driven by an increase in live managed services in the unified communications as a service (UCaaS) and customer experience (CX) markets. He noted that demand for conversational AI is growing, with a projected segment growth outlook of 40%-50% for 2025.
The company also launched its integrated Live Platform, which combines UCaaS and CX features, achieving certification with Webex Calling. Additionally, the new Meeting Insights On-Prem (Mia OP) solution was introduced, catering to sectors such as government and finance. This product aims to provide secure meeting intelligence without relying on cloud connectivity.
Dividend Declaration
In addition to its financial results, AudioCodes declared a cash dividend of $0.20 per share, amounting to approximately $5.7 million. This dividend will be payable on August 28, 2025, to shareholders on record as of August 14, 2025. Under Israeli tax law, a withholding tax of 25% applies to the dividend, with a potential rate of 30% for shareholders holding 10% or more of the company’s capital.
AudioCodes will host a conference call at 8:30 A.M. Eastern Time on the same day the results were announced, providing further insights into the company’s performance and future outlook. Interested participants can join the call via provided dial-in numbers or listen to the live webcast on the company’s investor website.
As AudioCodes continues to navigate the competitive landscape of unified communications, the company’s strategic investments in product development and market expansion position it for potential growth in the upcoming quarters.
