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Sep 30, 2025
AudioCodes Q3 2025 Earnings Report
AudioCodes reported its Q3 2025 financial results, showing modest revenue growth and stable profitability, driven by gains in its services segment and conversational AI business.
Key Takeaways
AudioCodes posted a solid Q3 2025 with $61.5M in revenue and net income of $2.7M. Services made up over half of total revenues. The company saw strong growth in its CAI unit, boosting ARR to $75M.
Revenue for Q3 2025 reached $61.5 million, up from $60.2 million in Q3 2024.
Net income remained stable at $2.7 million; EPS was $0.10.
Services revenue totaled $30.9 million, accounting for 50.3% of total revenue.
Annual Recurring Revenue rose to $75 million, a 25% YoY increase.
Revenue by Segment
Forward Guidance
AudioCodes expects continued growth in Live services and CAI, backed by strong bookings and new contracts, while monitoring macroeconomic risks.
Positive Outlook
- Strong momentum in conversational AI (CAI) with 50% growth in Q3.
- Annual Recurring Revenue on track to meet $78–$82M FY target.
- Landmark agreement signed with a tier-1 system integrator.
- Successful launch of the Live Platform and Mia OP in new regions.
- High volume of new customer wins and expansions.
Challenges Ahead
- Overall cash position declined due to share repurchases and dividends.
- Product revenues grew more slowly than services.
- Operating income was slightly down compared to the prior year.
- Marketable securities dropped significantly from prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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