AudioCodes Invests Heavily In Voice AI Amid Declining Cash Reserves
In Q2 2026, AudioCodes (NASDAQ:AUDC) reported revenue of $63 million, a modest 3.1% increase from the prior year. While overall growth remains slow, its Conversational AI business grew over 50% year-over-year for two consecutive quarters and contributed to an annual recurring revenue rise of 20%, reaching $84 million by June 30. The company's services segment also showed stronger performance than total revenue, growing at a 6.2% rate with increasing focus on subscriptions over hardware sales. However, AudioCodes' cash reserves declined from $75.7 million to $64.2 million during the same period due in part to ongoing buybacks and dividend payments. Despite these financial pressures, institutional interest appears stable or growing, as 14 hedge funds held shares at quarter-end — up from 11 previously — while short interest remains low at just 0.89% of float.
Topics: Business Transformation Microsoft Teams Integration Recurring Revenue Voice AI