$AUDC

AUDIOCODES LTD

CIK:0001086434|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Total revenues	$ 245,604	$ 242,176	$ 244,383
Cost of revenues:
Total cost of revenues	85,972	84,015	86,034
Gross profit	159,632	158,161	158,349
Operating expenses:
Research and development, net	52,591	52,125	57,169
Selling and marketing	77,242	71,167	70,243
General and administrative	15,760	17,678	16,513
Total operating expenses	145,593	140,970	143,925
Operating income	14,039	17,191	14,424
Financial expenses, net	(461)	(2,095)	(52)
Income before taxes on income	13,578	15,096	14,372
Taxes on income (tax benefits)	4,623	(215)	5,592
Net income	$ 8,955	$ 15,311	$ 8,780
Earnings per share:
Basic (in Dollars per share)	$ 0.31	$ 0.51	$ 0.28
Diluted (in Dollars per share)	$ 0.31	$ 0.5	$ 0.28
Weighted average number of shares used in computations of earnings per share:
Basic (in Shares)	28,497,801	30,200,210	31,400,900
Diluted (in Shares)	28,984,336	30,636,088	31,578,713
Products
Revenues:
Revenues	$ 114,911	$ 111,966	$ 123,991
Cost of revenues:
Cost of revenues	44,197	44,448	47,964
Services
Revenues:
Revenues	130,693	130,210	120,392
Cost of revenues:
Cost of revenues	$ 41,775	$ 39,567	$ 38,070

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 8,955	$ 15,311	$ 8,780
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,235	3,883	2,596
Net loss from sale of marketable securities	0	882	218
Amortization of marketable securities premiums and accretion of discounts, net	400	1,120	1,130
Share-based compensation related to options and RSUs granted to employees and non-employees	6,510	8,228	11,380
Financial expenses (income), net	574	313	(218)
Decrease (increase) in deferred tax assets, net	1,719	(4,548)	1,437
Decrease (increase) in trade receivables, net	(8,654)	(3,846)	1,600
Decrease (increase) in other receivables and prepaid expenses	(6,052)	(3,631)	625
Decrease (increase) in inventories	9,251	12,283	(7,791)
Decrease in operating lease right-of-use assets	3,682	6,009	9,281
Decrease (increase) in operating lease liabilities	296	(4,651)	(6,914)
Increase (decrease) in trade payables	(232)	(13)	(3,782)
Increase (decrease) in other payables and accrued expenses	9,502	3,223	(6,233)
Increase (decrease) in deferred revenues	443	1,767	3,144
Decrease in accrued severance pay, net	(1,268)	(1,077)	(362)
Net cash provided by operating activities	29,361	35,253	14,891
Cash flows from investing activities:
Purchase of property and equipment	(6,472)	(24,280)	(5,965)
Purchase of financial investments	(523)	(675)	(81)
Proceeds from maturity of marketable securities	5,200	7,450	3,084
Proceeds from redemption of financial investments	278	132	14,094
Proceeds from sale of marketable securities	0	35,177	3,846
Proceeds (investments) from short-term bank deposits, net	(29)	2	4,998
Net cash provided by (used in) investing activities	(1,546)	17,806	19,976
Cash flows from financing activities:
Purchase of treasury stock	(30,599)	(14,328)	(18,259)
Cash dividends paid	(10,934)	(10,896)	(11,399)
Proceeds from issuance of shares upon exercise of options	251	368	802
Net cash used in financing activities	(41,282)	(24,856)	(28,856)
Increase (decrease) in cash, cash equivalents	(13,467)	28,203	6,011
Cash, cash equivalents at the beginning of the year	58,749	30,546	24,535
Cash, cash equivalents at the end of the year	45,282	58,749	30,546
Supplemental disclosure of cash flow activities:
Cash paid during the year for income taxes	3,790	5,784	4,196
Significant non-cash transactions:
Inventory transferred to be used as property and equipment	180	213	209
Non-cash purchase of property and equipment	0	0	2,805
Operating lease right-of-use asset recognized with corresponding lease liability	$ 1,225	$ 1,831	$ 32,476

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
CURRENT ASSETS:
Cash and cash equivalents	$ 45,282	$ 58,749
Short-term bank deposits	239	210
Short-term marketable securities	27,350	3,426
Trade receivables	67,358	56,016
Other receivables and prepaid expenses	19,064	13,012
Inventories	22,032	31,463
Total current assets	181,325	162,876
LONG-TERM ASSETS:
Long-term trade receivables	13,065	15,753
Long-term marketable securities	0	28,518
Long-term financial investments	2,790	3,008
Deferred tax assets	7,773	9,838
Operating lease right-of-use assets	30,077	32,534
Severance pay funds	21,163	18,004
Total long-term assets	74,868	107,655
PROPERTY AND EQUIPMENT, NET	29,248	27,321
INTANGIBLE ASSETS, NET	19	489
GOODWILL	37,560	37,560
Total assets	323,020	335,901
CURRENT LIABILITIES:
Trade payables	6,416	7,543
Other payables and accrued expenses	30,284	25,823
Deferred revenues	38,243	38,438
Short-term operating lease liabilities	6,635	5,954
Total current liabilities	81,578	77,758
LONG-TERM LIABILITIES:
Accrued severance pay	18,278	16,387
Deferred revenues and other liabilities	20,517	19,434
Long-term operating lease liabilities	31,348	30,508
Total long-term liabilities	70,143	66,329
COMMITMENTS AND CONTINGENT LIABILITIES (Note 10)

Total liabilities	151,721	144,087
SHAREHOLDERS’ EQUITY:
Ordinary shares of NIS 0.01 par value authorized: 200,000,000 and 200,000,000 shares as of December 31, 2025 and 2024, respectively; Issued: 65,730,082 and 65,170,217 shares as of December 31, 2025 and 2024, respectively; Outstanding: 27,089,259 and 29,679,755 shares as of December 31, 2025 and 2024, respectively	112	112
Additional paid-in capital	422,477	415,716
Treasury stock at cost – 38,640,823 and 35,490,462 shares as of December 31, 2025 and 2024, respectively	(280,930)	(250,331)
Accumulated other comprehensive income	6,416	1,114
Retained earnings	23,224	25,203
Total shareholders’ equity	171,299	191,814
Total liabilities and shareholders’ equity	$ 323,020	$ 335,901