AudioCodes Q1 Revenues Up 2.9% to $62.1M, Conversational AI Sales Jump 50%
AudioCodes posted 2.9% revenue growth to $62.1 million in Q1 2026 with services revenues up 4.3% to $34.0 million and generated $12.8 million of operating cash flow. ARR climbed nearly 20% to $80 million while Conversational AI sales surged over 50%, and 1,740,329 shares were repurchased for $13.7 million.
1. Strong Q1 Financial Results
AudioCodes reported Q1 2026 revenues of $62.1 million, up 2.9% year-over-year, with services revenue rising 4.3% to $34.0 million. GAAP net income declined to $2.0 million ($0.07 per share) while non-GAAP net income reached $3.8 million ($0.14 per share), and operating cash flow was $12.8 million.
2. Rapid Growth in AI and Services
Annual recurring revenue climbed to $80 million, a 20% increase, driven by managed Live services and a 50% surge in Conversational AI sales. Record quarterly revenues from Voca CIC, along with new client wins for VAIC, Live Hub and growing demand for Meeting Insights, underscored momentum in enterprise voice AI.
3. Share Repurchase Program and Cash Position
The company repurchased 1,740,329 shares for $13.7 million and paid a $0.20 per share cash dividend totaling $5.3 million. Cash and investments stood at $68.1 million at quarter-end, with $1.6 million remaining under the $25 million share repurchase and dividend approval.