AudioCodes

AUDC

Communication Equipment · Technology

Price

$9.60

+0.03 (+0.31%)

Market Cap

$244.4M

Exchange

NASDAQ

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Strong

Stability

Mixed

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−14.4% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 33.8M (2021) → 29.0M (2025)

Winston Score History

The full picture

AudioCodes makes hardware and software that helps businesses set up and manage voice and video communications over the internet. Its main products include networking devices called session border controllers, voice gateways, and software tools that connect phone systems to cloud platforms like Microsoft Teams. The company sells mostly to large enterprises and telecom service providers around the world.

AudioCodes earns money through a mix of product sales and recurring software subscriptions, with the subscription side growing as more businesses move their phone systems to the cloud. The company is headquartered in Israel and generates revenue globally, with a strong focus on North America and Europe. Its close partnership with Microsoft gives it an edge in the Teams voice market, but that same dependence is a risk — if Microsoft changes its strategy or brings more capabilities in-house, AudioCodes could lose a key source of demand.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.1% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+78.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$53M/ year

→ Flat (+1% vs prior year)

21.4% of revenue

In line with sector average (15%)

Steady R&D investment year-over-year

Insider Activity

40.4%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$64M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

AudioCodes is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

65.7%

Premium pricing power — 65.7% gross margin

Profit after running costs

Operating Margin

5.1%

Thin — 5.1% operating margin

Return on the money invested

ROCE

9.8%

Below par — 9.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+2.5%

Nearly flat sales (+2.5% YoY)

Profit growth

EPS YoY

-44.8%

Earnings shrinking (-44.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

391%

Turns 391% of profit into real cash

Spare cash per sale

FCF Margin

8.8%

Modest free cash flow (8.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

4.50x

Adequate interest coverage (4.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

37.1x

Pricey — P/E 37.1

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+20.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (37.1 → 16.9)

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Dividends

Dividend

Dividend Yield

3.87%

Moderate income — 3.87% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+5.6%

Dividend growing modestly (5.6% YoY)

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