AUDC | Market Cap: $263.5M (07/13/26)
Industry:
Hardware
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DESCRIPTION

AudioCodes provides voice communications technology for enterprises, contact centers, and service providers. The company's core business is connecting existing phone infrastructure to modern cloud-based unified communications platforms — primarily Microsoft Teams, but also Cisco Webex and Zoom Phone — and increasingly layering AI-powered voice applications on top of that connectivity. The connectivity business, which represents roughly 93% of revenue, includes session border controllers (SBCs, which sit at the boundary between enterprise networks and service providers to enable secure VoIP calls), media gateways, IP phones, and a managed services offering called AudioCodes Live, where AudioCodes handles deployment and management of voice infrastructure for enterprises migrating to Teams Phone. The remaining ~7% of revenue comes from a growing Voice AI SaaS segment, which includes Voca CIC (an AI-first Teams-certified cloud contact center), Meeting Insights (AI-powered meeting recording and transcription), Interaction Insights (compliance recording), and VoiceAI Connect (a layer linking telephony systems to AI platforms and large language models). AudioCodes sells primarily through a two-tier channel model — service providers, system integrators, resellers, and distributors — and operates in over 100 countries. The business model is shifting from transactional hardware and license sales toward recurring subscriptions and managed services, with services now representing roughly 55% of revenue. Gross margins run in the 65-68% range, reflecting a software-heavy mix.

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