AudioCodes’ Strong Q3 Performance and Strategic Initiatives Justify Buy Rating
Joshua Reilly has issued a Buy rating for AudioCodes, citing strong Q3/25 financial performance with revenue and EBITDA exceeding expectations. The company achieved a 25% year-over-year growth in annual recurring revenue, driven by its managed SBC and Conversational AI segments, projected to grow 40-50% in 2025. Strategic initiatives, including a partnership with a Global Tier 1 system integrator, are expected to boost revenue from 2026. Management anticipates 3.2% growth in 2026, reinforcing Reilly's positive outlook. He has a 2.2% average return and 44.49% success rate on stock recommendations.
Joshua Reilly has given his Buy rating due to a combination of factors including AudioCodes’ strong financial performance in Q3/25, where both revenue and EBITDA surpassed expectations. The company has shown consistent annual recurring revenue (ARR) growth of 25% year-over-year, driven by the strength in its managed Session Border Controller (SBC) and Conversational AI segments, which are projected to grow by 40-50% year-over-year in 2025.
Furthermore, AudioCodes’ strategic initiatives, such as securing a new Global Tier 1 system integrator, are expected to contribute additional revenue starting in 2026. Management’s outlook for accelerated growth in 2026, with an updated estimate of 3.2% year-over-year growth, supports the positive sentiment. These factors collectively underpin Reilly’s confidence in the company’s trajectory, warranting a Buy rating for the stock.
Reilly covers the Technology sector, focusing on stocks such as Jamf Holding, Vertex, and Twilio. According to TipRanks, Reilly has an average return of 2.2% and a 44.49% success rate on recommended stocks.
