AudioCodes Q2 2025 Earnings: Microsoft Momentum, AI Demand, and Tariff Headwinds Shape Growth

AudioCodes Q2 2025 Earnings: Key Takeaways for Product Development Professionals

AudioCodes reported modest revenue growth in Q2 2025, reaching $61.1 million, up 1.3% year-over-year. This improvement was supported by steady performance in connectivity solutions and strong certification achievements with Microsoft Teams and Webex.

Revenue and Service Breakdown

Services revenue climbed 1.9% to $32.6 million, making up over half (53.3%) of total sales. Live managed services stood out with a 25% increase year-over-year, pushing annual recurring revenues to $70 million. This signals growing client reliance on ongoing service engagements.

Conversational AI and New Product Momentum

Conversational AI offerings, including Meeting Insights On-Prem, are gaining traction. The segment is projected to grow between 40% and 50% in 2025, driven by increased demand and pipeline expansion. The launch of Mia OP, targeting regulated and security-conscious markets, is contributing to this momentum.

Profitability and Tariff Challenges

Non-GAAP operating income declined to $4.4 million from $7.2 million the previous year, impacted by approximately $1 million in tariff-related expenses for the quarter. The company anticipates total tariff costs around $4 million for the full year and is prioritizing cost control efforts.

For product developers, these insights highlight how market shifts, such as tariff impacts and AI product demand, are influencing AudioCodes' strategy and resource allocation. Staying informed on certification trends and AI feature adoption can offer valuable context when planning product roadmaps.

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