AudioCodes Ltd.
AUDC Technology Communication Equipment
AudioCodes Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $245.6 million, up 1.42% from fiscal 2024. In the quarter to June 2026, revenue grew 3.08%, EPS grew 100.0% and free cash flow fell 15.1%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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AudioCodes Ltd. (AUDC) Altman Z-score
AudioCodes Ltd.'s Altman Z-score for fiscal 2025 is 2.36, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.36 | (0.17) |
| FY2024 | 2.52 | (0.16) |
| FY2023 | 2.68 | (1.34) |
| FY2022 | 4.03 | (2.07) |
| FY2021 | 6.10 | 1.32 |
| FY2020 | 4.78 | 1.09 |
| FY2019 | 3.68 | 0.24 |
| FY2018 | 3.45 | 0.70 |
| FY2017 | 2.75 | 0.23 |
| FY2016 | 2.52 | 0.69 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.31 | — | 0.37 | |
| Retained earnings / total assets | 0.07 | — | 0.10 | |
| EBIT / total assets | 0.04 | — | 0.14 | |
| Market value of equity / total liabilities | 1.64 | — | 0.98 | |
| Sales / total assets | 0.76 | — | 0.76 | |
| Altman Z-score | Grey zone | 2.36 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.74 | ||
Z and Z″ put AudioCodes Ltd. in different zones: grey zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| BKTI BK TECHNOLOGIES, INC. compare | 11.5× |
| CLFD Clearfield, Inc. compare | 7.4× |
| OCC Optical Cable Corporation compare | 3.8× |
| SILC Silicom Ltd compare | 3.2× |
| LTRX Lantronix, Inc. compare | 2.7× |
| AUDC AudioCodes Ltd. | 2.4× |
| CRNT Ceragon Networks Ltd. compare | 1.2× |
| ADTN ADTRAN Holdings, Inc. compare | 0.7× |
| AVNW Aviat Networks, Inc. compare | 0.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets