AudioEye (AEYE) Earnings Preview: Tracking the 42-Quarter Streak
Key Takeaways
- AudioEye is scheduled to report third quarter 2026 results in early November, following 42 consecutive quarters of record revenue.
- Management guided Q3 2026 revenue to between $10.85 million and $11.05 million, up from $10.7 million in Q2 2026.
- Adjusted EBITDA is expected between $3.4 million and $3.6 million, implying roughly a 32% margin at the midpoint.
- Adjusted EPS is guided to $0.26–$0.28, compared with $0.19 in the year-ago period.
- Annual recurring revenue (ARR), customer counts, and gross margin trajectory remain key metrics investors will watch.
- Full-year 2026 revenue guidance was tightened to $43.5 million–$44 million, with adjusted EBITDA raised to $12.7 million.
- For more context on this stock, explore AudioEye's Major News, Today's Price Move, Price Targets, and Forecast on Tickeron.
- Discover data-driven trading strategies by exploring Trending AI Robots.
Earnings Context and Why It Matters
AudioEye has built an impressive run with its digital accessibility platform that blends AI automation and expert services. The company has now delivered 42 straight quarters of sequential record revenue, which makes each earnings release a notable event for investors focused on consistent growth. The third-quarter 2026 report will show whether that momentum can continue while profitability improves. Management has highlighted better operating leverage and raised the full-year adjusted EBITDA target to $12.7 million, with signs of accelerating ARR growth. Both the Enterprise and Partner/Marketplace channels are contributing, so the results should give a clearer picture of demand and margin expansion.
What the Guidance Shows
Management has provided specific ranges for the upcoming quarter rather than relying on broad consensus estimates. Revenue is guided to $10.85 million to $11.05 million, which would mark a sequential increase of about $235,000 at the midpoint from the $10.7 million reported in Q2 2026. Adjusted EBITDA is expected in the $3.4 million to $3.6 million range, pointing to roughly a 32% margin at the midpoint, up from 28% in the prior quarter. Adjusted EPS guidance stands at $0.26 to $0.28.
Investors will focus on ARR, which reached $42.3 million as of June 30, 2026, along with the customer count near 129,000. Gross margin came in around 79% on a GAAP basis in Q2, and management has noted that litigation expenses are trending lower. The company has a history of beating expectations, though stock reactions have varied, including a dip of more than 6% after hours following the Q1 2026 beat before a recovery after Q2.
Market Sentiment Heading Into the Print
Sentiment appears cautiously positive as the report approaches. Consistent execution and rising profitability have supported a constructive view of the AI-powered platform and its position amid regulatory developments such as the Department of Justice Title II rule and European accessibility requirements. At the same time, the stock has shown volatility around earnings, and investors have reacted to net-loss figures even when adjusted results came in ahead of expectations. Rising expenses and customer integration work have occasionally weighed on enthusiasm. The focus now will likely be on whether ARR growth re-accelerates and whether the improved adjusted EBITDA path holds.
Looking Ahead: Factors to Watch
Beyond the third quarter, management anticipates that sequential revenue growth will pick up in Q4 2026 as the effects of ARR growth compound. Full-year guidance calls for revenue between $43.5 million and $44 million and adjusted EPS of at least $0.98, with a projected run-rate adjusted EBITDA above $15 million by year-end.
Several areas deserve close attention. ARR growth will serve as the clearest signal of sustained demand, especially once customer migrations from recent acquisitions are largely complete. Gross margin improvement is also expected as platform migration wraps up. Regulatory tailwinds from the DOJ rule and European enforcement could further support the partner and marketplace channels. Capital allocation will be worth monitoring as well, with free cash flow expected to increase in the second half and potential optionality around M&A, buybacks, or dividends. These remain observations rather than investment recommendations.
Using Tickeron’s AI Tools in My Research
I also checked this using Tickeron’s AI Screener to see how AudioEye compares with other companies in the industry on fundamentals and technical signals. It helps surface comparable names and broader market context efficiently when preparing for earnings events like this one.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
AEYE in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 20, 2026
AEYE broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 43 similar instances where the stock broke above the upper band. In 40 of the 43 cases the stock fell afterwards. This puts the odds of success at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AEYE moved out of overbought territory on October 21, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In 23 of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at 88%.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AEYE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
The Aroon Indicator for AEYE entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 19, 2026. You may want to consider a long position or call options on AEYE as a result. In 78 of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 81%.
The Moving Average Convergence Divergence (MACD) for AEYE just turned positive on October 20, 2026. Looking at past instances where AEYE's MACD turned positive, the stock continued to rise in 39 of 47 cases over the following month. The odds of a continued upward trend are 83%.
AEYE moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for AEYE crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.
The 50-day moving average for AEYE moved above the 200-day moving average on October 20, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +22.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where AEYE advanced for three days, in 218 of 258 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. AEYE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 68 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 77 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (31.512) is normal, around the industry mean (-1.853). P/E Ratio (-21.838) is within average values for comparable stocks, (15.200). Projected Growth (PEG Ratio) (2.162) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.075) among similar stocks. P/S Ratio (2.128) is also within normal values, averaging (71.128).
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AEYE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
a developer of patented Internet content publication and distribution software
Industry PackagedSoftware
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