AudioEye (AEYE) Earnings Date & Reports

Key Takeaways

• AudioEye posted record third-quarter 2026 revenue of $10.96 million, up 7% year over year, marking its 43rd consecutive quarter of record revenue.
• The company swung to GAAP (Generally Accepted Accounting Principles) profitability, reporting net income of $1.0 million, or $0.08 per diluted share, versus a net loss of $0.6 million a year earlier.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 58% year over year to $3.9 million, with an adjusted EBITDA margin of 35%.
• Annual Recurring Revenue (ARR) rose 12% year over year to $43.3 million, while the customer base grew to roughly 130,000.
• Management raised its full-year 2026 adjusted EBITDA guidance and authorized a new $15 million share repurchase program.
• Gross margin expanded by more than 550 basis points to 83%, driven by AI-powered efficiencies across the business.
• For deeper coverage of AudioEye's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages linked here.
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Earnings Context and Why It Matters

AudioEye operates in the digital accessibility market, helping organizations make websites and apps usable by people with disabilities and ready for AI agents. Its results matter to investors because the company has used a long streak of record revenue to prove the durability of its subscription model while gradually converting that growth into profitability. The third quarter of 2026 stands out as a milestone: AudioEye delivered positive GAAP net income for the period, reflecting the operating leverage created by AI-driven cost efficiencies and disciplined expense management. With regulatory tailwinds such as the European Accessibility Act and new U.S. state laws expanding compliance requirements, the quarter offers a read on whether AudioEye can sustain growth while widening margins.

Reported Results

AudioEye reported third-quarter 2026 revenue of $10.96 million, a 7% increase from $10.2 million in the same period last year and a new quarterly record. Gross profit rose 15% to $9.09 million, lifting gross margin to 83% from 77% a year earlier, while adjusted gross margin reached 88%. Operating expenses declined 5% to $7.8 million, reflecting lower sales and marketing and research and development spending tied to AI efficiencies.

The company posted net income of $1.0 million, or $0.08 per diluted share, compared with a net loss of $0.6 million, or $0.04 per share, in the prior-year quarter. Adjusted EBITDA increased 58% to $3.9 million, and adjusted EPS (earnings per share) came in at $0.30, up from $0.19 a year ago. ARR ended the quarter at $43.3 million, up 12% year over year and up $1.0 million sequentially, while free cash flow reached $3.5 million.

For the fourth quarter of 2026, AudioEye guided to revenue of $11.4 million to $11.6 million and adjusted EBITDA of $4.2 million to $4.4 million, with adjusted EPS of $0.32 to $0.33. Full-year 2026 revenue guidance was narrowed to $43.6 million to $43.8 million, and full-year adjusted EBITDA guidance was raised to $13.4 million to $13.6 million, representing approximately 50% year-over-year growth.

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Market Reaction and Investor Sentiment

AudioEye's results drew a mixed early reaction. The company's adjusted EPS of $0.30 came in above the consensus estimate of $0.27, and revenue slightly topped expectations of roughly $10.94 million. However, the GAAP diluted EPS figure of $0.08 was below the headline consensus of $0.28, and shares initially traded lower in after-hours activity following the release, according to market data. The divergence highlights how investors parse AudioEye's non-GAAP (non-Generally Accepted Accounting Principles) metrics, which adjust for stock-based compensation, depreciation, amortization, interest, and litigation expenses. Sentiment also reflects the company's raised adjusted EBITDA outlook, the new $15 million buyback, and the early-stage rollout of two AI products, which management framed as meaningful upselling opportunities.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching whether AudioEye can translate its revenue streak into sustained, expanding profitability. Management pointed to an expected fourth-quarter adjusted EBITDA run rate above $17 million, implying meaningful free cash flow generation heading into 2027. The newly authorized $15 million share repurchase program, representing roughly 15% of outstanding shares at recent prices, signals confidence in the company's cash outlook.

Product innovation is another area of focus. In October, AudioEye launched two AI-powered offerings, Agentic Audits and the SDK MCP, both built on its proprietary "AudioEye Intelligence" dataset. These tools target developers and enterprises and are expected to create upselling opportunities, though it remains too early to quantify their revenue contribution.

Finally, regulatory developments could shape demand. The European Accessibility Act and emerging U.S. state laws, including Hawaii's Act 257, may broaden the compliance obligations that drive adoption of AudioEye's solutions. At the same time, investors should monitor customer-count trends, ARR growth re-acceleration, and any shifts in litigation expense, which has been declining and is expected to ease further in the fourth quarter.

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