AudioEye (AEYE) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $10.963M, the 43rd consecutive quarterly record; GAAP net income was $990K versus a $554K loss, and adjusted EBITDA rose 58% to a record $3.9M.

• ARR reached $43.3M, up 12% YoY; management expects accelerating Q4 revenue growth, higher profitability and continued operating leverage.

Financial highlights

• Q3 revenue rose 7% YoY to $10.963M; gross profit increased 15% to $9.092M from $7.9M.

• GAAP operating income was $1.255M versus a $318K loss; diluted EPS was $0.08 versus $(0.04) in Q3 2025.

• Adjusted EBITDA was $3.9M versus $2.5M; adjusted EPS was $0.30 versus $0.19, and adjusted EBITDA margin was 35% versus 24%.

• 9M revenue rose 8% to $32.232M; GAAP net loss was $1.989M versus $2.025M.

• Free cash flow was $3.5M, up $1.5M YoY; 9M operating cash flow was $4.035M.

Outlook and guidance

• Q4 revenue guidance is $11.4M–$11.6M; FY2026 revenue guidance is $43.6M–$43.8M.

• Q4 adjusted EBITDA guidance is $4.2M–$4.4M, with ~37% margin; FY2026 guidance rose to $13.4M–$13.6M, implying ~50% YoY growth.

• Q4 adjusted EPS guidance is $0.32–$0.33; FY2026 adjusted EPS is expected to be at least $1.04 per share.

• Q4 annualized adjusted EBITDA run rate is expected to exceed $17M; sequential revenue growth is expected to annualize to ~20%, with significant cash generation in Q4 and 2027.