AudioEye (AEYE) Q1 2026 earnings summary

Executive summary

• Achieved record revenue for the forty-first consecutive quarter, with Q1 2026 revenue up 8% year-over-year to $10.6 million, driven by growth in both Partner and Marketplace and Enterprise channels.

• Annual recurring revenue (ARR) reached $41.2 million as of March 31, 2026, up 11% year-over-year and 12% annualized sequentially.

• Customer base reached approximately 127,000 as of March 31, 2026, up 8,000 year-over-year, with a sequential decrease due to a partner realignment.

• Leadership transition with Kelly Georgevich assuming the CEO role, with David Moradi focusing on long-term strategy and product innovation, especially AI.

• Continued investment in product innovation and R&D, with R&D spend at $1.6 million (15% of revenue) in Q1 2026.

Financial highlights

• Q1 2026 revenue: $10.6 million, up 8% year-over-year; Partner and Marketplace channel up 8%, Enterprise channel up 9%.

• Gross profit: $8.3 million (78% margin), adjusted gross margin: 84%.

• Net loss: $2.1 million ($0.17 per share), compared to $1.5 million ($0.12 per share) in Q1 2025, reflecting higher operating expenses.

• Adjusted EBITDA: $2.4 million (22% margin), up from $1.9 million (20% margin) in Q1 2025.

• Cash and cash equivalents: $8.6 million as of March 31, 2026, up from $5.3 million at year-end 2025.

Outlook and guidance

• Q2 2026 revenue expected between $10.65 million and $10.75 million; adjusted EBITDA between $2.6 million and $2.7 million (25% margin midpoint).

• Full year 2026 revenue guidance: $43.25 million to $44.25 million; adjusted EBITDA at least $12 million (27% margin), and adjusted EPS of at least $0.96.

• Targeting $15 million run rate adjusted EBITDA by end of 2026.

• Sequential revenue growth expected to accelerate in Q3 and Q4 due to compounding ARR.

• Sufficient liquidity is expected to support operations for at least the next twelve months.