AudioEye (AEYE) Q1 2026 earnings summary

Executive summary

• Achieved record revenue for the 41st consecutive quarter, with Q1 2026 revenue up 8% year-over-year to $10.6M, driven by growth in both Partner and Marketplace and Enterprise channels.

• Annual recurring revenue (ARR) reached $41.2M as of March 31, 2026, up 11% year-over-year, with customer count rising to approximately 127,000, the highest in the industry.

• Leadership transition: Kelly Georgevich appointed CEO, 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 $1.6M (15% of revenue).

• Positioned as a leader amid rising web accessibility litigation and regulatory changes.

Financial highlights

• Q1 2026 revenue: $10.6M, up 8% year-over-year; ARR: $41.2M as of March 31, 2026, up 11% year-over-year.

• Gross profit: $8.3M (78% margin); adjusted gross margin: 84%.

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

• Adjusted EBITDA: $2.4M (22% margin), up from $1.9M (20% margin) in Q1 2025; adjusted EPS: $0.18 vs. $0.15 in Q1 2025.

• Cash and cash equivalents: $8.6M as of March 31, 2026, up from $5.3M at year-end 2025, with $3M available under revolving credit.

Outlook and guidance

• Q2 2026 revenue guidance: $10.65M–$10.75M; adjusted EBITDA: $2.6M–$2.7M (25% margin); adjusted EPS: $0.21–$0.22.

• Full-year 2026 revenue guidance: $43.25M–$44.25M; adjusted EBITDA: at least $12M (27% margin); adjusted EPS: at least $0.96.

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

• Management expects continued revenue growth driven by recurring revenue expansion in both sales channels.

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