AudioEye (AEYE) Q2 2026 earnings summary

Executive summary

• Achieved 42nd consecutive quarter of sequential revenue growth, with Q2 2026 revenue at $10.7 million, up 9% year-over-year, and ARR at $42.3 million, up 11% year-over-year and sequentially.

• Adjusted EBITDA reached a record $3 million (28% margin), up $1.1 million year-over-year, and adjusted EPS was $0.23 per share, both up from the prior year period.

• Customer count increased by 9,000 year-over-year to approximately 129,000, mainly from Partner and Marketplace channel expansion.

• Strategic focus on scaling in the EU as accessibility enforcement increases, with strongest EU ARR contribution to date.

• Proprietary automation and data set position the company as a leader in digital accessibility solutions.

Financial highlights

• Q2 2026 revenue grew 9% year-over-year to $10.7 million; ARR up 11% year-over-year and sequentially.

• Adjusted EBITDA of $3 million (28% margin), up from $1.9 million (20% margin) in Q2 2025.

• Gross profit was $8.4 million (79% margin), with adjusted gross margin at 84%.

• Net loss of $0.9 million ($0.07 per share), improved from breakeven after adjusting for prior year non-recurring items.

• Adjusted free cash flow in Q2 was $2.6 million, up $1.2 million year-over-year.

Outlook and guidance

• Q3 2026 revenue expected between $10.85M and $11.05M; Q4 sequential acceleration anticipated.

• Full year 2026 revenue guidance tightened to $43.5M–$44M; adjusted EBITDA guidance raised to at least $12.7M (29% margin, 40% growth).

• Q3 adjusted EBITDA expected between $3.4M–$3.6M (32% margin); adjusted EPS $0.26–$0.28.

• Full year adjusted EPS expected at least $0.98; run rate adjusted EBITDA over $15M by year-end.

• Free cash flow and cash generation expected to ramp as litigation expenses decline.