10-Q · May 12, 2026
AudioEye, Inc. reported Q1 2026 earnings with a revenue of $10.6 million, an 8% increase from the prior year, alongside an EPS of $0.18, beating estimates. Management remains optimistic about continued growth, driven by…
Earnings analysis · 10-Q
AEYE earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
AudioEye delivered Q2 revenue of $10.716 million, up approximately 7.2% year over year, with gross margin expanding to 79.0% and adjusted EPS of $0.23 exceeding the $0.19 estimate. Adjusted EBITDA reached a record $3.0…
Read full summary
AudioEye delivered Q2 revenue of $10.716 million, up approximately 7.2% year over year, with gross margin expanding to 79.0% and adjusted EPS of $0.23 exceeding the $0.19 estimate. Adjusted EBITDA reached a record $3.0 million and full-year adjusted EBITDA expectations increased to at least $12.7 million, although GAAP EPS remained negative at $(0.07) and litigation expense was $1.074 million. The 10-Q disclosed 0 material changes to previously reported risk factors, while legal-cost and GAAP profitability risks remain material.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.07
- Gross margin
- 79%
What stood out
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Revenue Grew Year Over Year
Q2 revenue was $10.716 million, up approximately 7.2% from $10.0 million in Q2 2025 but down approximately 2.6% from $11.0 million in Q1 2026.
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Gross Margin Expanded
Gross margin improved to 79.0% from 78.2% in Q1 2026 and 77.3% in Q2 2025, increases of 0.8 and 1.7 percentage points, respectively.
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Loss Narrowed; Adjusted EPS Beat
Reported GAAP EPS was $(0.07), an improvement of $0.10 from $(0.17) in Q1 2026; adjusted EPS was $0.23 versus the $0.19 estimate.
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Record Adjusted EBITDA
Adjusted EBITDA reached a record $3.0 million, and full-year adjusted EBITDA expectations were raised to at least $12.7 million.
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Controls Remained Effective
Disclosure controls and procedures were concluded to be effective as of June 30, 2026, and the company reported no changes in internal control that materially affected, or were reasonably likely to materially affect, financial reporting.
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Repurchase Capacity Remains
The company had $7.45 million remaining under its share-repurchase authorization, which permits up to $12.5 million of common-stock repurchases through January 24, 2027.
What to watch
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No New Risk-Factor Relief
The company disclosed 0 material changes to the risk factors in its 2025 Form 10-K, so previously identified risks remain applicable without a new quantified update.
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Litigation Costs Remain Material
Legal proceedings remain subject to adverse outcomes and may require significant fees and costs; Q2 litigation expense was $1.074 million, adding pressure to GAAP profitability.
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GAAP Profitability Remains Negative
The company reported a GAAP loss of $(0.07) per share despite $0.23 of adjusted EPS, indicating continued exposure to adjustments and operating-cost pressure in converting adjusted performance into GAAP earnings.
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Capital Allocation Constraint
The company retains $7.45 million of repurchase capacity under a $12.5 million authorization, which could compete with liquidity needs or other uses of capital if utilized.
Management's outlook
Management's quantitative outlook included Q3 2026 revenue of $10.85 million-$11.05 million and adjusted EPS of $0.26-$0.28, plus full-year 2026 revenue of $43.5 million-$44.0 million, adjusted EPS of at least $0.98, and adjusted EBITDA of at least $12.7 million. The filing does not provide a separate numeric 10-Q outlook; these figures were disclosed with the Q2 earnings update.
Earlier filings 4
10-K · April 30, 2026
AudioEye, Inc. had a solid fiscal year 2025 with revenue reaching $40 million, showing consistent year-over-year growth. The company reported improvements in free cash flow and adjusted EBITDA, indicating a stronger…
10-K · March 12, 2026
AudioEye presents a stable SaaS revenue base (about $40.0M in 2025) anchored by patented accessibility technology (26 U.S. issued patents) and a two-channel go-to-market (Enterprise and Partner & Marketplace). Free cash…
10-Q · August 8, 2025
AudioEye reported Q2 revenue of $9,857,000, up 16.4% year-over-year from $8,470,000 and up $124,000 versus Q1 2025 (implied Q1 revenue $9,733,000). Gross margin compressed to 77.3% from 79.2% a year ago, but operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.