AEYE earnings analysis
What we found in AEYE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
- Gross margin
- 79%
What they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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