Key Highlights

  • AudioEye (NASDAQ:AEYE) reported third quarter adjusted earnings of USD 0.30 per share on October 26, 2026, against published consensus of USD 0.27 and USD 0.19 a year earlier, on revenue up 7% to USD 11.0 million.
  • Annual recurring revenue reached USD 43.3 million, up 12% year on year, and adjusted EBITDA rose 58% to USD 3.9 million, a 35% margin, from USD 2.5 million.
  • GAAP net income was USD 1.0 million, or USD 0.08 per diluted share, against a loss of USD 0.6 million a year earlier, and cash was USD 9.3 million.
  • Full year guidance now calls for revenue of USD 43.6 million to USD 43.8 million, adjusted EBITDA of USD 13.4 million to USD 13.6 million and adjusted earnings per share of at least USD 1.04.

What AudioEye Reported

AudioEye reported third quarter 2026 results on October 26, 2026. Revenue was USD 11.0 million, up 7% from USD 10.2 million, and annual recurring revenue was USD 43.3 million, up from USD 42.3 million at June 30 and 12% above a year earlier. Adjusted earnings per share were USD 0.30 against published consensus of USD 0.27, a beat of about 11%, simple arithmetic on two published numbers. GAAP gross margin was 83% and adjusted gross margin was 88%. Chief executive Kelly Georgevich said the business is strong and that the company expects annualized sequential revenue growth of about 20% in the fourth quarter. Published market data showed a market value near USD 93.27 million for AudioEye (NASDAQ:AEYE).

Guidance and Customer Growth

AudioEye sells web accessibility software that scans sites for compliance problems and fixes issues, mostly on a subscription basis, which is why annual recurring revenue is the key metric. Customers reached about 130,000, up 7,000 from a year earlier, with growth from both the partner and marketplace channel and the enterprise channel. Fourth quarter guidance is revenue of USD 11.4 million to USD 11.6 million, adjusted EBITDA of USD 4.2 million to USD 4.4 million and adjusted earnings per share of USD 0.32 to USD 0.33. The midpoint revenue of USD 11.5 million is about 4.5% above the third quarter, roughly 19% annualized, simple arithmetic on two published figures.

Risks and What to Watch

Adjusted earnings exclude items such as stock compensation, so GAAP earnings of USD 0.08 per share are the more conservative measure. Cash of USD 9.3 million is modest against a business growing through marketing and partnerships, and competition in accessibility software and changes in accessibility law could affect demand. Guidance is a forecast and may not be met. Investors can watch whether fourth quarter revenue reaches the USD 11.4 million to USD 11.6 million range, how annual recurring revenue growth compares with the 12% reported, and whether adjusted EBITDA margins near 35% hold at AudioEye (NASDAQ:AEYE) as the company scales. The company reports revenue growth of 7%, so a slower pace than the guided fourth quarter step up would disappoint.

Where Things Stand

The beat came from higher recurring revenue, a 35% adjusted EBITDA margin and tight costs, and management raised full year profit guidance, with adjusted earnings per share of USD 0.30 against USD 0.27 expected. The evidence for AudioEye (NASDAQ:AEYE) is positive on growth and margins, but cash of USD 9.3 million is small and adjusted figures flatter GAAP results. The fourth quarter report will show whether the guided 20% annualized growth is achieved. Cash is the area to monitor.