Key Highlights

  • Second-quarter Revenue reached a record $10.7 million, up 9% year over year, marking its 42nd consecutive quarter of sequential revenue growth.
  • Annual Recurring Revenue rose 11% to $42.3 million, and the company posted record adjusted EBITDA of $3.0 million, up 55%.
  • Gross Margin was strong at 79% (84% adjusted), and the company serves over 129,000 customers.
  • AudioEye guided full-year 2026 revenue to $43.5 million to $44.0 million and adjusted EBITDA to over $12.7 million.

AudioEye (NASDAQ:AEYE), a provider of digital-accessibility software, reported record revenue, expanding profitability and a long streak of sequential growth. For investors, the question is whether the company can continue growing its recurring revenue and improving its margins in a market shaped by accessibility-compliance requirements.

AudioEye offers software that helps businesses make their websites and digital content accessible to people with disabilities, combining AI-powered automation with expert remediation to help customers meet accessibility standards and reduce legal risk. It serves a large and growing base of customers across enterprises and smaller businesses, monetized through recurring subscriptions, and benefits from rising awareness of digital-accessibility requirements.

Latest Developments

In its second-quarter 2026 results, AudioEye reported record revenue of $10.7 million, up 9% year over year, marking its 42nd consecutive quarter of sequential revenue growth, with annual recurring revenue rising 11% to $42.3 million. It posted a small net loss of $0.9 million but record adjusted EBITDA of $3.0 million, up 55%, with adjusted EPS of $0.23. Gross margin was strong at 79% (84% adjusted). The company serves over 129,000 customers, with its partner-and-marketplace channel driving significant net customer additions. It guided full-year 2026 revenue to $43.5 million to $44.0 million and adjusted EBITDA to over $12.7 million, targeting an annualized adjusted-EBITDA run rate above $15 million by year-end.

Financial and Business Position

AudioEye's results reflect a steadily growing, increasingly profitable software business, with a remarkable streak of sequential revenue growth, rising ARR, strong gross margins and rapidly expanding adjusted EBITDA. Its dual-channel model, serving both enterprises directly and smaller businesses through partners and marketplaces, has driven customer growth, and its guidance points to continued margin expansion. The company's position in the growing digital-accessibility market, underpinned by compliance requirements, provides a durable Demand backdrop.

Stock-Market Context

The company carries a strong-buy analyst rating, and the record results suggest the fundamentals remain intact regardless of broader sentiment or valuation debates. The case for continued strength rests on continued recurring-revenue growth, ongoing margin expansion toward the company's adjusted-EBITDA targets, and customer additions driven by accessibility demand; the cautionary case is that revenue growth, while steady, is in the high single digits, and the accessibility-software market is competitive.

What Investors Should Watch

Investors may focus on continued revenue and annual-recurring-revenue growth, customer additions across the enterprise and partner channels, adjusted-EBITDA margin expansion toward the company's run-rate target, and developments in digital-accessibility requirements and enforcement. Evidence that AudioEye can sustain its growth streak while continuing to expand profitability would be central to the outlook.

AudioEye occupies an attractive niche in the software market, providing digital-accessibility solutions that help businesses make their websites usable by people with disabilities, a market underpinned by accessibility-compliance requirements and the associated legal risk, which creates durable, non-discretionary demand. The company's dual-channel model, serving both enterprises directly and smaller businesses through partners and marketplaces, has driven substantial customer growth and gives it multiple avenues to expand its base.