| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 10.72 | 1.6% | 8.7% |
| Total Income | 10.72 | 1.6% | 8.7% |
| Expenditure | 11.31 | 9.1% | 17.6% |
| PBT | — | ||
| Net Profit | -0.87 | 58.8% | |
| OPM | -5.58% | 12.26pp | 8.03pp |
| NPM | -8.07% | 11.96pp | 8.05pp |
| EPS | -0.07 | 58.8% |
AudioEye Reports Record Second Quarter 2026 Results
14 Aug 2026 · 14 Aug, 1:49 am
Summary
AudioEye announced record second quarter 2026 results, with total revenue reaching $10.7 million, a 9% increase year-over-year, and Annual Recurring Revenue (ARR) growing 11% to $42.3 million. The company saw improvements in gross profit to $8.4 million and an adjusted gross margin of 84%. Adjusted EBITDA was a record $3.0 million, and the GAAP net loss narrowed sequentially. Management is raising full-year adjusted EBITDA guidance and expects to achieve over $15 million of annualized run rate adjusted EBITDA by year-end, with meaningful free cash flow generation in the second half of 2026.
Key Highlights
- 1
AudioEye reported record total revenue of $10.7 million for the second quarter of 2026, an increase of 9% compared to the same prior year period.
- 2
Annual Recurring Revenue (ARR) increased 11% year-over-year to $42.3 million as of June 30, 2026.
- 3
Gross profit increased to $8.4 million (79% of total revenue) from $7.6 million (77% of total revenue) in the same prior year period.
- 4
Adjusted gross margin improved to 84% in the second quarter of 2026 compared to 83% in the same prior year period.
- 5
Adjusted EBITDA reached a record $3.0 million in Q2 2026, up from $1.9 million in the same prior year period.
- 6
GAAP net loss improved sequentially to $0.9 million, or $(0.07) per share, compared to a net loss of $0.0 million in the same prior year period.
Management Comments
Kelly Georgevich
This was an outstanding quarter with our forty-second quarter of sequential revenue growth and low double-digit year-over-year ARR growth. Adjusted EBITDA and free cash flow have reached a pivotal point, and GAAP net loss improved sequentially from the first quarter. We are raising our full year adjusted EBITDA guidance and expect to achieve over $15 million of annualized run rate adjusted EBITDA by the end of the year, with meaningful free cash flow generation in the second half of 2026. As our free cash flow continues to scale, we are evaluating options to deploy excess cash, including potential share buybacks and dividends.
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