{"success":true,"data":{"pressRelease":{"id":"32338","rtpr_id":"nPn53z8sga","ticker":"AEYE","exchange":"NASDAQ","all_tickers":["AEYE"],"title":"AudioEye Reports Record First Quarter 2026 Results","author":"PR Newswire","published_at":"2026-05-12T20:08:51.101Z","article_body":"AudioEye Reports Record First Quarter 2026 Results\n\nPR Newswire\n\nTUCSON, Ariz., May 12, 2026\n\nForty-First Consecutive Period of Record Revenue\n\nTUCSON, Ariz., May 12, 2026 /PRNewswire/ -- AudioEye, Inc.\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=1125448598&u=https%3A%2F%2Fwww.audioeye.com%2F&a=AudioEye%2C+Inc.)\n(Nasdaq: AEYE) (\"AudioEye\" or the \"Company\"), an industry-leading digital\naccessibility company, reported financial results for the first quarter ended\nMarch 31, 2026.\n\n(https://mma.prnewswire.com/media/1470477/AudioEye_v3_Logo.html)\n\n\"We demonstrated strong annual recurring revenue growth in the first quarter\nwith 12% annualized sequential growth reaching $41.2 million of ARR. As ARR\ngrows, we expect sequential quarterly revenue growth to accelerate over the\ncourse of the year, and operating leverage should lead to significant\noperating margin improvement,\" said Kelly Georgevich, Chief Executive Officer\nof AudioEye.\n\n\"As I assume the CEO role, I want to recognize David's leadership in\ntransforming AudioEye's product and operations, which has led to an almost\nfourfold revenue increase and significantly improved gross and operating\nmargins during his tenure. I'm excited to continue working with David, the\nBoard of Directors, teammates, and our customers in the future and look\nforward to increasing the value they receive from our products.\"\n\nFirst Quarter 2026 Financial Results\n\n * Total revenue increased 8% to a record $10.6M from $9.7M in the same prior\nyear period.\n * Gross profit increased to $8.3M (78% of total revenue) from $7.7M (80% of\ntotal revenue) in the same prior year period. The increase in gross profit was\ndriven by continued revenue growth.\n * Adjusted gross margin, which is defined as gross margin adjusted for non-cash\nitems such as stock-based compensation and depreciation and amortization\nexpenses in cost of revenue, was 84% in the first quarter of 2026 compared to\n85% in the same prior year period.\n * Operating expenses were $10.1M, an increase of 17% from the comparable prior\nyear period. The increase was primarily due to higher litigation expenses.\n * Net loss was $2.1M, or $(0.17) per share, compared to a net loss of $1.5M, or\n$(0.12) per share, in the same prior year period. The change was primarily due\nto higher litigation expenses of $1.1M, partially offset by a $0.5M increase\nto gross profit.\n * Adjusted EBITDA in Q1 2026 was $2.4M, and adjusted EPS was $0.18 per share,\ncompared to adjusted EBITDA of $1.9M and adjusted EPS of $0.15 per share in\nthe same prior year period. For Q1 2026, the adjusted EBITDA and adjusted EPS\nresults reflect adjustments primarily for stock-based compensation expense,\ndepreciation and amortization, litigation expense, and interest expense.\n * Annual Recurring Revenue (\"ARR\") as of March 31, 2026 increased sequentially\nto $41.2M from $40.0M as of December 31, 2025.\n * As of March 31, 2026, the Company had $8.6M in cash and cash equivalents,\ncompared to $5.3M as of December 31, 2025. The increase was primarily driven\nby the drawdown of funds under the Company's delayed draw term loan, which\nwould have otherwise expired on March 31, 2026.\nOther Updates\n\n * AudioEye released the 2026 Accessibility Advantage Report on March 12, 2026,\nbased on a survey of more than 400 business leaders. The report found that\nwhile accessibility is increasingly recognized as a legal and operational\nrequirement, most organizations lack the infrastructure, expertise, and\nprocesses needed to sustain compliance at scale.\n * The Company participated in the 41st Annual CSUN Assistive Technology\nConference (March 10-13, 2026), hosting six expert sessions alongside AudioEye\nAdvisory Board member and former U.S. Congresswoman Gabby Giffords and the\nNational Federation of the Blind.\n * AudioEye was named one of G2's Best Software Products for 2026 and earned a\nrecord 11 badges in G2's Spring 2026 Reports in April 2026. G2 rankings are\nbased on verified customer reviews, customer satisfaction scores, and market\npresence. AudioEye earned badges across every customer segment, including Most\nImplementable and Highest User Adoption in the Enterprise Implementation\nIndex.\n * As of March 31, 2026, AudioEye had approximately 127,000 customers, up 8,000\nyear-over-year from March 31, 2025. The sequential decrease of 4,000 from\nDecember 31, 2025, was attributable to one partner's realignment of their own\ncustomers and did not have any material impact on Company revenue. The partner\ncontinues to support thousands of AudioEye customers.\nFinancial Outlook\nAudioEye expects revenue of between $10.65M and $10.75M for the second quarter\nof 2026 and between $43.25M and $44.25M for the full year 2026. The Company\nexpects adjusted EBITDA of between $2.6M and $2.7M for the second quarter of\n2026 and at least $12M of Adjusted EBITDA for the full year 2026. The Company\nexpects adjusted EPS of between $0.21 and $0.22 per share for the second\nquarter of 2026 and at least $0.96 per share for the full year 2026.\n\nConference Call Information\nAudioEye management will hold a conference call today, May 12, 2026, at 4:30\np.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed\nby a question-and-answer period.\n\nDate: Tuesday, May 12, 2026\nTime: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)\nU.S. dial-in number: 877-407-8289\nInternational number: 201-689-8341\nWebcast: Q126 Webcast Link\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=960709534&u=https%3A%2F%2Fevent.choruscall.com%2Fmediaframe%2Fwebcast.html%3Fwebcastid%3DCiepQ3YL&a=Q126+Webcast+Link)\n\nPlease call the conference telephone number 5-10 minutes prior to the start\ntime. If you have any difficulty connecting with the conference call, please\ncontact Gateway Group at 949-574-3860.\n\nThe conference call will also be webcast live and available for replay via\nthe investor relations section of the Company's website. The audio\nrecording will remain available via the investor relations section of the\nCompany's website for 90 days.\n\nA telephonic replay of the conference call will also be available after 7:30\np.m. Eastern Time on the same day through May 26, 2026 via the following\nnumbers:\n\nToll-free replay number: 877-660-6853\nInternational replay number: 201-612-7415\nReplay passcode: 13760328\n\nDue to rounding, numbers presented throughout this document may not add up\nprecisely to the totals provided and percentages may not precisely reflect the\nabsolute figures.\n\nAbout AudioEye\nAudioEye\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=1145643001&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4355684-1%26h%3D2588057550%26u%3Dhttps%253A%252F%252Fwww.audioeye.com%252F%253Futm_source%253Dpr%2526utm_medium%253Darticle%2526utm_term%253Dgenerate%26a%3DAudioEye&a=AudioEye)\n exists to ensure the digital future we build is accessible. The gold\nstandard for digital accessibility, AudioEye's comprehensive solution combines\nindustry-leading AI automation technology with expert fixes informed by the\ndisability community. This powerful combination delivers industry-leading\nprotection, ensuring businesses of all sizes - including over 127,000\ncustomers such as Samsung, Lands' End, and Samsonite - meet and exceed\ncompliance standards. With 26 US patents, AudioEye's solution includes 24/7\naccessibility monitoring, automated WCAG issue testing and fixes, expert\ntesting, developer tools, and legal protection, empowering organizations to\nconfidently create accessible digital experiences for all.\n\nForward-Looking Statements\nAll statements in this press release about AudioEye's expectations, beliefs,\nplans, objectives, prospects, financial condition, assumptions or future\nevents or performance are not historical facts and are \"forward-looking\nstatements\" as that term is defined under the federal securities laws.\nForward-looking statements are often, but not always, made through the use of\nwords or phrases such as \"believe\", \"anticipate\", \"should\", \"confident\",\n\"intend\", \"plan\", \"will\", \"expects\", \"estimates\", \"projects\", \"positioned\",\n\"strategy\", \"outlook\" and similar words. You should read the statements that\ncontain these types of words carefully. Such forward-looking statements\ncontained herein include, but are not limited to, statements regarding future\ncash flows of the Company, anticipated contributions from new sales channels,\nlong-term growth prospects, opportunities in the digital accessibility\nindustry, our revenue, adjusted EBITDA, adjusted EPS and ARR guidance, and our\nexpectation of investments in marketing and sales. These statements are\nsubject to a number of risks, uncertainties and other factors that could cause\nactual results to differ materially from what is expressed or implied in such\nforward-looking statements, including the variability of AudioEye's revenue\nand financial performance; sales channels and offerings; product development\nand technological changes; the acceptance of AudioEye's products in the\nmarketplace; the effectiveness of our integration efforts;\ncompetition; inherent uncertainties and costs associated with litigation; and\ngeneral economic conditions. These and other risks are described more fully in\nAudioEye's filings with the Securities and Exchange Commission. There may be\nevents in the future that AudioEye is not able to predict accurately or over\nwhich AudioEye has no control. Forward-looking statements reflect management's\nview as of the date of this press release, and AudioEye urges you not to place\nundue reliance on these forward-looking statements. AudioEye does not\nundertake any obligation to update such forward-looking statements to reflect\nevents or uncertainties after the date hereof.\n\nAbout Key Operating Metrics\nWe consider annual recurring revenue (\"ARR\") as a key operating metric and a\nkey indicator of our overall business. We also use ARR as one of the primary\nmethods for planning and forecasting overall expectations and for evaluating,\non at least a quarterly and annual basis, actual results against such\nexpectations.\n\nWe manage customers through two primary channels, Enterprise and Partner and\nMarketplace. Enterprise channel consists of our larger customers and\norganizations, including those with non-platform custom websites, who\ngenerally engage directly with AudioEye sales personnel for custom pricing and\nsolutions. This channel also includes federal, state and local government\nagencies. The Partner and Marketplace channel consists of our CMS partners,\nplatform & agency partners, authorized resellers and our marketplace. This\nchannel serves small and medium sized businesses who are on a partner or\nreseller's web-hosting platform or who purchase an AudioEye solution from our\nmarketplace.\n\nWe define ARR as the sum of (i) for our Enterprise channel, the total of the\nannualized recurring fee at the date of determination under each active\ncontract, plus (ii) for our Partner and Marketplace channel, the annual\nor monthly recurring fee for all active customers at the date of\ndetermination, in each case, assuming no changes to the subscription,\nmultiplied by 12 if applicable. Recurring fees are defined as revenues\nexpected to be generated from services typically offered as a subscription\nservice or annual service offering such as our automation and platform,\nperiodic auditing, human-assisted technological fixes, legal support and\nprofessional service offerings and other services that reoccur on a\nmulti-year contract. This determination includes both annual and monthly\ncontracts for recurring products. Some of our contracts are terminable prior\nto the expected term, which may impact future ARR. ARR excludes non-recurring\nfees, which are defined as revenue expected to be generated from services\ntypically not offered as a subscription service or annual service offering\nsuch as our PDF remediation services business, one-time mobile\napplication reports, and other miscellaneous services that are offered as\nnon-subscription services or are expected to be one-time in nature.\n\nUse of Non-GAAP Financial Measures\nFrom time to time, we review adjusted financial measures that assist us in\ncomparing our operating performance consistently over time, as such measures\nremove the impact of certain items, as applicable, such as our capital\nstructure (primarily interest charges), certain non-cash items, including\nstock compensation and depreciation and amortization expense, and other\nexpenses that do not relate to our core operations, including significant\ntransaction and litigation-related expenses and other costs that are expected\nto be non-recurring. In order to provide investors with greater insight and\nallow for a more comprehensive understanding of the information used in our\nfinancial and operational decision-making, the Company has supplemented the\nconsolidated financial statements presented on a GAAP basis in this press\nrelease with the following non-GAAP financial measures: Adjusted EBITDA,\nAdjusted EBITDA margin, Adjusted earnings (loss) per diluted share (adjusted\nEPS) and Adjusted gross margin.\n\nThese non-GAAP financial measures have limitations as analytical tools and\nshould not be considered in isolation or as a substitute for analysis of\nCompany results as reported under GAAP. The Company compensates for such\nlimitations by relying primarily on our GAAP results and using non-GAAP\nfinancial measures only as supplemental data. We also provide a reconciliation\nof non-GAAP to GAAP measures used. Investors are encouraged to carefully\nreview this reconciliation. In addition, because these non-GAAP measures are\nnot measures of financial performance under GAAP and are susceptible to\nvarying calculations, these measures, as defined by us, may differ from and\nmay not be comparable to similarly titled measures used by other companies.\n\nAdjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings (Loss) per\nDiluted Share\nWe define: (i) Adjusted EBITDA as net income (loss), plus interest expense,\nplus depreciation and amortization expense, plus stock-based compensation\nexpense, plus change in fair value of contingent consideration, plus certain\nlitigation expense, plus certain acquisition expense, plus certain severance\nexpense, plus loss on disposal or impairment of long-lived assets, plus loss\non extinguishment of debt, and plus lost deposit on alternative financing;\n(ii) Adjusted EBITDA margin as Adjusted EBITDA as a percentage of GAAP\nrevenue; and (iii) Adjusted earnings (loss) per diluted share (EPS) as net\nincome (loss) per diluted common share, plus interest expense, plus\ndepreciation and amortization expense, plus stock-based compensation expense,\nplus change in fair value of contingent consideration, plus certain litigation\nexpense, plus certain acquisition expense, plus certain severance expense,\nplus loss on disposal or impairment of long-lived assets, plus loss on\nextinguishment of debt, and plus lost deposit on alternative financing, each\non a per share basis. Adjusted earnings per diluted share includes incremental\nshares in the share count that are considered anti-dilutive in a GAAP net loss\nposition.\n\nAdjusted Gross Margin\nWe define Adjusted gross margin as gross profit, plus stock-based compensation\nexpense and depreciation and amortization expense allocated to cost of\nrevenue, expressed as a percentage of total revenue.\n\nAdjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted\nshare, and Adjusted gross margin are used to facilitate a comparison of our\noperating performance on a consistent basis from period to period and provide\nfor a more complete understanding of factors and trends affecting our business\nthan GAAP measures alone. All of the items adjusted in these calculations are\neither recurring non-cash items or items that management does not consider in\nassessing our ongoing operating performance. In the case of the non-cash\nitems, such as stock-based compensation expense and valuation adjustments to\nassets and liabilities, management believes that investors may find it useful\nto assess our comparative operating performance because the measures without\nsuch items are expected to be less susceptible to variances in actual\nperformance resulting from expenses that do not relate to our core operations\nand are more reflective of other factors that affect operating performance. In\nthe case of items that do not relate to our core operations, management\nbelieves that investors may find it useful to assess our operating performance\nif the measures are presented without these items because their financial\nimpact does not reflect ongoing operating performance.\n\nAdjusted EBITDA is not a measure of liquidity under GAAP, or otherwise, and is\nnot an alternative to cash flow from continuing operating activities, despite\nthe advantages regarding the use and analysis of these measures as mentioned\nabove. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per\ndiluted share, and Adjusted gross margin, as disclosed in this press release,\nhave limitations as analytical tools, and you should not consider these\nmeasures in isolation or as a substitute for analysis of our results as\nreported under GAAP; nor are these measures intended to be measures of\nliquidity or free cash flow.\n\nTo properly and prudently evaluate our business, we encourage readers to\nreview the consolidated GAAP financial statements included in this press\nrelease and not rely on any single financial measure to evaluate our business.\nReconciliations of Adjusted EBITDA to net loss, the most directly comparable\nGAAP-based measure, Adjusted earnings (loss) per diluted share to net loss per\ndiluted share, the most directly comparable GAAP-based measure, and Adjusted\ngross margin to gross margin, the most directly comparable GAAP-based measure\nare provided in tables later in this press release. We strongly urge readers\nto review these reconciliations, along with the financial statements included\nin this press release.\n\nForward-Looking Non-GAAP Financial Measures\nThis press release and statements made in our conference call today also\ninclude the forward-looking non-GAAP financial measures of adjusted EBITDA,\nadjusted EBITDA margin, adjusted EPS and free cash flow guidance for the\nsecond quarter and full year 2026. We calculate\nforward-looking non-GAAP financial measures based on internal forecasts that\nomit certain amounts that would be included in GAAP financial measures. We\nhave not provided quantitative reconciliations of these\nforward-looking non-GAAP financial measures to the most directly comparable\nforward-looking GAAP financial measures because the excluded items are not\navailable on a prospective basis without unreasonable efforts. In addition,\nthe Company believes such reconciliations would imply a degree of precision\nand certainty that could be confusing to investors. It is probable that these\nforward-looking non-GAAP financial measures may be materially different from\nthe corresponding GAAP financial measures.\n\nInvestor Contact:\nTom Colton\nGateway Group, Inc.\nAEYE@gateway-grp.com (mailto:AEYE@gateway-grp.com)\n949-574-3860\n\n \n AUDIOEYE, INC.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n                                                                 (unaudited)\n                                                                 Three months ended March 31,\n (in thousands, except per share data)                           2026                       2025\n Revenue                                                         $        10,553            $        9,733\n\n Cost of revenue                                                          2,301                      1,995\n\n Gross profit                                                             8,252                      7,738\n\n Operating expenses:\n Selling and marketing                                                    3,852                      3,714\n Research and development                                                 1,110                      1,153\n General and administrative                                               5,173                      3,761\n Change in fair value of contingent consideration                         —                          50\n Total operating expenses                                                 10,135                     8,678\n\n Operating loss                                                           (1,883)                    (940)\n\n Other expense:\n Interest expense, net                                                    (231)                      (229)\n Loss on extinguishment of debt                                           —                          (300)\n Total other expense                                                      (231)                      (529)\n\n Net loss                                                        $        (2,114)           $        (1,469)\n\n Net loss per common share-basic and diluted                     $        (0.17)            $        (0.12)\n\n Weighted average common shares outstanding-basic and diluted             12,460                     12,390\n\n \n AUDIOEYE, INC.\n\nCONSOLIDATED BALANCE SHEETS\n\n                                                                                    (unaudited)\n                                                                                    March 31,             December 31,\n (in thousands, except per share data)                                              2026                  2025\n ASSETS\n Current assets:\n Cash and cash equivalents                                                          $        8,563        $         5,288\n Accounts receivable, net                                                                    6,294                  6,557\n Prepaid expenses and other current assets                                                   1,019                  777\n Total current assets                                                                        15,876                 12,622\n\n Property and equipment, net                                                                 137                    146\n Right of use assets                                                                         324                    168\n Intangible assets, net                                                                      12,036                 12,515\n Goodwill                                                                                    6,682                  6,682\n Other                                                                                       45                     97\n Total assets                                                                       $        35,100       $         32,230\n\n LIABILITIES AND STOCKHOLDERS' EQUITY\n Current liabilities:\n Accounts payable and accrued expenses                                              $        5,816        $         4,851\n Operating lease liabilities                                                                 54                     218\n Deferred revenue                                                                            8,491                  8,619\n Contingent consideration                                                                    225                    225\n Term loan, current                                                                          850                    503\n Total current liabilities                                                                   15,436                 14,416\n\n Long term liabilities:\n Term loan, net                                                                              15,756                 12,479\n Operating lease liabilities                                                                 283                    —\n Deferred revenue                                                                            7                      5\n Contingent consideration, long term                                                         300                    300\n Other                                                                                       139                    226\n Total liabilities                                                                           31,921                 27,426\n\n Stockholders' equity:\n Preferred stock, $0.00001 par value, 10,000 shares authorized\n Common stock, $0.00001 par value, 50,000 shares authorized, 12,430 and 12,383               1                      1\n shares issued and outstanding as of March 31, 2026 and December 31, 2025,\n respectively\n Additional paid-in capital                                                                  109,165                108,201\n Accumulated deficit                                                                         (105,987)              (103,398)\n Total stockholders' equity                                                                  3,179                  4,804\n\n Total liabilities and stockholders' equity                                         $        35,100       $         32,230\n\n \n AUDIOEYE, INC.\n\nRECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES\n\n(unaudited)\n\n                                                                Three months ended March 31,\n (in thousands, except per share data)                          2026                          2025\n Adjusted EBITDA Reconciliation\n Net loss (GAAP)                                                $         (2,114)             $         (1,469)\n Change in fair value of contingent consideration                         —                             50\n Interest expense, net                                                    231                           229\n Stock-based compensation expense                                         1,346                         907\n Acquisition expense (1)                                                  52                            —\n Litigation expense (2)                                                   1,832                         722\n Severance expense (3)                                                    —                             304\n Lost deposit on alternative financing                                    —                             50\n Depreciation and amortization                                            1,011                         775\n Loss on disposal or impairment of long-lived assets                      —                             40\n Loss on extinguishment of debt                                           —                             300\n Adjusted EBITDA                                                $         2,358               $         1,908\n Adjusted EBITDA margin (4)                                               22        %                   20        %\n\n Adjusted Earnings per Diluted Share Reconciliation\n Net loss per common share (GAAP) — diluted                     $         (0.17)              $         (0.12)\n Change in fair value of contingent consideration                         —                             —\n Interest expense, net                                                    0.02                          0.02\n Stock-based compensation expense                                         0.11                          0.07\n Acquisition expense (1)                                                  —                             —\n Litigation expense (2)                                                   0.14                          0.06\n Severance expense (3)                                                    —                             0.02\n Lost deposit on alternative financing                                    —                             —\n Depreciation and amortization                                            0.08                          0.06\n Loss on disposal or impairment of long-lived assets                      —                             —\n Loss on extinguishment of debt                                           —                             0.02\n Adjusted earnings per diluted share (5)                        $         0.18                $         0.15\n Diluted weighted average shares (GAAP)                                   12,460                        12,390\n Includable incremental shares (Non-GAAP) (5)                             320                           233\n Adjusted diluted shares (Non-GAAP)                                       12,780                        12,623\n\n (1)  Represents professional fees incurred in connection with acquisitions.\n (2)  Represents legal expenses related primarily to non-recurring litigation.\n (3)  Represents severance expense for employee from previously acquired ADA Site\n      Compliance.\n (4)  Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of GAAP\n      revenue.\n (5)  Adjusted earnings per adjusted diluted share for our common stock is computed\n      using the treasury stock method.\n\n \n AUDIOEYE, INC.\n\nRECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES\n\n(unaudited)\n\n                                                      Three months ended March 31,\n (in thousands)                                       2026                          2025\n Adjusted Gross Margin Reconciliation\n Revenue                                              $         10,553              $         9,733\n Less: Cost of revenue                                          2,301                         1,995\n Gross profit (GAAP)                                  $         8,252               $         7,738\n Gross margin (GAAP)                                            78        %                   80        %\n Add expenses included in cost of revenue:\n Depreciation and amortization                        $         508                 $         459\n Stock-based compensation                                       90                            79\n Adjusted gross profit (non-GAAP)                     $         8,850               $         8,276\n Adjusted gross margin (non-GAAP)                               84        %                   85        %\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/audioeye-reports-record-first-quarter-2026-results-302770076.html\n(https://www.prnewswire.com/news-releases/audioeye-reports-record-first-quarter-2026-results-302770076.html)\n\nSOURCE AudioEye, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/1470477/AudioEye_v3_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn53z8sga","title":"AudioEye Reports Record First Quarter 2026 Results","author":"PR Newswire","ticker":"AEYE","created":"2026-05-12T20:08:51.101Z","tickers":["AEYE"],"exchange":"NASDAQ","article_body":"AudioEye Reports Record First Quarter 2026 Results\n\nPR Newswire\n\nTUCSON, Ariz., May 12, 2026\n\nForty-First Consecutive Period of Record Revenue\n\nTUCSON, Ariz., May 12, 2026 /PRNewswire/ -- AudioEye, Inc.\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=1125448598&u=https%3A%2F%2Fwww.audioeye.com%2F&a=AudioEye%2C+Inc.)\n(Nasdaq: AEYE) (\"AudioEye\" or the \"Company\"), an industry-leading digital\naccessibility company, reported financial results for the first quarter ended\nMarch 31, 2026.\n\n(https://mma.prnewswire.com/media/1470477/AudioEye_v3_Logo.html)\n\n\"We demonstrated strong annual recurring revenue growth in the first quarter\nwith 12% annualized sequential growth reaching $41.2 million of ARR. As ARR\ngrows, we expect sequential quarterly revenue growth to accelerate over the\ncourse of the year, and operating leverage should lead to significant\noperating margin improvement,\" said Kelly Georgevich, Chief Executive Officer\nof AudioEye.\n\n\"As I assume the CEO role, I want to recognize David's leadership in\ntransforming AudioEye's product and operations, which has led to an almost\nfourfold revenue increase and significantly improved gross and operating\nmargins during his tenure. I'm excited to continue working with David, the\nBoard of Directors, teammates, and our customers in the future and look\nforward to increasing the value they receive from our products.\"\n\nFirst Quarter 2026 Financial Results\n\n * Total revenue increased 8% to a record $10.6M from $9.7M in the same prior\nyear period.\n * Gross profit increased to $8.3M (78% of total revenue) from $7.7M (80% of\ntotal revenue) in the same prior year period. The increase in gross profit was\ndriven by continued revenue growth.\n * Adjusted gross margin, which is defined as gross margin adjusted for non-cash\nitems such as stock-based compensation and depreciation and amortization\nexpenses in cost of revenue, was 84% in the first quarter of 2026 compared to\n85% in the same prior year period.\n * Operating expenses were $10.1M, an increase of 17% from the comparable prior\nyear period. The increase was primarily due to higher litigation expenses.\n * Net loss was $2.1M, or $(0.17) per share, compared to a net loss of $1.5M, or\n$(0.12) per share, in the same prior year period. The change was primarily due\nto higher litigation expenses of $1.1M, partially offset by a $0.5M increase\nto gross profit.\n * Adjusted EBITDA in Q1 2026 was $2.4M, and adjusted EPS was $0.18 per share,\ncompared to adjusted EBITDA of $1.9M and adjusted EPS of $0.15 per share in\nthe same prior year period. For Q1 2026, the adjusted EBITDA and adjusted EPS\nresults reflect adjustments primarily for stock-based compensation expense,\ndepreciation and amortization, litigation expense, and interest expense.\n * Annual Recurring Revenue (\"ARR\") as of March 31, 2026 increased sequentially\nto $41.2M from $40.0M as of December 31, 2025.\n * As of March 31, 2026, the Company had $8.6M in cash and cash equivalents,\ncompared to $5.3M as of December 31, 2025. The increase was primarily driven\nby the drawdown of funds under the Company's delayed draw term loan, which\nwould have otherwise expired on March 31, 2026.\nOther Updates\n\n * AudioEye released the 2026 Accessibility Advantage Report on March 12, 2026,\nbased on a survey of more than 400 business leaders. The report found that\nwhile accessibility is increasingly recognized as a legal and operational\nrequirement, most organizations lack the infrastructure, expertise, and\nprocesses needed to sustain compliance at scale.\n * The Company participated in the 41st Annual CSUN Assistive Technology\nConference (March 10-13, 2026), hosting six expert sessions alongside AudioEye\nAdvisory Board member and former U.S. Congresswoman Gabby Giffords and the\nNational Federation of the Blind.\n * AudioEye was named one of G2's Best Software Products for 2026 and earned a\nrecord 11 badges in G2's Spring 2026 Reports in April 2026. G2 rankings are\nbased on verified customer reviews, customer satisfaction scores, and market\npresence. AudioEye earned badges across every customer segment, including Most\nImplementable and Highest User Adoption in the Enterprise Implementation\nIndex.\n * As of March 31, 2026, AudioEye had approximately 127,000 customers, up 8,000\nyear-over-year from March 31, 2025. The sequential decrease of 4,000 from\nDecember 31, 2025, was attributable to one partner's realignment of their own\ncustomers and did not have any material impact on Company revenue. The partner\ncontinues to support thousands of AudioEye customers.\nFinancial Outlook\nAudioEye expects revenue of between $10.65M and $10.75M for the second quarter\nof 2026 and between $43.25M and $44.25M for the full year 2026. The Company\nexpects adjusted EBITDA of between $2.6M and $2.7M for the second quarter of\n2026 and at least $12M of Adjusted EBITDA for the full year 2026. The Company\nexpects adjusted EPS of between $0.21 and $0.22 per share for the second\nquarter of 2026 and at least $0.96 per share for the full year 2026.\n\nConference Call Information\nAudioEye management will hold a conference call today, May 12, 2026, at 4:30\np.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed\nby a question-and-answer period.\n\nDate: Tuesday, May 12, 2026\nTime: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)\nU.S. dial-in number: 877-407-8289\nInternational number: 201-689-8341\nWebcast: Q126 Webcast Link\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=960709534&u=https%3A%2F%2Fevent.choruscall.com%2Fmediaframe%2Fwebcast.html%3Fwebcastid%3DCiepQ3YL&a=Q126+Webcast+Link)\n\nPlease call the conference telephone number 5-10 minutes prior to the start\ntime. If you have any difficulty connecting with the conference call, please\ncontact Gateway Group at 949-574-3860.\n\nThe conference call will also be webcast live and available for replay via\nthe investor relations section of the Company's website. The audio\nrecording will remain available via the investor relations section of the\nCompany's website for 90 days.\n\nA telephonic replay of the conference call will also be available after 7:30\np.m. Eastern Time on the same day through May 26, 2026 via the following\nnumbers:\n\nToll-free replay number: 877-660-6853\nInternational replay number: 201-612-7415\nReplay passcode: 13760328\n\nDue to rounding, numbers presented throughout this document may not add up\nprecisely to the totals provided and percentages may not precisely reflect the\nabsolute figures.\n\nAbout AudioEye\nAudioEye\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4687003-1&h=1145643001&u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4355684-1%26h%3D2588057550%26u%3Dhttps%253A%252F%252Fwww.audioeye.com%252F%253Futm_source%253Dpr%2526utm_medium%253Darticle%2526utm_term%253Dgenerate%26a%3DAudioEye&a=AudioEye)\n exists to ensure the digital future we build is accessible. The gold\nstandard for digital accessibility, AudioEye's comprehensive solution combines\nindustry-leading AI automation technology with expert fixes informed by the\ndisability community. This powerful combination delivers industry-leading\nprotection, ensuring businesses of all sizes - including over 127,000\ncustomers such as Samsung, Lands' End, and Samsonite - meet and exceed\ncompliance standards. With 26 US patents, AudioEye's solution includes 24/7\naccessibility monitoring, automated WCAG issue testing and fixes, expert\ntesting, developer tools, and legal protection, empowering organizations to\nconfidently create accessible digital experiences for all.\n\nForward-Looking Statements\nAll statements in this press release about AudioEye's expectations, beliefs,\nplans, objectives, prospects, financial condition, assumptions or future\nevents or performance are not historical facts and are \"forward-looking\nstatements\" as that term is defined under the federal securities laws.\nForward-looking statements are often, but not always, made through the use of\nwords or phrases such as \"believe\", \"anticipate\", \"should\", \"confident\",\n\"intend\", \"plan\", \"will\", \"expects\", \"estimates\", \"projects\", \"positioned\",\n\"strategy\", \"outlook\" and similar words. You should read the statements that\ncontain these types of words carefully. Such forward-looking statements\ncontained herein include, but are not limited to, statements regarding future\ncash flows of the Company, anticipated contributions from new sales channels,\nlong-term growth prospects, opportunities in the digital accessibility\nindustry, our revenue, adjusted EBITDA, adjusted EPS and ARR guidance, and our\nexpectation of investments in marketing and sales. These statements are\nsubject to a number of risks, uncertainties and other factors that could cause\nactual results to differ materially from what is expressed or implied in such\nforward-looking statements, including the variability of AudioEye's revenue\nand financial performance; sales channels and offerings; product development\nand technological changes; the acceptance of AudioEye's products in the\nmarketplace; the effectiveness of our integration efforts;\ncompetition; inherent uncertainties and costs associated with litigation; and\ngeneral economic conditions. These and other risks are described more fully in\nAudioEye's filings with the Securities and Exchange Commission. There may be\nevents in the future that AudioEye is not able to predict accurately or over\nwhich AudioEye has no control. Forward-looking statements reflect management's\nview as of the date of this press release, and AudioEye urges you not to place\nundue reliance on these forward-looking statements. AudioEye does not\nundertake any obligation to update such forward-looking statements to reflect\nevents or uncertainties after the date hereof.\n\nAbout Key Operating Metrics\nWe consider annual recurring revenue (\"ARR\") as a key operating metric and a\nkey indicator of our overall business. We also use ARR as one of the primary\nmethods for planning and forecasting overall expectations and for evaluating,\non at least a quarterly and annual basis, actual results against such\nexpectations.\n\nWe manage customers through two primary channels, Enterprise and Partner and\nMarketplace. Enterprise channel consists of our larger customers and\norganizations, including those with non-platform custom websites, who\ngenerally engage directly with AudioEye sales personnel for custom pricing and\nsolutions. This channel also includes federal, state and local government\nagencies. The Partner and Marketplace channel consists of our CMS partners,\nplatform & agency partners, authorized resellers and our marketplace. This\nchannel serves small and medium sized businesses who are on a partner or\nreseller's web-hosting platform or who purchase an AudioEye solution from our\nmarketplace.\n\nWe define ARR as the sum of (i) for our Enterprise channel, the total of the\nannualized recurring fee at the date of determination under each active\ncontract, plus (ii) for our Partner and Marketplace channel, the annual\nor monthly recurring fee for all active customers at the date of\ndetermination, in each case, assuming no changes to the subscription,\nmultiplied by 12 if applicable. Recurring fees are defined as revenues\nexpected to be generated from services typically offered as a subscription\nservice or annual service offering such as our automation and platform,\nperiodic auditing, human-assisted technological fixes, legal support and\nprofessional service offerings and other services that reoccur on a\nmulti-year contract. This determination includes both annual and monthly\ncontracts for recurring products. Some of our contracts are terminable prior\nto the expected term, which may impact future ARR. ARR excludes non-recurring\nfees, which are defined as revenue expected to be generated from services\ntypically not offered as a subscription service or annual service offering\nsuch as our PDF remediation services business, one-time mobile\napplication reports, and other miscellaneous services that are offered as\nnon-subscription services or are expected to be one-time in nature.\n\nUse of Non-GAAP Financial Measures\nFrom time to time, we review adjusted financial measures that assist us in\ncomparing our operating performance consistently over time, as such measures\nremove the impact of certain items, as applicable, such as our capital\nstructure (primarily interest charges), certain non-cash items, including\nstock compensation and depreciation and amortization expense, and other\nexpenses that do not relate to our core operations, including significant\ntransaction and litigation-related expenses and other costs that are expected\nto be non-recurring. In order to provide investors with greater insight and\nallow for a more comprehensive understanding of the information used in our\nfinancial and operational decision-making, the Company has supplemented the\nconsolidated financial statements presented on a GAAP basis in this press\nrelease with the following non-GAAP financial measures: Adjusted EBITDA,\nAdjusted EBITDA margin, Adjusted earnings (loss) per diluted share (adjusted\nEPS) and Adjusted gross margin.\n\nThese non-GAAP financial measures have limitations as analytical tools and\nshould not be considered in isolation or as a substitute for analysis of\nCompany results as reported under GAAP. The Company compensates for such\nlimitations by relying primarily on our GAAP results and using non-GAAP\nfinancial measures only as supplemental data. We also provide a reconciliation\nof non-GAAP to GAAP measures used. Investors are encouraged to carefully\nreview this reconciliation. In addition, because these non-GAAP measures are\nnot measures of financial performance under GAAP and are susceptible to\nvarying calculations, these measures, as defined by us, may differ from and\nmay not be comparable to similarly titled measures used by other companies.\n\nAdjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings (Loss) per\nDiluted Share\nWe define: (i) Adjusted EBITDA as net income (loss), plus interest expense,\nplus depreciation and amortization expense, plus stock-based compensation\nexpense, plus change in fair value of contingent consideration, plus certain\nlitigation expense, plus certain acquisition expense, plus certain severance\nexpense, plus loss on disposal or impairment of long-lived assets, plus loss\non extinguishment of debt, and plus lost deposit on alternative financing;\n(ii) Adjusted EBITDA margin as Adjusted EBITDA as a percentage of GAAP\nrevenue; and (iii) Adjusted earnings (loss) per diluted share (EPS) as net\nincome (loss) per diluted common share, plus interest expense, plus\ndepreciation and amortization expense, plus stock-based compensation expense,\nplus change in fair value of contingent consideration, plus certain litigation\nexpense, plus certain acquisition expense, plus certain severance expense,\nplus loss on disposal or impairment of long-lived assets, plus loss on\nextinguishment of debt, and plus lost deposit on alternative financing, each\non a per share basis. Adjusted earnings per diluted share includes incremental\nshares in the share count that are considered anti-dilutive in a GAAP net loss\nposition.\n\nAdjusted Gross Margin\nWe define Adjusted gross margin as gross profit, plus stock-based compensation\nexpense and depreciation and amortization expense allocated to cost of\nrevenue, expressed as a percentage of total revenue.\n\nAdjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted\nshare, and Adjusted gross margin are used to facilitate a comparison of our\noperating performance on a consistent basis from period to period and provide\nfor a more complete understanding of factors and trends affecting our business\nthan GAAP measures alone. All of the items adjusted in these calculations are\neither recurring non-cash items or items that management does not consider in\nassessing our ongoing operating performance. In the case of the non-cash\nitems, such as stock-based compensation expense and valuation adjustments to\nassets and liabilities, management believes that investors may find it useful\nto assess our comparative operating performance because the measures without\nsuch items are expected to be less susceptible to variances in actual\nperformance resulting from expenses that do not relate to our core operations\nand are more reflective of other factors that affect operating performance. In\nthe case of items that do not relate to our core operations, management\nbelieves that investors may find it useful to assess our operating performance\nif the measures are presented without these items because their financial\nimpact does not reflect ongoing operating performance.\n\nAdjusted EBITDA is not a measure of liquidity under GAAP, or otherwise, and is\nnot an alternative to cash flow from continuing operating activities, despite\nthe advantages regarding the use and analysis of these measures as mentioned\nabove. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per\ndiluted share, and Adjusted gross margin, as disclosed in this press release,\nhave limitations as analytical tools, and you should not consider these\nmeasures in isolation or as a substitute for analysis of our results as\nreported under GAAP; nor are these measures intended to be measures of\nliquidity or free cash flow.\n\nTo properly and prudently evaluate our business, we encourage readers to\nreview the consolidated GAAP financial statements included in this press\nrelease and not rely on any single financial measure to evaluate our business.\nReconciliations of Adjusted EBITDA to net loss, the most directly comparable\nGAAP-based measure, Adjusted earnings (loss) per diluted share to net loss per\ndiluted share, the most directly comparable GAAP-based measure, and Adjusted\ngross margin to gross margin, the most directly comparable GAAP-based measure\nare provided in tables later in this press release. We strongly urge readers\nto review these reconciliations, along with the financial statements included\nin this press release.\n\nForward-Looking Non-GAAP Financial Measures\nThis press release and statements made in our conference call today also\ninclude the forward-looking non-GAAP financial measures of adjusted EBITDA,\nadjusted EBITDA margin, adjusted EPS and free cash flow guidance for the\nsecond quarter and full year 2026. We calculate\nforward-looking non-GAAP financial measures based on internal forecasts that\nomit certain amounts that would be included in GAAP financial measures. We\nhave not provided quantitative reconciliations of these\nforward-looking non-GAAP financial measures to the most directly comparable\nforward-looking GAAP financial measures because the excluded items are not\navailable on a prospective basis without unreasonable efforts. In addition,\nthe Company believes such reconciliations would imply a degree of precision\nand certainty that could be confusing to investors. It is probable that these\nforward-looking non-GAAP financial measures may be materially different from\nthe corresponding GAAP financial measures.\n\nInvestor Contact:\nTom Colton\nGateway Group, Inc.\nAEYE@gateway-grp.com (mailto:AEYE@gateway-grp.com)\n949-574-3860\n\n \n AUDIOEYE, INC.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n                                                                 (unaudited)\n                                                                 Three months ended March 31,\n (in thousands, except per share data)                           2026                       2025\n Revenue                                                         $        10,553            $        9,733\n\n Cost of revenue                                                          2,301                      1,995\n\n Gross profit                                                             8,252                      7,738\n\n Operating expenses:\n Selling and marketing                                                    3,852                      3,714\n Research and development                                                 1,110                      1,153\n General and administrative                                               5,173                      3,761\n Change in fair value of contingent consideration                         —                          50\n Total operating expenses                                                 10,135                     8,678\n\n Operating loss                                                           (1,883)                    (940)\n\n Other expense:\n Interest expense, net                                                    (231)                      (229)\n Loss on extinguishment of debt                                           —                          (300)\n Total other expense                                                      (231)                      (529)\n\n Net loss                                                        $        (2,114)           $        (1,469)\n\n Net loss per common share-basic and diluted                     $        (0.17)            $        (0.12)\n\n Weighted average common shares outstanding-basic and diluted             12,460                     12,390\n\n \n AUDIOEYE, INC.\n\nCONSOLIDATED BALANCE SHEETS\n\n                                                                                    (unaudited)\n                                                                                    March 31,             December 31,\n (in thousands, except per share data)                                              2026                  2025\n ASSETS\n Current assets:\n Cash and cash equivalents                                                          $        8,563        $         5,288\n Accounts receivable, net                                                                    6,294                  6,557\n Prepaid expenses and other current assets                                                   1,019                  777\n Total current assets                                                                        15,876                 12,622\n\n Property and equipment, net                                                                 137                    146\n Right of use assets                                                                         324                    168\n Intangible assets, net                                                                      12,036                 12,515\n Goodwill                                                                                    6,682                  6,682\n Other                                                                                       45                     97\n Total assets                                                                       $        35,100       $         32,230\n\n LIABILITIES AND STOCKHOLDERS' EQUITY\n Current liabilities:\n Accounts payable and accrued expenses                                              $        5,816        $         4,851\n Operating lease liabilities                                                                 54                     218\n Deferred revenue                                                                            8,491                  8,619\n Contingent consideration                                                                    225                    225\n Term loan, current                                                                          850                    503\n Total current liabilities                                                                   15,436                 14,416\n\n Long term liabilities:\n Term loan, net                                                                              15,756                 12,479\n Operating lease liabilities                                                                 283                    —\n Deferred revenue                                                                            7                      5\n Contingent consideration, long term                                                         300                    300\n Other                                                                                       139                    226\n Total liabilities                                                                           31,921                 27,426\n\n Stockholders' equity:\n Preferred stock, $0.00001 par value, 10,000 shares authorized\n Common stock, $0.00001 par value, 50,000 shares authorized, 12,430 and 12,383               1                      1\n shares issued and outstanding as of March 31, 2026 and December 31, 2025,\n respectively\n Additional paid-in capital                                                                  109,165                108,201\n Accumulated deficit                                                                         (105,987)              (103,398)\n Total stockholders' equity                                                                  3,179                  4,804\n\n Total liabilities and stockholders' equity                                         $        35,100       $         32,230\n\n \n AUDIOEYE, INC.\n\nRECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES\n\n(unaudited)\n\n                                                                Three months ended March 31,\n (in thousands, except per share data)                          2026                          2025\n Adjusted EBITDA Reconciliation\n Net loss (GAAP)                                                $         (2,114)             $         (1,469)\n Change in fair value of contingent consideration                         —                             50\n Interest expense, net                                                    231                           229\n Stock-based compensation expense                                         1,346                         907\n Acquisition expense (1)                                                  52                            —\n Litigation expense (2)                                                   1,832                         722\n Severance expense (3)                                                    —                             304\n Lost deposit on alternative financing                                    —                             50\n Depreciation and amortization                                            1,011                         775\n Loss on disposal or impairment of long-lived assets                      —                             40\n Loss on extinguishment of debt                                           —                             300\n Adjusted EBITDA                                                $         2,358               $         1,908\n Adjusted EBITDA margin (4)                                               22        %                   20        %\n\n Adjusted Earnings per Diluted Share Reconciliation\n Net loss per common share (GAAP) — diluted                     $         (0.17)              $         (0.12)\n Change in fair value of contingent consideration                         —                             —\n Interest expense, net                                                    0.02                          0.02\n Stock-based compensation expense                                         0.11                          0.07\n Acquisition expense (1)                                                  —                             —\n Litigation expense (2)                                                   0.14                          0.06\n Severance expense (3)                                                    —                             0.02\n Lost deposit on alternative financing                                    —                             —\n Depreciation and amortization                                            0.08                          0.06\n Loss on disposal or impairment of long-lived assets                      —                             —\n Loss on extinguishment of debt                                           —                             0.02\n Adjusted earnings per diluted share (5)                        $         0.18                $         0.15\n Diluted weighted average shares (GAAP)                                   12,460                        12,390\n Includable incremental shares (Non-GAAP) (5)                             320                           233\n Adjusted diluted shares (Non-GAAP)                                       12,780                        12,623\n\n (1)  Represents professional fees incurred in connection with acquisitions.\n (2)  Represents legal expenses related primarily to non-recurring litigation.\n (3)  Represents severance expense for employee from previously acquired ADA Site\n      Compliance.\n (4)  Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of GAAP\n      revenue.\n (5)  Adjusted earnings per adjusted diluted share for our common stock is computed\n      using the treasury stock method.\n\n \n AUDIOEYE, INC.\n\nRECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES\n\n(unaudited)\n\n                                                      Three months ended March 31,\n (in thousands)                                       2026                          2025\n Adjusted Gross Margin Reconciliation\n Revenue                                              $         10,553              $         9,733\n Less: Cost of revenue                                          2,301                         1,995\n Gross profit (GAAP)                                  $         8,252               $         7,738\n Gross margin (GAAP)                                            78        %                   80        %\n Add expenses included in cost of revenue:\n Depreciation and amortization                        $         508                 $         459\n Stock-based compensation                                       90                            79\n Adjusted gross profit (non-GAAP)                     $         8,850               $         8,276\n Adjusted gross margin (non-GAAP)                               84        %                   85        %\n\n \n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/audioeye-reports-record-first-quarter-2026-results-302770076.html\n(https://www.prnewswire.com/news-releases/audioeye-reports-record-first-quarter-2026-results-302770076.html)\n\nSOURCE AudioEye, Inc.\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/1470477/AudioEye_v3_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-05-12T20:08:51.154353678Z","server_sent_at_ms":1778616531154},"received_at":"2026-05-12T20:08:51.335Z","source_url":"https://www.prnewswire.com/news-releases/audioeye-reports-record-first-quarter-2026-results-302770076.html"},"analysis":{"id":"23327","press_release_id":"32338","analysis_json":{"industry":{"label":"Software","sector":"Information Technology"},"redFlags":["net loss increased due to higher litigation expenses"],"eventType":"earnings","narrative":"AudioEye reported record Q1 2026 revenue of $10.6 million, up 8% year-over-year from $9.7 million.\n\nGross profit increased to $8.3 million (78% of total revenue) from $7.7 million (80% of total revenue) in the same prior year period, driven by continued revenue growth.\n\nOperating expenses rose to $10.1 million, a 17% increase from the prior year, primarily due to higher litigation expenses.\n\nThe company expects Q2 2026 revenue between $10.65 million and $10.75 million, and full-year 2026 revenue between $43.25 million and $44.25 million. Adjusted EBITDA guidance for Q2 2026 is $2.6 million to $2.7 million, and at least $12 million for the full year 2026.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Record Q1 revenue and strong ARR growth, but higher litigation costs weigh on the bottom line."},"keyFigures":{"epsBeat":0,"revenue":10553000,"guidance":"Q2 2026 revenue $10.65M-$10.75M; FY26 revenue $43.25M-$44.25M; Q2 2026 adjusted EBITDA $2.6M-$2.7M; FY26 adjusted EBITDA at least $12M; Q2 2026 adjusted EPS $0.21-$0.22; FY26 adjusted EPS at least $0.96","revenueYoy":"8%","customDimensions":{"arr":41200000,"adjusted_eps":0.18,"gross_profit":8252000,"adjusted_ebitda":2358000,"cash_and_cash_equivalents":8563000}},"quotedText":"We demonstrated strong annual recurring revenue growth in the first quarter with 12% annualized sequential growth reaching $41.2 million of ARR.","namedEntities":{"people":[{"name":"Kelly Georgevich","role":"CEO"},{"name":"David","role":"former CEO"},{"name":"Gabby Giffords","role":"AudioEye Advisory Board member and former U.S. Congresswoman"}],"products":["Accessibility Advantage Report","AI automation technology","expert fixes","24/7 accessibility monitoring","automated WCAG issue testing and fixes","legal support","professional service offerings"],"companies":[{"name":"AudioEye, Inc.","ticker":"AEYE"},{"name":"Gateway Group, Inc.","relationship":"investor contact"},{"name":"Samsung","relationship":"customer"},{"name":"Lands' End","relationship":"customer"},{"name":"Samsonite","relationship":"customer"},{"name":"National Federation of the Blind","relationship":"partner"}],"dollarAmounts":[{"amount":"$10.6M","context":"Q1 2026 total revenue"},{"amount":"$9.7M","context":"Q1 2025 total revenue"},{"amount":"$8.3M","context":"Q1 2026 gross profit"},{"amount":"$7.7M","context":"Q1 2025 gross profit"},{"amount":"$10.1M","context":"Q1 2026 operating expenses"},{"amount":"$8.6M","context":"Q1 2025 operating expenses"},{"amount":"$2.1M","context":"Q1 2026 net loss"},{"amount":"$1.5M","context":"Q1 2025 net loss"},{"amount":"$2.4M","context":"Q1 2026 adjusted EBITDA"},{"amount":"$1.9M","context":"Q1 2025 adjusted EBITDA"},{"amount":"$0.18","context":"Q1 2026 adjusted EPS"},{"amount":"$0.15","context":"Q1 2025 adjusted EPS"},{"amount":"$41.2M","context":"Q1 2026 ARR"},{"amount":"$40.0M","context":"Q4 2025 ARR"},{"amount":"$8.6M","context":"Q1 2026 cash and cash equivalents"},{"amount":"$5.3M","context":"Q4 2025 cash and cash equivalents"}]},"materialImpact":{"score":4,"reasoning":"Record revenue and strong ARR growth, with guidance raised for the full year. However, net loss and operating expenses increased due to higher litigation costs."},"tickerRelevance":{"others":[],"primary":"AEYE"},"globalImportance":45,"audienceRelevance":60,"eventTypeSecondary":["guidance_update","executive_change"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"earnings beat with guidance raise","sectorWeight":"Information Technology","householdBrandBoost":"moderate","marketCapAdjustment":"positive"}},"event_type":"earnings","event_type_secondary":["guidance_update","executive_change"],"sentiment":"bullish","material_impact_score":4,"narrative":"AudioEye reported record Q1 2026 revenue of $10.6 million, up 8% year-over-year from $9.7 million.\n\nGross profit increased to $8.3 million (78% of total revenue) from $7.7 million (80% of total revenue) in the same prior year period, driven by continued revenue growth.\n\nOperating expenses rose to $10.1 million, a 17% increase from the prior year, primarily due to higher litigation expenses.\n\nThe company expects Q2 2026 revenue between $10.65 million and $10.75 million, and full-year 2026 revenue between $43.25 million and $44.25 million. 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