Audioeye (NASDAQ:AEYE) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Audioeye (NASDAQ:AEYE) announced its quarterly earnings data on Thursday. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.21 by $0.02, FiscalAI reports. The company had revenue of $10.72 million for the quarter, compared to the consensus estimate of $10.69 million. Audioeye had a negative net margin of 9.05% and a positive return on equity of 71.24%. Audioeye updated its FY 2026 guidance to 0.980- EPS and its Q3 2026 guidance to 0.260-0.280 EPS.

Here are the key takeaways from Audioeye’s conference call:

• Profitability improved materially, with Q2 adjusted EBITDA rising 54% year over year to $3.0 million, or a 28% margin. Management raised full-year adjusted EBITDA guidance to at least $12.7 million and expects more than $15 million in run-rate adjusted EBITDA by Q4.
• Revenue reached $10.7 million, marking AudioEye’s 42nd consecutive quarter of sequential growth, while ARR increased $1.1 million sequentially to $42.3 million. The partner and marketplace channel grew revenue 16% year over year and accounted for 59% of total ARR, offsetting flat enterprise revenue.
• Management expects substantial free-cash-flow generation in the second half of 2026 as litigation expenses decline; Q2 adjusted free cash flow was $2.6 million, and litigation expense fell 40% sequentially. The company is evaluating potential share buybacks, dividends, and acquisitions as uses of excess cash.
• European enforcement of the European Accessibility Act is gaining momentum, with warning letters and court action emerging, but management still characterizes the market as being in the “early innings.” AudioEye maintained its full-year revenue guidance midpoint while guiding Q3 revenue to $10.85 million–$11.05 million.

Audioeye Stock Up 37.5%

Shares of AEYE traded up $2.18 on Friday, hitting $7.99. The company’s stock had a trading volume of 951,191 shares, compared to its average volume of 158,924. The firm has a market capitalization of $99.80 million, a price-to-earnings ratio of -27.55 and a beta of 0.84. Audioeye has a fifty-two week low of $5.31 and a fifty-two week high of $16.39. The firm’s fifty day moving average price is $6.33 and its 200-day moving average price is $6.80. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 4.96.

Audioeye News Roundup

Here are the key news stories impacting Audioeye this week:

• Positive Sentiment: AudioEye reported record second-quarter revenue of $10.72 million, slightly above the $10.69 million consensus estimate, while adjusted earnings of $0.23 per share exceeded expectations of approximately $0.21-$0.22 and improved from $0.15 a year earlier. The quarter marked the company’s 42nd consecutive period of record revenue. AudioEye Reports Record Second Quarter 2026 Results
• Positive Sentiment: The company raised its full-year 2026 adjusted EBITDA guidance to at least $12.7 million and expects a run-rate adjusted EBITDA level above $15 million by year-end. This signals stronger operating leverage and profitability than previously anticipated. AudioEye Raises Adjusted EBITDA Guidance
• Positive Sentiment: Full-year EPS guidance was set at at least $0.98, above the analyst consensus of $0.85. Third-quarter EPS guidance of $0.26-$0.28 also exceeds the $0.23 consensus, supporting expectations for continued earnings beats.
• Neutral Sentiment: Third-quarter revenue guidance of $10.9 million-$11.1 million is slightly below the $11.2 million analyst estimate, while full-year revenue guidance of $43.5 million-$44.0 million is broadly in line with expectations. This suggests that the positive earnings outlook is being driven more by margins and efficiency than by accelerating near-term sales growth.
• Negative Sentiment: An article describing software-defined LiDAR growth in defense and automotive appears to concern a different company or business than AudioEye, whose reported operations focus on digital accessibility software. Investors should avoid treating that LiDAR report as an AudioEye catalyst. AudioEye Targets Defense, Automotive Growth With Software-Defined LiDAR

Institutional Investors Weigh In On Audioeye

Institutional investors and hedge funds have recently made changes to their positions in the business. Wasatch Advisors LP raised its stake in shares of Audioeye by 9.4% during the 2nd quarter. Wasatch Advisors LP now owns 1,341,510 shares of the company’s stock worth $15,629,000 after purchasing an additional 115,579 shares during the period. Manatuck Hill Partners LLC grew its stake in shares of Audioeye by 139.6% in the second quarter. Manatuck Hill Partners LLC now owns 97,743 shares of the company’s stock worth $1,139,000 after acquiring an additional 56,943 shares during the period. Kennedy Capital Management LLC lifted its position in shares of Audioeye by 25.7% in the third quarter. Kennedy Capital Management LLC now owns 245,936 shares of the company’s stock valued at $3,409,000 after acquiring an additional 50,327 shares in the last quarter. Formula Growth Ltd. increased its position in Audioeye by 22.7% in the fourth quarter. Formula Growth Ltd. now owns 270,000 shares of the company’s stock worth $2,697,000 after purchasing an additional 50,000 shares during the last quarter. Finally, Boothbay Fund Management LLC purchased a new position in Audioeye during the 3rd quarter valued at $614,000. Institutional investors own 51.11% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of Audioeye in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Audioeye has a consensus rating of “Moderate Buy” and an average target price of $14.62.

Audioeye Company Profile

AudioEye, Inc is a provider of digital accessibility solutions, offering software and services designed to help organizations ensure their online properties comply with Web Content Accessibility Guidelines (WCAG), the Americans with Disabilities Act (ADA) and other global accessibility standards. Through its cloud-based platform, the company automates the detection and remediation of accessibility barriers in websites, mobile applications and multimedia content.

The company’s flagship AEYE Platform leverages machine learning, artificial intelligence and human validation to continuously scan digital assets, identify potential compliance issues and deploy corrective overlays or code adjustments.