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

Audioeye (NASDAQ:AEYE) issued its quarterly earnings data on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.02, FiscalAI reports. The business had revenue of $10.72 million during the quarter, compared to analyst estimates of $10.69 million. Audioeye had a positive return on equity of 112.75% and a negative net margin of 10.92%. 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%

NASDAQ:AEYE opened at $7.99 on Friday. The stock has a 50-day simple moving average of $6.36 and a 200 day simple moving average of $6.81. Audioeye has a 52-week low of $5.31 and a 52-week high of $16.39. The company has a market cap of $99.82 million, a PE ratio of -22.19 and a beta of 0.84. The company has a debt-to-equity ratio of 4.96, a quick ratio of 1.03 and a current ratio of 1.03.

Key Stories Impacting Audioeye

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

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Audioeye in a report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Audioeye presently has an average rating of “Moderate Buy” and an average target price of $14.62.

Hedge Funds Weigh In On Audioeye

Large investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Audioeye by 19.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,904 shares of the company’s stock valued at $54,000 after purchasing an additional 806 shares during the last quarter. Rhumbline Advisers grew its position in Audioeye by 14.5% in the first quarter. Rhumbline Advisers now owns 10,360 shares of the company’s stock valued at $115,000 after purchasing an additional 1,313 shares in the last quarter. State Street Corp increased its stake in Audioeye by 2.0% in the 4th quarter. State Street Corp now owns 175,945 shares of the company’s stock valued at $1,758,000 after buying an additional 3,456 shares during the last quarter. Wells Fargo & Company MN increased its stake in Audioeye by 64.6% in the 4th quarter. Wells Fargo & Company MN now owns 9,762 shares of the company’s stock valued at $98,000 after buying an additional 3,832 shares during the last quarter. Finally, State of Tennessee Department of Treasury lifted its position in Audioeye by 29.8% during the 2nd quarter. State of Tennessee Department of Treasury now owns 17,525 shares of the company’s stock worth $204,000 after buying an additional 4,025 shares in the last quarter. Institutional investors and hedge funds own 51.11% of the company’s stock.

About Audioeye

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.