AudioEye reports Q1 2026 revenue $10.6M, ARR $41.2M, adjusted EPS $0.18

AudioEye reported first-quarter 2026 results with record quarterly revenue of $10.6 million and ARR rising to $41.2 million as of March 31, 2026. GAAP net loss was $2.1 million, or $(0.17) per share, while adjusted diluted EPS was $0.18 and adjusted EBITDA was $2.4 million. The company cited increased litigation expenses and a drawdown on a delayed draw term loan that raised cash to $8.6 million at quarter end.

Financial Highlights

• Total revenue: $10.6 million for the three months ended March 31, 2026, up 8% from $9.7 million in Q1 2025.
• Gross profit: $8.3 million (78% gross margin) in Q1 2026, compared with $7.7 million (80% gross margin) in Q1 2025.
• Net loss (GAAP): $(2.1) million, or $(0.17) per share, for Q1 2026 versus a net loss of $(1.5) million, or $(0.12) per share, in Q1 2025.
• Adjusted diluted EPS (non-GAAP): $0.18 per share for Q1 2026 (adjustments include stock-based compensation, depreciation & amortization, litigation and interest).
• Adjusted EBITDA (non-GAAP): $2.4 million for Q1 2026; cash and cash equivalents of $8.6 million as of March 31, 2026.

Business Highlights

• Annual recurring revenue (ARR) increased sequentially to $41.2 million as of March 31, 2026, from $40.0 million at December 31, 2025.
• Customer base approximately 127,000 as of March 31, 2026, up 8,000 year-over-year; a sequential decrease of 4,000 was attributed to a partner realignment and did not materially impact revenue.
• Released the 2026 Accessibility Advantage Report based on a survey of 400+ business leaders, highlighting gaps in organizational readiness for accessibility at scale.
• Participated in the 41st Annual CSUN Assistive Technology Conference with multiple expert sessions and collaboration with advisory board members and advocacy groups.
• Recognized by G2 as one of Best Software Products for 2026, earning a record 11 badges across customer segments, including Most Implementable and Highest User Adoption in the Enterprise Implementation Index.

Original SEC Filing: AUDIOEYE INC [ AEYE ] - 8-K - May. 12, 2026