Audioeye (NASDAQ:AEYE) Issues Earnings Results, Beats Expectations By $0.03 EPS

Audioeye (NASDAQ:AEYE) posted its earnings results on Monday. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.03, FiscalAI reports. The company had revenue of $10.96 million for the quarter, compared to analyst estimates of $10.94 million.

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

• Record profitability and cash flow continued in Q3, with revenue of approximately $11 million, adjusted EBITDA up 58% year over year to $3.9 million, positive GAAP net income of $1 million, and free cash flow of $3.5 million.
• Management raised full-year 2026 adjusted EBITDA guidance to $13.4 million-$13.6 million, implying approximately 50% growth, and expects Q4 revenue of $11.4 million-$11.6 million with an adjusted EBITDA margin near 37%.
• ARR increased 12% year over year to $43.3 million, supported by double-digit growth in both enterprise and partner/marketplace channels; management cited near-record new and expansion business and expects similar ARR momentum into Q4.
• AI-driven operating efficiencies lifted GAAP gross margin to 83% from 77% a year ago, while lower engineering, service-delivery, and operating expenses drove significant margin expansion. AudioEye also launched Agentic Audits and an SDK MCP, which management views as potential upsell opportunities.
• The company announced a $15 million share-repurchase program, representing roughly 15% of shares outstanding at current prices, and said declining litigation costs should support stronger cash generation in Q4 and 2027.

Audioeye Price Performance

Audioeye stock opened at $10.01 on Wednesday. Audioeye has a twelve month low of $5.31 and a twelve month high of $16.39. The firm has a fifty day simple moving average of $7.30 and a two-hundred day simple moving average of $7.09.

Analyst Ratings Changes

Several equities research analysts have issued reports on AEYE shares. Wall Street Zen upgraded shares of Audioeye from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 22nd. Weiss Ratings reissued a “sell (e+)” rating on shares of Audioeye in a research note on Friday, August 7th. Four equities research 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. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $14.62.

About Audioeye

AudioEye, Inc (NASDAQ: AEYE) provides digital accessibility technology and services designed to help organizations make websites and digital content more usable for people with disabilities. Its platform is intended to support compliance with accessibility standards and regulations, including the Web Content Accessibility Guidelines (WCAG) and requirements associated with the Americans with Disabilities Act.

The company’s offerings include automated accessibility testing, monitoring and remediation tools, an accessibility interface for website visitors, and access to accessibility experts who can assist with testing and compliance programs.