AudioEye, Inc. (AEYE) reported preliminary first‑quarter 2026 financial results, showing a 12% annualized sequential increase in annual recurring revenue (ARR) to an estimated $41.2 million, up from $40.0 million at the end of 2025. The company also posted adjusted EBITDA of approximately $2.36 million, a 22% margin that surpassed its guidance for the quarter.
The quarterly revenue for the period was about $10.55 million, a figure that, while modest compared to the ARR, reflects the company’s subscription‑based model and the growth of its core platform. The ARR growth was driven by new customer acquisitions and expansion within existing accounts, as CEO David Moradi noted that the company “had another strong quarter of ARR growth, delivering 12% annualized sequential growth and reaching an estimated $41.2 million of ARR.”
AudioEye’s guidance for the full year 2026 was updated to a revenue range of $43 million to $44.5 million, and the company indicated it expects adjusted EBITDA to grow by at least 30% over the year, targeting a run‑rate of $15 million by year‑end. The upward revision reflects confidence in continued demand for the company’s AI‑driven accessibility platform, which was recently enhanced with a next‑generation release that combines AI detection, expert audits, and custom fixes.
The company’s record‑breaking performance is part of a streak of 41 consecutive periods of record revenue, underscoring sustained growth momentum. Management highlighted that the surge in digital‑accessibility litigation and regulatory momentum in the U.S. and EU are key tailwinds that are expected to drive further demand for AudioEye’s services.
While the results were strong, the company noted that it will continue to invest in platform innovation and customer support, which may impact short‑term margins. Nevertheless, the beat of adjusted EBITDA guidance signals effective cost control and operational leverage, positioning AudioEye for continued profitability in the coming quarters.
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