AudioEye Reports 7% Revenue Growth to $10.96 Million in Q3 2026

AudioEye, Inc. reported its financial results for the third quarter of 2026, revealing a revenue increase of 7% to $10.96 million compared to $10.23 million in the same period last year. For the nine months ending September 30, 2026, total revenue reached $32.23 million, an 8% rise from $29.82 million in the prior year. The company achieved a gross profit of $9.09 million for the quarter, reflecting a 15% increase from $7.92 million in Q3 2025, while gross profit for the nine-month period was $25.79 million, up 11% from $23.27 million.

The company’s operating expenses decreased by 5% to $7.84 million in the third quarter, down from $8.23 million a year earlier. This reduction was primarily driven by lower selling and marketing expenses, which fell by 9% to $3.30 million, and a 20% decrease in research and development costs to $889,000. Despite these reductions, general and administrative expenses rose by 4% to $3.64 million. AudioEye reported a net income of $990,000 for the third quarter, a significant turnaround from a net loss of $554,000 in Q3 2025.

Operationally, AudioEye reported a customer base of approximately 130,000 as of September 30, 2026, marking a 6% increase from 123,000 customers a year prior. The company’s Annual Recurring Revenue (ARR) was approximately $43.3 million, reflecting a 12% year-over-year growth. Revenue from the Partner and Marketplace channel grew by 14%, while the Enterprise channel saw a slight decline of 1%. The company attributed the growth in the Partner and Marketplace channel to continued expansion with existing partners.

In terms of strategic developments, AudioEye has focused on enhancing operational efficiencies through the implementation of AI tools, which contributed to a reduction in employee headcount and associated costs. The company also announced a new share repurchase program in October 2026, authorizing the repurchase of up to $15 million of its common stock through October 2027, replacing the previous program. As of September 30, 2026, AudioEye had $9.3 million in cash and cash equivalents, with a working capital of $3.0 million, indicating improved liquidity compared to a working capital deficit of $1.79 million at the end of 2025.

Looking ahead, AudioEye remains focused on product innovation and expanding its market presence. The company is optimistic about its growth trajectory, driven by increasing demand for digital accessibility solutions and ongoing investments in research and development. However, management cautioned that future performance may be influenced by market conditions and the competitive landscape.