AudioEye Reports 8% Revenue Growth to $10.6 Million in Q1 2026

AudioEye, Inc. reported its financial results for the first quarter of 2026, revealing a revenue increase of 8% to $10.6 million compared to $9.7 million in the same period of 2025. The company’s gross profit also rose to $8.3 million, up from $7.7 million, reflecting a gross margin of approximately 78%. However, AudioEye experienced a net loss of $2.1 million, widening from a loss of $1.5 million in the prior year, resulting in a net loss per share of $0.17, compared to $0.12 in the previous year.

The company’s operating expenses increased significantly by 17% to $10.1 million, driven primarily by a 38% rise in general and administrative expenses, which totaled $5.2 million. This increase was attributed to higher litigation costs, stock compensation, and amortization expenses. Selling and marketing expenses saw a modest increase of 4%, while research and development costs decreased slightly by 4% to $1.1 million. The overall operating loss for the quarter was $1.9 million, compared to a loss of $0.9 million in the same quarter last year.

AudioEye's customer base grew to approximately 127,000, marking a 7% increase from 119,000 customers a year earlier. The company reported that its Annual Recurring Revenue (ARR) reached approximately $41.2 million, reflecting an 11% year-over-year increase. Revenue from the Partner and Marketplace channel grew by 8%, while the Enterprise channel saw a 9% increase, indicating strong performance across both sales channels. The company continues to focus on expanding its digital accessibility solutions, which include ongoing testing and automated fixes to help businesses comply with accessibility standards.

In terms of liquidity, AudioEye reported cash and cash equivalents of $8.6 million as of March 31, 2026, up from $5.3 million at the end of 2025. The company’s working capital improved to $440,000, a significant turnaround from a negative working capital of $1.8 million at the end of the previous fiscal year. The increase in working capital was primarily due to $3.6 million in proceeds from term loan advances. AudioEye also utilized $475,000 from its share repurchase program during the quarter, leaving $7.45 million available for future repurchases.

Looking ahead, AudioEye remains focused on product innovation and expanding its market presence. The company anticipates continued growth in both its Partner and Marketplace and Enterprise channels, driven by new customer relationships and ongoing investments in research and development. However, management cautioned that future results may be impacted by market conditions and the competitive landscape, emphasizing the need for ongoing evaluation of its business strategies and financial performance.