AudioEye (AEYE) investor relations material

Executive summary

• Achieved 42nd consecutive quarter of sequential revenue growth, with Q2 2026 revenue up 9% year-over-year to $10.7 million and ARR at $42.3 million, up 11% year-over-year.

• Adjusted EBITDA reached a record $3 million (28% margin), up $1.1 million year-over-year, and adjusted EPS was $0.23 per share.

• Customer count rose to approximately 129,000, up 9,000 year-over-year, mainly from Partner and Marketplace channel expansion.

• Gross profit rose to $8.4 million (79% margin), with efficiency gains from AI and automation.

• Strategic focus on scaling in the EU as accessibility enforcement increases, with strongest EU ARR contribution to date.

Financial highlights

• Q2 2026 revenue grew 9% year-over-year to $10.7 million; ARR up 11% year-over-year to $42.3 million.

• Gross profit was $8.4 million (79% margin), up from $7.6 million (77%) in Q2 2025; adjusted gross margin was 84%.

• Adjusted EBITDA of $3 million (28% margin), up from $1.9 million (20%) in Q2 2025.

• Net loss of $0.9 million ($0.07/share), improved from breakeven after adjusting for prior year non-recurring items.

• Cash and cash equivalents at June 30, 2026 were $8.7 million, up from $5.3 million at year-end 2025.

Outlook and guidance

• Q3 2026 revenue expected between $10.85M–$11.05M; Q3 adjusted EBITDA guidance $3.4M–$3.6M (32% margin).

• Full-year 2026 revenue guidance tightened to $43.5M–$44M; adjusted EBITDA guidance raised to at least $12.7M (29% margin).

• Full-year adjusted EPS expected at least $0.98; run rate adjusted EBITDA over $15M by year-end.

• Free cash flow and cash generation expected to ramp in H2 2026 as litigation expenses decline.

• Management expects continued ARR and customer growth, with focus on recurring revenue and efficiency gains from AI and automation.