Revenue and recurring growth continued: AudioEye's second-quarter revenue rose 9% year over year to $10.7 million, while ARR increased 11% to $42.3 million, extending its sequential revenue-growth streak to 42 quarters. Profitability and cash flow improved: Adjusted EBITDA climbed 54% to approximately $3 million, producing a record 28% margin, while adjusted free cash flow reached $2.6 million. The company raised its full-year adjusted EBITDA forecast to at least $12.7 million.
Growth is shifting toward recurring and international demand: Partner and marketplace revenue grew 16%, while enterprise ARR increased 5% despite flat reported enterprise revenue. Management highlighted rising European accessibility enforcement as a potential demand catalyst and said stronger cash generation could support buybacks, dividends, or acquisitions. Are These 3 Under-the-Radar AI Stocks the Next Big Growth Stories?
Audioeye (NASDAQ:AEYE) reported second-quarter 2026 revenue of $10.7 million, up 9% from the prior-year period, as the digital accessibility software provider extended its streak of sequential revenue growth to 42 quarters. Annual recurring revenue, or ARR, reached $42.3 million as of June 30, increasing $1.1 million from the end of the first quarter and 11% from the comparable period a year earlier. Chief Executive Officer Kelly Georgevich said the company's results reflected continued momentum across the business, while profitability and cash flow reached what she described as a pivotal point. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be "As ARR scales, a growing share of incremental revenue is flowing to the bottom line," Georgevich said.
"We expect that trend to continue and accelerate in the second half of 2026." AudioEye generated adjusted EBITDA of approximately $3 million in the second quarter, representing a record 28% adjusted EBITDA margin. The result was more than $600,000 above the first quarter and $1.1 million higher than the year-earlier quarter, a 54% increase. → Nebius' Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Chief Financial Officer Matthew Domeyer, who joined the company in July, said the year-over-year improvement in adjusted EBITDA was driven primarily by higher gross profit. Gross profit totaled $8.4 million, or about 79% of revenue, compared with $7.6 million, or 77% of revenue, a year earlier.
Adjusted gross margin was 84%, up from 83%. The company reported a net loss of $900,000, or $0.07 per share, compared with breakeven in the prior-year quarter. Domeyer said the prior-year period benefited from a $1.4 million revaluation of contingent consideration that did not recur in the current quarter.
Excluding that item, he said the net loss improved mainly because of higher gross profit. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Adjusted free cash flow was $2.6 million in the quarter, calculated as adjusted EBITDA plus $400,000 of capitalized software development costs. That represented a $1.2 million improvement from the second quarter of 2025. AudioEye increased its full-year adjusted EBITDA outlook to at least $12.7 million, from prior guidance of at least $12 million.
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