The GAAP loss widening is a concern, but the adjusted EPS beat of 80% and strong ARR growth of 12% sequentially are positive signals. The raised full-year adjusted EBITDA guidance to at least $12M suggests improving operating leverage. Watch for litigation expense trajectory and whether the sequential customer decline (4,000) from partner realignment reverses in Q2.
Price Chart
Executive Summary
AudioEye reported record Q1 2026 revenue of $10.6M (+8% YoY), but GAAP net loss widened to -$0.17/share from -$0.12/share due to higher litigation expenses. The company issued Q2 revenue guidance of $10.65M-$10.75M and raised full-year adjusted EBITDA guidance to at least $12M, while ARR grew 12% sequentially to $41.2M.
Key Financial Metrics
Key Facts
- Record Q1 2026 revenue of $10.6M, up 8% YoY from $9.7M
- GAAP net loss of -$2.1M (-$0.17/share) vs -$1.5M (-$0.12/share) YoY
- Adjusted EPS of $0.18 vs $0.15 YoY; adjusted EBITDA of $2.4M vs $1.9M YoY
- ARR grew 12% sequentially to $41.2M from $40.0M at Dec 31, 2025
- Q2 2026 revenue guidance: $10.65M-$10.75M; full-year 2026: $43.25M-$44.25M
- Full-year 2026 adjusted EBITDA guidance: at least $12M; adjusted EPS: at least $0.96
- Operating expenses rose 17% to $10.1M, driven by $1.1M increase in litigation costs
- Cash and equivalents of $8.6M, up from $5.3M at Dec 31, 2025, aided by term loan drawdown
Financial Impact
Revenue beat consensus by ~$0.0M (in-line); GAAP EPS of -$0.17 missed Street consensus of $0.10 (adjusted basis). Adjusted EPS of $0.18 beat consensus of $0.10 by 80%.
Risk Factors
- Litigation expenses rose sharply to $1.8M in Q1 2026 from $0.7M in Q1 2025, pressuring profitability
- Sequential customer count declined by 4,000 due to partner realignment, though revenue impact was immaterial
- GAAP net loss widened to -$2.1M from -$1.5M YoY, with operating loss doubling to -$1.9M
- Company drew down on term loan to boost cash, increasing total debt to $16.6M from $13.0M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-059428 |
| Document: aeye-20260512x8k.htm | 0001104659-26-059428 |
| Document: 0001104659-26-059428-index-headers.html | 0001104659-26-059428 |
| Document: 0001104659-26-059428-index.html | 0001104659-26-059428 |
| Document: 0001104659-26-059428.txt | 0001104659-26-059428 |
| 8-K Data (Synthetic) | 0001104659-26-059428 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 20, 2026 6d ago | 8-K | $8.19 | awaiting T+60 | — | $7.93 (−3.17%) |
Aug 8, 2026 11w ago | Institutional Cluster | $5.86 | awaiting T+60 | — | $7.93 (−35.32%) |
Jun 18, 2026 18w ago | 8-K | $6.31 $8.03 | ▲ +27.26% | ▲ +25.36% | $7.93 (+25.67%) |
May 26, 2026 21w ago | 8-K | $7.48 $7.14 | ▲ +4.55% | ▲ +6.42% | $7.93 (−6.02%) |
May 12, 2026 23w ago | 8-K | $7.18 $6.00 | ▼ −16.43% | ▼ −20.87% | $7.93 (+10.45%) |
Mar 12, 2026 32w ago | Insider Cluster | $5.72 $6.77 | ▲ +18.36% | ▲ +7.07% | $7.93 (+38.64%) |
Mar 5, 2026 33w ago | 8-K | $6.11 $8.48 | ▲ +38.79% | ▲ +26.01% | $7.93 (+29.79%) |
US Market Status
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