AudioEye raises full-year adjusted EBITDA guidance after Q2 revenue growth
AudioEye reported Q2 2026 revenue of $10.7 million, its 42nd consecutive quarter of revenue growth, and raised full-year adjusted EBITDA guidance to at least $12.7 million.
On Thursday, AudioEye (NASDAQ: AEYE ) discussed second-quarter financial results during its earnings call.
The full transcript is provided below.
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View the webcast at Summary AudioEye reported $10.7 million in revenue for Q2 2026, marking 42 consecutive quarters of revenue growth, with a year-over-year ARR increase of 11% to $42.3 million.
The company raised its full-year adjusted EBITDA guidance to at least $12.7 million, representing 40% year-over-year growth, and expects significant free cash flow in the second half of 2026.
Strategic initiatives include evaluating cash deployment options such as share buybacks and dividends, and expanding in the EU market in response to increased digital accessibility regulations.
AudioEye's automation technology continues to lead the market, addressing accessibility issues, particularly as AI coding contributes to increased website accessibility problems.
Operational highlights include a 16% year-over-year revenue growth in the partner and marketplace channel and a strategic focus on AI integration for enhanced reporting and customer solutions.
Management expressed optimism about scaling operations in Europe and highlighted the lowered litigation expenses anticipated to boost cash flow.
Full Transcript OPERATOR Good afternoon and welcome to AudioEye's second quarter 2026 earnings conference call.
Joining us for today's call are AudioEye's Chief Executive Officer, Ms.
Kelly Jorgevich, and Chief Financial Officer, Mr.
Matthew Domayer.
Following their remarks, we will open the call for questions from the company's publishing analysts.
I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at Before I turn the call over to AudioEye's CEO, the company would like to remind all participants that statements made by AudioEye management during the course of this conference call that are not historical facts are considered to be forward-looking statements.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements.
The words believe, expect, anticipate, estimate, confident, will, and other similar statements of expectation identify forward-looking statements.
These statements are predictions, projections, and other statements about future events and are based on current expectations and assumptions that are subject to risks and uncertainties.
Actual results could differ materially because of factors discussed in today's press release, comments made during the conference call, and in the Risk Factors section of the company's Annual Report on Form 10-K, its quarterly reports on Form 10-Q, and in its other reports and filings with the Securities and Exchange Commission.
Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's beliefs only as of the date hereof.
AudioEye does not undertake any duty to update or correct any forward-looking statements.
Further, management's remarks today will include certain non-GAAP financial measures.
A reconciliation of the most directly comparable GAAP financial measures to these non-GAAP financial measures is available in the company's earnings release or otherwise posted in the Investor Relations section of its website at Now I'd like to turn the call over to AudioEye CEO, Ms.
Kelly Jorgevich.
Kelly Jorgevich, CEO Thank you, operator, and good afternoon, everyone.
Q2 marked our 42nd consecutive quarter of sequential revenue growth, and we're excited about the continued momentum throughout the business.
Revenue came in at $10.7 million, and ARR grew $1.1 million sequentially to $42.3 million.
This reflects low double-digit year-over-year ARR growth.
Adjusted EBITDA and free cash flow have reached a pivotal point, and we're raising our full-year adjusted EBITDA guidance.
Adjusted EBITDA has grown at a CAGR of 42% over the last two years, and we now expect to achieve over $15 million run-rate adjusted EBITDA in the fourth quarter of 2026.
We also expect meaningful free cash flow generation in the second half as we expect litigation expense to trend down.
We are currently evaluating options to deploy excess cash, including potential share buybacks and dividends.
In the second quarter, adjusted EBITDA reached a record $3 million, representing a 28% adjusted EBITDA margin, over $600,000 higher than Q1 2026 and $1.1 million higher than Q2 2025, representing a 54% increase from the prior-year quarter.
As ARR scales, a growing share of incremental revenue is flowing to the bottom line.
We expect that trend to continue and accelerate in the second half of 2026.