Q2 2026 AudioEye Inc Earnings Call Transcript
Key Points
- AudioEye Inc (AEYE) reported its 42nd consecutive quarter of sequential revenue growth, with Q2 2026 revenue reaching $10.7 million, a 9% year-over-year increase.
- Adjusted EBITDA hit a record $3 million in Q2 2026, representing a 28% margin, up 54% from the prior year quarter, and the company raised its full-year adjusted EBITDA guidance to at least $12.7 million.
- The company expects significant free cash flow generation in the second half of 2026 as litigation expenses trend down, and is evaluating options to deploy excess cash, including potential share buybacks and dividends.
- AudioEye Inc (AEYE) is well-positioned to capitalize on the European Accessibility Act enforcement, with Q2 2026 marking its strongest EU contribution to ARR growth to date.
- The company's proprietary data set, built from 10 years of human fixes and billions of real-world fixes, provides a competitive advantage in AI-driven accessibility solutions, with automation that fixes 89% to 300% more issues than competitors.
- Enterprise revenue was flat year-over-year in Q2 2026, impacted by lower nonrecurring revenue, though recurring revenue increased.
- The company reported a net loss of $0.9 million in Q2 2026, compared to breakeven in the prior year period, partly due to a non-recurring $1.4 million benefit from contingent consideration revaluation in Q2 2025.
- The European Accessibility Act enforcement is still in early innings, with no clear inflection point yet, which could delay expected revenue growth from the region.
- The increasing prevalence of AI coding tools is contributing to more inaccessible websites, as LLMs are not built with accessibility in mind, potentially increasing the complexity and cost of remediation for customers.
- The company's total operating expenses increased to $9 million in Q2 2026 from $7.4 million in Q2 2025, driven by the non-recurring benefit in the prior year period, which could pressure margins if not offset by revenue growth.
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 Georgevich, and Chief Financial Officer, Mr. Matthew Domeyer. (Operator Instructions) 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 www.audioeye.com.
Before I turn the call over to AudioEye's CEO, the company would like to remind all participants that statements made by audio in 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
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