AudioEye Q1 Revenue Hits $10.6M with 8% Growth, ARR at $41.2M
AudioEye’s Q1 revenue rose 8% year-over-year to a record $10.6 million, while adjusted EBITDA grew to $2.4 million and adjusted EPS reached $0.18. Annual recurring revenue climbed to $41.2 million, up 12% on an annualized sequential basis. Net loss widened to $2.1 million due to $1.1 million in litigation costs.
1. First Quarter Financial Performance
AudioEye posted record Q1 revenue of $10.6 million, up 8% year-over-year, with gross profit of $8.3 million (78% margin). Adjusted EBITDA rose to $2.4 million and adjusted EPS reached $0.18, while net loss widened to $2.1 million due to $1.1 million in litigation expenses.
2. ARR and Customer Metrics
Annual recurring revenue increased sequentially to $41.2 million, representing 12% annualized sequential growth. The company served approximately 127,000 customers, up 8,000 from a year ago, despite a 4,000-customer partner realignment that did not materially affect revenue.
3. Cash Position and Expenses
Cash and cash equivalents rose to $8.6 million from $5.3 million at year-end, driven by a drawdown under a delayed-draw term loan. Operating expenses increased 17% to $10.1 million, primarily due to higher litigation costs.
4. Financial Outlook
For Q2 2026, management expects revenue of $10.65 million–$10.75 million and adjusted EBITDA of $2.6 million–$2.7 million. Full-year guidance targets $43.25 million–$44.25 million in revenue, at least $12 million in adjusted EBITDA and adjusted EPS of at least $0.96 per share.