AudioEye Accelerates Revenue Growth with Strong Q3 Results
AudioEye, a leading provider of digital accessibility solutions, has announced its third-quarter 2026 earnings, exceeding expectations across key financial metrics. In a recent conference call, CEO Ms. Kelly Georgevich and CFO Mr. Matthew Domeyer highlighted the company's record revenue, adjusted EBITDA, and free cash flow generation, driven by efficiencies and increased AI use.
Record revenue and adjusted EBITDA of $11 million and $3.9 million, respectively, marked significant increases year-over-year, reflecting AudioEye's ability to deliver on its aspirational goal of 30-40% growth in adjusted EBITDA and adjusted EPS per year over the next three years. The company now expects approximately 50% growth in adjusted EBITDA for 2026, with a Q4 adjusted EBITDA annualized run rate of over $17 million.
Gross margin improved by over 550 basis points year-over-year, reaching an adjusted gross margin of 88% in Q3. Adjusted EBITDA margins stood at 35% in Q3, demonstrating the company's operational efficiency and strategic use of AI.
The litigation expense decreased in Q3, with further reductions expected in Q4, driving down costs for AudioEye. The company expects meaningful free cash flow generation in Q4 and into 2027, complemented by a recently announced $15 million stock repurchase program running through October 2027.
AudioEye's strong GAAP profitability was also highlighted, with net income reaching $1 million or $0.08 per share in Q3, compared to a net loss of $600,000 and $0.04 per share loss last year. Revenue has nearly doubled over the last five years, while outstanding shares have increased by approximately 10% during this timeframe.
The company's recent product launches, including Agentic Audits and its SDK MCP, built on AudioEye Intelligence, a proprietary dataset created from more than one million human accessibility reviews across 100,000 sites over 10 years. The SDK MCP enables developers to catch and fix issues while coding is being created, while Agentic Audits use an AI agent powered by the proprietary dataset to find up to 50% more high-severity issues than automation alone.
With these achievements, AudioEye solidifies its position as a leader in digital accessibility solutions, poised for continued growth and success in the coming quarters."
