AudioEye Inc. Breaks Revenue Records, Raises Guidance, and Announces a $15 Million Buy‑Back

AudioEye Inc. (Nasdaq: AEYE) delivered a third‑quarter performance that defies the company’s own expectations and signals a sharp turnaround for a firm that has struggled with profitability. In the quarter ended September 30, 2026, the company reported $11.0 million in revenue, a 7 % year‑over‑year increase and the highest figure ever for the quarter. Adjusted EBITDA climbed 58 % to $1.9 million, and GAAP net income hit $1.0 million—the first GAAP profit in the firm’s history.

1. Revenue and Margin Expansion

  • Total revenue: $11.0 million (vs. $10.2 million in Q3 2025).
  • Gross profit: $9.1 million, translating to 83 % gross margin, a swing of 550 basis points over the same period a year earlier.
  • Adjusted gross margin: 88 %, underscoring the company’s focus on high‑margin SaaS contracts.

The margin jump reflects a shift away from non‑recurring revenue and a deeper penetration of Annual Recurring Revenue (ARR), which rose 12 % year‑over‑year. With ARR now making up a larger share of the top line, AudioEye is better positioned to sustain higher profitability as the business scales.

2. Earnings Per Share and Guidance

  • Adjusted EPS: $0.08, beating analyst estimates by a significant margin.
  • Full‑year guidance: The board raised its adjusted EBITDA target to $17 million for the fourth quarter, a 56 % year‑over‑year jump, and projected annualized revenue growth of ~20 % for the final quarter.

These revisions reflect confidence in the new AI‑driven product pipeline—Agentic Audits and the AudioEye SDK MCP—launched in October and powered by the company’s proprietary AudioEye Intelligence dataset.

3. Capital Management

AudioEye announced a $15 million stock repurchase program, representing 15 % of the outstanding shares at current prices. The buy‑back signals management’s conviction that the share price is undervalued and provides a vehicle for returning cash to shareholders while reinforcing the company’s valuation narrative.

The company’s CEO, Kelly Georgevich, highlighted the proprietary AI engine that processes over a million human reviews. By integrating this intelligence into new tools, AudioEye aims to raise its industry‑leading legal protection rate, reducing compliance risk for its customers and strengthening the moat around its SaaS offering.

5. Market Context

AudioEye’s stock price, hovering around $10.14 on Oct 26, 2026, sits near the 52‑week low of $5.31, suggesting that the market has not yet fully absorbed the company’s positive trajectory. With a market cap of roughly $115 million and a price‑earnings ratio of ‑20.33, the shares appear under‑priced relative to their earnings potential, offering a tantalizing entry point for risk‑tolerant investors.

6. Bottom Line

AudioEye Inc. has moved from a loss‑making, growth‑only focus to a profit‑generating, margin‑expanding business that leverages AI to deepen customer lock‑in and reduce risk. The record revenue, upgraded guidance, and aggressive buy‑back program together suggest a company poised to turn its fortunes dramatically. Investors who have waited for a clearer earnings path may now see an attractive opportunity in a company that has finally found a sustainable path to profitability.