AudioEye, Inc. reported financial results for the third quarter ended September 30, 2026, marking a shift toward profitability. The company recorded GAAP net income of $1.0 million, or $0.08 per diluted share, compared to a net loss of $(0.6 million) in the prior year period. This profitability was driven by higher gross profit and a 5% year-over-year decrease in operating expenses.
Revenue for the quarter increased 7% to a record $11.0 million from $10.2 million in the same period last year. The company noted a strategic reduction in non-recurring revenue to focus on growing Annual Recurring Revenue (ARR), which grew 12% year-over-year to $43.3 million as of September 30, 2026. Gross profit rose to $9.1 million, representing 83% of total revenue, while adjusted gross margin improved to 88%.
Adjusted EBITDA for the quarter was $3.9 million, up 58% from $2.5 million in the prior year. The company has raised its guidance for the fourth quarter, expecting adjusted EBITDA between $4.2 million and $4.4 million. This increase is expected to result in full-year 2026 adjusted EBITDA of between $13.4 million and $13.6 million, representing approximately 50% year-over-year growth.
AudioEye also announced a new stock repurchase program authorizing the repurchase of up to $15 million of outstanding common stock through October 18, 2027. Additionally, the company launched two new AI products, Agentic Audits and the AudioEye SDK MCP, in October 2026, powered by its proprietary dataset derived from over one million human reviews.
