AudioEye's Q1 revenue rises 8%, net loss widens on litigation costs

AudioEye

12/05/2026 21:21

Overview

US digital accessibility firm's Q1 revenue rose 8% yr/yr to record high

Adjusted EPS for Q1 increased to $0.18 from $0.15 a year ago

Net loss widened due to higher litigation expenses

Outlook

AudioEye expects Q2 2026 revenue between $10.65 mln and $10.75 mln

Company sees full-year 2026 revenue between $43.25 mln and $44.25 mln

AudioEye expects sequential quarterly revenue growth to accelerate over the course of the year

Result Drivers

RECURRING REVENUE GROWTH - Co said Q1 revenue growth was driven by 12% annualized sequential growth in annual recurring revenue (ARR)

HIGHER LITIGATION EXPENSES - Co said increased operating expenses and net loss were primarily due to higher litigation expenses

CUSTOMER COUNT DECLINE - Co attributed sequential decrease in customer count to one partner's realignment, with no material impact on revenue

Company press release: ID:nPn53z8sga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$0.17
Q1 Gross Profit
$8.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for AudioEye Inc is $15.00, about 95.1% above its May 11 closing price of $7.69

The stock recently traded at 92 times the next 12-month earnings vs. a P/E of 393 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)