AudioEye, Inc. (Nasdaq: AEYE) reported second-quarter fiscal 2026 results on August 13, 2026 that mark a quiet operational inflection: the forty-second consecutive quarter of sequential revenue growth, record adjusted EBITDA of $3.0 million, and the company's first explicit framing of an "over $15 million annualized run rate adjusted EBITDA" target by year-end. Total revenue for the three months ended June 30, 2026 was $10.7 million, up 9% from $9.9 million in the year-ago quarter; the second quarter is the largest top-line in company history, and the year-to-date print of $21.3 million is up 9% from $19.6 million in the first half of 2025. Annual Recurring Revenue, the contracted run-rate metric the company uses as its primary forward indicator, reached $42.3 million at quarter-end, up 11% year over year, while customer count expanded to roughly 129,000, up about 9,000 from 120,000 a year earlier, with virtually all of the net add coming through the Partner and Marketplace channel that now contributes 58% of revenue.
Stripping out the prior-year second quarter's one-time $1.4 million gain on revaluation of contingent consideration, the year-over-year operating story improves markedly: GAAP net loss for the second quarter was $0.9 million, or $(0.07) per share, compared with a near-breakeven net loss of essentially zero in the prior-year quarter, but the ex-one-time bridge lifts underlying operating income and reframes the print as the third consecutive quarter of operating-loss reduction. Adjusted EBITDA of $3.0 million compares with $1.9 million in the year-ago period, a 58% jump, while adjusted EPS of $0.23 beats the prior-year $0.15 by 53%. The accompanying balance sheet remains undercapitalized relative to the growth trajectory: $8.7 million in cash, $16.4 million of term-loan borrowings (split between current and long-term), $31.7 million of total liabilities, and stockholders' equity of just $3.2 million against $106.9 million of accumulated deficit, a structural reflection of the company's multi-year journey from cash-burn growth to incipient free-cash-flow generation.
The single load-bearing risk is the gap between the headline adjusted-EBITDA narrative and the GAAP operating reality: with $2.5 million of stock-based compensation, $1.4 million of elevated general-and-administrative spending tied to litigation and severance, and $0.3 million of loss on debt extinguishment still running through the P&L, the bridge from $3.0 million adjusted EBITDA to roughly $0.6 million of GAAP operating loss is wide, and management has not committed to a timeline for closing it. The next data point that tests this thesis is the third-quarter 2026 print, with company-issued guidance of $10.85 million to $11.05 million of revenue and $3.4 million to $3.6 million of adjusted EBITDA, both above the prior-year third quarter, and the first quarter for which the company has guided to GAAP net income potential at the high end of the range. The middle of the year also brought a senior leadership transition that bears watching: Kelly Georgevich moved from CFO to CEO in May 2026, and Matthew Domeyer was appointed CFO effective in July 2026, joining from Flexsteel Industries and PricewaterhouseCoopers. The first quarter of a new CEO-CFO combination is a useful early indicator of strategic direction, and the H2 2026 print serves as the cleanest read on whether the new team is operating from the same playbook that delivered the 11% ARR growth and the 9,000-customer net add in Q2.