Audioeye Inc. (AEYE) · Q2 2026 results and valuation

At 10.5% growth a year (3-year revenue growth), the model's fair value is $8.54 a share — the stock trades 61% above it. Today's price assumes 16.6% growth a year.

1. Guidance

   The company expects meaningful free cash flow generation in the second half of 2026 because it expects litigation expense to trend down.

   Source quote

   “We also expect meaningful free cash flow generation in the second half of 2026 as we expect litigation expense to trend down.”

2. Figure

   Revenues nearly quadrupled and adjusted EBITDA margins improved from approximately -70% to expected levels in the high double digits.

   Source quote

   “Since then, revenues have nearly quadrupled and adjusted EBITDA margins have improved from approximately -70% and are expected to be in the high...”

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone

“Q2 marked our 42nd consecutive quarter of sequential revenue growth, and we are excited about the continued momentum throughout the business.”

“The $1.1 million increase in adjusted EBITDA over the comparable period of the prior year was primarily driven by an increase in gross profit.”

“Enterprise ARR grew 5% over the comparable period of the prior year and sequential annualized enterprise ARR growth was 17%.”