Key Highlights

● AudioEye shares moved up about 17.75% on October 28, 2026.

● The gain extended a rally following a record third quarter.

● The move stood apart from the broader market's modest session gain.

● The stock closed at $11.94 on October 28, 2026.

AudioEye (NASDAQ:AEYE) shares jumped on Wednesday, closing at $11.94, a gain of 17.75%. The digital accessibility software company did not issue any new announcement on October 27 or October 28. The most recent company news was its third-quarter 2026 earnings report, released after the market close on Monday, October 26, so Wednesday's buying appears to reflect continued investor reaction to those results rather than a fresh development. No other company-specific catalyst could be identified.

Company Context

The third-quarter report gave investors several reasons for optimism. AudioEye posted record revenue of $11.0 million, up 7% from $10.2 million a year earlier. More significantly for a small software company, it reported GAAP net income of $1.0 million, or $0.08 per diluted share, compared with a net loss of $0.6 million in the same quarter of 2025. Adjusted EBITDA rose to $3.9 million from $2.5 million, adjusted earnings per share increased to $0.30 from $0.19, and gross margin improved to 83% from 77%. Annual recurring revenue, a key measure for subscription businesses, reached $43.3 million at the end of September, up from $42.3 million at the end of June and 12% higher than a year earlier. The company ended the quarter with $9.3 million in cash.

Session Backdrop

The outlook was also encouraging. AudioEye guided to fourth-quarter revenue of $11.4 million to $11.6 million and adjusted EBITDA of $4.2 million to $4.4 million. For the full year, it expects revenue of $43.6 million to $43.8 million and raised its adjusted EBITDA forecast to $13.4 million to $13.6 million, which it said represents about 50% growth. It also expects adjusted earnings per share of at least $1.04 for 2026 and said it anticipates remaining profitable on a GAAP basis in the fourth quarter.

Shortly before the results, on October 20, the board authorized a share repurchase program of up to $15 million through October 2027, replacing an earlier authorization. The company said buybacks would be funded from working capital and operating cash flow. For a company of AudioEye's size, a program of that scale signals management confidence in cash generation.

AudioEye, based in Tucson, Arizona, sells tools that help businesses make their websites and digital content accessible to people with disabilities. Its platform combines automated monitoring and fixes for common accessibility issues with expert testing, developer tools and legal protection, and the company says it serves about 130,000 customers. In October it launched two artificial-intelligence products, Agentic Audits and the AudioEye SDK MCP, as it tries to position accessibility as an issue for AI-driven software as well as traditional websites.

The broader market provided a supportive backdrop. The S&P 500 rose 0.3% to a record close, the Nasdaq Composite gained 0.3% and the Russell 2000 added 0.4%. The Federal Reserve held its benchmark rate at 3.75% to 4.00%, with two dissenters favoring a hike, while the 10-year Treasury yield hovered around 5%. AudioEye's gain was not tied to the session's dominant AI-infrastructure trade, although its new AI-focused products give it a modest link to the broader enthusiasm for artificial intelligence. In that environment, small companies showing a combination of profitability, raised guidance and buybacks can attract steady buying over several sessions as investors digest results.

What This Move Means for AudioEye

Going forward, investors will likely focus on whether AudioEye meets its fourth-quarter guidance, how annual recurring revenue trends through the end of 2026, and whether it begins to execute on the new buyback. Customer concentration is another point to monitor, as the company's quarterly filing indicated that two customers accounted for a meaningful share of third-quarter revenue. Updates on adoption of its new AI products may also influence sentiment.