AudioEye Inc

AudioEye published new research and a business survey showing that leading AI coding tools failed to build accessible websites even as 81% of teams using them believe they are meeting compliance standards. AudioEye gave five AI tools, including OpenAI, Anthropic, Google, xAI, and Lovable, the same brief to build a news and media site, an online store, and a financial services site meeting WCAG 2.2 AA requirements, and testing across the resulting 15 sites found 306 distinct accessibility issues appearing more than 59,000 times, with 91% rated medium or high severity. The LLM-coded sites averaged 55 issues per page, nearly as inaccessible as the typical website in AudioEye's 2026 Digital Accessibility Index, which averaged 62. In the survey, 73% of respondents reported accessibility issues and complaints have increased since adopting AI, almost half have received a demand letter or lawsuit, and 71% of those said AI tools were used on the pages receiving the complaint. CEO Kelly Georgevich said there is a false sense of security that AI tools write accessible, compliant code, and AudioEye said organizations relying on LLMs alone for accessibility are accumulating legal exposure with every page they ship.

AudioEye raised its full-year 2026 adjusted EBITDA guidance to at least $12.7 million, up from a prior floor of at least $12 million, and reiterated a run rate adjusted EBITDA of over $15 million by the end of 2026. The company reported second-quarter revenue of $10.7 million, a 9% increase from the prior year, with annual recurring revenue of $42.3 million as of June 30, 2026. Adjusted EBITDA for the quarter was about $3 million, representing a 28% margin, while adjusted free cash flow was $2.6 million. CEO Kelly Georgevich said the company is evaluating options to deploy excess cash, including potential share buybacks and dividends, and expects litigation expense to decline in the second half of 2026, resulting in substantial cash generation. Full-year revenue guidance was narrowed to $43.5 million to $44 million, with third-quarter revenue guided to $10.85 million to $11.05 million.

AudioEye has appointed Matthew Domeyer as its new Chief Financial Officer, effective July 20. Domeyer brings nearly 20 years of finance experience, most recently serving as Corporate Controller at Flexsteel Industries, where he managed financial operations and SEC reporting. He will partner with CEO Kelly Georgevich to drive the company's next phase of growth, focusing on regulatory and market tailwinds alongside new AI initiatives. The appointment comes as AudioEye continues to scale, building on 41 consecutive quarters of sequential revenue growth and $41.2 million in Annual Recurring Revenue.