AudioEye, Inc. (AEYE) Market Cap
AudioEye, Inc. has a market capitalization of $88.8M.
Financials based on reported quarter end 2025-12-31
Price: $7.11
▲ 0.07 (0.99%)
Market Cap: 88.85M
NASDAQ · time unavailable
CEO: David D. Moradi
Sector: Technology
Industry: Software - Application
IPO Date: 2013-04-26
Website: https://www.audioeye.com
AudioEye, Inc. (AEYE) - Company Information
Market Cap: 88.85M · Sector: Technology
AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the common accessibility errors and addresses a range of disabilities including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic manual auditing, manual remediations, and legal support services, as well as PDF remediation services and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.
Analyst Sentiment
Based on 6 ratings
Analyst 1Y Forecast: $15.33
Average target (based on 3 sources)
Consensus Price Target
Low
$12
Median
$14
High
$16
Average
$14
Potential Upside: 96.9%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"AEYE reported revenue of $10.494M for the most recent fiscal year with a net loss of $1.052M. The company's earnings per share stands at -$0.0847. Despite generating revenue, AEYE is operating at a loss, indicating challenges in profitability and efficiency. The company holds total assets of $32.23M against total liabilities of $27.43M, resulting in a total equity of $4.804M. The absence of free cash flow and dividends suggests limited cash generation capability and shareholder return distribution. Market performance has been quite poor, with a significant price decline of 55.67% over the past year. Its current market price is $5.40, far below analyst price targets, indicating it may be undervalued based on future potential. Overall, AEYE is showing signs of struggling financially, with a need for improved profitability and shareholder returns."
Revenue Growth
Revenue is present but minimal, reflecting modest growth opportunities.
Profitability
The company is operating at a loss, which raises concerns about profitability.
Cash Flow Quality
No operating cash flow or free cash flow, indicating significant cash generation issues.
Leverage & Balance Sheet
The balance sheet shows manageable leverage with equity, albeit with considerable liabilities.
Shareholder Returns
No dividends paid and significant stock price decline reduce attractiveness to shareholders.
Analyst Sentiment & Valuation
Analyst targets suggest potential valuation uplift, but current performance is concerning.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management’s tone is upbeat—record revenue growth (40th consecutive quarter) and a strong adjusted EBITDA ramp (FY 2025 +35% to ~$9.1M; 2026 guide to at least $11.8M and $15M year-end run-rate). However, the Q&A pressure points are more nuanced: revenue growth in 2026 is explicitly tempered by a deliberate shift away from nonrecurring revenue (nonrecurring ~5% today and being reduced), even as ARR is expected low-to-mid teens. Operationally, management admits automation isn’t “100%” fixable—AI can’t solve the core issue because the web wasn’t built for accessibility and ongoing code changes break compliance, implying continued need for human/custom fixes. The biggest execution risk is EU ramp timing (bureaucratic; dependent on enforcement), while margins face an AI compute headwind (gross margin mid- to high 70s). Offsetting positives are enforcement timing (DOJ Title II next month) and partner traction (Finalsite, CivicPlus; EU reseller deal driving ~8,000 adds).
Growth Catalysts
- Next-generation platform released to unify AI detection, expert audits, and custom fixes in one platform (with proprietary data engine)
- AI efficiency across products and operations driving adjusted EBITDA run-rate target
- Completion of accelerated customer migrations; expected meaningful ARR acceleration in 2026 (U.S. and EU momentum)
- Agentic models paired with proprietary dataset to expand fix workflows and agent capabilities
Business Development
- EU partner closed in Q4 2025 described as a large reseller deal that drove a major portion of ~8,000 customer adds
- Federal/state momentum via reseller and direct channels; named partner resellers: Finalsite and CivicPlus
- Enterprise growth partly driven by expansion into the EU in 2025 (expected to continue ramping)
Financial Highlights
- Q4 2025 revenue: $10.5M (+8% YoY; +10% annualized sequential growth from Q3 2025)
- FY 2025 revenue: $40.3M (+15% YoY from $35.2M in 2024)
- Q4 2025 adjusted EBITDA: ~$2.8M vs ~$2.3M prior year (+~0.5M; $0.22 vs $0.18 per share)
- FY 2025 adjusted EBITDA: ~$9.1M (+~35% from $6.7M in 2024); adjusted EBITDA margin ~22% (CEO stated record margin)
- Gross margin: Q4 2025 ~79% of revenue vs 80% prior year; FY 2025 ~78% (gross profit $31.6M vs $27.9M in 2024)
- Adjusted gross margin: Q4 2025 85% vs 86% prior year; FY 2025 84% vs 85% prior year
- Q4 net loss: $1.1M ($0.08/share) vs $1.5M ($0.12/share) prior year; FY net loss improved to $3.1M ($0.25/share) vs $4.3M ($0.36/share)
- Q4 free cash flow: $2.3M (adjusted EBITDA $2.8M less ~$0.5M software development costs)
- Guidance (Q1 2026): revenue $10.5M-$10.6M; adjusted EBITDA $2.2M-$2.3M; adjusted EPS $0.17-$0.18
- Guidance (FY 2026): revenue $43.0M-$44.5M; adjusted EBITDA at least $11.8M (implied ~27% margin at revenue midpoint); full-year revenue growth implies nearly 10% (management characterization) while ARR growth expected low-to-mid teens
- Cash flow seasonality disclosed: Q1 lower cash flow due to social security taxes and legal/admin fees for proxy, plus industry event during the quarter
- Platform human-fix automation hurdle acknowledged: AI/tools currently limited because web content wasn’t coded for accessibility; also noted that accessibility failures compound and remain far from fully solvable
Capital Funding
- Share repurchases: ~$1.0M during Q4 2025; ~$4.6M during FY 2025
- Cash: $5.3M as of Dec 31, 2025
- Debt facilities available: $6.6M additional (per CFO)
- Net debt: $8.1M (total debt minus cash) as of Dec 31, 2025
- Net debt / adjusted EBITDA ratio: ~0.7x
- Debt refinancing: refinancing of debt facility with Western Alliance Bank in Q1 2025 reduced interest expense and strengthened balance sheet
Strategy & Ops
- Customer migration integration now 'substantially complete' to drive ARR acceleration in 2026
- Strategic shift to focus more on ARR and reduce nonrecurring revenue (nonrecurring about 5% of revenue; management aims to reduce further), pressuring revenue growth optics vs ARR growth
- CFO introduced adjusted gross margin reporting (excluding stock-based compensation and D&A) to better reflect core profitability
- AI compute cost acknowledged as a margin driver/headwind: gross margin expected mid- to high 70s as they pay for more AI compute
Market Outlook
- DOJ Title II requirements effective next month (initial compliance date referenced as 'a little over a month' from question timing)
- 2026 litigation backdrop: management asserts 2026 expected to be the highest year of digital accessibility lawsuit on record
- ARR vs revenue guidance: management expects ARR growth to outpace revenue growth in 2026; implied revenue growth nearly 10% with ARR growth low-to-mid teens
- Adjusted EBITDA run-rate target: $15M by year-end (run rate) driven by AI efficiency, implying faster cash flow growth into 2027 potentially higher than 30%
Risks & Headwinds
- Automation/engineering limitation: management stated tools are 'very far' from resolving accessibility because the internet wasn’t coded with accessibility in mind and content changes (e.g., e-commerce) and subsequent code edits break accessibility
- Human involvement required for custom fixes: no stated numeric mix change; management indicated human/custom-fix workflows remain necessary and differentiation is having custom fixes inside the platform
- Nonrecurring revenue decline: guidance assumes less nonrecurring revenue due to phasing out acquired-customer nonrecurring components, which tempers revenue growth despite stronger ARR trends
- EU adoption/pipeline timing: EU described as bureaucratic and moving slower than the U.S.; GDPR took years; near-term demand ramp contingent on enforcement
- Margin headwind from AI compute: gross margin expected mid- to high 70s due to paying for more AI compute
- Legal/compliance tail-risk: increasing litigation rates using AI to detect accessibility issues; while it drives demand, it reflects ongoing exposure/market uncertainty
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the AEYE Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.