Audioeye ((AEYE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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AudioEye’s Latest Earnings Call: A Mixed Bag with Strong Growth and Temporary Setbacks
The recent earnings call for AudioEye painted a picture of robust growth tempered by some temporary setbacks. The company reported strong revenue and Annual Recurring Revenue (ARR) growth, alongside successful expansion in its enterprise channel and notable technological advancements. However, challenges such as a temporary decrease in gross margins, a net loss, and a decline in customer count were also highlighted. Despite these issues, the overall sentiment remained positive, with the strengths significantly outweighing the negatives.
Record Revenue and EBITDA
AudioEye achieved its 39th consecutive quarter of record revenue, with Q3 2025 revenue reaching $10.2 million, marking a 15% increase over the prior year. The company also reported a record adjusted EBITDA of $2.5 million, up from $1.9 million sequentially, showcasing its strong financial performance.
Strong ARR Growth
The company reported an impressive growth in Annual Recurring Revenue (ARR), which stood at $38.7 million at the end of Q3 2025. This represents a $2.5 million increase over the prior year and a $500,000 increase from the previous quarter, indicating a solid upward trajectory in recurring revenue.
Enterprise Channel Expansion
AudioEye’s enterprise channel saw significant growth, expanding by 26% over the prior year period. This channel contributed 45% of the company’s revenue and 42% of its ARR in Q3 2025, highlighting its importance in the company’s revenue mix.
AI Advancements
The company is optimistic about its technological advancements, particularly with the Playwright MCP and AI developments. These advancements are expected to enhance product detection accuracy and operational efficiency, positioning AudioEye for future success.
Stock Buybacks
In a show of confidence in its future, AudioEye repurchased approximately 154,000 shares in Q3 2025, bringing the total for the year to roughly 300,000 shares. This move underscores the company’s commitment to returning value to shareholders.
Temporary Margin Decrease
AudioEye experienced a temporary decrease in gross margin, which fell to 77% from 80% in the prior year due to customer migration. However, the company expects margins to improve as the migration process concludes.
Net Loss
The company reported a net loss of $600,000, or $0.04 per share, for Q3 2025. This was an improvement from a net loss of $1.2 million in the prior year, indicating progress towards profitability.
Customer Count Decline
AudioEye’s customer count decreased by approximately 3,000 from the previous year due to a partner renegotiation in Q1 2025. While this is a setback, the company remains focused on regaining and expanding its customer base.
Forward-Looking Guidance
Looking ahead, AudioEye anticipates fourth-quarter revenue between $10.45 million and $10.6 million, with adjusted EBITDA expected to be between $2.7 million and $2.8 million. For the full year of 2025, the company has narrowed its revenue guidance to a range of $40.3 million to $40.4 million, with adjusted EBITDA expected to be between $9 million and $9.1 million. AudioEye is also targeting an adjusted EPS of $0.72 to $0.73 for the year, with aspirations to increase adjusted EBITDA and adjusted EPS by 30% to 40% annually over the next three years.
In conclusion, AudioEye’s latest earnings call reflects a company experiencing strong growth and technological advancements, despite facing some temporary challenges. The overall sentiment remains positive, with the company’s strategic initiatives and forward-looking guidance indicating a promising future.