AudioEye (AEYE) AI Stock Analysis

• Market Cap: $123.75M
• Dividend Yield: N/A
• Average Volume (3M): 187.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.62
• Revenue Growth: 12.41%
• EPS Growth: 28.88%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): -0.36
• Shares Outstanding: 12,412,544
• 10 Day Avg. Volume: 141,279
• 30 Day Avg. Volume: 187,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.02
• Price to Cash Flow (P/CF): 62.60
• P/FCF Ratio: 259.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $25.60
• Price Target Upside: 156.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

AudioEye's stock score reflects a blend of strengths and challenges. The company's revenue growth and cash flow improvements are promising, yet profitability remains elusive. Technical indicators suggest bearish sentiment, and valuation metrics highlight concerns about overvaluation. Positive guidance from the earnings call and strategic corporate events provide optimism, but ongoing net losses and high operational expenses temper the outlook.

Positive Factors

Debt Refinancing

AudioEye announced the refinancing of its outstanding debt, significantly reducing their interest rate on principal from 13.25% to a current floating rate of 7.75%.

Revenue Growth

Revenue growth is expected to accelerate, driven by new demand from Europe due to the European Accessibility Act.

Stock Repurchase

The company’s Board of Directors has authorized a repurchase of up to $12.5M of common stock, indicating confidence in its current valuation levels.

Negative Factors

Economic Challenges

Management issued guidance believed to be conservative, reflecting ongoing macro challenges including incremental conservatism for a weakening economy.

Price Target Reduction

Investor appetites have shifted, causing a reduction in the price target from $37 to $22.

AudioEye Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

AudioEye generates revenue primarily through subscription-based services for its digital accessibility platform. The company offers different tiers of service plans that cater to businesses of various sizes, ranging from small businesses to large enterprises. These subscription plans provide clients with tools and technologies to ensure their digital content is accessible and compliant with legal and regulatory standards. Additionally, AudioEye offers professional services, including accessibility audits, training, and consulting, which provide additional revenue streams. Significant partnerships with web development agencies and content management systems also contribute to the company's earnings by expanding its market reach and integrating its solutions into broader digital ecosystems.

AudioEye Financial Statement Overview

Summary

AudioEye's financial performance shows positive revenue growth and strong gross profit margins. However, the company continues to face profitability challenges with negative EBIT and net profit margins. The balance sheet highlights a low debt-to-equity ratio but increasing reliance on liabilities, while the cash flow shows improvement with positive free cash flow. Overall, the company is on a growth trajectory, but achieving sustainable profitability remains a critical focus.

Income Statement

AudioEye has demonstrated a positive revenue growth trajectory, increasing from $20.5 million in 2020 to $35.2 million in 2024. The gross profit margin has remained strong, hovering around 79% in 2024. However, the company is still facing challenges with profitability as indicated by negative EBIT and net profit margins. Despite narrowing net losses, the company needs to further improve operational efficiency to achieve profitability.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, which indicates a conservative use of leverage. However, the equity ratio has been declining, suggesting increased reliance on liabilities. Stockholders' equity has shown improvement, rising to $9.4 million in 2024, but overall asset growth needs to be sustained to enhance financial stability.

Cash Flow

There has been a significant improvement in free cash flow, moving from negative values in prior years to a positive $2.7 million in 2024. The operating cash flow to net income ratio indicates a stronger cash conversion cycle. Continued positive cash flow from operations is essential to support growth initiatives and reduce reliance on external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
35.20M	31.32M	29.91M	24.50M	20.48M
	Gross Profit
27.94M	24.34M	22.69M	18.38M	14.51M
	EBIT
-3.39M	-5.96M	-10.43M	-15.51M	-7.13M
	EBITDA
-3.39M	-3.25M	-7.76M	-12.61M	-5.84M
	Net Income Common Stockholders
-4.25M	-5.87M	-10.44M	-12.63M	-6.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.65M	9.24M	6.90M	18.97M	9.10M
	Total Assets
29.77M	25.50M	24.43M	29.31M	18.25M
	Total Debt
417.00K	7.46M	1.26M	967.00K	2.02M
	Net Debt
-5.23M	-1.77M	-5.65M	-18.00M	-7.08M
	Total Liabilities
20.33M	18.79M	13.84M	11.72M	10.62M
	Stockholders Equity
9.44M	6.71M	10.59M	17.60M	7.63M
Cash Flow		Free Cash Flow
790.00K	-1.84M	-6.25M	-6.55M	-3.20M
	Operating Cash Flow
2.73M	318.00K	-5.00M	-4.98M	-1.91M
	Investing Cash Flow
-7.21M	-2.16M	-5.73M	-1.62M	-1.30M
	Financing Cash Flow
898.00K	4.17M	-1.33M	16.48M	10.33M

AudioEye Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEYE, the sentiment is Negative. The current price of 9.97 is below the 20-day moving average (MA) of 11.55, below the 50-day MA of 14.51, and below the 200-day MA of 19.82, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 24.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEYE.

AudioEye Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADBE	75 Outperform	$148.77B	22.99	47.28%	―	10.65%	44.84%
DT	73 Outperform	$12.58B	26.38	21.59%	―	19.81%	139.58%
Sector *	57 Neutral	$18.57B	9.42	-13.42%	2.72%	5.01%	-23.43%
AEYE	57 Neutral	$123.75M	―	-52.70%	―	12.41%	28.88%
BLIN	56 Neutral	$17.05M	―	-19.27%	―	-1.05%	80.22%
THRY	52 Neutral	$477.52M	―	-42.46%	―	-10.12%	72.31%

AudioEye Corporate Events

AudioEye CEO David Moradi’s Contract Extended to 2027

On March 31, 2025, AudioEye, Inc. extended CEO David Moradi’s employment agreement to January 9, 2027, with an annual base salary of $1 starting in the second quarter of 2025. Moradi will receive 241,444 restricted stock units, with vesting conditions tied to his continuous service and potential company changes. Additionally, the performance periods for certain performance shares have been extended. On April 1, 2025, the Board of Directors approved the re-election of four directors and reduced its size to four members, effective after the 2025 Annual Meeting. Dr. Carr Bettis’ term will end, and David Moradi will assume the role of Chairman of the Board.

AudioEye Secures $12 Million Loan for Growth

On March 31, 2025, AudioEye, Inc. and its subsidiaries entered into a Loan and Security Agreement with Western Alliance Bank, securing a $12 million term loan and a revolving line of credit up to $3 million. This agreement allows AudioEye to repay existing debts, fund general business needs, and potentially finance future acquisitions, enhancing its financial flexibility and strategic positioning in the digital accessibility market.

AudioEye Appoints James B. Hawkins to Board

On March 3, 2025, Anthony Coelho resigned from AudioEye’s Board of Directors, and James B. Hawkins was appointed as his successor. Hawkins, a seasoned executive with a history of driving growth at Natus Medical, is expected to bring valuable experience to AudioEye as it continues to expand its reach and impact in the digital accessibility sector. His appointment reflects AudioEye’s strategic focus on scaling operations and enhancing its market position.