AudioEye (AEYE) AI Stock Analysis

• Market Cap: $144.93M
• Dividend Yield: N/A
• Average Volume (3M): 106.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: 18.57%
• EPS Growth: -2.15%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 12,418,617
• 10 Day Avg. Volume: 124,516
• 30 Day Avg. Volume: 106,852
• PEG Ratio: 1.52
• Price to Book (P/B): 19.16
• Price to Sales (P/S): 5.14
• P/FCF Ratio: 228.88
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 4.57
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 201.04
• 1Y Price Target: $22.20
• Price Target Upside: 95.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $11.50 ▲(1.50% Upside)

AudioEye's overall stock score reflects a mix of financial challenges and positive strategic developments. The company's high leverage and negative profitability weigh heavily on the score, while the earnings call provides a more optimistic outlook with record revenue and strategic growth initiatives. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Revenue Growth

Consistent revenue growth over 39 quarters indicates strong market demand and effective business strategies, supporting long-term sustainability.

Enterprise Channel Expansion

Significant growth in the enterprise channel enhances revenue diversity and strengthens market position, providing a stable foundation for future expansion.

AI Advancements

AI advancements enhance product capabilities and operational efficiency, offering a competitive edge and driving long-term innovation and growth.

Negative Factors

High Debt Levels

High leverage can strain financial resources and limit flexibility, posing risks to long-term financial stability and growth potential.

Decline in Free Cash Flow

A decline in free cash flow growth can hinder the company's ability to invest in growth opportunities and manage debt, impacting financial health.

Profitability Challenges

Persistent profitability issues can undermine long-term business viability, limiting reinvestment potential and affecting shareholder value.

AudioEye Business Overview & Revenue Model

Company Description

AudioEye, Inc. (AEYE) is a leading digital accessibility company that focuses on making web content accessible for individuals with disabilities. The company operates in the technology sector, specifically within the digital accessibility and compliance market. AudioEye provides a range of products and services designed to enhance website accessibility, including automated testing, remediation solutions, and ongoing monitoring services. Their core offerings help organizations meet compliance standards such as the Americans with Disabilities Act (ADA) and Web Content Accessibility Guidelines (WCAG).

How the Company Makes Money

AudioEye generates revenue primarily through subscription-based models for its accessibility solutions. Customers pay for various tiers of service that include automated accessibility checks, remediation support, and compliance reporting. The company also earns revenue from one-time fees for custom remediation services and consulting. Key revenue streams include monthly or annual subscriptions from businesses that require ongoing accessibility monitoring and support. Additionally, AudioEye partners with digital agencies and platforms to integrate accessibility features into their offerings, which can lead to further revenue opportunities through joint ventures and collaborations. This strategic approach not only expands their market reach but also enhances their service capabilities, contributing to overall earnings.

AudioEye Financial Statement Overview

Summary

AudioEye's financial performance shows moderate revenue growth but significant challenges in profitability and high leverage. The income statement indicates a strong gross profit margin but negative net profit margins. The balance sheet reveals high debt levels, posing financial risks. Cash flow management shows some strengths, but the decline in free cash flow growth is concerning.

Income Statement

AudioEye's income statement shows a moderate revenue growth rate of 3.41% in the TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 78.61%, but the net profit margin remains negative at -8.88%, highlighting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.34 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity financing, which could pose risks if revenue growth does not improve.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -39.84% in the TTM, which is concerning. However, the operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is relatively high, suggesting that the company is managing to convert a significant portion of its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.54M	35.20M	31.32M	29.91M	24.50M	20.48M
Gross Profit	31.08M	27.94M	24.34M	22.69M	18.38M	14.51M
EBITDA	899.00K	-635.00K	-3.34M	-7.76M	-12.61M	-5.84M
Net Income	-3.51M	-4.25M	-5.87M	-10.43M	-14.21M	-7.16M
Balance Sheet
Total Assets	30.48M	29.77M	25.50M	24.43M	29.31M	18.25M
Cash, Cash Equivalents and Short-Term Investments	4.55M	5.65M	9.24M	6.90M	18.97M	9.10M
Total Debt	13.23M	7.24M	7.46M	1.26M	967.00K	2.02M
Total Liabilities	24.83M	20.33M	18.79M	13.84M	11.72M	10.62M
Stockholders Equity	5.65M	9.44M	6.71M	10.59M	17.60M	7.63M
Cash Flow
Free Cash Flow	2.32M	790.00K	-1.84M	-6.25M	-6.55M	-3.20M
Operating Cash Flow	2.79M	2.73M	318.00K	-5.00M	-4.98M	-1.91M
Investing Cash Flow	-6.14M	-7.21M	-2.16M	-5.73M	-1.62M	-1.30M
Financing Cash Flow	2.42M	898.00K	4.17M	-1.33M	16.48M	10.33M

AudioEye Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 11.33 is below the 20-day moving average (MA) of 13.31, below the 50-day MA of 13.64, and below the 200-day MA of 12.75, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 32.07 is Neutral, neither overbought nor oversold. The STOCH value of 11.43 is Positive, 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPS	57 Neutral	$124.15M	10.00	18.24%	―	0.59%	―
FRGE	57 Neutral	$606.12M	―	-28.65%	―	16.40%	22.80%
ONTF	54 Neutral	$220.29M	―	-20.20%	―	-6.23%	28.57%
EXFY	50 Neutral	$136.77M	―	-12.19%	―	4.71%	11.12%
AEYE	48 Neutral	$144.93M	―	-54.03%	―	18.57%	-2.15%
SSTI	44 Neutral	$113.84M	-11.12	-14.61%	―	-1.83%	-642.89%

AudioEye Corporate Events

AudioEye’s Earnings Call: Growth Amid Challenges

AudioEye’s Latest Earnings Call: A Mixed Bag with Strong Growth and Temporary Setbacks

AudioEye Achieves Record Revenue in Q3 2025

AudioEye, Inc. is a leading digital accessibility company that combines AI automation technology with expert fixes to ensure businesses meet compliance standards, serving over 123,000 customers globally. In its latest earnings report, AudioEye announced record revenue for the third quarter of 2025, marking its thirty-ninth consecutive period of revenue growth. The company reported $10.2 million in revenue, a 15% increase from the previous year, and a significant improvement in adjusted EBITDA and EPS. Key financial metrics highlighted include a gross profit of $7.9 million and a net loss reduction to $0.6 million, reflecting strategic cost adjustments and increased revenue. AudioEye’s expansion into the European market through a partnership with Creode and advancements in AI technology are expected to drive future growth. Looking ahead, AudioEye anticipates continued momentum with projected revenue growth and improved adjusted EBITDA and EPS, supported by increasing demand due to regulatory changes in digital accessibility.