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AudioEye Inc (AEYE)
NASDAQ:AEYE
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AudioEye
(NASDAQ:AEYE)
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Rating:48Neutral
Price Target:
$10.00
▲(4.60% 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 (AEYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$118.72M
Dividend YieldN/A
Average Volume (3M)90.04K
Price to Earnings (P/E)―
Beta (1Y)2.43
Revenue Growth18.57%
EPS Growth-2.15%
CountryUS
Employees117
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.19
Shares Outstanding12,418,617
10 Day Avg. Volume69,401
30 Day Avg. Volume90,036
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)19.16
Price to Sales (P/S)5.14
P/FCF Ratio228.88
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue4.57
Enterprise Value/Gross Profit5.81
Enterprise Value/Ebitda201.04
Forecast
1Y Price Target
$22.20Price Target Upside132.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
AudioEye Business Overview & Revenue Model
Company DescriptionAudioEye, 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 MoneyAudioEye generates revenue through a subscription-based model, offering various tiers of service that cater to different business needs. Key revenue streams include subscription fees for its accessibility platform, which provides automated testing and remediation services, as well as consulting fees for custom solutions and support. Additionally, AudioEye has established partnerships with organizations and platforms that integrate its accessibility solutions, which can lead to increased visibility and customer acquisition. The company also benefits from the growing awareness and legal requirements for digital accessibility, driving demand for its services.
AudioEye Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and ARR growth, successful enterprise channel expansion, and positive technological advancements. However, temporary gross margin decreases and a net loss were noted, alongside a decline in customer count due to a partner renegotiation. Despite these challenges, the positive aspects significantly outweigh the negatives.Q3-2025 Updates
Positive Updates
Record Revenue and EBITDA
AudioEye achieved 39 consecutive quarters of record revenue, with Q3 2025 revenue at $10.2 million, a 15% increase over the prior year. Adjusted EBITDA reached a record $2.5 million, up from $1.9 million sequentially.
Strong ARR Growth
Annual Recurring Revenue (ARR) at the end of Q3 2025 was $38.7 million, a $2.5 million increase over the prior year and $500,000 increase from the previous quarter.
Enterprise Channel Expansion
The enterprise channel grew by 26% over the prior year period, contributing 45% of revenue and 42% of ARR in Q3 2025.
AI Advancements
Significant potential seen with Playwright MCP and AI advancements expected to improve product detection accuracy and operational efficiency.
Stock Buybacks
Repurchased approximately 154,000 shares in Q3 2025, totaling roughly 300,000 shares for the year, indicating confidence in the company's future.
Negative Updates
Temporary Margin Decrease
Gross margin decreased to 77% from 80% in the prior year due to customer migration, but expected to improve as migration completes.
Net Loss
Net loss for Q3 2025 was $600,000 or $0.04 per share, though this was an improvement from a net loss of $1.2 million in the prior year.
Customer Count Decline
Customer count decreased by approximately 3,000 from the previous year due to a partner renegotiation in Q1 2025.
Company Guidance
During the third quarter of 2025, AudioEye reported record performance, achieving its 39th consecutive quarter of record revenue with $10.2 million, marking a 15% increase over the prior year. The adjusted EBITDA reached a record $2.5 million, up from $1.9 million sequentially, with an adjusted EBITDA margin of 24%. Looking ahead, the company 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, AudioEye 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. The company also aims for an adjusted EPS of $0.72 to $0.73 for the year. AudioEye remains focused on significant ARR growth and operating leverage, aspiring to increase adjusted EBITDA and adjusted EPS by 30% to 40% annually over the next three years.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.45
Neutral
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.40
Negative
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.50
Neutral
| 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
Negative
9.56
Price Trends
11.69
Negative
12.65
Negative
12.29
Negative
Market Momentum
-0.68
Negative
30.88
Neutral
43.73
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 9.56 is below the 20-day moving average (MA) of 10.35, below the 50-day MA of 11.69, and below the 200-day MA of 12.29, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 30.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEYE.
AudioEye Risk Analysis
AudioEye disclosed 42 risk factors in its most recent earnings report. AudioEye reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AudioEye Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $133.45M | 11.31 | 18.24% | ― | 0.59% | ― | |
59 Neutral | $338.43M | -10.78 | -20.20% | ― | -6.23% | 28.57% | |
50 Neutral | $130.25M | -8.26 | -12.19% | ― | 4.71% | 11.12% | |
49 Neutral | $108.70M | -10.11 | -14.61% | ― | -1.83% | -642.89% | |
48 Neutral | $118.72M | -33.47 | -54.03% | ― | 18.57% | -2.15% | |
46 Neutral | $617.75M | -9.06 | -28.65% | ― | 16.40% | 22.80% |
* Technology Sector Average
AEYE
AudioEye
9.56
-7.66
-44.48%
SSTI
SoundThinking Inc
8.56
-4.45
-34.20%
MAPS
WM Technology
0.85
-0.44
-34.26%
FRGE
Forge Global Holdings
44.62
33.00
283.99%
ONTF
ON24
7.97
1.53
23.76%
EXFY
Expensify
1.40
-2.00
-58.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.