AudioEye Inc (AEYE)
NASDAQ:AEYE
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AudioEye
(NASDAQ:AEYE)
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Rating:56Neutral
Price Target:
$7.00
▲(12.00% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving operating and cash-flow trends but tempered by elevated balance-sheet risk from higher leverage and still-negative net income. The latest earnings call and guidance add support via expected adjusted EBITDA expansion, while technicals remain mixed/weak versus longer-term moving averages and valuation is difficult to assess due to negative earnings and no dividend yield.
Positive Factors
Consistent Revenue Growth
A 40-quarter streak of sequential revenue growth demonstrates durable, repeatable demand and effective customer retention in a subscription-led model. This persistent top-line expansion supports predictable ARR progression and provides a stable base for margin and cash-flow improvement over the next 2–6 months.
Negative Factors
Elevated Leverage and Weakened Equity Cushion
Debt increasing while equity declined raises solvency and flexibility risks. A ~2.75x debt-to-equity ratio reduces the balance-sheet buffer against execution hiccups; if margin or ARR trends stall, higher leverage could constrain investments or require dilutive or costly financing within the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue Growth
A 40-quarter streak of sequential revenue growth demonstrates durable, repeatable demand and effective customer retention in a subscription-led model. This persistent top-line expansion supports predictable ARR progression and provides a stable base for margin and cash-flow improvement over the next 2–6 months.
Read all positive factors
AudioEye (AEYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$78.10M
Dividend YieldN/A
Average Volume (3M)241.01K
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)0.22
Shares Outstanding12,495,980
10 Day Avg. Volume266,531
30 Day Avg. Volume241,009
Financial Highlights & Ratios
PEG Ratio1.32
Price to Book (P/B)25.82
Price to Sales (P/S)3.08
P/FCF Ratio26.40
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit2.72
Enterprise Value/Ebitda221.93
Forecast
1Y Price Target
$15.00Price Target Upside140.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.87
Revenue Forecast (FY)$44.67M
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 U...
How the Company Makes Money
AudioEye primarily makes money by selling digital accessibility solutions to businesses and other organizations, typically as recurring services tied to maintaining website accessibility over time rather than one-time fixes. Its key revenue stream...
AudioEye Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: record revenue, strong adjusted EBITDA growth (+35% YoY to $9.1M), improving net loss, expanding ARR, product innovation validated by an independent study, and constructive 2026 guidance (revenue $43.0M–$44.5M and adjusted EBITDA +30%). Key challenges were acknowledged, including continued net loss versus profitability, modest cash on hand and net debt, rising litigation/regulatory activity (which management frames as both risk and demand driver), a deliberate near-term reduction in nonrecurring revenue that tempers 2026 revenue guidance, and ongoing need for human involvement alongside AI. Overall, positive operating leverage, cash flow improvement, and a clear path to higher adjusted EBITDA drove a favorable tone despite manageable execution and market risks.Positive Updates
40 Consecutive Quarters of Sequential Revenue Growth
AudioEye reported its 40th consecutive quarter of sequential record revenue growth, a rare multi-year streak highlighted by management as unique among public SaaS companies.
Negative Updates
Continued Net Loss and Limited Cash on Hand
Despite improvements, AudioEye remained net loss-making in 2025 with a full-year net loss of $3.1M and only $5.3M in cash on hand as of December 31, 2025; net debt was $8.1M (net debt / adjusted EBITDA ~0.7x).
Read all updates
Q4-2025 Updates
Positive
Negative
40 Consecutive Quarters of Sequential Revenue Growth
AudioEye reported its 40th consecutive quarter of sequential record revenue growth, a rare multi-year streak highlighted by management as unique among public SaaS companies.
Read all positive updates
Company Guidance
AudioEye guided Q1 2026 revenue of $10.5–$10.6M, adjusted EBITDA of $2.2–$2.3M and adjusted EPS of $0.17–$0.18; for full-year 2026 it expects revenue of $43–$44.5M, ARR growth to outpace revenue (management cited low- to mid-teens ARR growth), at least 30% growth in adjusted EBITDA to a minimum of $11.8M (implying a ~27% adjusted EBITDA margin at the revenue midpoint) and a run-rate adjusted EBITDA target of $15M by year-end driven by AI efficiency, while reducing nonrecurring revenue (currently ~5% of revenue); by way of context Q4 2025 revenue was $10.5M, full-year 2025 revenue was $40.3M (up 15% YoY), ARR was $40M (up 9% YoY), 2025 adjusted EBITDA was $9.1M (≈35% growth), adjusted free cash flow was $7.2M, cash was $5.3M with $6.6M available debt capacity and net debt/adjusted EBITDA was ~0.7x.AudioEye Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
38
Negative
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.31M | 35.20M | 31.32M | 29.91M | 24.50M |
| Gross Profit | 31.56M | 27.94M | 24.34M | 22.69M | 18.38M |
| EBITDA | 387.00K | -635.00K | -3.34M | -7.76M | -12.61M |
| Net Income | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M |
Balance Sheet | |||||
| Total Assets | 32.23M | 29.77M | 25.50M | 24.43M | 29.31M |
| Cash, Cash Equivalents and Short-Term Investments | 5.29M | 5.65M | 9.24M | 6.90M | 18.97M |
| Total Debt | 13.20M | 7.24M | 7.46M | 1.26M | 967.00K |
| Total Liabilities | 27.43M | 20.33M | 18.79M | 13.84M | 11.72M |
| Stockholders Equity | 4.80M | 9.44M | 6.71M | 10.59M | 17.60M |
Cash Flow | |||||
| Free Cash Flow | 4.70M | 790.00K | -1.84M | -6.25M | -6.55M |
| Operating Cash Flow | 4.75M | 2.73M | 318.00K | -5.00M | -4.98M |
| Investing Cash Flow | -4.20M | -7.21M | -2.16M | -5.73M | -1.62M |
| Financing Cash Flow | -920.00K | 898.00K | 4.17M | -1.33M | 16.48M |
AudioEye Technical Analysis
Negative
6.25
Price Trends
6.99
Negative
9.09
Negative
10.98
Negative
Market Momentum
-0.17
Negative
48.45
Neutral
63.73
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 6.25 is above the 20-day moving average (MA) of 5.91, below the 50-day MA of 6.99, and below the 200-day MA of 10.98, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.73 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 43 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $348.25M | -11.71 | -19.64% | ― | -6.23% | 28.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $78.10M | -40.31 | -47.80% | ― | 18.57% | -2.15% | |
52 Neutral | $113.44M | 44.82 | 3.65% | ― | 0.59% | ― | |
49 Neutral | $79.14M | -6.51 | -16.00% | ― | 4.71% | 11.12% | |
48 Neutral | $87.18M | ― | -12.81% | ― | -1.83% | -642.89% |
* Technology Sector Average
AEYE
AudioEye
6.25
-3.70
-37.19%
SSTI
SoundThinking Inc
6.73
-8.46
-55.69%
MAPS
WM Technology
0.71
-0.30
-29.41%
ONTF
ON24
8.10
3.49
75.70%
EXFY
Expensify
0.85
-1.74
-67.18%
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.