AudioEye (AEYE) AI Stock Analysis

• Market Cap: $190.71M
• Dividend Yield: N/A
• Average Volume (3M): 90.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.44
• Revenue Growth: 18.53%
• EPS Growth: -16.24%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 12,407,649
• 10 Day Avg. Volume: 74,755
• 30 Day Avg. Volume: 90,361
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: -264.65
• 1Y Price Target: $22.75
• Price Target Upside: 48.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: $16.00 ▲(4.10% Upside)

AudioEye's overall stock score is driven by strong technical momentum and positive earnings call sentiment, indicating growth potential. However, financial performance and valuation concerns, particularly ongoing losses and a negative P/E ratio, weigh down the score. The company's strategic focus on profitability and market expansion offers a positive outlook, but immediate profitability challenges remain a significant risk.

Positive Factors

Revenue Growth

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

Market Expansion

Expansion into the EU market, supported by regulatory changes, enhances growth opportunities and diversifies revenue streams, strengthening competitive positioning.

Strategic Partnerships

Partnerships with digital agencies like Creode enhance service offerings and market reach, positioning AudioEye to capture increased demand from accessibility regulations.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative margins, can hinder financial health and limit capacity to reinvest in growth, affecting long-term viability.

Acquisition Churn

Churn from acquisitions can disrupt revenue streams and customer relationships, posing risks to sustained growth and operational stability.

Gross Margin Reduction

A decline in gross margins, even if temporary, can pressure profitability and indicate challenges in cost management or pricing strategy.

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 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 shows strong revenue growth and efficient gross profit management, though it struggles with achieving profitability. The balance sheet is stable with low debt levels, providing a cushion against financial risks. The cash flow improvements are promising, indicating enhanced cash management capabilities. Overall, the company is on a growth trajectory but needs to address underlying operational inefficiencies to enhance profitability.

Income Statement

AudioEye has demonstrated consistent revenue growth, increasing from $20.47M in 2020 to $36.85M in TTM. The gross profit margin remains robust at around 79.7% in TTM, indicating effective cost management in production. However, the company is still facing profitability challenges, with a net loss of $4.89M in TTM, resulting in a negative net profit margin. EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a stable equity ratio of approximately 24% in TTM, indicating a moderate level of leverage. However, the debt-to-equity ratio is relatively low at 0.05, suggesting limited reliance on debt financing. While stockholders' equity has decreased over the years, the company maintains a positive cash position, which supports financial flexibility despite the profitability issues.

Cash Flow

AudioEye's cash flow statement indicates improved cash flow management, with operating cash flow turning positive to $2.48M in TTM. The free cash flow has increased significantly to $2.57M in TTM, demonstrating better cash utilization. The operating cash flow to net income ratio is also positive, reflecting effective cash conversion despite incurring net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.24M	35.20M	31.32M	29.91M	24.50M	20.48M
Gross Profit	30.27M	27.94M	24.34M	22.69M	18.38M	14.51M
EBITDA	-572.00K	-635.00K	-3.25M	-7.76M	-12.61M	-5.84M
Net Income	-4.16M	-4.25M	-5.87M	-10.44M	-14.21M	-7.16M
Balance Sheet
Total Assets	33.90M	29.77M	25.50M	24.43M	29.31M	18.25M
Cash, Cash Equivalents and Short-Term Investments	6.87M	5.65M	9.24M	6.90M	18.97M	9.10M
Total Debt	487.00K	7.24M	7.46M	1.26M	967.00K	2.02M
Total Liabilities	26.55M	20.33M	18.79M	13.84M	11.72M	10.62M
Stockholders Equity	7.35M	9.44M	6.71M	10.59M	17.60M	7.63M
Cash Flow
Free Cash Flow	3.86M	790.00K	-1.84M	-6.25M	-6.55M	-3.20M
Operating Cash Flow	3.29M	2.73M	318.00K	-5.00M	-4.98M	-1.91M
Investing Cash Flow	-8.85M	-7.21M	-2.16M	-5.73M	-1.62M	-1.30M
Financing Cash Flow	7.34M	898.00K	4.17M	-1.33M	16.48M	10.33M

AudioEye Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 15.37 is above the 20-day moving average (MA) of 14.13, above the 50-day MA of 13.61, and above the 200-day MA of 13.15, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 75.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEYE.

AudioEye Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPS	―	$160.36M	11.79	22.69%	―	2.37%	―
AEYE	―	$190.71M	-45.02	-68.18%	―	18.53%	-16.24%
SSTI	―	$117.68M	-11.50	-13.49%	―	1.47%	-430.99%
FRGE	―	$292.57M	―	-28.14%	―	14.78%	21.87%
ONTF	―	$231.42M	―	-22.60%	―	-6.88%	15.83%
EXFY	―	$147.31M	―	-12.58%	―	4.13%	54.44%

AudioEye Corporate Events

AudioEye’s Earnings Call Highlights Growth and Challenges

AudioEye’s recent earnings call painted a picture of robust growth, tempered by some transitional challenges. The company reported consistent revenue growth and a solid performance in Annual Recurring Revenue (ARR), largely driven by strategic expansions in Europe. Despite facing some challenges related to acquisition integrations and temporary margin impacts, the overall sentiment remained optimistic, particularly with future growth opportunities in the European market.

AudioEye Achieves Record Revenue Growth in Q2 2025

AudioEye, Inc. is a leading digital accessibility company that combines AI automation with expert fixes to ensure digital products and services are accessible to people with disabilities. The company operates primarily in the digital accessibility sector, serving over 120,000 customers worldwide.