AudioEye (AEYE) AI Stock Analysis

• Market Cap: $148.50M
• Dividend Yield: N/A
• Average Volume (3M): 128.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.45
• Revenue Growth: 16.52%
• EPS Growth: -1.28%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 66
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 12,458,309
• 10 Day Avg. Volume: 134,314
• 30 Day Avg. Volume: 128,926
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.05
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.40
• Price Target Upside: 87.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

AudioEye shows strong revenue growth and improved cash flow management, but profitability challenges and a bearish technical outlook weigh on the stock. While the earnings call and corporate events indicate strategic growth and financial flexibility, the stock's valuation remains a concern. Overall, the company is on a growth trajectory but needs to address operational inefficiencies to enhance profitability.

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 continues to be driven by strong demand across both marketplace and enterprise sales, in Europe and the United States.

Share Repurchase

The company is likely to use internally generated cash to repurchase AEYE shares which currently trade at just 3.4x 2026 Street revenue estimates.

Negative Factors

Economic Uncertainty

Management issued FY25 guidance, which is believed to be conservative and reflects ongoing macro challenges including incremental conservatism for a weakening economy.

Price Target Reduction

Investor appetites have shifted in recent months, 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 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
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
-635.00K	-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
7.24M	7.46M	1.26M	967.00K	2.02M
	Net Debt
1.59M	-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: Positive
• Last Price: 11.92
• 50DMA: Positive
• 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 Positive. The current price of 11.92 is above the 20-day moving average (MA) of 11.51, above the 50-day MA of 11.62, and below the 200-day MA of 18.88, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.11 is Neutral, neither overbought nor oversold. The STOCH value of 67.28 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
EGAN	68 Neutral	$141.22M	35.28	7.08%	―	-6.94%	-34.87%
MAPS	62 Neutral	$175.96M	14.58	29.12%	―	-1.85%	―
AEYE	61 Neutral	$148.50M	―	-76.11%	―	16.52%	-1.28%
Sector *	60 Neutral	$10.83B	10.47	-6.71%	2.99%	7.73%	-12.97%
FRGE	52 Neutral	$151.29M	―	-27.44%	―	16.03%	30.99%
SMRT	49 Neutral	$173.28M	―	-22.66%	―	-25.43%	-135.09%
LAW	48 Neutral	$213.76M	―	-32.07%	―	4.89%	-31.44%

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.