AudioEye (AEYE) AI Stock Analysis

• Market Cap: $151.13M
• Dividend Yield: N/A
• Average Volume (3M): 131.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.48
• Revenue Growth: 18.53%
• EPS Growth: -16.24%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 12,407,649
• 10 Day Avg. Volume: 112,699
• 30 Day Avg. Volume: 131,394
• 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: 1.00
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: -264.65
• 1Y Price Target: $22.20
• Price Target Upside: 80.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $13.00 ▲(5.86% Upside)

AudioEye's overall stock score reflects a stable financial position with strong cash flow management, but ongoing profitability challenges weigh heavily. Technical indicators show mixed momentum, with short-term trends being positive. The earnings call provided optimistic guidance, which is a positive factor, but valuation remains a concern due to negative earnings.

Positive Factors

Market Positioning

With the European Accessibility Act becoming effective, the company should benefit from increasing levels of demand in Europe which may last for several years.

Revenue Growth

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

Valuation

Shares are trading at a material discount to high growth, high margin tech peers, presenting an attractive risk-reward in AEYE shares.

Negative Factors

Guidance and Customer Phase-outs

FY25 guidance was lowered to account for the phase-out of some smaller customers from recent acquisitions.

Revenue Impact

The impact to annual recurring revenue is roughly $1-$1.5 million due to customer phase-outs.

Slower Growth Areas

Areas of slower growth currently include auto dealer CMS partnerships as tariffs impact willingness to spend.

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 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: 12.28
• 50DMA: Positive
• 100DMA: Positive
• 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 12.28 is above the 20-day moving average (MA) of 11.62, above the 50-day MA of 11.95, and below the 200-day MA of 14.85, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 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
MAPS	65 Neutral	$183.16M	13.53	22.69%	―	2.37%	―
EGAN	63 Neutral	$174.62M	64.37	5.01%	―	-7.70%	-64.90%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
FRGE	58 Neutral	$260.47M	―	-28.14%	―	14.78%	21.87%
SMRT	58 Neutral	$280.23M	―	-25.48%	―	-28.45%	-224.48%
AEYE	55 Neutral	$151.13M	―	-68.18%	―	18.53%	-16.24%
LAW	49 Neutral	$317.35M	―	-36.64%	―	4.05%	-100.64%

AudioEye Corporate Events

AudioEye Stockholders Approve Key Proposals at Annual Meeting

On May 23, 2025, AudioEye, Inc. held its Annual Meeting of Stockholders online, where stockholders voted on four key proposals. The proposals included the election of directors, approval of executive compensation, the frequency of future advisory votes on executive compensation, and the ratification of the company’s independent public accounting firm. The results indicated strong support for the board’s recommendations, with annual advisory votes on executive compensation approved and MaloneBailey, LLP ratified as the accounting firm for 2025.