AudioEye (AEYE) AI Stock Analysis

• Market Cap: $143.27M
• Dividend Yield: N/A
• Average Volume (3M): 75.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.40
• Revenue Growth: 16.52%
• EPS Growth: -1.28%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 12,458,309
• 10 Day Avg. Volume: 74,677
• 30 Day Avg. Volume: 75,578
• PEG Ratio: 0.21
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.04
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 1.31
• Enterprise Value/Ebitda: -15.11
• 1Y Price Target: $22.40
• Price Target Upside: 92.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $12.50 ▲(7.30%Upside)

AudioEye's overall stock score reflects strong revenue growth and future outlook, bolstered by positive earnings call guidance and corporate events. However, its low valuation score due to profitability challenges and mixed technical indicators weigh down the score. The company's strategic financial moves and market expansion efforts provide optimism for future performance.

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%.

Earnings and Cash Flow

Accelerating revenue growth and improving margin should drive improving adj. EBITDA and cash flow in both 2H25 and into 2026.

Revenue Growth

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

Negative Factors

Economic Challenges

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

Investor Sentiment

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 makes money primarily through subscription-based services and software licensing fees. The company offers various pricing plans for its digital accessibility platform, targeting businesses of all sizes, from small enterprises to large organizations. Revenue is generated through monthly or annual subscription fees, which give customers access to automated accessibility testing, remediation, and ongoing monitoring services. Additionally, AudioEye has strategic partnerships with web development and content management system companies, allowing for integrated accessibility solutions, which further contributes to its revenue streams.

AudioEye Financial Statement Overview

Summary

AudioEye shows strong revenue growth and effective cost management as seen in a robust gross profit margin. However, the company faces profitability challenges with ongoing operational inefficiencies, reflected in negative net profit, EBIT, and EBITDA margins. The stable balance sheet with low debt levels and improved cash flow management provides a cushion against financial risks.

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	36.85M	35.20M	31.32M	29.91M	24.50M	20.48M
Gross Profit	29.35M	27.94M	24.34M	22.69M	18.38M	14.51M
EBITDA	-1.59M	-635.00K	-3.25M	-7.76M	-12.61M	-5.84M
Net Income	-4.89M	-4.25M	-5.87M	-10.44M	-12.63M	-6.13M
Balance Sheet
Total Assets	33.12M	29.77M	25.50M	24.43M	29.31M	18.25M
Cash, Cash Equivalents and Short-Term Investments	8.27M	5.65M	9.24M	6.90M	18.97M	9.10M
Total Debt	369.00K	7.24M	7.46M	1.26M	967.00K	2.02M
Total Liabilities	25.17M	20.33M	18.79M	13.84M	11.72M	10.62M
Stockholders Equity	7.95M	9.44M	6.71M	10.59M	17.60M	7.63M
Cash Flow
Free Cash Flow	2.57M	790.00K	-1.84M	-6.25M	-6.55M	-3.20M
Operating Cash Flow	2.48M	2.73M	318.00K	-5.00M	-4.98M	-1.91M
Investing Cash Flow	-7.46M	-7.21M	-2.16M	-5.73M	-1.62M	-1.30M
Financing Cash Flow	6.20M	898.00K	4.17M	-1.33M	16.48M	10.33M

AudioEye Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.65 is below the 20-day moving average (MA) of 12.02, below the 50-day MA of 12.13, and below the 200-day MA of 17.13, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 29.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEYE.

AudioEye Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGAN	71 Outperform	$169.85M	64.17	5.01%	―	-7.70%	-64.90%
AEYE	65 Neutral	$143.27M	―	-76.11%	―	16.52%	-1.28%
Sector *	63 Neutral	$33.26B	5.86	-11.55%	1.91%	5.52%	-20.13%
FRGE	58 Neutral	$234.24M	―	-27.44%	―	16.03%	30.99%
SMRT	58 Neutral	$175.08M	―	-22.66%	―	-25.43%	-135.09%
MAPS	57 Neutral	$134.12M	11.12	23.24%	―	0.20%	―
LAW	53 Neutral	$269.98M	―	-33.75%	―	3.84%	-76.01%

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.

The most recent analyst rating on (AEYE) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on AudioEye stock, see the AEYE Stock Forecast page.

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.