AudioEye (AEYE) AI Stock Analysis

• Market Cap: $83.20M
• Dividend Yield: N/A
• Average Volume (3M): 90.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.49
• Revenue Growth: 18.57%
• EPS Growth: -2.15%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.19
• Shares Outstanding: 12,418,617
• 10 Day Avg. Volume: 69,401
• 30 Day Avg. Volume: 90,036
• PEG Ratio: 1.52
• Price to Book (P/B): 19.16
• Price to Sales (P/S): 5.14
• P/FCF Ratio: 228.88
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 2.90
• Enterprise Value/Ebitda: 100.27
• 1Y Price Target: $21.50
• Price Target Upside: 217.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $9.50 ▲(40.32% Upside)
• Action: Reiterated Date: 11/14/25
• Date: Action: Reiterated 11/14/25

AudioEye's overall stock score reflects a mix of financial challenges and positive strategic developments. The company's high leverage and negative profitability weigh heavily on the score, while the earnings call provides a more optimistic outlook with record revenue and strategic growth initiatives. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to ongoing losses.

Positive Factors

Gross Margin Strength

A 78.6% gross margin indicates strong unit economics in AudioEye's subscription and services mix. High gross margins provide durable operating leverage, enabling reinvestment in R&D and sales while insulating core profitability from moderate pricing pressure or higher COGS.

Recurring Revenue and Profitability Momentum

Sustained record revenue streak and rising adjusted EBITDA demonstrate durable demand for accessibility services and improving operating leverage. Consistent top-line growth and margin expansion support predictable cash generation and the subscription business model's long-term scalability.

Cash Generation Resilience

Positive operating cash flow metrics and strong free-cash-flow conversion despite net losses show the business can generate real cash from operations. This durability supports funding growth, buybacks, or debt reduction without immediate reliance on external capital markets.

Negative Factors

High Financial Leverage

A 2.34 debt/equity ratio is a structural constraint on flexibility, increasing interest and refinancing risk. High leverage can limit investment in product and go-to-market initiatives and makes the company more sensitive to revenue volatility or slower ARR conversion over the medium term.

Negative Net Profitability

Despite strong gross margins, the persistent negative net margin reflects operating costs and scaling inefficiencies. Ongoing net losses reduce retained earnings and could hamper sustained investment or debt reduction unless ARR growth and operating leverage continue to materialize reliably.

Customer Base Concentration / Partner Risk

A ~3,000 customer decline tied to a partner renegotiation highlights dependency on channel partners. Structural partner concentration risks can materially affect ARR and revenue stability if partnerships are renegotiated or lost, necessitating diversification of acquisition channels.

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 through a subscription-based model, offering various tiers of service that cater to different business needs. Key revenue streams include subscription fees for its accessibility platform, which provides automated testing and remediation services, as well as consulting fees for custom solutions and support. Additionally, AudioEye has established partnerships with organizations and platforms that integrate its accessibility solutions, which can lead to increased visibility and customer acquisition. The company also benefits from the growing awareness and legal requirements for digital accessibility, driving demand for its services.

AudioEye Financial Statement Overview

Summary

AudioEye's financial performance shows moderate revenue growth but struggles with profitability and high leverage. The income statement reveals a negative net profit margin, and the balance sheet indicates significant financial risk due to high debt. Cash flow management is mixed, with a decline in free cash flow growth but some ability to generate cash from operations.

Income Statement

AudioEye's income statement shows a moderate revenue growth rate of 3.41% in the TTM, indicating some positive momentum. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 78.61%, but the net profit margin remains negative at -8.88%, highlighting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.34 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity financing, which could pose risks if revenue growth does not improve.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -39.84% in the TTM, which is concerning. However, the operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is relatively high, suggesting that the company is managing to convert a significant portion of its net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.54M	35.20M	31.32M	29.91M	24.50M	20.48M
Gross Profit	31.08M	27.94M	24.34M	22.69M	18.38M	14.51M
EBITDA	899.00K	-635.00K	-3.34M	-7.76M	-12.61M	-5.84M
Net Income	-3.51M	-4.25M	-5.87M	-10.43M	-14.21M	-7.16M
Balance Sheet
Total Assets	30.48M	29.77M	25.50M	24.43M	29.31M	18.25M
Cash, Cash Equivalents and Short-Term Investments	4.55M	5.65M	9.24M	6.90M	18.97M	9.10M
Total Debt	13.23M	7.24M	7.46M	1.26M	967.00K	2.02M
Total Liabilities	24.83M	20.33M	18.79M	13.84M	11.72M	10.62M
Stockholders Equity	5.65M	9.44M	6.71M	10.59M	17.60M	7.63M
Cash Flow
Free Cash Flow	2.32M	790.00K	-1.84M	-6.25M	-6.55M	-3.20M
Operating Cash Flow	2.79M	2.73M	318.00K	-5.00M	-4.98M	-1.91M
Investing Cash Flow	-6.14M	-7.21M	-2.16M	-5.73M	-1.62M	-1.30M
Financing Cash Flow	2.42M	898.00K	4.17M	-1.33M	16.48M	10.33M

AudioEye Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 6.77 is below the 20-day moving average (MA) of 8.04, below the 50-day MA of 9.54, and below the 200-day MA of 11.91, indicating a bearish trend. The MACD of -0.86 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 20.89 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$337.73M	-10.80	-20.20%	―	-6.23%	28.57%
MAPS	57 Neutral	$106.89M	9.16	18.24%	―	0.59%	―
FRGE	52 Neutral	$616.08M	-9.04	-28.65%	―	16.40%	22.80%
EXFY	50 Neutral	$109.79M	-7.61	-12.19%	―	4.71%	11.12%
SSTI	49 Neutral	$88.64M	-8.77	-14.61%	―	-1.83%	-642.89%
AEYE	48 Neutral	$83.20M	-23.46	-54.03%	―	18.57%	-2.15%