AudioEye (AEYE) AI Stock Analysis

• Market Cap: $153.49M
• Dividend Yield: N/A
• Average Volume (3M): 111.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.41
• Revenue Growth: 16.52%
• EPS Growth: -1.28%
• Country: US
• Employees: 117
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 12,458,309
• 10 Day Avg. Volume: 68,298
• 30 Day Avg. Volume: 111,751
• PEG Ratio: 2.13
• Price to Book (P/B): 18.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.40
• Price Target Upside: 76.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: $14.00 ▲(10.50%Upside)

AudioEye's overall score is driven by strong revenue growth and improved cash flow management, as highlighted in the earnings call and financial performance. However, concerns about profitability and valuation weigh on the score. The recent financing activity provides a positive boost to financial flexibility.

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.

Stock 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. (AEYE) is a technology company that specializes in digital accessibility solutions. The company operates in the technology and software sectors, offering products and services designed to make digital content more accessible to individuals with disabilities. AudioEye's core offerings include its proprietary digital accessibility platform that automates and simplifies the process of making websites and digital content compliant with various accessibility standards, such as the Americans with Disabilities Act (ADA) and the Web Content Accessibility Guidelines (WCAG).

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
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
	EBIT
-3.70M	-3.39M	-5.96M	-10.43M	-15.51M	-7.13M
	EBITDA
-1.59M	-635.00K	-3.25M	-7.76M	-12.61M	-5.84M
	Net Income Common Stockholders
-4.89M	-4.25M	-5.87M	-10.44M	-12.63M	-6.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.27M	5.65M	9.24M	6.90M	18.97M	9.10M
	Total Assets
33.12M	29.77M	25.50M	24.43M	29.31M	18.25M
	Total Debt
369.00K	7.24M	7.46M	1.26M	967.00K	2.02M
	Net Debt
-7.90M	1.59M	-1.77M	-5.65M	-18.00M	-7.08M
	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: Positive
• Last Price: 12.67
• 50DMA: Positive
• 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 Positive. The current price of 12.67 is below the 20-day moving average (MA) of 12.71, above the 50-day MA of 11.89, and below the 200-day MA of 17.90, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 70.62 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
AEYE	70 Neutral	$153.49M	―	-76.11%	―	16.52%	-1.28%
EGAN	69 Neutral	$160.82M	58.83	5.01%	―	-7.70%	-64.90%
MAPS	62 Neutral	$171.35M	13.77	23.24%	―	0.20%	―
Sector *	62 Neutral	$11.80B	10.37	-7.10%	2.91%	7.41%	-7.94%
LAW	59 Neutral	$256.00M	―	-33.75%	―	3.84%	-76.01%
FRGE	53 Neutral	$168.77M	―	-27.44%	―	16.03%	30.99%
SMRT	51 Neutral	$174.46M	―	-22.66%	―	-25.43%	-135.09%

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.