AudioEye Inc.

03/05/2026 | Press release | Distributed by Public on 03/05/2026 15:10

AudioEye Reports Record Fourth Quarter and Full Year 2025 Results (Form 8-K)

AudioEye Reports Record Fourth Quarter and Full Year 2025 Results

Fortieth Consecutive Period of Record Revenue

TUCSON, Ariz. - March 5, 2026 - AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"), the industry-leading digital accessibility company, reported financial results for the fourth quarter and full year ended December 31, 2025.

David Moradi, CEO of AudioEye, commented: "We delivered an exceptional fourth quarter with strong ARR growth to close out a record year for AudioEye. Full year 2025 revenue grew 15% to $40.3 million, net loss decreased 28% to $3.1 million, and adjusted EBITDA grew 35% to $9.1 million. For 2026, we expect another year of strong operating leverage, with adjusted EBITDA growing by at least 30%, and expect to generate a run-rate adjusted EBITDA (on an annual basis) of $15 million by year-end."

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Mr. Moradi continued: "Yesterday, we released our next-generation platform, which delivers unmatched transparency, ease of use, and 3-4x the legal protection of other solutions. The platform also utilizes years of proprietary data from detecting and fixing accessibility issues across hundreds of thousands of sites and billions of unique visits. We are well-positioned to capitalize on combining our proprietary data set with newly released agentic models to create new cutting-edge products, unlocking significant growth opportunities ahead."

Fourth Quarter 2025 Financial Results

● Total revenue increased 8% to a record $10.5M from $9.7M in the same prior year period.
● Gross profit increased to $8.3M (79% of total revenue) from $7.8M (80% of total revenue) in the same prior year period. The increase in gross profit was driven by continued revenue growth.
● Adjusted gross margin, which is defined as gross margin adjusted for non-cash items such as stock-based compensation and depreciation and amortization expenses in cost of revenue, was 85% in the fourth quarter of 2025 compared to 86% in the same prior year period.
● While revenue grew 8%, operating expenses remained flat with the prior year at $9.1M, with increases in sales and marketing expenses and G&A expenses mostly offset by lower costs in R&D and fair value adjustments.
● Net loss was $1.1M or $(0.08) per share, compared to a net loss of $1.5M, or $(0.12) per share, in the same prior year period. The movement was primarily due to the gross profit increase of approximately $500,000 while expenses remained consistent with the prior year comparable period.
● Adjusted EBITDA in Q4 2025 was a record $2.8M, and adjusted EPS was $0.22 per share, compared to adjusted EBITDA of $2.3M, and adjusted EPS of $0.18 per share, in the same prior year period. For Q4 2025, the adjusted EBITDA and adjusted EPS results reflect adjustments primarily for stock-based compensation expense, depreciation and amortization, litigation expense, and interest expense.
● Annual Recurring Revenue ("ARR") as of December 31, 2025 increased sequentially to $40.0M from $38.7M as of September 30, 2025.
● As of December 31, 2025, the Company had $5.3M in cash and cash equivalents, compared to $4.6M as of September 30, 2025.

Full Year 2025 Financial Results

● Total revenue increased 15% to a record $40.3M in 2025 from $35.2M in 2024.
● Gross profit increased to $31.6M (78% of total revenue) in 2025 from $27.9M (79% of total revenue) in 2024.
● Adjusted gross margin was 84% in 2025 compared to 85% in 2024.
● With revenue growing 15% in 2025, total operating expenses increased by 7% or $2.1M, from $31.3M in 2024 to $33.4M in 2025. Increases in sales and marketing and G&A expenses primarily drove the increase in total operating expenses.
● Net loss was $3.1M, or $(0.25) per share in 2025, compared to a $4.3M net loss, or $(0.36) per share, in 2024. The decrease was due to revenue growth, partially offset by increased operating expenses as discussed above.
● Adjusted EBITDA was $9.1M in 2025, and adjusted EPS was $0.72 per share, compared to adjusted EBITDA of $6.7M, and adjusted EPS of $0.55 per share, in 2024. Adjusted EBITDA and adjusted EPS reflect adjustments for stock-based compensation, litigation expense, and other items as shown on the attached reconciliations.

Other Updates

● AudioEye recently released its next-generation platform, unifying AI detection, expert audits, and custom code fixes into one easy-to-understand dashboard, allowing for a level of transparency and claims protection not available anywhere else.
● AudioEye recently published the 2026 Web Accessibility Litigation Report, showing total accessibility lawsuits more than doubled since 2020, with nearly 80% now filed in state courts and 38.5% of sued businesses already having incomplete widget-based solutions in place.
● An independent study published last month by Adience validated AudioEye's competitive advantage, finding AudioEye's automated technology detects 89-253% more WCAG issues than competitive products and is the only solution to consistently identify issues at all WCAG levels (A, AA, and AAA).
● As of December 31, 2025, AudioEye had approximately 131,000 customers, up 8,000 from September 30, 2025, and up 4,000 from December 31, 2024. The increase in customer count was primarily driven by additions in the Partner and Marketplace channel.

Financial Outlook

AudioEye expects revenue of between $10.5M and $10.6M for the first quarter of 2026 and between $43M and $44.5M for the full year 2026. The Company expects adjusted EBITDA of between $2.2M and $2.3M for the first quarter of 2026, with at least 30% adjusted EBITDA growth for full year 2026. The Company expects adjusted EPS of between $0.17 and $0.18 per share for the first quarter of 2026 and at least 30% growth for the full year 2026.

Conference Call Information

AudioEye management will hold a conference call today, March 5, 2026, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results, followed by a question-and-answer period.

Date: Thursday, March 5, 2026

Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)

U.S. dial-in number: 877-407-8289

International number: 201-689-8341

Webcast: Q425 Webcast Link

Please call the conference telephone number 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

The conference call will also be webcast live and available for replay via the investor relations section of the Company's website. The audio recording will remain available via the investor relations section of the Company's website for 90 days.

A telephonic replay of the conference call will also be available after 7:30 p.m. Eastern Time on the same day through March 19, 2026 via the following numbers:

Toll-free replay number: 877-660-6853

International replay number: 201-612-7415

Replay passcode: 13758690

About AudioEye

AudioEye exists to ensure the digital future we build is accessible. The gold standard for digital accessibility, AudioEye's comprehensive solution combines industry-leading AI automation technology with expert fixes informed by the disability community. This powerful combination delivers industry-leading protection, ensuring businesses of all sizes - including over 131,000 customers like Samsung, Calvin Klein, and Samsonite - meet and exceed compliance standards. With 26 US patents, AudioEye's solution includes 24/7 accessibility monitoring, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection, empowering organizations to confidently create accessible digital experiences for all.

AudioEye Inc. published this content on March 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 05, 2026 at 21:11 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]