AudioEye Announces Preliminary Fourth Quarter 2025 Results
Rhea-AI Summary
AudioEye (Nasdaq: AEYE) provided preliminary Q4 2025 results, citing its 40th consecutive period of record revenue. As of December 31, 2025, ARR is expected between $39.9M and $40.0M (vs. $38.7M on Sept 30, 2025). Q4 2025 revenue is expected to be approximately $10.5M. Adjusted EBITDA for Q4 is expected to be approximately $2.75M, equal to a 26% adjusted EBITDA margin. Management will present at the 28th Annual Needham Growth Conference on Jan 13 (in-person) and Jan 15 (virtual); one-on-one and small group meetings are planned.
Positive
- ARR ≈ $40.0M as of Dec 31, 2025
- Adjusted EBITDA $2.75M with a 26% margin in Q4 2025
Negative
- None.
News Market Reaction
On the day this news was published, AEYE gained 5.71%, reflecting a notable positive market reaction. Argus tracked a trough of -8.0% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $7M to the company's valuation, bringing the market cap to $127M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers in application software show mixed, mostly positive moves (e.g., DUOT +4.16%, DMRC +5.50%, EGAN +3.17%) while AEYE was down 0.32% pre-news, suggesting stock-specific dynamics.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 19 | Industry award win | Positive | -1.4% | Recognition for AI-powered accessibility and compliance leadership. |
| Nov 04 | Q3 2025 earnings | Positive | -6.6% | Record revenue, higher ARR, and stronger adjusted profitability. |
| Oct 21 | Earnings call setup | Neutral | +0.5% | Announcement of timing and access details for Q3 call. |
| Sep 23 | EU partnership | Positive | -1.6% | Creode partnership to expand European accessibility compliance reach. |
| Aug 13 | Customer win | Positive | +4.5% | Motability Operations selection to enhance digital accessibility. |
Positive operational and earnings news has often seen mixed-to-negative immediate price reactions, indicating a pattern of divergence between fundamentals and short-term trading.
Over the last few quarters, AudioEye has consistently reported record results, including Q1–Q3 2025 earnings with sequential ARR growth and expanding EBITDA, plus strategic European partnerships and industry awards. Despite this, several positive updates, such as record quarterly results and awards, were followed by negative next-day moves of -6.62%, -13.38%, and -9.36%. Today’s preliminary Q4 2025 record revenue and ARR update fits the ongoing narrative of operational strength alongside volatile short-term market responses.
Market Pulse Summary
The stock moved +5.7% in the session following this news. A strong positive reaction aligns with AudioEye’s pattern of delivering record quarters, though past earnings releases sometimes saw choppy trading. The preliminary Q4 2025 update highlights ARR of $39.9M–$40.0M, revenue near $10.5M, and adjusted EBITDA of about $2.75M at a 26% margin. Investors evaluating sustainability could watch upcoming formal results, full-year 2026 guidance, and whether growth in European markets continues supporting ARR expansion.
Key Terms
annual recurring revenue (ARR) financial
adjusted EBITDA financial
AI-generated analysis. Not financial advice.
Fortieth Consecutive Period of Record Revenue
"We are pleased to expect to report our fortieth consecutive period of record revenue with ARR growth driven by strong results in the European Union. We look forward to reporting full results later in the quarter and providing full year 2026 guidance, which is expected to include strong growth and continued operating leverage throughout the year," said David Moradi, CEO of AudioEye.
Preliminary Fourth Quarter 2025 Results
- As of December 31, 2025, ARR is expected to be between approximately
$39.9 million $40.0 million $38.7 million - Fourth quarter 2025 revenue is expected to be approximately
$10.5 million - Adjusted EBITDA in the fourth quarter of 2025 is expected to be approximately
$2.75 million 26% adjusted EBITDA margin.
Other Updates
Management will be presenting this week at the 28th Annual Needham Growth Conference. Additional details are available below:
- When: Tuesday, January 13th (in-person) and Thursday, January 15th (virtual)
- Where: Lotte New York Palace Hotel,
New York, NY - Format: One-on-one/small group meetings
For more information, please contact your Needham representative or AudioEye's investor relations team.
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 such as Samsung, Calvin Klein, and Samsonite - meet and exceed compliance standards. With 25 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.
Cautionary Language
Our preliminary expected results are subject to completion of our customary year-end closing, review and audit procedures and are not a comprehensive statement of our financial results for the three months ended December 31, 2025. We caution that our final results for the fourth quarter ended December 31, 2025 could include financial results that vary significantly from these preliminary estimates as a result of the completion of our customary year-end closing, review and audit procedures and other developments arising between now and the time that our financial results for the fourth quarter and fiscal year ended December 31, 2025 are finalized. These preliminary estimates should not be viewed as a substitute for complete financial statements prepared in accordance with GAAP and they are not necessarily indicative of the results to be achieved in any future period. Accordingly, you should not place undue reliance on these preliminary estimates.
Forward-Looking Statements
Any statements in this press release about AudioEye's expectations, beliefs, plans, objectives, goals, prospects, financial condition, assumptions or future events or performance are not historical facts and are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are often, but not always, made through the use of words or phrases such as "believe", "anticipate", "should", "confident", "intend", "plan", "will", "expects", "estimates", "projects", "positioned", "strategy", "outlook" and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements contained herein include, but are not limited to, statements regarding future cash flows of the Company, anticipated contributions from new sales channels, expected impact of legislation and regulations, long-term growth prospects, opportunities in the digital accessibility industry, and expected revenue, EPS, margins, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, ARR and operating leverage. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is expressed or implied in such forward-looking statements, including the variability of AudioEye's revenue and financial performance; sales channels and offerings; product development and technological changes; the demand and acceptance of AudioEye's products in the marketplace; the effectiveness of our integration efforts; competition;inherent uncertainties and costs associated with litigation; and general economic conditions. These and other risks are described more fully in AudioEye's filings with the Securities and Exchange Commission. There may be events in the future that AudioEye is not able to predict accurately or over which AudioEye has no control. Forward-looking statements reflect management's view as of the date of this press release, and AudioEye urges you not to place undue reliance on these forward-looking statements. AudioEye does not undertake any obligation to update such forward-looking statements to reflect events or uncertainties after the date hereof. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
About Key Operating Metrics
We consider annual recurring revenue ("ARR") as a key operating metric and a key indicator of our overall business. We also use ARR as one of the primary methods for planning and forecasting overall expectations and for evaluating, on at least a quarterly and annual basis, actual results against such expectations.
We manage customers through two primary channels, Enterprise and Partner and Marketplace. Enterprise channel consists of our larger customers and organizations, including those with non-platform custom websites, who generally engage directly with AudioEye sales personnel for custom pricing and solutions. This channel also includes federal, state and local government agencies. The Partner and Marketplace channel consists of our CMS partners, platform & agency partners, authorized resellers and our marketplace. This channel serves small and medium sized businesses who are on a partner or reseller's web-hosting platform or who purchase an AudioEye solution from our marketplace.
We define ARR as the sum of (i) for our Enterprise channel, the total of the annualized recurring fee at the date of determination under each active contract, plus (ii) for our Partner and Marketplace channel, theannual ormonthly recurring fee for all active customers at the date of determination, in each case, assuming no changes to the subscription, multiplied by 12if applicable. Recurring fees are defined as revenues expected to be generated from servicestypicallyoffered as a subscription service or annual service offeringsuch asour automation and platform, periodic auditing, human-assisted technological fixes, legal support and professionalservice offerings and other services that reoccur on a multi-year contract. This determination includes both annual and monthly contracts for recurring products. Some of our contracts areterminable prior to the expected term, which may impact future ARR. ARR excludesnon-recurring fees, which are defined asrevenue expected to be generated fromservices typically not offered as a subscription service or annual service offering such asour PDF remediation services business, one-timemobile applicationreports, and other miscellaneousservicesthat areofferedas non-subscription services or are expected to be one-time in nature.
Use of Non-GAAP Financial Measures
The Company has included in this press release its preliminary, expected adjusted EBITDA, a non-GAAP financial measure. It also has included in this press release its preliminary, expected adjusted EBITDA margin, which is its preliminary, expected adjusted EBITDA divided by its preliminary, expected revenue. All statements related to adjusted EBITDA in this "Use of Non-GAAP Financial Measures" section apply equally to the adjusted EBITDA margin metric.
Adjusted EBITDA is used to facilitate a comparison of our operating performance on a consistent basis from period to period and provide for a more complete understanding of factors and trends affecting our business than GAAP measures alone. All of the items adjusted in the adjusted EBITDA calculation will be either recurring non-cash items oritems that management does not consider in assessing our ongoing operating performance. In the case of the non-cash items, such as stock-based compensation expense and valuation adjustments to assets and liabilities, management believes that investors may find it useful to assess our comparative operating performance because the measures without such items are expected to be less susceptible to variances in actual performance resulting from expenses that do not relate to our core operations and are more reflective of other factors that affect operating performance. In the case of items that do not relate to our core operations, management believes that investors may find it useful to assess our operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.
Adjusted EBITDA is not a measure of liquidity under GAAP, or otherwise, and is not an alternative to cash flow from continuing operating activities, despite the advantages regarding the use and analysis of this measure as mentioned above. Adjusted EBITDA, as disclosed in this press release, has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP; nor is this measure intended to be a measure of liquidity or free cash flow.
We are unable to present a quantitative reconciliation of preliminary expected adjusted EBITDA for the fourth quarter 2025 to its most directly comparable forward-looking GAAP financial measure (net loss) because sufficient information as to all of the necessary components of such GAAP measure is not available to management as of the date of this release, and therefore a reconciliation is not available without unreasonable effort. Historically, management has excluded the following items from adjusted EBITDA, and such items will also be excluded with respect to fourth quarter 2025 adjusted EBITDA and could be significant amounts: interest expense, depreciation and amortization expense, stock-based compensation expense, change in fair value of contingent consideration, certain litigation expense,certain severance expense, certain acquisition expense, loss on disposal or impairment of long-lived assets, loss on extinguishment of debt, and lost deposit on alternative financing.
Investor Contact:
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
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SOURCE AudioEye, Inc.
FAQ
What ARR did AudioEye (AEYE) report for Q4 2025?
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What was AudioEye's (AEYE) expected adjusted EBITDA and margin for Q4 2025?
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When and where will AudioEye (AEYE) present at the Needham Growth Conference?
