AudioEye Reports Record Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
AudioEye (Nasdaq: AEYE) reported record fourth quarter and full year 2025 results. Full-year revenue rose 15% to $40.3M, adjusted EBITDA grew 35% to $9.1M, and ARR reached $40.0M as of December 31, 2025. Net loss narrowed to $3.1M and cash totaled $5.3M.
The company released a next-generation platform and provided 2026 guidance of $43M–$44.5M revenue and at least 30% adjusted EBITDA growth.
Positive
- Revenue +15% year-over-year to $40.3M in 2025
- Adjusted EBITDA +35% to $9.1M in 2025
- ARR increased sequentially to $40.0M as of Dec 31, 2025
- Adjusted EPS of $0.72 per share in 2025
Negative
- Net loss of $3.1M for full-year 2025
- Operating expenses increased 7% to $33.4M in 2025
- Cash and equivalents only $5.3M as of Dec 31, 2025
News Market Reaction – AEYE
On the day this news was published, AEYE declined 22.36%, reflecting a significant negative market reaction. Argus tracked a peak move of +15.9% during that session. Argus tracked a trough of -23.8% from its starting point during tracking. Our momentum scanner triggered 46 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $33M from the company's valuation, bringing the market cap to $115M at that time. Trading volume was very high at 3.6x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Scanner data shows no broad software momentum. Close peers are mixed, with moves ranging from about -3.5% (SSTI) to +4.23% (DMRC), suggesting AEYE’s reaction is more company-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | Earnings call scheduled | Neutral | +0.0% | Announcement of date and logistics for the Q4 and full-year 2025 call. |
| Jan 13 | Preliminary results | Positive | +5.7% | Preliminary Q4 2025 figures with record revenue, ARR near $40M, strong EBITDA. |
| Nov 04 | Q3 2025 earnings | Positive | +1.3% | Record Q3 2025 results with revenue growth, rising ARR, and EBITDA upside. |
| Oct 21 | Earnings call scheduled | Neutral | +0.5% | Scheduling and access details for the upcoming Q3 2025 earnings call. |
| Aug 07 | Q2 2025 earnings | Positive | -13.4% | Record Q2 2025 revenue, higher ARR and guidance, but shares sold off afterward. |
Earnings-related news has produced mixed reactions: most results or guidance updates saw modest gains, but one strong quarterly report drew a double‑digit selloff, indicating occasional divergence even on positive fundamentals.
Over the last few quarters, AudioEye has repeatedly reported record results and tightening guidance. Q2 and Q3 2025 earnings highlighted rising ARR, growing adjusted EBITDA, and record revenue levels, followed by preliminary Q4 and full‑year 2025 figures that reinforced this trajectory. Earnings call notices themselves have had little price impact. Today’s release confirms previously guided revenue of $40.3M and adjusted EBITDA of $9.1M, extending the record‑revenue streak and aligning full results with earlier preliminary updates.
Historical Comparison
In the past five earnings‑tagged events, AEYE’s average move was -1.17%, with mostly mild reactions and one sharp selloff, so any sizable move on these full‑year results would stand out against a typically muted earnings history.
Earnings updates show progression from Q2 and Q3 2025 record quarters into preliminary Q4 and full‑year guidance, now confirmed at $40.3M revenue and $9.1M adjusted EBITDA, broadly consistent with prior ranges and reinforcing a steady improvement narrative.
Market Pulse Summary
The stock dropped -22.4% in the session following this news. A negative reaction despite solid results would fit prior instances where strong quarters, such as Q2 2025, were followed by selling. The company again delivered record 2025 revenue of $40.3M and higher adjusted EBITDA, but shares have traded well below the 52‑week high of $16.39. Any sharp decline could reflect profit‑taking or skepticism around guidance durability rather than a clear change in the reported fundamentals.
Key Terms
annual recurring revenue ("arr") financial
adjusted ebitda financial
adjusted gross margin financial
adjusted eps financial
wcag technical
AI-generated analysis. Not financial advice.
Fortieth Consecutive Period of Record Revenue
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
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 from$10.5M in the same prior year period.$9.7M - 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 to86% in the same prior year period. - While revenue grew
8% , operating expenses remained flat with the prior year at , with increases in sales and marketing expenses and G&A expenses mostly offset by lower costs in R&D and fair value adjustments.$9.1M - Net loss was
or$1.1M per share, compared to a net loss of$(0.08) , or$1.5M per share, in the same prior year period. The movement was primarily due to the gross profit increase of approximately$(0.12) while expenses remained consistent with the prior year comparable period.$500,000 - Adjusted EBITDA in Q4 2025 was a record
, and adjusted EPS was$2.8M per share, compared to adjusted EBITDA of$0.22 , and adjusted EPS of$2.3M 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.$0.18 - Annual Recurring Revenue ("ARR") as of December 31, 2025 increased sequentially to
from$40.0M as of September 30, 2025.$38.7M - As of December 31, 2025, the Company had
in cash and cash equivalents, compared to$5.3M as of September 30, 2025.$4.6M
Full Year 2025 Financial Results
- Total revenue increased
15% to a record in 2025 from$40.3M in 2024.$35.2M - 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 to85% in 2024. - With revenue growing
15% in 2025, total operating expenses increased by7% or , from$2.1M in 2024 to$31.3M in 2025. Increases in sales and marketing and G&A expenses primarily drove the increase in total operating expenses.$33.4M - Net loss was
, or$3.1M per share in 2025, compared to a$(0.25) net loss, or$4.3M per share, in 2024. The decrease was due to revenue growth, partially offset by increased operating expenses as discussed above.$(0.36) - Adjusted EBITDA was
in 2025, and adjusted EPS was$9.1M per share, compared to adjusted EBITDA of$0.72 , and adjusted EPS of$6.7M 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.$0.55
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 and38.5% 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
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)
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.
Forward-Looking Statements
All statements in this press release about AudioEye's expectations, beliefs, plans, objectives, 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, long-term growth prospects, opportunities in the digital accessibility industry, our revenue, adjusted EBITDA, adjusted EPS and ARR guidance, and our expectation of investments in marketing and sales. 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 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, the annual or monthly recurring fee for all active customers at the date of determination, in each case, assuming no changes to the subscription, multiplied by 12 if applicable. Recurring fees are defined as revenues expected to be generated from services typically offered as a subscription service or annual service offering such as our automation and platform, periodic auditing, human-assisted technological fixes, legal support and professional service 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 are terminable prior to the expected term, which may impact future ARR. ARR excludes non-recurring fees, which are defined as revenue expected to be generated from services typically not offered as a subscription service or annual service offering such as our PDF remediation services business, one-time mobile application reports, and other miscellaneous services that are offered as non-subscription services or are expected to be one-time in nature.
Use of Non-GAAP Financial Measures
From time to time, we review adjusted financial measures that assist us in comparing our operating performance consistently over time, as such measures remove the impact of certain items, as applicable, such as our capital structure (primarily interest charges), certain non-cash items, including stock compensation and depreciation and amortization expense, and other expenses that do not relate to our core operations, including significant transaction and litigation-related expenses and other costs that are expected to be non-recurring. In order to provide investors with greater insight and allow for a more comprehensive understanding of the information used in our financial and operational decision-making, the Company has supplemented the consolidated financial statements presented on a GAAP basis in this press release with the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share (adjusted EPS) and Adjusted gross margin.
These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of Company results as reported under GAAP. The Company compensates for such limitations by relying primarily on our GAAP results and using non-GAAP financial measures only as supplemental data. We also provide a reconciliation of non-GAAP to GAAP measures used. Investors are encouraged to carefully review this reconciliation. In addition, because these non-GAAP measures are not measures of financial performance under GAAP and are susceptible to varying calculations, these measures, as defined by us, may differ from and may not be comparable to similarly titled measures used by other companies.
Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings (Loss) per Diluted Share
We define: (i) Adjusted EBITDA as net income (loss), plus (less) interest expense (income), plus depreciation and amortization expense, plus stock-based compensation expense, plus (less) change in fair value of contingent consideration, plus certain litigation expense, plus certain acquisition expense, plus certain severance expense, plus loss on disposal or impairment of long-lived assets, plus loss on extinguishment of debt, and plus lost deposit on alternative financing; (ii) Adjusted EBITDA margin as Adjusted EBITDA as a percentage of GAAP revenue; and (iii) Adjusted earnings (loss) per diluted share (EPS) as net income (loss) per diluted common share, plus (less) interest expense (income), plus depreciation and amortization expense, plus stock-based compensation expense, plus (less) change in fair value of contingent consideration, plus certain litigation expense, plus certain acquisition expense, plus certain severance expense, plus loss on disposal or impairment of long-lived assets, plus loss on extinguishment of debt, and plus lost deposit on alternative financing, each on a per share basis. Adjusted earnings per diluted share includes incremental shares in the share count that are considered anti-dilutive in a GAAP net loss position.
Adjusted Gross Margin
We define Adjusted gross margin as gross profit, plus stock-based compensation expense and depreciation and amortization expense allocated to cost of revenue, expressed as a percentage of total revenue.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share, and Adjusted gross margin are 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 these calculations are either recurring non-cash items or items 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 these measures as mentioned above. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted earnings (loss) per diluted share, and Adjusted gross margin, as disclosed in this press release, have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP; nor are these measures intended to be measures of liquidity or free cash flow.
To properly and prudently evaluate our business, we encourage readers to review the consolidated GAAP financial statements included in this press release and not rely on any single financial measure to evaluate our business. The following tables set forth reconciliations of Adjusted EBITDA to net loss, the most directly comparable GAAP-based measure, Adjusted earnings (loss) per diluted share to net loss per diluted share, the most directly comparable GAAP-based measure, and Adjusted gross margin to gross margin, the most directly comparable GAAP-based measure. We strongly urge readers to review these reconciliations, along with the financial statements included in this press release.
Forward-Looking Non-GAAP Financial Measures
This press release and statements made in our conference call today also include the forward-looking non-GAAP financial measures of adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and free cash flow guidance for the first quarter and full year 2026. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.
Investor Contact:
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
AUDIOEYE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(unaudited) | ||||||||||||
Three months ended December 31, | Year ended December 31, | |||||||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | ||||||||
Revenue | $ | 10,494 | $ | 9,723 | $ | 40,311 | $ | 35,201 | ||||
Cost of revenue | 2,210 | 1,913 | 8,755 | 7,261 | ||||||||
Gross profit | 8,284 | 7,810 | 31,556 | 27,940 | ||||||||
Operating expenses: | ||||||||||||
Selling and marketing | 3,728 | 3,546 | 14,897 | 12,668 | ||||||||
Research and development | 1,119 | 1,383 | 4,590 | 5,077 | ||||||||
General and administrative | 4,251 | 4,000 | 15,249 | 13,445 | ||||||||
Change in fair value of contingent consideration | — | 152 | (1,350) | 140 | ||||||||
Total operating expenses | 9,098 | 9,081 | 33,386 | 31,330 | ||||||||
Operating loss | (814) | (1,271) | (1,830) | (3,390) | ||||||||
Other expense: | ||||||||||||
Interest expense, net | (238) | (217) | (947) | (864) | ||||||||
Loss on extinguishment of debt | — | — | (300) | — | ||||||||
Total other expense | (238) | (217) | (1,247) | (864) | ||||||||
Net loss | $ | (1,052) | $ | (1,488) | $ | (3,077) | $ | (4,254) | ||||
Net loss per common share-basic and diluted | $ | (0.08) | $ | (0.12) | $ | (0.25) | $ | (0.36) | ||||
Weighted average common shares outstanding-basic and diluted | 12,414 | 12,176 | 12,416 | 11,888 | ||||||||
AUDIOEYE, INC. CONSOLIDATED BALANCE SHEETS | ||||||
December 31, | December 31, | |||||
(in thousands, except per share data) | 2025 | 2024 | ||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 5,288 | $ | 5,651 | ||
Accounts receivable, net | 6,557 | 5,932 | ||||
Prepaid expenses and other current assets | 777 | 537 | ||||
Total current assets | 12,622 | 12,120 | ||||
Property and equipment, net | 146 | 215 | ||||
Right of use assets | 168 | 385 | ||||
Intangible assets, net | 12,515 | 10,276 | ||||
Goodwill | 6,682 | 6,661 | ||||
Other | 97 | 109 | ||||
Total assets | $ | 32,230 | $ | 29,766 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable and accrued expenses | $ | 4,851 | $ | 3,870 | ||
Operating lease liabilities | 218 | 199 | ||||
Deferred revenue | 8,619 | 7,502 | ||||
Contingent consideration | 225 | — | ||||
Term loan, current | 503 | — | ||||
Total current liabilities | 14,416 | 11,571 | ||||
Long term liabilities: | ||||||
Term loan, net | 12,479 | 6,820 | ||||
Operating lease liabilities | — | 218 | ||||
Deferred revenue | 5 | 16 | ||||
Contingent consideration, long term | 300 | 1,350 | ||||
Other | 226 | 355 | ||||
Total liabilities | 27,426 | 20,330 | ||||
Stockholders' equity: | ||||||
Preferred stock, | ||||||
Common stock, | 1 | 1 | ||||
Additional paid-in capital | 108,201 | 105,181 | ||||
Accumulated deficit | (103,398) | (95,746) | ||||
Total stockholders' equity | 4,804 | 9,436 | ||||
Total liabilities and stockholders' equity | $ | 32,230 | $ | 29,766 | ||
AUDIOEYE, INC. RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||
(in thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||
Adjusted EBITDA Reconciliation | |||||||||||||
Net loss (GAAP) | $ | (1,052) | $ | (1,488) | $ | (3,077) | $ | (4,254) | |||||
Change in fair value of contingent consideration | — | 152 | (1,350) | 140 | |||||||||
Interest expense, net | 238 | 217 | 947 | 864 | |||||||||
Stock-based compensation expense | 1,331 | 1,353 | 5,024 | 4,401 | |||||||||
Acquisition expense (1) | (21) | 126 | 12 | 520 | |||||||||
Litigation expense (2) | 1,282 | 1,164 | 3,218 | 2,503 | |||||||||
Severance expense (3) | — | — | 304 | — | |||||||||
Lost deposit on alternative financing | — | — | 50 | — | |||||||||
Depreciation and amortization | 986 | 765 | 3,567 | 2,529 | |||||||||
Loss on disposal or impairment of long-lived assets | (4) | 2 | 57 | 7 | |||||||||
Loss on extinguishment of debt | — | — | 300 | — | |||||||||
Adjusted EBITDA | $ | 2,760 | $ | 2,291 | $ | 9,052 | $ | 6,710 | |||||
Adjusted EBITDA margin (4) | 26 | % | 24 | % | 22 | % | 19 | % | |||||
Adjusted Earnings per Diluted Share Reconciliation | |||||||||||||
Net loss per common share (GAAP) — diluted | $ | (0.08) | $ | (0.12) | $ | (0.25) | $ | (0.36) | |||||
Change in fair value of contingent consideration | — | 0.01 | (0.10) | 0.01 | |||||||||
Interest expense, net | 0.02 | 0.02 | 0.08 | 0.07 | |||||||||
Stock-based compensation expense | 0.11 | 0.11 | 0.40 | 0.36 | |||||||||
Acquisition expense (1) | — | 0.01 | — | 0.04 | |||||||||
Litigation expense (2) | 0.10 | 0.09 | 0.26 | 0.20 | |||||||||
Severance expense (3) | — | — | 0.02 | — | |||||||||
Lost deposit on alternative financing | — | — | — | — | |||||||||
Depreciation and amortization | 0.08 | 0.06 | 0.28 | 0.21 | |||||||||
Loss on disposal or impairment of long-lived assets | — | — | — | — | |||||||||
Loss on extinguishment of debt | — | — | 0.02 | — | |||||||||
Adjusted earnings per diluted share (5) | $ | 0.22 | $ | 0.18 | $ | 0.72 | $ | 0.55 | |||||
Diluted weighted average shares (GAAP) | 12,414 | 12,176 | 12,416 | 11,888 | |||||||||
Includable incremental shares (Non-GAAP) (5) | 231 | 510 | 143 | 413 | |||||||||
Adjusted diluted shares (Non-GAAP) | 12,645 | 12,686 | 12,559 | 12,301 | |||||||||
(1) | Represents professional fees incurred in connection with the acquisition of ADA Site Compliance. |
(2) | Represents legal expenses related primarily to non-recurring litigation. |
(3) | Represents severance expense for employee from previously acquired ADA Site Compliance. |
(4) | Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of GAAP revenue. |
(5) | Adjusted earnings per adjusted diluted share for our common stock is computed using the treasury stock method. |
AUDIOEYE, INC. RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||||||||
Adjusted Gross Margin Reconciliation | |||||||||||||
Revenue | $ | 10,494 | $ | 9,723 | $ | 40,311 | $ | 35,201 | |||||
Less: Cost of revenue | 2,210 | 1,913 | 8,755 | 7,261 | |||||||||
Gross profit (GAAP) | $ | 8,284 | $ | 7,810 | $ | 31,556 | $ | 27,940 | |||||
Gross margin (GAAP) | 79 | % | 80 | % | 78 | % | 79 | % | |||||
Add expenses included in cost of revenue: | |||||||||||||
Depreciation and amortization | $ | 509 | $ | 444 | $ | 1,942 | $ | 1,736 | |||||
Stock-based compensation | 87 | 86 | 285 | 254 | |||||||||
Adjusted gross profit (non-GAAP) | $ | 8,880 | $ | 8,340 | $ | 33,783 | $ | 29,930 | |||||
Adjusted gross margin (non-GAAP) | 85 | % | 86 | % | 84 | % | 85 | % | |||||
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SOURCE AudioEye, Inc.
FAQ
What were AudioEye's (AEYE) full-year 2025 revenue and adjusted EBITDA results?
How much did AudioEye (AEYE) annual recurring revenue (ARR) reach at year-end 2025?
What guidance did AudioEye (AEYE) provide for full-year 2026 revenue and EBITDA growth?
How did AudioEye (AEYE) perform in the fourth quarter of 2025 on adjusted EPS and adjusted EBITDA?
What product or platform update did AudioEye (AEYE) announce in March 2026?