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AudioEye
(NASDAQ:AEYE)
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Rating:70Outperform
Price Target:
$14.50
▲(96.74% Upside)
Action:Upgraded
Date:10/31/26
AEYE scores well primarily due to improving financial quality (strong cash flow, reduced leverage, and high gross margins) and a very positive earnings update with upbeat guidance and accelerating profitability metrics. Technicals support the trend but are stretched (very high RSI/stochastic), adding near-term volatility risk. Valuation remains a drag given the negative P/E and no dividend.
Positive Factors
Recurring Revenue and Customer Growth
Growing ARR and customer accounts indicate expanding adoption of AudioEye’s recurring accessibility platform. This supports more predictable revenue, creates opportunities for renewals and upsells, and strengthens the company’s position as customers build ongoing compliance programs.
Negative Factors
Profitability Is Not Yet Consistent
The company has not yet demonstrated consistently durable GAAP profitability across the trailing period. Continued operating and net losses could limit internally funded investment, weaken the equity cushion, and make future results more sensitive to execution and cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue and Customer Growth
Growing ARR and customer accounts indicate expanding adoption of AudioEye’s recurring accessibility platform. This supports more predictable revenue, creates opportunities for renewals and upsells, and strengthens the company’s position as customers build ongoing compliance programs.
Read all positive factors
AudioEye (AEYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$165.28M
Dividend YieldN/A
Average Volume (3M)180.86K
Price to Earnings (P/E)―
Beta (1Y)2.37
Revenue Growth8.06%
EPS Growth14.22%
CountryUS
Employees116
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.24
Shares Outstanding12,684,577
10 Day Avg. Volume396,340
30 Day Avg. Volume180,864
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)25.82
Price to Sales (P/S)3.08
P/FCF Ratio26.40
Enterprise Value/Market Cap0.57
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit2.77
Enterprise Value/Ebitda78.58
Forecast
1Y Price Target
$15.67Price Target Upside112.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.99
Revenue Forecast (FY)$43.63M
AudioEye Business Overview & Revenue Model
Company Description
AudioEye, Inc. provides patented, Internet content publication and distribution software and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. Its software and servic...
How the Company Makes Money
AudioEye primarily makes money by selling digital accessibility solutions on a recurring basis (typically subscriptions) that enable customers to scan, monitor, and remediate accessibility issues on their websites and digital properties. Key reven...
AudioEye Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record revenue, profitability, adjusted EBITDA, margins and free cash flow, raised adjusted EBITDA guidance, continued ARR and customer growth, new AI product launches, regulatory demand drivers and a share repurchase program. The main challenges were flat enterprise revenue, the early stage of monetization for the new AI products, continued customer education needs and persistent accessibility issues in AI-generated websites.Positive Updates
Record Revenue and Profitability
AudioEye reported approximately $11 million of Q3 revenue, its 43rd consecutive quarter of record revenue. GAAP net income was $1 million, or $0.08 per diluted share, compared with a $0.6 million net loss, or $0.04 loss per share, in Q3 2025.
Negative Updates
Enterprise Revenue Was Flat Year-over-Year
Q3 enterprise revenue was relatively flat year-over-year because lower nonrecurring revenue offset increases in recurring revenue. Management said the company reduced its emphasis on nonrecurring revenue in 2026 to focus on growing ARR.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Profitability
AudioEye reported approximately $11 million of Q3 revenue, its 43rd consecutive quarter of record revenue. GAAP net income was $1 million, or $0.08 per diluted share, compared with a $0.6 million net loss, or $0.04 loss per share, in Q3 2025.
Read all positive updates
Company Guidance
For the fourth quarter of 2026, AudioEye expects revenue between $11.4 million and $11.6 million, a sequential increase from the third quarter of 2026 of approximately $550,000 at the midpoint and approximately 20% annualized sequential revenue growth; adjusted EBITDA between $4.2 million and $4.4 million, a 56% increase over the fourth quarter of 2025 at the midpoint and an adjusted EBITDA margin of approximately 37%; and adjusted EPS between $0.32 and $0.33 per share. For the full year 2026, it expects revenue between $43.6 million and $43.8 million and adjusted EBITDA between $13.4 million and $13.6 million, representing approximately 50% year-over-year growth, compared with prior guidance of at least $12.7 million; Q4 adjusted EBITDA guidance represents an annualized run rate of over $17 million and an annualized run rate for adjusted EPS of around $1.30 in Q4. At the midpoint of Q4 guidance, adjusted EBITDA of $4.3 million less around $400,000 of software development costs implies $3.9 million of adjusted free cash flow; the company expects meaningful free cash flow generation in Q4 and into 2027, cash generation to ramp significantly in Q4 and 2027, further decreases in litigation expense in the fourth quarter, and approximately 50% growth in adjusted EBITDA in 2026.AudioEye Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
57
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.73M | 40.31M | 35.20M | 31.32M | 29.91M | 24.50M |
| Gross Profit | 34.08M | 31.56M | 27.94M | 24.34M | 22.69M | 18.38M |
| EBITDA | 1.20M | 1.44M | -635.00K | -3.25M | -7.76M | -12.61M |
| Net Income | -3.04M | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M |
Balance Sheet | ||||||
| Total Assets | 33.93M | 32.23M | 29.77M | 25.50M | 24.43M | 29.31M |
| Cash, Cash Equivalents and Short-Term Investments | 9.33M | 5.29M | 5.65M | 9.24M | 6.90M | 18.97M |
| Total Debt | 16.54M | 13.20M | 7.24M | 7.46M | 1.26M | 967.00K |
| Total Liabilities | 28.85M | 27.43M | 20.33M | 18.79M | 13.84M | 11.72M |
| Stockholders Equity | 5.08M | 4.80M | 9.44M | 6.71M | 10.59M | 17.60M |
Cash Flow | ||||||
| Free Cash Flow | 6.11M | 4.70M | 790.00K | -1.84M | -6.25M | -6.55M |
| Operating Cash Flow | 6.57M | 4.75M | 2.73M | 318.00K | -5.00M | -4.98M |
| Investing Cash Flow | -2.42M | -4.20M | -7.21M | -2.16M | -5.73M | -1.62M |
| Financing Cash Flow | 631.00K | -920.00K | 898.00K | 4.17M | -1.33M | 16.48M |
AudioEye Technical Analysis
Positive
7.37
Price Trends
7.54
Positive
6.98
Positive
7.10
Positive
Market Momentum
1.08
Negative
83.82
Negative
96.77
Negative
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 7.37 is below the 20-day moving average (MA) of 7.93, below the 50-day MA of 7.54, and above the 200-day MA of 7.10, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 83.82 is Negative, neither overbought nor oversold. The STOCH value of 96.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEYE.
AudioEye Risk Analysis
AudioEye disclosed 43 risk factors in its most recent earnings report. AudioEye reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AudioEye Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $165.28M | -53.25 | -74.71% | ― | 8.06% | 14.22% | |
64 Neutral | $214.29M | -14.11 | -11.54% | ― | -4.27% | 1.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $110.16M | -6.45 | -23.77% | 0.00% | -5.72% | -60.57% | |
52 Neutral | $47.42M | 16.12 | 3.52% | ― | -6.77% | -78.54% |
* Technology Sector Average
AEYE
AudioEye
13.03
-2.34
-15.22%
SSTI
SoundThinking Inc
8.32
-1.03
-11.02%
MAPS
WM Technology
0.30
-0.76
-71.90%
EXFY
Expensify
2.35
0.72
44.17%
AudioEye Corporate Events
Business Operations and StrategyStock Buyback
AudioEye Announces New $15 Million Share Repurchase Program
Positive
Oct 20, 2026
AudioEye, Inc., a Nasdaq-listed digital accessibility provider based in Tucson, Ariz., develops AI-powered tools and expert services that help organizations ensure their digital properties comply with accessibility standards while mitigating legal...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
AudioEye Amends Loan Agreement to Enhance Financial Flexibility
Positive
Sep 18, 2026
On September 18, 2026, AudioEye, Inc. amended its existing Loan and Security Agreement with Western Alliance Bank, revising how “Adjusted EBIDA” and “Adjusted EBITDA” are calculated to allow the company to add back certain ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.