Want to see AEYE full AI Analyst Report?
Top Page
AudioEye
(NASDAQ:AEYE)
Select Model
Select Model
Rating:62Neutral
Price Target:
$6.00
▲(5.82% Upside)
Action:Reiterated
Date:07/07/26
The score is driven primarily by improving financial fundamentals—strong gross margins, solid and improving free cash flow, and reduced leverage—plus supportive, margin-expansion guidance from the latest earnings call. Offsetting these positives are continued GAAP losses (negative P/E) and a mixed technical picture, with the stock still below its 200-day moving average and MACD remaining negative.
Positive Factors
Free Cash Flow Generation
Consistent positive operating and free cash flow despite GAAP losses indicates durable cash conversion from operations. This strengthens liquidity, reduces reliance on external financing, and funds product investment and margin expansion over the next 2–6 months while management executes on efficiency targets.
Negative Factors
GAAP Profitability
Persistent GAAP losses and negative returns on equity remain a structural constraint. Until GAAP profitability or sustained adjusted-to-GAAP convergence is achieved, equity dilution or constrained reinvestment remain risks, and net losses could pressure balance sheet cushions if trends reverse.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent positive operating and free cash flow despite GAAP losses indicates durable cash conversion from operations. This strengthens liquidity, reduces reliance on external financing, and funds product investment and margin expansion over the next 2–6 months while management executes on efficiency targets.
Read all positive factors
AudioEye (AEYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.59M
Dividend YieldN/A
Average Volume (3M)142.78K
Price to Earnings (P/E)―
Beta (1Y)2.69
Revenue Growth11.61%
EPS Growth25.96%
CountryUS
Employees116
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.37
Shares Outstanding12,493,415
10 Day Avg. Volume70,991
30 Day Avg. Volume142,781
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$11.00Price Target Upside94.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.94
Revenue Forecast (FY)$43.88M
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 website and digital accessibility solutions to businesses and organizations, generally under recurring subscription arrangements for access to its accessibility software/platform and ongoing monitoring. A ...
AudioEye Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong underlying recurring revenue growth (ARR +11% YoY and sequential), expanding adjusted EBITDA and margin improvement, improving free cash flow and disciplined capital structure with raised adjusted EBITDA guidance and a target run-rate >$15M by year-end. Key operational positives include partner-led SMB growth (16% YoY), improved gross margins, and efficiency gains from AI. Offsetting items include a continuing net loss (albeit improved on an adjusted basis), lingering litigation expenses and related uncertainty, modest near-term revenue guidance acceleration, and enterprise revenue being flat as nonrecurring work converts to recurring ARR. On balance, the positive operating leverage, margin expansion, cash flow trajectory and guidance raise outweigh the lowlights.Positive Updates
Consecutive Revenue Growth Streak
42nd consecutive quarter of sequential revenue growth; Q2 revenue of $10.7M, up 9% year-over-year.
Negative Updates
Net Loss Remains
Net loss of $0.9M ($0.07 per share) in Q2 versus breakeven in the prior-year quarter (prior period benefited from a $1.4M contingent consideration revaluation).
Read all updates
Q2-2026 Updates
Positive
Negative
Consecutive Revenue Growth Streak
42nd consecutive quarter of sequential revenue growth; Q2 revenue of $10.7M, up 9% year-over-year.
Read all positive updates
Company Guidance
AudioEye guided Q3 2026 revenue of $10.85–$11.05 million (≈$235k sequential increase at the midpoint), Q3 adjusted EBITDA of $3.4–$3.6 million (~32% margin at the midpoint) and adjusted EPS of $0.26–$0.28; for FY2026 it tightened revenue to $43.5–$44.0 million (midpoint unchanged), raised adjusted EBITDA guidance to $12.7 million (from at least $12M) implying ~29% adjusted EBITDA margin at the revenue midpoint and ~40% YoY adjusted EBITDA growth, reiterated adjusted EPS of at least $0.98, and expects a run‑rate adjusted EBITDA of >$15M by year‑end; at the Q3 midpoint, $3.5M of adjusted EBITDA less ~$400k of capitalized software development implies ~$3.1M of adjusted free cash flow, which management expects to accelerate in Q4 as litigation expense trends down in H2, enabling substantial cash generation.AudioEye Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
67
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.99M | 40.31M | 35.20M | 31.32M | 29.91M | 24.50M |
| Gross Profit | 32.90M | 31.56M | 27.94M | 24.34M | 22.69M | 18.38M |
| EBITDA | -1.36M | 1.44M | -635.00K | -3.25M | -7.76M | -12.61M |
| Net Income | -4.58M | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M |
Balance Sheet | ||||||
| Total Assets | 34.88M | 32.23M | 29.77M | 25.50M | 24.43M | 29.31M |
| Cash, Cash Equivalents and Short-Term Investments | 8.72M | 5.29M | 5.65M | 9.24M | 6.90M | 18.97M |
| Total Debt | 1.17M | 13.20M | 7.24M | 7.46M | 1.26M | 967.00K |
| Total Liabilities | 31.66M | 27.43M | 20.33M | 18.79M | 13.84M | 11.72M |
| Stockholders Equity | 3.22M | 4.80M | 9.44M | 6.71M | 10.59M | 17.60M |
Cash Flow | ||||||
| Free Cash Flow | 3.55M | 4.70M | 790.00K | -1.84M | -6.25M | -6.55M |
| Operating Cash Flow | 3.58M | 4.75M | 2.73M | 318.00K | -5.00M | -4.98M |
| Investing Cash Flow | -2.67M | -4.20M | -7.21M | -2.16M | -5.73M | -1.62M |
| Financing Cash Flow | -1.34M | -920.00K | 898.00K | 4.17M | -1.33M | 16.48M |
AudioEye Technical Analysis
Negative
5.67
Price Trends
6.37
Negative
6.68
Negative
8.31
Negative
Market Momentum
-0.19
Negative
42.18
Neutral
45.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEYE, the sentiment is Negative. The current price of 5.67 is below the 20-day moving average (MA) of 5.98, below the 50-day MA of 6.37, and below the 200-day MA of 8.31, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $202.43M | -13.33 | -11.54% | ― | -4.27% | 1.47% | |
62 Neutral | $72.59M | -15.73 | -70.95% | ― | 11.61% | 25.96% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $105.57M | -6.41 | -20.76% | ― | -4.78% | -90.32% | |
55 Neutral | $65.48M | 21.85 | 2.62% | ― | -6.77% | -78.54% |
* Technology Sector Average
AEYE
AudioEye
5.81
-5.37
-48.03%
SSTI
SoundThinking Inc
8.27
-4.25
-33.95%
MAPS
WM Technology
0.39
-0.86
-68.48%
EXFY
Expensify
2.22
0.42
23.33%
AudioEye Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
AudioEye names new CFO to support growth
Positive
Jun 18, 2026
AudioEye has appointed Matthew Domeyer as Chief Financial Officer, effective July 20, 2026, following a board decision on June 17, 2026 and as part of a broader leadership transition that saw former CFO Kelly Georgevich become CEO on May 4, 2026. ...
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.