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AudioEye
(NASDAQ:AEYE)
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Rating:61Neutral
Price Target:
$8.00
▲(8.55% Upside)
Action:Reiterated
Date:09/19/26
Overall score reflects improving financial trajectory (high margins, reduced leverage, and positive operating/free cash flow) and supportive earnings-call guidance with expanding adjusted EBITDA and expected cash generation. Offsetting this are continued GAAP losses/negative ROE and a weaker valuation signal due to the negative P/E, while technicals are only moderately constructive with the stock still below the 200-day moving average.
Positive Factors
Recurring revenue growth
Sustained ARR expansion and a long streak of sequential revenue growth indicate ongoing customer adoption of AudioEye’s accessibility platform. Recurring contracts can improve revenue visibility, support renewals and expansions, and provide a durable base for continued operating leverage.
Negative Factors
Persistent GAAP losses
AudioEye has improved revenue and adjusted profitability but has not yet demonstrated durable GAAP earnings power. Continued operating and net losses can constrain internally funded growth, pressure the equity base through time, and leave results more dependent on further cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Sustained ARR expansion and a long streak of sequential revenue growth indicate ongoing customer adoption of AudioEye’s accessibility platform. Recurring contracts can improve revenue visibility, support renewals and expansions, and provide a durable base for continued operating leverage.
Read all positive factors
AudioEye (AEYE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$88.68M
Dividend YieldN/A
Average Volume (3M)141.40K
Price to Earnings (P/E)―
Beta (1Y)2.58
Revenue Growth9.81%
EPS Growth-7.88%
CountryUS
Employees116
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.37
Shares Outstanding12,569,674
10 Day Avg. Volume59,222
30 Day Avg. Volume141,395
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 Cap0.91
Enterprise Value/Revenue1.92
Enterprise Value/Gross Profit2.45
Enterprise Value/Ebitda-236.31
Forecast
1Y Price Target
$11.00Price Target Upside49.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.99
Revenue Forecast (FY)$43.68M
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: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
44
Neutral
Balance Sheet
61
Positive
Cash Flow
72
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 | -341.00K | 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 | 5.83M | 4.70M | 790.00K | -1.84M | -6.25M | -6.55M |
| Operating Cash Flow | 5.86M | 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
Positive
7.37
Price Trends
7.01
Positive
6.85
Positive
7.20
Negative
Market Momentum
-0.07
Positive
50.79
Neutral
69.45
Neutral
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 above the 20-day moving average (MA) of 7.01, above the 50-day MA of 7.01, and above the 200-day MA of 7.20, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 69.45 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $222.50M | -14.65 | -11.54% | ― | -4.27% | 1.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $88.68M | -19.10 | -108.80% | ― | 9.81% | -7.88% | |
53 Neutral | $110.29M | -6.46 | -23.77% | ― | -5.72% | -60.57% | |
52 Neutral | $52.11M | 17.76 | 3.52% | ― | -6.77% | -78.54% |
* Technology Sector Average
AEYE
AudioEye
6.99
-7.11
-50.43%
SSTI
SoundThinking Inc
8.26
-3.42
-29.28%
MAPS
WM Technology
0.32
-0.79
-71.35%
EXFY
Expensify
2.44
0.73
42.69%
AudioEye Corporate Events
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.