Audioeye (NASDAQ:AEYE) Posts Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Audioeye (NASDAQ:AEYE) posted its quarterly earnings data on Thursday. The company reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.01, FiscalAI reports. Audioeye had a negative net margin of 7.63% and a positive return on equity of 51.88%. The firm had revenue of $10.49 million during the quarter, compared to analysts’ expectations of $10.48 million. Audioeye updated its FY 2026 guidance to .94- EPS and its Q1 2026 guidance to 0.170-0.180 EPS.

Here are the key takeaways from Audioeye’s conference call:

• 40th consecutive quarter of sequential revenue growth; record full-year revenue and adjusted EBITDA of ~$9.1M (+35% YoY) with 2026 guidance of at least $11.8M adjusted EBITDA and a targeted run‑rate of $15M by year‑end.
• ARR finished Q4 at $40M (up 9% YoY), management says acquired-customer integrations are substantially complete and expects ARR growth to outpace revenue in 2026 as they shift away from non‑recurring revenue.
• Released a next‑generation platform that combines AI detection, expert audits and custom fixes — company claims 3–4x the legal protection of competitors and cites an independent study showing AudioEye found 89%–253% more WCAG issues.
• Management expects 2026 to be the highest year on record for digital accessibility lawsuits and cites DOJ Title II and EU enforcement as demand drivers, while warning that AI may be worsening accessibility failures.
• Financially stronger: adjusted gross margin remains high (~84–85%), free cash flow improved to ~$7.2M in 2025, net debt/adjusted EBITDA ≈0.7x, and the company repurchased ~$4.6M of shares, leaving modest cash and available debt capacity.

Audioeye Stock Down 22.4%

AEYE stock traded down $1.76 during midday trading on Friday, hitting $6.11. The company’s stock had a trading volume of 711,359 shares, compared to its average volume of 167,221. The firm has a 50-day simple moving average of $8.43 and a 200-day simple moving average of $11.39. The firm has a market capitalization of $75.89 million, a P/E ratio of -25.46 and a beta of 0.63. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 2.23. Audioeye has a 52-week low of $6.10 and a 52-week high of $16.39.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Audioeye by 19.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,904 shares of the company’s stock worth $54,000 after purchasing an additional 806 shares during the period. Wells Fargo & Company MN grew its position in shares of Audioeye by 64.6% during the fourth quarter. Wells Fargo & Company MN now owns 9,762 shares of the company’s stock worth $98,000 after buying an additional 3,832 shares in the last quarter. Quadrature Capital Ltd acquired a new position in shares of Audioeye during the fourth quarter worth about $105,000. Renaissance Technologies LLC purchased a new stake in shares of Audioeye during the fourth quarter worth approximately $107,000. Finally, Rhumbline Advisers raised its holdings in Audioeye by 14.5% in the first quarter. Rhumbline Advisers now owns 10,360 shares of the company’s stock valued at $115,000 after acquiring an additional 1,313 shares in the last quarter. 51.11% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

AEYE has been the topic of a number of research reports. HC Wainwright set a $18.00 price target on Audioeye and gave the stock a “buy” rating in a research note on Tuesday, January 27th. Roth Mkm reaffirmed a “buy” rating on shares of Audioeye in a research note on Tuesday, January 13th. Craig Hallum reiterated a “buy” rating and issued a $16.00 price objective (down from $20.00) on shares of Audioeye in a report on Friday. Needham & Company LLC decreased their target price on Audioeye from $25.00 to $15.00 and set a “buy” rating on the stock in a research note on Friday. Finally, B. Riley Financial lowered their target price on Audioeye from $19.00 to $15.50 and set a “buy” rating for the company in a report on Friday. Five equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Audioeye currently has a consensus rating of “Moderate Buy” and an average target price of $16.13.

More Audioeye News

Here are the key news stories impacting Audioeye this week:

• Positive Sentiment: Reported record fourth-quarter and full‑year 2025 results, marking the company’s 40th consecutive period of record revenue; beat Q4 EPS and revenue estimates, which supports the upbeat FY guidance. Read More.
• Positive Sentiment: Raised FY‑2026 and Q1‑2026 guidance meaningfully above consensus (FY EPS guide ~0.94 vs. street ~0.67; Q1 EPS guide 0.170–0.180 vs. consensus ~0.150), implying stronger profitability and revenue outlook for 2026. Read More.
• Positive Sentiment: Outlined an operational plan to drive at least 30% adjusted EBITDA growth in 2026 tied to a new AI‑driven platform, which could lift margins and investor expectations if execution follows. Read More.
• Neutral Sentiment: Q4 results were modest beats (EPS $0.22 vs. $0.21 est.; revenue $10.49M vs. $10.48M est.), positive but not a large surprise—investors will look to cadence and execution on 2026 targets. Read More.
• Neutral Sentiment: Two brokers (B. Riley and Needham) lowered price targets (to $15.50 and $15.00) but kept “buy” ratings — still implying substantial upside from current levels, though the cuts may temper short‑term momentum. Read More.
• Negative Sentiment: Data feeds reported a “significant increase” in short interest for March, but the underlying numbers show zero shares/NaN and a 0.0 days ratio—conflicting/erroneous short‑interest reports can trigger knee‑jerk selling or uncertainty. Read More.

About Audioeye

AudioEye, Inc is a provider of digital accessibility solutions, offering software and services designed to help organizations ensure their online properties comply with Web Content Accessibility Guidelines (WCAG), the Americans with Disabilities Act (ADA) and other global accessibility standards. Through its cloud-based platform, the company automates the detection and remediation of accessibility barriers in websites, mobile applications and multimedia content.

The company’s flagship AEYE Platform leverages machine learning, artificial intelligence and human validation to continuously scan digital assets, identify potential compliance issues and deploy corrective overlays or code adjustments.