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AudioEye (AEYE) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.56%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.15, delivering a surprise of -6.25%.Over the last four quarters, the company has sur ...

Financial Data and Key Metrics Changes - The company achieved record revenue of $10.2 million in Q3 2025, marking a 15% increase year-over-year and a $370,000 increase sequentially [9] - Adjusted EBITDA reached a record $2.5 million, up from $1.9 million sequentially, with an adjusted EBITDA margin of 24% [4][9] - Annual recurring revenue (ARR) at the end of Q3 2025 was $38.7 million, a $2.5 million increase year-over-year and a $500,000 increase from Q2 2025 [9] Business Line Data and Key Metrics Changes - The enterprise channel contributed approximately 45% of revenue and 42% of ARR, growing around 26% year-over-year [10] - The partner and marketplace channel contributed around 55% of revenue and 58% of ARR, with a growth rate of approximately 7% year-over-year [10] - Customer count was approximately 123,000, a sequential increase of 3,000 from Q2 2025, but a decrease of 3,000 from Q3 2024 due to a partner renegotiation [11] Market Data and Key Metrics Changes - The company is experiencing significant momentum in the EU market, with several late-stage deals expected to close, contributing to a record quarter in new business ARR [5][16] - The partner and marketplace channel is anticipated to grow further due to the upcoming DOJ Title II rule, which begins to take effect in May 2026 [5] Company Strategy and Development Direction - The company has made significant investments in R&D and go-to-market strategies, particularly in the enterprise channel, which are now yielding positive results [4] - The integration of customers from small acquisitions is on track to be completed, which is expected to improve margins moving forward [5][10] - The company aims to increase adjusted EBITDA and adjusted EPS by 30%-40% annually for the next three years, relying on revenue growth, gross margin expansion, and cost discipline [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of ARR and operating leverage, with expectations for significant increases in Q4 2025 [8] - The company is excited about advancements in AI, particularly the integration of the Playwright framework with the Model Context Protocol, which is expected to enhance product efficiency and accuracy [6][7] Other Important Information - The company repurchased approximately 154,000 shares in Q3 2025, totaling around 300,000 shares repurchased in 2025 [7][13] - Free cash flow for Q3 2025 was $2 million, with expectations for continued increases in Q4 [14] Q&A Session Summary Question: Can you speak to the momentum in the EU and partnerships with CREO and Motability? - Management noted that there were deals closed in Q3 and large deals in the late-stage pipeline, expecting a substantial pickup once fines are issued [16] Question: What is the status of the platform migration? - Management confirmed that the migration is progressing well, with most customers expected to be on the new platform this quarter [17] Question: Has the government shutdown impacted compliance adoption rates under Title II of the ADA? - Management indicated that there has been no observed impact from the government shutdown [18] Question: How has the pipeline developed over the past quarter, and what about close rates? - Management stated that it is too early to determine close rates, but the pipeline in the EU is growing with good opportunities [22] Question: What is the average deal size in Europe compared to the US? - Management mentioned that the average deal size in Europe is about 50% higher than in the US, primarily due to more enterprise deals [28] Question: How do you plan to achieve the aspirational goal of 30%-40% growth in Adjusted EBITDA? - Management explained that achieving this goal will require continued revenue growth, gross margin opportunities, and efficient cost management [31]

Revenue and Growth - Total revenue for the three months ended September 30, 2025, was $10,227,000, representing a 15% increase from $8,925,000 in the same period of 2024[116]. - Annual Recurring Revenue (ARR) as of September 30, 2025, was approximately $38.7 million, reflecting a 7% year-over-year increase[107]. - Revenue from the Partner and Marketplace channel grew by 11% to $16,501,000 for the nine months ended September 30, 2025, while Enterprise channel revenue increased by 26% to $13,316,000[109]. - As of September 30, 2025, annual recurring revenue (ARR) was $38.7 million, representing a 7% year-over-year increase driven by growth in both Partner and Marketplace channel and Enterprise channel[135]. Customer Metrics - The number of customers decreased by 2% to approximately 123,000 as of September 30, 2025, down from 126,000 a year earlier[108]. Profitability - Gross profit for the three months ended September 30, 2025, was $7,915,000, an 11% increase from $7,102,000 in the prior year[120]. - The net loss for the three months ended September 30, 2025, was $554,000, a 54% improvement compared to a net loss of $1,202,000 in the same period of 2024[116]. Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $24,288,000, a 9% increase from $22,249,000 in the same period of 2024[116]. - Selling and marketing expenses increased by 22% to $11,169,000 for the nine months ended September 30, 2025, compared to $9,122,000 in the prior year[112]. - Selling and marketing expenses increased by 16% to $3,649,000 for the three months ended September 30, 2025, and by 22% to $11,169,000 for the nine months ended September 30, 2025, compared to the prior year periods[123][124]. - Research and development expenses accounted for 16% of total revenue in the nine months ended September 30, 2025[111]. - Research and development expenses decreased by 3% to $1,118,000 for the three months ended September 30, 2025, and by 6% to $3,471,000 for the nine months ended September 30, 2025, compared to the prior year periods[125][126]. - General and administrative expenses decreased by 8% to $3,506,000 for the three months ended September 30, 2025, but increased by 16% to $10,998,000 for the nine months ended September 30, 2025, compared to the prior year periods[127][128]. Financial Position - Working capital as of September 30, 2025, was $(23,000), a decrease of $0.6 million from December 31, 2024, primarily due to a portion of the term loan classified as a current liability[136]. - The company had $4,550,000 in cash and cash equivalents as of September 30, 2025[136]. Cash Flow - In the nine months ended September 30, 2025, cash provided by operating activities increased to $2,220,000, primarily due to no payments towards contingent consideration in the current year[141]. Other Financial Metrics - The change in fair value of contingent consideration showed a significant increase of 11,150% to $(1,338,000) for the nine months ended September 30, 2025, due to a reduction in estimated earnout payable[129][130]. - Interest expense, net increased by 12% to $(236,000) for the three months ended September 30, 2025, and by 10% to $(709,000) for the nine months ended September 30, 2025, compared to the prior year periods[131][132]. Share Repurchase Program - The company adopted a share repurchase program in January 2025, authorizing the repurchase of up to $12.5 million of common stock, with $3.59 million utilized for repurchases by September 30, 2025[137].

Exhibit 99.1 AudioEye Reports Record Third Quarter 2025 Results Thirty-Ninth Consecutive Period of Record Revenue TUCSON, Ariz. — November 4, 2025 — AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"), the industry-leading digital accessibility company, reported financial results for the third quarter ended September 30, 2025. "AudioEye achieved another record quarter with over $10.2 million in revenue, record adjusted EBITDA and margin, and strong GAAP results," said AudioEye CEO David Moradi. "In ...

Accessibility StatementSkip Navigation The Company is updating its full-year 2025 revenue guidance to between $40.3M and $40.4M, representing approximately 15% year-over-year growth at the midpoint. The Company is updating its 2025 expected adjusted EBITDA to between $9.0M and $9.1M, representing a 35% year-over-year increase at the midpoint, and expects adjusted EPS of $0.72 to $0.73 per share. Total revenue increased 15% to a record $10.2M from $8.9M in the same prior year period. Gross profit increased t ...

AudioEye (AEYE) closed the most recent trading day at $14.27, moving +1.13% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 0.72%, and the technology-centric Nasdaq increased by 1.86%. Shares of the company have depreciated by 0.74% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.45%.The upcoming earnings release of AudioEye ...

Core Points - AudioEye, Inc. will hold a conference call on November 4, 2025, at 4:30 p.m. Eastern Time to discuss its financial results for Q3 2025 [1][2] - The conference call will include a question and answer session and will be available for live webcast and replay on the company's investor relations website [2][3] - AudioEye is recognized as a leader in digital accessibility, providing solutions that combine AI automation with expert fixes, serving over 120,000 customers including notable brands like Samsung and Calvin Klein [3] Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be released in a press release prior to the conference call [1] - A telephonic replay of the conference call will be available after 7:30 p.m. Eastern Time on the same day through November 18, 2025 [3] Company Overview - AudioEye aims to ensure digital accessibility, offering a comprehensive solution that includes 24/7 monitoring, automated WCAG issue testing, and legal protection [3] - The company holds 24 US patents related to its accessibility solutions [3]

Core Insights - AudioEye's stock price decreased by 1.62% to $13.93, underperforming compared to the S&P 500's loss of 0.55% [1] - The stock has increased by 18.3% over the past month, outperforming the Computer and Technology sector's gain of 9.88% and the S&P 500's gain of 3.64% [1] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $0.18, representing a 12.5% increase from the same quarter last year [2] - Revenue is projected to be $10.25 million, reflecting a 14.78% rise year-over-year [2] Annual Forecast - For the full year, earnings are expected to be $0.70 per share and revenue at $40.47 million, indicating increases of 27.27% and 14.96% respectively compared to the previous year [3] - Recent analyst estimate revisions suggest a positive outlook on the company's business health and profitability [3] Valuation Metrics - AudioEye's Forward P/E ratio is 20.23, which is a discount compared to the industry average Forward P/E of 32.31 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that AudioEye is currently rated 3 (Hold) [5] - The Zacks Rank has a historical track record of outperforming expectations, with 1 rated stocks delivering an average annual return of +25% since 1988 [5]

Core Insights - AudioEye, Inc. has announced a partnership with Creode to enhance digital accessibility solutions for financial services and enterprise organizations, addressing the growing demand for compliance with the European Accessibility Act (EAA) and other global regulations [1][2][3] Group 1: Partnership Details - The partnership will integrate AudioEye's accessibility platform into Creode's digital services, allowing for comprehensive solutions to accessibility issues at scale [1][2] - This collaboration aims to expand AudioEye's international presence in highly regulated industries, particularly in Europe [1][3] Group 2: Regulatory Context - The EAA, effective from June 28, 2025, builds on the EU's Web Accessibility Directive, increasing digital accessibility requirements across Europe [2] - As regulations strengthen, the partnership will help clients ensure ongoing compliance with accessibility standards [2][3] Group 3: Strategic Importance - Digital accessibility is emphasized as a business imperative, especially for industries like financial services that are heavily regulated [3] - The partnership allows Creode to embed accessibility into its core digital services, ensuring compliance from the outset of web design and development [3][4] Group 4: Company Backgrounds - Creode is a UK-based digital agency specializing in marketing solutions for the financial services sector, focusing on building customer relationships and driving growth [5][6] - AudioEye is recognized as a leader in digital accessibility, providing a comprehensive solution that combines AI automation with expert fixes, serving over 120,000 customers [7]