AudioEye(AEYE) - 2025 Q3 - Quarterly Results

Financial Performance - AudioEye reported record revenue of over $10.2 million for Q3 2025, a 15% increase from $8.9 million in the same period last year[4] - Adjusted EBITDA for Q3 2025 was $2.5 million, compared to $2.0 million in Q3 2024, reflecting a strong performance[4] - Revenue for Q3 2025 was $10,227,000, representing a 14.6% increase from $8,925,000 in Q3 2024[22] - Adjusted EBITDA for Q3 2025 was $2,453,000, compared to $2,030,000 in Q3 2024, marking a 20.8% increase[25] - Full-year 2025 revenue guidance has been updated to between $40.3 million and $40.4 million, indicating approximately 15% year-over-year growth at the midpoint[4] Profitability Metrics - The net loss for Q3 2025 was $0.6 million, or $(0.04) per share, an improvement from a net loss of $1.2 million, or $(0.10) per share, in the same prior year period[4] - Net loss for Q3 2025 was $554,000, an improvement compared to a net loss of $1,202,000 in Q3 2024, reflecting a 53.8% reduction in losses[22] - The company reported an adjusted earnings per diluted share of $0.19 for Q3 2025, up from $0.16 in Q3 2024[25] Customer Growth - As of September 30, 2025, Annual Recurring Revenue (ARR) increased to $38.7 million from $38.2 million as of June 30, 2025[4] - The company had approximately 123,000 customers as of September 30, 2025, an increase of 3,000 from June 30, 2025[4] Cost and Expenses - Gross profit for Q3 2025 was $7.9 million, representing 77% of total revenue, down from 80% in the same prior year period due to increased costs[4] - Gross profit for Q3 2025 was $7,915,000, up from $7,102,000 in Q3 2024, indicating an increase of 11.4%[22] - Research and development expenses for Q3 2025 were $1,118,000, slightly down from $1,151,000 in Q3 2024[22] - Selling and marketing expenses increased to $3,649,000 in Q3 2025 from $3,148,000 in Q3 2024, reflecting a 15.9% increase[22] Market Expansion - AudioEye is expanding into the European market through a strategic partnership with Creode, targeting financial services and enterprise organizations[4] Future Projections - The company aims to grow adjusted EPS and EPS annually by 30-40% over the next three years[2] - The company expects Q4 2025 revenue to be between $10.45 million and $10.6 million, with adjusted EBITDA projected at $2.7 million to $2.8 million[4] Asset and Liability Overview - Total assets as of September 30, 2025, were $30,478,000, a slight increase from $29,766,000 as of December 31, 2024[24] - Cash and cash equivalents decreased to $4,550,000 from $5,651,000, indicating a decline of 19.5%[24] - Total liabilities increased to $24,827,000 as of September 30, 2025, compared to $20,330,000 at the end of 2024, representing a 22.3% rise[24]