Independent Study Finds AudioEye's Detection Exceeds Industry by 89-253% [Accessibility Statement] Skip NavigationAdience reveals wide differences in automated WCAG detection across accessibility toolsTUCSON, Ariz., Feb. 12, 2026 /PRNewswire/ -- [AudioEye, Inc.](Nasdaq: AEYE) ("AudioEye" or the "Company"), an industry-leading digital accessibility company, today announced the results of a [study] conducted by [Adience], a B2B market research agency, showing that AudioEye's automated accessibility technology ...

Financial Results - AudioEye, Inc. announced preliminary estimated unaudited financial results for Q4 2025 on January 13, 2026[6]. - The report is not deemed "filed" under the Securities Exchange Act of 1934, indicating it is preliminary information[7]. - The press release detailing financial results is attached as Exhibit 99.1[6]. Company Information - The company is listed on The Nasdaq Capital Market under the symbol AEYE[4]. - David Moradi serves as the Chief Executive Officer of AudioEye, Inc.[10].

Core Insights - The AI sector is facing increased scrutiny, with concerns about a potential bubble as evidenced by a nearly 14% decline in NVIDIA's shares since late October 2025, prompting mixed reactions from investors [3] - Despite the volatility, there is a growing interest in smaller AI firms, which, while riskier, present opportunities for risk-tolerant investors [4][7] Company Summaries - **NVIDIA Corp.**: As a leading player in the AI industry, NVIDIA's recent share decline may signal a broader market concern, yet it remains a key indicator for the sector [3] - **WhiteFiber Inc.**: The company is expanding its data center operations, with a projected revenue run rate of approximately $1 million per month from its Montreal facility. However, it reported a widening operating loss of $14.5 million due to increased general and administrative expenses, despite a 63% gross margin and third-quarter revenue of over $20 million, marking a year-over-year increase of nearly two-thirds [5][6] - **AudioEye and Red Violet**: These companies, alongside WhiteFiber, are highlighted for their growth potential in the AI space, despite the inherent risks associated with smaller firms [7]

Core Insights - AudioEye, Inc. has been recognized as a winner in the 2025 SaaS Awards for its innovative and results-driven software-as-a-service solutions that enhance compliance and reduce legal risk [1][2]. Group 1: Company Recognition - The recognition highlights AudioEye's use of responsible, outcome-driven AI technology to help organizations ensure compliance and monitor accessibility in real time [2]. - AudioEye was acknowledged alongside other leading SaaS innovators such as Gong, PagerDuty, and BambooHR [1]. Group 2: Technology and Impact - AudioEye's digital accessibility platform combines 24/7 automation, expert human testing, and custom code fixes, providing up to 400 percent greater legal protection compared to other market solutions [3]. - The platform executes 1.3 billion automated fixes daily and identifies up to 350 percent more accessibility issues, aiding organizations in maintaining ongoing compliance [3]. Group 3: Industry Leadership - The SaaS Awards recognition reflects the growing demand for partners who can deliver measurable and lasting compliance as legal and regulatory enforcement expands [4]. - AudioEye's technology and expertise are positioned to help organizations reduce legal risk and build long-term confidence in their digital accessibility programs [4]. Group 4: Company Overview - AudioEye serves over 123,000 customers, including notable brands like Samsung, Calvin Klein, and Samsonite, ensuring they meet and exceed compliance standards [6]. - The company holds 25 US patents and offers a comprehensive solution that includes 24/7 accessibility monitoring, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection [6].

Core Insights - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled, suggesting the need to disable it for a better experience [1]

Core Viewpoint - AudioEye reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.16 per share a year ago, indicating a positive earnings surprise of +5.56% [1][2] Financial Performance - The company posted revenues of $10.23 million for the quarter ended September 2025, which was a miss against the Zacks Consensus Estimate by 0.22%, but an increase from $8.93 million year-over-year [2] - Over the last four quarters, AudioEye has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - AudioEye shares have increased by approximately 0.3% since the beginning of the year, in contrast to the S&P 500's gain of 16.5% [3] - The current Zacks Rank for AudioEye is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $10.63 million, and for the current fiscal year, it is $0.70 on revenues of $40.47 million [7] - The trend of earnings estimate revisions for AudioEye was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Software industry, to which AudioEye belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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].

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]

Core Insights - AudioEye, Inc. reported record revenue of over $10.2 million for Q3 2025, marking a 15% increase from $8.9 million in the same period last year [2][6] - The company anticipates continued growth in ARR, revenue, and adjusted EBITDA in Q4 2025, driven by regulatory demand and advancements in AI technology [2][4] - AudioEye updated its full-year 2025 revenue guidance to between $40.3 million and $40.4 million, reflecting approximately 15% year-over-year growth [5] Financial Performance - Total revenue for Q3 2025 was $10.2 million, with gross profit increasing to $7.9 million, representing 77% of total revenue [6] - Adjusted EBITDA for Q3 2025 was $2.5 million, with adjusted EPS of $0.19 per share, compared to $2.0 million and $0.16 per share in Q3 2024 [6][24] - 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 prior year [6][21] Market and Strategic Developments - The European Accessibility Act is increasing demand for digital accessibility solutions in Europe, and AudioEye is expanding its market presence through a partnership with Creode [2][6] - As of September 30, 2025, AudioEye had approximately 123,000 customers, an increase of 3,000 from the previous quarter, driven by growth in the Partner and Marketplace channel [6][8] - The company aims for a 30-40% annual growth in adjusted EPS and EPS over the next three years [2]