Audioeye (NASDAQ:AEYE) reported fourth-quarter and full-year 2025 results that management said marked its 40th consecutive quarter of record revenue growth, alongside expanding profitability and cash flow. On the company’s earnings call, CEO David Moradi highlighted record adjusted EBITDA and said the company believes it has a differentiated approach as demand for digital accessibility solutions rises amid increasing litigation and regulatory activity.
Management highlights: record revenue streak, higher adjusted EBITDA
Moradi said AudioEye is “not aware of any other SaaS company in the public markets” that has grown sequentially for 40 straight quarters. He also pointed to operating cash flow strength in recent years and said 2025 adjusted EBITDA grew about 35% to a record $9.1 million, representing a record 22% margin. The company said performance for the year included the effects of “accelerated customer migrations” noted previously, and Moradi added that integration of acquired customers is now “substantially complete,” which he said should support ARR acceleration in 2026 with momentum in both the U.S. and the European Union.
Platform update and market backdrop: AI, litigation, and regulation
Moradi framed the market opportunity around the rapid buildout of digital experiences and the risk that accessibility gaps can compound as AI accelerates content creation. He said large language models draw on data that is often not accessible, and asserted that digital accessibility “is not improving and may even be getting worse.” He also said AudioEye is seeing increased litigation rates where AI is used to detect accessibility issues, and said the company believes 2026 will be the highest year of digital accessibility lawsuits on record.
Moradi said the company released a next-generation platform designed to unify AI detection, expert audits, and custom fixes “in a single platform,” and he claimed it delivers “3-4x the legal protection of other solutions.” He said the platform leverages proprietary data gathered from detecting and fixing issues across “hundreds of thousands of sites and billions of unique visits.”
Moradi also referenced an independent study conducted by Adience that he said found AudioEye detected between 89% and 253% more WCAG issues than competitive products, and that AudioEye was the only solution to identify issues across WCAG levels A, AA, and AAA for every site analyzed.
In response to analyst questions, Moradi said human involvement in custom fixes remains important, arguing that tools are “not really that good at accessible content” and that the problem is persistent as code changes over time—especially for frequently updated sites like e-commerce. He added that “no one has it right in the platform for the custom fixes” and said AudioEye is using more agents to streamline that work.
Q4 and FY2025 financial results
CFO Kelly Georgevich reported Q4 2025 revenue of $10.5 million, up 8% from Q4 2024 and up at a 10% annualized rate sequentially from Q3 2025, according to the company. For the full year, revenue rose 15% to $40.3 million from $35.2 million in 2024.
Georgevich broke out results by channel:
- Partner and marketplace channel: Q4 revenue grew 8% year-over-year and represented about 59% of ARR. Full-year revenue rose 10% to $22.2 million from $20.2 million.
- Enterprise channel: Q4 revenue grew 8% year-over-year, and full-year revenue grew 21% to $18.1 million from $15.0 million. Georgevich said growth was driven in part by expansion into the E.U. during 2025, and the enterprise channel represented about 41% of ARR as of December 31, 2025.
Annual recurring revenue at the end of Q4 2025 was $40 million, a 9% increase from the end of Q4 2024 and up $1.3 million sequentially, the company said.
Gross profit in Q4 was $8.3 million (about 79% of revenue), compared with $7.8 million (80% of revenue) a year earlier. For the full year, gross margin was about 78%, with gross profit increasing to $31.6 million from $27.9 million in 2024.
Georgevich said AudioEye will begin reporting adjusted gross margin, which excludes stock-based compensation and depreciation and amortization in cost of revenue. Adjusted gross margin was 85% in Q4 2025 (vs. 86% a year earlier) and 84% for the full year (vs. 85% in 2024).
Operating expenses in Q4 were consistent with the prior-year quarter despite the revenue increase, Georgevich said. For the full year, operating expenses rose 7%, or about $2.0 million, to $33.4 million, driven primarily by higher sales and marketing expense. She said increases in stock-based compensation, depreciation and amortization, and litigation expense were “mostly offset” by savings in non-cash valuation adjustments to liabilities and lower business combination expenses year-over-year.
Net loss in Q4 2025 was $1.1 million, or $0.08 per share, compared with a net loss of $1.5 million, or $0.12 per share, a year earlier. For 2025, net loss was $3.1 million, or $0.25 per share, compared with a net loss of $4.3 million, or $0.36 per share, in 2024.
Adjusted EBITDA in Q4 was about $2.8 million (or $0.22 per share), up from $2.3 million (or $0.18 per share) a year earlier. For the full year, adjusted EBITDA was about $9.1 million (or $0.72 per share), up from $6.7 million (or $0.55 per share) in 2024. Georgevich attributed the increase to revenue growth, higher adjusted gross profit, and about $1.0 million in adjusted R&D and G&A savings, partially offset by additional sales and marketing investment.
Balance sheet, cash flow, and capital allocation
Georgevich said the company repurchased about $1.0 million of shares in Q4 and $4.6 million during full-year 2025. She also noted a refinancing of the debt facility with Western Alliance Bank in Q1 2025 that she said strengthened the balance sheet and reduced interest expense.
AudioEye ended 2025 with $5.3 million in cash and an additional $6.6 million available under debt facilities. Net debt was $8.1 million, and net debt to adjusted EBITDA was approximately 0.7x, the company said.
Free cash flow in Q4 was $2.3 million, calculated as adjusted EBITDA of $2.8 million less $0.5 million of software development costs. For the full year, adjusted free cash flow was $7.2 million, up from $4.9 million in 2024.
2026 outlook: revenue growth near 10%, emphasis on ARR
For Q1 2026, AudioEye guided for revenue of $10.5 million to $10.6 million, adjusted EBITDA of $2.2 million to $2.3 million, and adjusted EPS of $0.17 to $0.18. Moradi noted that the company typically sees lower cash flow in the first quarter due to payments for Social Security taxes and legal and administrative proxy-related fees, and said the company plans to attend an industry event during the quarter.
For full-year 2026, the company guided for revenue of $43.0 million to $44.5 million and said it expects ARR growth to outpace revenue growth as it focuses less on non-recurring revenue. In the Q&A, management described the outlook as conservative; Georgevich said the full-year guidance implies revenue growth of “nearly 10%” and that ARR growth is expected in the “low to mid-teens.” She added that non-recurring revenue is about 5% of overall revenue and that the company aims to reduce it further.
On margins, Georgevich said the company expects gross margin and adjusted gross margin to remain “relatively consistent,” describing gross margin in the mid-to-high 70% range as the company pays for more AI compute, with potential for higher margins over the next couple of quarters.
Management also discussed regulatory and geographic tailwinds, including the European Accessibility Act and the U.S. Department of Justice Title II rule. Moradi said the company is seeing pipeline build in the E.U. and referenced a large reseller deal that contributed to customer additions in Q4. He also said DOJ requirements under Title II are set to go into effect next month, and that AudioEye continues to see momentum from states through both reseller and direct channels, including partners such as Finalsite and CivicPlus.
About Audioeye (NASDAQ:AEYE)
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.
