AudioEye, Inc. (NASDAQ: AEYE), a leading digital accessibility provider, delivered record results for Q4 and full-year 2025. Executives project at least 30% adjusted EBITDA expansion in 2026, fueled by a new AI-powered platform.
Q4 2025 Financial Highlights
Total revenue rose 8% to $10.5 million from $9.7 million a year earlier. Gross profit climbed to $8.3 million, or 79% of revenue, up from $7.8 million.
Adjusted gross margin stood at 85%, compared to 86% last year. Operating expenses held steady at $9.1 million. Net loss narrowed to $1.1 million, or $0.08 per share, from $1.5 million, or $0.12 per share.
Adjusted EBITDA hit a record $2.8 million, with adjusted EPS at $0.22, surpassing prior-year figures of $2.3 million and $0.18. Annual Recurring Revenue (ARR) reached $40.0 million, up from $38.7 million in Q3.
Full-Year 2025 Performance
Annual revenue surged 15% to $40.3 million from $35.2 million in 2024. Gross profit increased to $31.6 million (78% margin), from $27.9 million.
Operating expenses grew 7% to $33.4 million. Net loss improved to $3.1 million ($0.25 per share), versus $4.3 million ($0.36 per share). Adjusted EBITDA advanced 35% to $9.1 million, with adjusted EPS at $0.72.
2026 Outlook
Management forecasts Q1 revenue of $10.5 million to $10.6 million and full-year revenue of $43 million to $44.5 million. Adjusted EBITDA targets $2.2 million to $2.3 million for Q1, with at least 30% full-year growth. Adjusted EPS guidance calls for $0.17 to $0.18 in Q1 and 30%+ annual expansion.
CEO David Moradi stated: “We delivered an exceptional fourth quarter with strong ARR growth to close out a record year for AudioEye. Full year 2025 revenue grew 15% to $40.3 million, net loss decreased 28% to $3.1 million, and adjusted EBITDA grew 35% to $9.1 million. For 2026, we expect another year of strong operating leverage, with adjusted EBITDA growing by at least 30%, and expect to generate a run-rate adjusted EBITDA (on an annual basis) of $15 million by year-end.”
New AI-Driven Platform and Updates
The company launched its next-generation platform, integrating AI detection, expert audits, and custom fixes into a unified dashboard for enhanced transparency and legal protection.
Moradi added: “Yesterday, we released our next-generation platform, which delivers unmatched transparency, ease of use, and 3-4x the legal protection of other solutions. The platform also utilizes years of proprietary data from detecting and fixing accessibility issues across hundreds of thousands of sites and billions of unique visits.”
Customer base expanded to 131,000 by year-end, up 8,000 sequentially. A recent report notes accessibility lawsuits doubled since 2020, with an independent study confirming AudioEye’s superior WCAG issue detection.
