AudioEye 2025 Q2 Earnings Strong Performance as Net Loss Narrows 99.7%

AudioEye (AEYE) reported its fiscal 2025 Q2 earnings on August 8th, 2025. The company delivered a strong performance, posting a 16.4% year-over-year revenue increase and significantly narrowing its net loss. The results exceeded expectations, with the company raising its full-year revenue and EBITDA guidance. Investors should note the improved financial metrics and positive CEO commentary.

Revenue

AudioEye’s total revenue for the second quarter of 2025 rose by 16.4% to $9.86 million, compared to $8.47 million in the same period of the previous year. This growth was driven by both the Partner and Marketplace segment and the Enterprise segment, which contributed $5.40 million and $4.46 million, respectively, to the overall revenue.

Earnings/Net Income

The company reported stable earnings per share (EPS) of $0.00 in Q2 2025, consistent with the prior-year quarter. More significantly, AudioEye reduced its net loss from $-735,000 in Q2 2024 to $-2,000 in Q2 2025, a reduction of 99.7%. While this marks a substantial improvement, the company has continued to report losses for 14 consecutive years, highlighting the need for sustained profitability.

Price Action

AudioEye’s stock experienced a decline of 8.43% during the latest trading day, 14.98% for the most recent full trading week, and 17.21% month-to-date. The share price remains under pressure amid ongoing market skepticism about long-term profitability and broader sector volatility.

Post-Earnings Price Action Review

The strategy of buying AudioEye shares following its revenue raise on the financial report release date and holding for 30 days has historically yielded strong returns. Over the past three years, the strategy generated a 101.07% return, significantly outperforming the 47.10% benchmark. This outperformance translated into an excess return of 53.97%, while the compound annual growth rate (CAGR) stood at 27.23%. Despite a maximum drawdown of 0.00%, the strategy exhibited high volatility of 88.90% and a Sharpe ratio of 0.31, indicating that while the strategy was effective, it involved considerable risk.

CEO Commentary

AudioEye CEO David Moradi highlighted the company’s 38th consecutive quarter of revenue growth, attributing the performance to momentum in the U.S. and the EU under the newly enacted European Accessibility Act. He expressed confidence in achieving high teens annualized revenue growth in the second half of 2025, driven by scale and expense discipline. Moradi emphasized the scalability of the business model and outlined an aspirational goal of 30-40% annual growth in adjusted EPS and EPS over the next three years.

Guidance

AudioEye raised its full-year guidance, expecting Q3 2025 revenue of $10.2M–$10.4M and full-year revenue of $40.3M–$40.7M, reflecting the phase-out of certain legacy customers. For Q3, adjusted EBITDA guidance is set at $2.2M–$2.4M, with full-year adjusted EBITDA of $8.9M–$9.1M. Adjusted EPS is expected to be $0.17–$0.19 for Q3 and $0.71–$0.73 for the full year 2025.

Additional News

Within the past three weeks of AudioEye’s earnings report, several significant non-earnings-related developments emerged. Nigerian newspapers *Punch* highlighted a range of national issues, including the appointment of former Super Eagles player John Utaka as the head coach of a French football club and the passing of former minister and PDP chairman Audu Ogbeh at the age of 78. Political tensions also escalated, with a Peoples Democratic Party (PDP) aspirant in Ekiti State criticizing the APC government over governance concerns. In the business sector, Nigeria’s foreign direct investment (FDI) dropped by 70% in three months, while Nigerian startups and fintech companies showed continued interest in software innovation and entrepreneurship support programs.