AudioEye 2025 Q3 Earnings Narrows Losses by 53.9% as Revenue Hits $10.23M

AudioEye (AEYE) reported fiscal 2025 Q3 earnings on Nov 4, 2025, surpassing EPS estimates while missing revenue forecasts. The company narrowed its net loss by 53.9% to $-554K and raised full-year revenue guidance to $40.3–$40.4M, reflecting improved operational performance despite regulatory-driven headwinds.

Revenue

AudioEye’s total revenue rose 14.6% to $10.23 million, driven by robust growth in both business segments. Partner and Marketplace revenue surged to $5.58 million, while the Enterprise segment contributed $4.64 million, collectively propelling the company to its highest quarterly revenue.

Earnings/Net Income

The company narrowed losses to $0.04 per share in Q3 2025, a 60.0% improvement from $0.10 per share in the prior year. Net losses were reduced to $-554K, down from $-1.20 million, marking a 53.9% reduction. The 53.9% reduction in net loss and 60% improvement in EPS signal progress, though sustained losses over 14 years highlight ongoing challenges.

Post-Earnings Price Action Review

Following the earnings release, AudioEye’s stock price declined 7.02% during regular trading and an additional 2.16% in after-hours trading, closing at $14.92. The drop reflected investor concerns over the $10.23M revenue shortfall compared to the $10.25M consensus estimate. Despite the earnings beat, the stock has edged down 5.07% in the latest trading day, 1.66% for the week, and 1.08% month-to-date. Analysts note the Zacks Rank #3 (Hold) suggests the stock is expected to align with market performance in the near term, pending further estimate revisions.

CEO Commentary

CEO David Moradi highlighted record Q3 revenue of $10.2 million and improved adjusted EBITDA, crediting growth drivers like the European Accessibility Act and AI integration. He reiterated a target of 30–40% annual growth in adjusted EPS over three years, emphasizing momentum in Q4 and strategic expansion into European markets.

Guidance

AudioEye expects Q4 2025 revenue of $10.45–$10.6 million, adjusted EBITDA of $2.7–$2.8 million, and adjusted EPS of $0.21–$0.23. Full-year 2025 guidance was updated to $40.3–$40.4 million in revenue (15% YoY growth), $9.0–$9.1 million in adjusted EBITDA (35% YoY growth), and $0.72–$0.73 in adjusted EPS.

Additional News

1. Strategic Expansion: AudioEye partnered with UK-based Creode to accelerate entry into the European market, targeting financial services and enterprise clients under the European Accessibility Act.

2. Share Repurchases: The company repurchased $1.8 million of its stock at $11.86 per share, reflecting a commitment to shareholder value.

3. AI Integration: CEO Moradi emphasized advancements in AI-driven solutions, including the Playwright framework and Model Context Protocol, to enhance margins in 2026.

All figures derived from publicly reported data and company filings.