AudioEye Records Highest-Ever Revenue and Accelerates EU Expansion

AudioEye reported Q2 2025 revenue of $9.9 million, marking the 38th consecutive quarter of growth. CEO David D. Moradi expects high-teens sequential revenue growth and adjusted EPS in the mid-$0.80s. The company's EU expansion is accelerating, contributing to the growth.

AudioEye Inc. (AEYE) reported its Q2 2025 revenue at $9.9 million, marking the 38th consecutive quarter of growth. The company's CEO, David D. Moradi, expects high-teens sequential revenue growth and adjusted EPS in the mid-$0.80s range for the year. The company's EU expansion is accelerating, contributing to the growth.

Moradi highlighted that the second quarter was another record quarter for AudioEye, with revenue rising 16% year-over-year. Despite missing analyst expectations by $0.02 million, the adjusted EPS beat estimates by $0.04. The company's effective cost management contributed to this beat in adjusted EPS, despite the slight revenue miss [1].

The European Accessibility Act is expected to drive future demand and compliance for AudioEye's services. Moradi stated that the company's EU expansion is accelerating, with the pipeline "probably tripled" from Q2 to Q3 [2].

The company expects Q3 2025 revenue between $10.2 million and $10.4 million and full-year 2025 revenue of $40.3 million to $40.7 million. Adjusted EPS for the third quarter is projected to be between $0.17 and $0.19, and for the full year, it is expected to be between $0.71 and $0.73 per share [1].

AudioEye's gross profit for Q2 2025 was $7.6 million, or 77% of revenue, while operating expenses increased by $200,000 year-over-year to $7.4 million. The company repurchased approximately $1.8 million of shares in Q2 and reported $6.9 million in cash and $6.6 million of debt facilities available as of June 30, 2025 [2].

The current average analyst rating on the shares is "buy," with no "hold" or "sell" recommendations. The stock recently traded at 581 times the next 12-month earnings, compared to a P/E of 69 three months ago [1].

References:
[1] Reuters. (2025). AudioEye Q2 2025 revenue misses estimates, adjusted EPS beats. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLXC28EEE:0-cloud-based-digital-firm-audioeye-q2-revenue-misses-estimates/
[2] Seeking Alpha. (2025). Earnings Call Insights: AudioEye (AEYE) Q2 2025 Management View. Retrieved from https://seekingalpha.com/news/4482759-audioeye-expects-high-teens-sequential-revenue-growth-and-adjusted-eps-in-mid-0_80s-as-eu