Investment Thesis
AudioEye exhibits strong revenue growth (+14.5% YoY) and excellent gross margins (78.3%), but is severely constrained by unprofitable operations with negative operating margins (-4.5%) and net losses (-7.6% net margin). The company's liquidity position is precarious with a current ratio of 0.88x and excessive leverage (2.79x debt-to-equity), while burning cash operationally despite positive free cash flow suggests unsustainable business dynamics.
AEYE Strengths
- Strong revenue growth of 14.5% year-over-year demonstrates market demand
- Exceptional gross margin of 78.3% indicates pricing power and efficient production
- Positive free cash flow of 4.7M provides near-term operational runway despite net losses
AEYE Risks
- Company is unprofitable at operating level (-1.8M operating income) with negative net margin (-7.6%)
- Inadequate liquidity with current ratio of 0.88x below 1.0x threshold and cash insufficient relative to long-term debt of 13.4M
- Excessive leverage of 2.79x debt-to-equity ratio combined with negative interest coverage (-2.3x) creates solvency concerns
- Declining profitability metrics (ROE -64.1%, ROA -9.5%) indicate deteriorating operational efficiency despite revenue growth
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating margin
- Cash burn rate and sustainability of free cash flow given ongoing operating losses
- Debt refinancing needs and covenant compliance given high leverage and negative interest coverage
AEYE Financial Metrics
AEYE Profitability Ratios
AEYE Balance Sheet & Liquidity
AEYE 5-Year Financial Trend
5-Year Trend Summary: AUDIOEYE INC's revenue has grown significantly by 65% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.36 indicates the company is currently unprofitable.
AEYE Growth Metrics (YoY)
AEYE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.9M | -$2.0K | $-0.16 |
| Q2 2025 | $8.5M | -$2.0K | $-0.12 |
| Q1 2025 | $8.1M | -$829.0K | $-0.07 |
| Q3 2024 | $7.8M | -$735.0K | $-0.10 |
| Q2 2024 | $7.8M | -$735.0K | $-0.06 |
| Q1 2024 | $7.8M | -$829.0K | $-0.07 |
| Q3 2023 | $7.7M | -$1.4M | $-0.11 |
| Q2 2023 | $7.6M | -$2.0M | $-0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AEYE Capital Allocation
AEYE SEC Filings
Access official SEC EDGAR filings for AUDIOEYE INC (CIK: 0001362190)