One-glance verdict
Within fair range
$17.86 our estimate vs market $12.00
Wall Street consensus: $17.33 (-2.9% lower than our fair-value estimate)
33% below our estimate
Fundamentals snapshot
AudioEye, Inc.
AEYE · NCM · Technology · Software - Application
Current price
$12.00
52-week range
$5.31 - $14.68
Market cap
$152.21M
Balance sheet
Distressed
-795.00x Concerning
Net debt $7.21M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 6.0% last year.
- Reward Free cash flow was positive in 3/10 years.
- Risk Return on equity was -56.7% last year — the company lost money on shareholders' equity.
What this company does
AudioEye, Inc.
AudioEye sells software and services that make websites and digital content accessible to everyone, including people with disabilities. Their main income comes from businesses and organizations paying them for these ongoing accessibility solutions, which creates recurring revenue (money that comes in regularly, like a subscription). This matters because it helps companies comply with accessibility laws and reach a wider audience.
How the company got here
AudioEye was founded in 2005 with the goal of making the internet accessible to everyone, regardless of their abilities. It started as a small research and development firm and has since grown into a leading provider of digital accessibility solutions. The company is publicly traded on the Nasdaq stock exchange and holds numerous U.S. patents for its technology. AudioEye's growth has been fueled by increasing regulatory and legal pressure on businesses to ensure their websites and digital content are accessible to people with disabilities.
What it actually does
AudioEye provides a platform that helps businesses make their websites and digital content accessible to people with disabilities. Think of it like making sure a physical store has ramps for wheelchairs or braille signs for the visually impaired, but for the internet. Their service uses a combination of artificial intelligence (AI)-driven software, expert human reviews, and custom fixes to identify and resolve issues that make it hard for people with disabilities to use a website. This ensures compliance with accessibility standards like the Americans with Disabilities Act (ADA) and the Web Content Accessibility Guidelines (WCAG).
Digital Accessibility Platform
This is AudioEye's core business. They offer a comprehensive software-as-a-service (SaaS) platform that businesses subscribe to. This platform uses AI to automatically scan websites for accessibility problems, such as missing alternative text for images or poor color contrast, which can hinder users with visual impairments or other disabilities. It also provides automated fixes for many common issues. To handle more complex problems, AudioEye employs certified accessibility experts who conduct audits and create custom code fixes. This multi-faceted approach helps businesses meet legal requirements and improve the user experience for all visitors. The revenue from this segment comes from recurring subscription fees.
Expert Services
Beyond the automated platform, AudioEye offers a suite of expert services to further assist clients. This includes in-depth expert audits conducted by accessibility specialists and individuals with disabilities, providing a human perspective on usability. They also offer custom code fixes for issues that automation can't solve, as well as accessibility training for client teams. Additionally, AudioEye provides specialized services like mobile app audits and PDF remediation, ensuring that all digital content, not just websites, is accessible. These services complement the core platform and provide additional revenue streams.
Legal Support and Assurance
A significant part of AudioEye's offering is its focus on legal protection and compliance. They provide expert legal support to help clients respond to demand letters and potential lawsuits related to accessibility. The company also offers 'AudioEye Assurance,' which provides a level of legal protection and a guarantee for the pages they service. This aspect is crucial for businesses concerned about the legal ramifications of non-compliant websites, making AudioEye's services a risk-management tool as well as a technical solution.
What management is betting on now
AudioEye's management is focused on leveraging its patented technology and AI capabilities to expand its market reach and enhance its service offerings. They are investing in new features like 'Agentic Audits' and an 'SDK MCP' to further improve the efficiency and effectiveness of their accessibility solutions. The company is also actively engaging in stock repurchase programs, indicating management's confidence in the company's value and future prospects. The core strategy remains to capitalize on the growing demand for digital accessibility driven by legal and regulatory requirements.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$525.00K
FY2025 Q1
$-47.00K
FY2025 Q2
$1.20M
FY2025 Q3
$1.05M
FY2025 Q4
$2.50M
FY2026 Q1
$1.24M
FY2026 Q2
$1.02M
FY2026 Q3
$1.74M
Revenue
$10.96M
Net income
$990.00K
Diluted EPS
0.08
Operating cash flow
$1.76M
Free cash flow
$1.74M
Fetching…
Sources
Revenue
$10.72M
Net income
$-865.00K
Diluted EPS
-0.07
Operating cash flow
$1.02M
Free cash flow
$1.02M
Fetching…
Sources
Revenue
$10.55M
Net income
$-2.11M
Diluted EPS
—
Operating cash flow
$1.26M
Free cash flow
$1.24M
Fetching…
Sources
Revenue
$10.49M
Net income
$-1.05M
Diluted EPS
-0.12
Operating cash flow
$2.53M
Free cash flow
$2.50M
Fetching…
Sources
Revenue
$10.23M
Net income
$-554.00K
Diluted EPS
-0.04
Operating cash flow
$1.05M
Free cash flow
$1.05M
Fetching…
Sources
Revenue
$9.86M
Net income
$-2.00K
Diluted EPS
0.00
Operating cash flow
$1.22M
Free cash flow
$1.20M
Fetching…
Sources
Revenue
$9.73M
Net income
$-1.47M
Diluted EPS
—
Operating cash flow
$-44.00K
Free cash flow
$-47.00K
Fetching…
Sources
Revenue
$9.72M
Net income
$-1.49M
Diluted EPS
-0.13
Operating cash flow
$565.00K
Free cash flow
$525.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $17.86 vs current price $12.00
Wall Street consensus is the average analyst price target: $17.33 (-2.9% lower than our fair-value estimate).
Our most-likely fair value is $17.86 a share — about 48.8% away from today's price of $12.00, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $7.2M. Interest coverage -795.0x.
Net debt
$7.21M
Interest coverage
-795.00x
AudioEye, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AEYE
BASELINE
AudioEye, Inc.
Total debt $16.54M Interest coverage -795.00x This is the baseline the peer rows are being compared against.
Total debt $398.56M Interest coverage -0.80x Neither company has much profit cushion over interest right now.
Total debt $2.78M Interest coverage 3.54x This peer still has a real interest-payment cushion, while AEYE does not.
Total debt $258.33M Interest coverage -62.68x Neither company has much profit cushion over interest right now.
What you should know
The case for and against AEYE
2 Rewards
1 Risk
Rewards
-
Revenue grew 6.0% last year.
-
Free cash flow was positive in 3/10 years.
Risks
-
Return on equity was -56.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
9.60x
P/B
30.00x
P/S
3.56x
EV/EBITDA
-3,103.97x
PEG ratio
2.16x
Profitability
How much profit each dollar creates
Gross margin
79.8%
Operating margin
11.4%
Net margin
-7.1%
ROE
-56.7%
ROA
-4.0%
Health
Liquidity and balance-sheet strength
Debt / equity
3.26x
Current ratio
1.23x
Quick ratio
1.16x
Total debt
$16.54M
Total cash
$9.33M
Growth
How the business has been compounding
Revenue TTM
$42.73M
Revenue 5Y CAGR
13.3%
EPS TTM
-0.25
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$6.57M
Free CF TTM
$4.70M
FCF margin
11.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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