Revenue growth has significantly decelerated from 23.5% in 2024Q4 to 8.4% in 2026Q1, while operating margins have regressed to -17.8% due to rising SG&A expenses of $9.0M.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 41.13M | 40.31M | 35.2M | 31.32M | 29.91M | 24.5M | 20.48M | 10.77M | 5.66M | 2.74M | 994.26K | 338.86K | 523.31K | 1.56M | 282.06K | 138.02K |
| Revenue Growth % | 11.61% | 14.52% | 12.41% | 4.69% | 22.08% | 19.67% | 90.2% | 90.18% | 106.63% | 175.52% | 193.41% | -35.25% | -66.42% | 452.42% | 104.36% | - |
| Cost of Goods Sold | 9.06M | 8.76M | 7.26M | 6.97M | 7.22M | 6.12M | 5.96M | 4.41M | 2.63M | 1.38M | 1.23M | 1.22M | 1.2M | 404.09K | 265.33K | 641.12K |
| COGS % of Revenue | - | 21.72% | 20.63% | 22.27% | 24.13% | 24.98% | 29.11% | 40.93% | 46.41% | 50.53% | 123.34% | 361.4% | 228.92% | 25.93% | 94.07% | 464.51% |
| Gross Profit | 32.07M | 31.56M | 27.94M | 24.34M | 22.69M | 18.38M | 14.51M | 6.36M | 3.03M | 1.36M | -232.06K | -885.79K | -674.63K | 1.15M | 16.73K | -503.1K |
| Gross Margin % | 77.97% | 78.28% | 79.37% | 77.73% | 75.87% | 75.02% | 70.89% | 59.07% | 53.59% | 49.47% | -23.34% | -261.4% | -128.92% | 74.07% | 5.93% | -364.51% |
| Gross Profit Growth % | - | 12.94% | 14.78% | 7.26% | 23.46% | 26.65% | 128.24% | 109.62% | 123.83% | 684.04% | 73.8% | -31.3% | -158.46% | 6797.39% | 103.33% | - |
| Operating Expenses | 34.88M | 34.74M | 31.33M | 30.31M | 33.12M | 33.9M | 21.65M | 14.18M | 7.61M | 5.87M | 4.2M | 6.43M | 9.02M | 3.96M | 823.23K | 810.34K |
| OpEx % of Revenue | - | 86.17% | 89% | 96.78% | 110.73% | 138.33% | 105.72% | 131.7% | 134.4% | 214.42% | 422.04% | 1896.98% | 1723.54% | 254.18% | 291.86% | 587.11% |
| Selling, General & Admin | 31.7M | 30.15M | 26.25M | 23.32M | 27.04M | 28.59M | 20.42M | 13.54M | 7.41M | 5.15M | 3.28M | 5.52M | 7.99M | 3.54M | 823.23K | 810.34K |
| SG&A % of Revenue | - | 74.78% | 74.58% | 74.46% | 90.39% | 116.68% | 99.72% | 125.79% | 130.96% | 188.14% | 330.11% | 1628.43% | 1527.41% | 227.49% | 291.86% | 587.11% |
| Research & Development | 4.55M | 4.59M | 5.08M | 6.99M | 6.08M | 5.3M | 1.23M | 636K | 194.43K | 181.3K | 343.71K | 375.82K | 610.33K | 56.52K | 0 | 0 |
| R&D % of Revenue | - | 11.39% | 14.42% | 22.32% | 20.34% | 21.65% | 6.01% | 5.91% | 3.43% | 6.62% | 34.57% | 110.91% | 116.63% | 3.63% | - | - |
| Other Operating Expenses | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 538.76K | 750 | 3.81K | 416.01K | 359.41K | 0 | 0 |
| Operating Income | -2.81M | -3.18M | -3.39M | -5.96M | -10.43M | -15.51M | -7.13M | -7.82M | -4.57M | -4.52M | -4.48M | -7.31M | -9.69M | -2.81M | -806.5K | -1.46M |
| Operating Margin % | -6.84% | -7.89% | -9.63% | -19.05% | -34.86% | -63.31% | -34.84% | -72.62% | -80.8% | -164.95% | -450.4% | -2158.39% | -1852.45% | -180.12% | -285.93% | -1058.79% |
| Operating Income Growth % | - | 6.19% | 43.17% | 42.8% | 32.77% | -117.48% | 8.76% | -70.93% | -1.22% | -0.9% | 38.77% | 24.55% | -245.41% | -247.99% | 44.81% | - |
| EBITDA | 69K | 387K | -635K | -3.34M | -7.76M | -13.93M | -5.96M | -6.88M | -4.02M | -3.98M | -3.91M | -6.78M | -9.28M | -2.45M | -802.61K | -1.45M |
| EBITDA Margin % | 0.17% | 0.96% | -1.8% | -10.66% | -25.95% | -56.83% | -29.11% | -63.92% | -71.06% | -145.28% | -393.05% | -2000.73% | -1772.96% | -157.05% | -284.55% | -1049.29% |
| EBITDA Growth % | 108.88% | 160.94% | 80.98% | 56.98% | 44.26% | -133.66% | 13.38% | -71.06% | -1.07% | -1.84% | 42.36% | 26.93% | -279.14% | -204.89% | 44.58% | - |
| D&A (Non-Cash Add-back) | 2.88M | 3.57M | 2.75M | 2.63M | 2.67M | 1.59M | 1.17M | 937K | 551.34K | 538.76K | 570.25K | 534.22K | 416.01K | 359.41K | 3.88K | 13.11K |
| EBIT | -2.77M | -3.18M | -3.39M | -5.96M | -10.43M | -14.2M | -7.01M | -7.71M | -4.57M | -4.52M | -4.43M | -7.13M | -9.74M | -2.83M | -1.02M | -1.46M |
| Net Interest Income | -249K | -947K | -864K | 0 | -4K | -12K | -145K | -76K | -178K | -917.99K | -676K | -76.72K | -10.59K | -56.61K | -141.5K | -280.05K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 249K | 947K | 864K | 0 | 4K | 12K | 145K | 76K | 178K | 917.99K | 676K | 76.72K | 10.59K | 56.61K | 98.54K | 280.05K |
| Other Income/Expense | -909K | 103K | -864K | 93K | -4K | 1.3M | -25K | 35K | -446.05K | -1.09M | -5.1M | 104.82K | -56.79K | -76.11K | -86.54K | -283.05K |
| Pretax Income | -3.72M | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M | -7.16M | -7.78M | -5.02M | -5.61M | -9.58M | -7.21M | -9.75M | -2.88M | -893.04K | -1.74M |
| Pretax Margin % | -9.05% | -7.63% | -12.08% | -18.75% | -34.88% | -57.99% | -34.96% | -72.3% | -88.68% | -204.71% | -963.39% | -2127.45% | -1863.31% | -185% | -316.61% | -1263.87% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.59K | 0 | 98.54K | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -0.11% | 0% | -11.03% | 0% |
| Net Income | -3.72M | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M | -7.16M | -7.78M | -5.02M | -5.61M | -9.58M | -7.21M | -9.75M | -2.88M | -893.04K | -1.74M |
| Net Margin % | -9.05% | -7.63% | -12.08% | -18.75% | -34.88% | -57.99% | -34.96% | -72.3% | -88.68% | -204.71% | -963.39% | -2127.45% | -1863.31% | -185% | -316.61% | -1263.87% |
| Net Income Growth % | 23.95% | 27.67% | 27.55% | 43.72% | 26.57% | -98.51% | 8.03% | -55.04% | 10.48% | 41.45% | -32.87% | 26.07% | -238.26% | -222.79% | 48.81% | - |
| Net Income (Continuing) | -3.72M | -3.08M | -4.25M | -5.87M | -10.43M | -14.21M | -7.16M | -7.78M | -5.02M | -5.61M | -9.58M | -7.21M | -9.75M | -2.88M | -893.04K | -1.74M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -14.7K |
| EPS (Diluted) | -0.30 | -0.25 | -0.36 | -0.50 | -0.91 | -1.29 | -0.77 | -0.97 | -0.73 | -1.19 | -2.42 | -2.24 | -3.93 | -1.70 | -0.74 | -1.45 |
| EPS Growth % | 25.12% | 30.56% | 28% | 45.05% | 29.46% | -67.53% | 20.62% | -32.88% | 38.66% | 50.83% | -8.04% | 43% | -131.18% | -129.73% | 48.97% | - |
| EPS (Basic) | - | -0.25 | -0.36 | -0.50 | -0.91 | -1.29 | -0.77 | -0.97 | -0.73 | -1.19 | -2.42 | -2.24 | -3.93 | -1.70 | -0.74 | -1.45 |
| Diluted Shares Outstanding | 12.46M | 12.42M | 11.89M | 11.77M | 11.48M | 11.04M | 9.31M | 8.11M | 6.89M | 4.69M | 3.96M | 3.22M | 2.48M | 1.7M | 1.21M | 1.2M |
| Basic Shares Outstanding | 12.46M | 12.42M | 11.89M | 11.77M | 11.48M | 11.04M | 9.31M | 8.11M | 6.89M | 4.69M | 3.96M | 3.22M | 2.48M | 1.7M | 1.21M | 1.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin volatility
As reported in recent financial filings, AudioEye's year-over-year revenue growth has decelerated from a peak of 23.5% in 2024Q4 to 8.4% by 2026Q1, suggesting that the initial surge from partner-led distribution channels may be encountering market saturation or increased competitive friction within the SMB segment.
The deceleration in top-line expansion warrants close monitoring, as it indicates that the company's reliance on partner channels may be losing its historical efficacy. Investors should consider whether this trend reflects a structural limit to the current customer acquisition strategy or merely a temporary lull in enterprise-level contract closures.
Based on quarterly income statements, AudioEye has maintained a robust gross margin profile, consistently hovering near 78% to 80%, which suggests that the company's hybrid remediation architecture retains significant pricing power despite the proliferation of lower-cost, automated-only accessibility tools currently entering the digital compliance marketplace.
This high gross margin is a testament to the scalability of the software-based remediation engine, though it remains vulnerable to shifts in the service delivery mix. If the company is forced to increase manual auditing to maintain legal defensibility, the resulting margin compression could undermine the current valuation premium.
According to historical data, AudioEye has struggled to achieve consistent operating leverage, with SG&A expenses rising to $9.0M in 2026Q1, which effectively outpaced gross profit growth and pushed the operating margin back into negative territory at -17.8% after a brief period of near-breakeven performance.
The inability to scale operating income alongside revenue suggests that the company's cost structure is heavily weighted toward fixed personnel and marketing expenses. This lack of operating leverage implies that the business model may require significantly higher revenue volume to reach a sustainable, self-funding state.
Analysis of recent income statements reveals that stock-based compensation, which reached $1.3M in 2026Q1, continues to represent a meaningful non-cash expense that obscures the underlying cash burn, complicating the assessment of true profitability for shareholders evaluating the company's path toward GAAP-positive net income.
The persistent use of equity-based incentives suggests that management is prioritizing talent retention over immediate cash preservation. Investors should be wary of how these non-cash charges impact the reported EPS, as they may mask the true extent of the company's reliance on external financing to fund operations.
As indicated by the recent swing to a -20.0% net margin in 2026Q1, the company's reliance on aggressive sales and marketing spend to drive growth appears increasingly unsustainable, raising questions about the long-term viability of its current customer acquisition cost relative to the lifetime value of SMB clients.
Short-sellers would likely focus on the volatility of the operating margin and the recurring need for capital to bridge the gap between revenue and expenses. The risk remains that the company's competitive moat is not deep enough to prevent margin erosion if competitors successfully commoditize the accessibility space.
Quick answers to the most common questions about buying AEYE stock.
For fiscal year 2025, AudioEye, Inc. (AEYE) reported total revenue of $40.3M. This represents a 29106.4% increase compared to $0.1M in 2011.
AudioEye, Inc. (AEYE) reported a net loss of $3.1M for the fiscal year ending 2025.
AudioEye, Inc. (AEYE) reported an operating income of $-3.2M, resulting in an operating profit margin of -7.9%. This margin reflects the operational efficiency of the business before interest and taxes.
AudioEye, Inc. (AEYE) generated $31.6M in gross profit for the year, representing a gross profit margin of 78.3%. This demonstrates the company's core pricing power and production efficiency.