📊 AEYE Key Takeaways
Is Audioeye Inc. (AEYE) a Good Investment?
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.
AudioEye shows credible top-line momentum and solid software-like unit economics, with 14.5% revenue growth, 78.3% gross margin, and positive operating and free cash flow. However, the business is still unprofitable at the operating and net levels, and its balance sheet is stretched with sub-1.0 liquidity, high leverage, and negative interest coverage. The fundamentals support a cautious stance: growth quality is improving, but financial health remains a meaningful constraint.
Why Buy Audioeye Inc. Stock? AEYE Key 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
- Revenue growth remains healthy at 14.5% YoY, indicating continued demand expansion
- High 78.3% gross margin suggests attractive software economics and scalability potential
- Positive operating cash flow and $4.70M of free cash flow show better cash conversion than earnings
AEYE Stock Risks: Audioeye Inc. Investment 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
- Operating and net margins remain negative, so profitability is not yet sustainably established
- Current ratio and quick ratio of 0.88x point to tight near-term liquidity
- Debt/equity of 2.79x and negative interest coverage indicate elevated balance-sheet and refinancing risk
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
- Operating margin progression toward sustained profitability
- Liquidity and leverage trends, especially current ratio, cash balance, and interest coverage
Audioeye Inc. (AEYE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AEYE Profit Margin, ROE & Profitability Analysis
AEYE vs Technology Sector: How Audioeye Inc. Compares
How Audioeye Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Audioeye Inc. Stock Overvalued? AEYE Valuation Analysis 2026
Based on fundamental analysis, Audioeye Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Audioeye Inc. Balance Sheet: AEYE Debt, Cash & Liquidity
AEYE Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
AEYE Quarterly Earnings & 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.
Audioeye Inc. Dividends, Buybacks & Capital Allocation
AEYE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Audioeye Inc. (CIK: 0001362190)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/form4-04032026_040433.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/form4-04032026_040431.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/form4-04032026_040429.xml | View → |
| Mar 17, 2026 | 4 | xslF345X05/form4-03172026_080339.xml | View → |
| Mar 12, 2026 | 10-K | aeye-20251231x10k.htm | View → |
❓ Frequently Asked Questions about AEYE
What is the AI rating for AEYE?
Audioeye Inc. (AEYE) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AEYE's key strengths?
Claude: Strong revenue growth of 14.5% year-over-year demonstrates market demand. Exceptional gross margin of 78.3% indicates pricing power and efficient production. ChatGPT: Revenue growth remains healthy at 14.5% YoY, indicating continued demand expansion. High 78.3% gross margin suggests attractive software economics and scalability potential.
What are the risks of investing in AEYE?
Claude: 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. ChatGPT: Operating and net margins remain negative, so profitability is not yet sustainably established. Current ratio and quick ratio of 0.88x point to tight near-term liquidity.
What is AEYE's revenue and growth?
Audioeye Inc. reported revenue of $40.3M.
Does AEYE pay dividends?
Audioeye Inc. does not currently pay dividends.
Where can I find AEYE SEC filings?
Official SEC filings for Audioeye Inc. (CIK: 0001362190) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AEYE's EPS?
Audioeye Inc. has a diluted EPS of $-0.12.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AEYE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Audioeye Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AEYE stock overvalued or undervalued?
Valuation metrics for AEYE: ROE of -64.1% (sector avg: 22%), net margin of -7.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy AEYE stock in 2026?
Our dual AI analysis gives Audioeye Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AEYE's free cash flow?
Audioeye Inc.'s operating cash flow is $4.8M, with capital expenditures of $54.0K. FCF margin is 11.7%.
How does AEYE compare to other Technology stocks?
Vs Technology sector averages: Net margin -7.6% (avg: 18%), ROE -64.1% (avg: 22%), current ratio 0.88 (avg: 2.5).
Is Audioeye Inc. carrying too much debt?
AEYE has a debt-to-equity ratio of 2.79x, which is above the Technology sector average of 0.5x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.