📊 AEYE Key Takeaways
Is Audioeye Inc. (AEYE) a Good Investment?
AudioEye demonstrates strong software fundamentals with 78.2% gross margins and 14.5% revenue growth, but is operationally unprofitable (-17.8% operating margin) with unsustainable leverage (5.22x debt-to-equity). The company cannot cover interest from operations and maintains only precarious liquidity, creating material refinancing and covenant risk.
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.
Audioeye Inc. Key Strengths (AEYE)
- Exceptional gross margin of 78.2% indicates strong product value and pricing power typical of successful software businesses
- Revenue growing 14.5% YoY demonstrates market demand and customer adoption
- Positive free cash flow of 1.2M despite operating losses suggests cost management and working capital efficiency
- 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
- Operating losses of 1.9M with negative interest coverage ratio (-2.3x) indicates inability to service debt from operations; refinancing risk is acute
- Extreme leverage at 5.22x debt-to-equity with 16.6M long-term debt against only 3.2M equity; balance sheet distressed
- Deteriorating liquidity with current ratio of only 1.03x combined with negative operating cash flow trajectory creates solvency risk if revenue growth decelerates
- 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
- Debt refinancing schedule and covenant compliance status
- Quarterly cash burn rate relative to cash reserves and FCF generation sustainability
- 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
Audioeye Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 |
|---|---|---|---|
| Q1 2026 | $9.7M | -$1.5M | N/A |
| 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 |
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
❓ Frequently Asked Questions about AEYE
What is the AI rating for AEYE?
Audioeye Inc. (AEYE) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AEYE's key strengths?
Claude: Exceptional gross margin of 78.2% indicates strong product value and pricing power typical of successful software businesses. Revenue growing 14.5% YoY demonstrates market demand and customer adoption. 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: Operating losses of 1.9M with negative interest coverage ratio (-2.3x) indicates inability to service debt from operations; refinancing risk is acute. Extreme leverage at 5.22x debt-to-equity with 16.6M long-term debt against only 3.2M equity; balance sheet distressed. 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 $10.6M.
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 grade reflects both perspectives for balanced insights.
What is AEYE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Audioeye Inc. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AEYE stock overvalued or undervalued?
Valuation metrics for AEYE: ROE of -66.5% (sector avg: 22%), net margin of -20.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is AEYE's AI grade for 2026?
Our dual AI analysis gives Audioeye Inc. a combined C grade 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 $1.3M, with capital expenditures of $17.0K. FCF margin is 11.8%.
How does AEYE compare to other Technology stocks?
Vs Technology sector averages: Net margin -20.0% (avg: 18%), ROE -66.5% (avg: 22%), current ratio 1.03 (avg: 2.5).
Is Audioeye Inc. carrying too much debt?
AEYE has a debt-to-equity ratio of 5.22x, which is above the Technology sector average of 0.5x. However, the current ratio of 1.03 suggests adequate short-term liquidity.