AudioEye (AEYE) investor relations material

Executive summary

• Achieved record Q2 2025 revenue of $9.9M, marking 38 consecutive quarters of growth and strong US/EU demand post-European Accessibility Act.

• ARR reached $38.2M, up $1.1M sequentially and 14% year-over-year, with growth from both enterprise and partner/marketplace channels.

• Customer base at approximately 120,000 as of June 30, 2025, up 1,000 sequentially, though down 1% year-over-year due to contract renegotiation.

• Integration of acquisitions and phasing out of lower-margin, legacy services impacted guidance but is expected to drive higher margins and cash flow.

• Business model scalability and prudent expense management expected to drive record adjusted EBITDA and net income margins in the second half of 2025.

Financial highlights

• Q2 2025 revenue reached $9.9M, up 16% year-over-year; six-month revenue was $19.6M, up 18%.

• Gross profit for Q2 was $7.6M (77% margin); six-month gross profit was $15.4M (78% margin).

• Net loss narrowed to nearly zero in Q2, and to $1.47M for the six months, both improved year-over-year.

• Adjusted EBITDA was $1.9M in Q2 (20% margin), up 31% year-over-year; six-month adjusted EBITDA margin improved.

• Operating expenses rose 2% year-over-year in Q2 and 13% for six months, mainly from higher sales, marketing, and stock compensation.

Outlook and guidance

• Q3 2025 revenue guidance: $10.2M–$10.4M, with 18% annualized sequential growth at midpoint.

• Q3 adjusted EBITDA expected between $2.2M–$2.4M; adjusted EPS $0.17–$0.19.

• Full-year 2025 revenue guidance updated to $40.3M–$40.7M, reflecting phase-out of acquisition-related customers.

• Full-year adjusted EBITDA guidance $8.9M–$9.1M; adjusted EPS $0.71–$0.73.

• Aspirational goal to grow adjusted EPS and EPS annually by 30–40% for the next three years.