AudioEye (AEYE) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $9.9 million, marking 38 consecutive quarters of growth and a 16% year-over-year increase, with ARR reaching $38.2 million.

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

• Customer base grew to approximately 120,000, up 1,000 sequentially, driven by both Partner and Marketplace and Enterprise channels.

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

• Major acquisition and new credit facility completed, with $1.8 million used for share repurchases in Q2.

Financial highlights

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

• Gross profit for Q2 was $7.6 million (77% margin), with six-month gross profit at $15.4 million and margin stable at 78%.

• Net loss narrowed to nearly zero ($0.00 per share) in Q2, and $1.47 million for six months, an improvement from prior periods.

• Adjusted EBITDA was $1.9 million (20% margin) in Q2, up 31% year-over-year; adjusted EPS was $0.15.

• Cash and cash equivalents at June 30, 2025 were $6.9 million.

Outlook and guidance

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

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

• Full-year 2025 revenue guidance updated to $40.3–$40.7 million, adjusted EBITDA $8.9–$9.1 million, and adjusted EPS $0.71–$0.73.

• Adjusted EBITDA margins expected to reach high 20% by Q4 2025; run-rate adjusted EPS in the mid-$0.80s annualized exiting the year.

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