AudioEye (AEYE) Q4 2025 earnings summary

Executive summary

• Achieved 40 consecutive quarters of record revenue growth, with 2025 marking a new high and full year revenue up 15% to $40.3 million; net loss decreased 28% to $3.1 million, and adjusted EBITDA rose 35% to $9.1 million.

• Integration of acquired customers is substantially complete, positioning for ARR acceleration in 2026.

• Launched a next-generation platform unifying AI detection, expert audits, and custom fixes, leveraging proprietary data and outperforming competitors in independent studies.

• Significant expansion in the E.U. and strong momentum in both U.S. and E.U. markets, driven by regulatory changes and increased litigation.

Financial highlights

• Q4 2025 revenue reached $10.5 million, up 8% year-over-year and 10% sequentially; full year gross profit was $31.6 million (78% margin), and adjusted gross margin was 84% for the year and 85% in Q4.

• Adjusted EBITDA for 2025 grew 35% to $9.1 million (22% margin); Q4 adjusted EBITDA was $2.8 million.

• Net loss for 2025 was $3.1 million ($0.25/share), improved from $4.3 million in 2024; Q4 net loss narrowed to $1.1 million ($0.08/share).

• Free cash flow for 2025 was $7.2 million, up from $4.9 million in 2024.

• Operating expenses for 2025 rose 7%, mainly due to sales, marketing, and G&A costs.

Outlook and guidance

• Q1 2026 guidance: revenue of $10.5–$10.6 million, adjusted EBITDA of $2.2–$2.3 million, adjusted EPS of $0.17–$0.18.

• Full year 2026 guidance: revenue of $43–$44.5 million, adjusted EBITDA of at least $11.8 million (27% margin), ARR growth expected to outpace revenue growth.

• Run rate adjusted EBITDA of $15 million expected by year-end 2026, with accelerating cash flow growth into 2027.