#United States #Tucson #Digital Accessibility #AudioEye #Nasdaq AEYE

Record-Breaking Second Quarter Results for AudioEye

In a significant announcement, AudioEye, Inc. (Nasdaq: AEYE), a frontrunner in digital accessibility solutions, reported exceptional financial results for the second quarter ending June 30, 2025. This quarter marks their 38th consecutive quarter of growth, reflecting a robust business model and strong demand both in the United States and Europe, especially following the implementation of the European Accessibility Act.

Financial Highlights of Q2 2025

The company recorded a 16% increase in total revenue, reaching a remarkable $9.9 million, up from $8.5 million in the prior year's quarter. Gross profit also saw an uplift, moving from $6.7 million (79% of revenue) to $7.6 million (77% of revenue). However, this increase in gross profit was offset slightly by higher service delivery costs and increased amortization expenses connected to capitalized software development.

Operating expenses climbed modestly by 2%, amounting to $7.4 million, attributed primarily to increased selling and marketing efforts along with stock compensation expenses. Encouragingly, the net loss for the quarter was virtually zero, reported at $0.0 million or $0.00 per share, an improvement from a loss of $0.7 million or $0.06 per share in the same period last year.

Additionally, adjusted EBITDA soared to $1.9 million, reflecting positive growth from $1.5 million a year prior. Adjusted earnings per share (EPS) also improved to $0.15 compared to $0.12 previously.

Strategic Growth and Future Projections

CEO David Moradi expressed optimism, stating, "We expect annualized revenue growth in the high teens for the upcoming second half of the year driven by an uptick in business momentum both domestically and across Europe, spurred by the newly enacted European Accessibility Act." He added that the company aims to boost adjusted EPS by 30-40% annually over the next three years.

As of June 30, 2025, Annual Recurring Revenue (ARR) increased to $38.2 million, a rise from $37.1 million on March 31, 2025. AudioEye's customer base grew to approximately 120,000, seeing a sequential increase of 1,000 customers, underscoring the effectiveness of their sales strategies across both Partner and Marketplace as well as Enterprise channels.

The European Accessibility Act

A key factor in AudioEye's recent growth is the European Accessibility Act (EAA), which officially took effect on June 28, 2025. This legislation mandates that businesses operating within the EU ensure their digital offerings are accessible to individuals with disabilities, introducing substantial penalties for non-compliance. As specific enforcement plans are developed, demand for AudioEye’s products is expected to rise significantly.

Closing Thoughts

Looking ahead, AudioEye projects revenues for the third quarter of 2025 to fall between $10.2 million and $10.4 million, suggesting an annualized growth rate of approximately 18% at the midpoint. The company has also elevated its full-year revenue guidance to an estimated range of $40.3 million to $40.7 million due to the phasing out of certain legacy customers from previous acquisitions, aiming to streamline operations and enhance cash flow.

On August 7, 2025, AudioEye will host a conference call at 4:30 p.m. Eastern Time to discuss these significant results, providing stakeholders an opportunity to engage with management and gain insights into the company’s strategic direction.

In summary, AudioEye demonstrates a commitment to ensuring digital accessibility while achieving notable financial milestones, which reflects their scalable business model and industry leadership. As they navigate through evolving legislative landscapes and growing market demands, the future appears promising for this innovative company.