AudioEye Achieves Record Revenue in Third Quarter of 2025 Amid Growing Demand for Accessibility Solutions
AudioEye Records Breakthrough Q3 2025 Results
AudioEye, Inc. (Nasdaq: AEYE), a leader in digital accessibility solutions, recently announced exceptional financial results for the third quarter of 2025, marking the thirty-ninth consecutive quarter of record revenue.
Revenue and Financial Highlights
The company reported a remarkable total revenue of $10.2 million, a 15% increase from $8.9 million in the same quarter last year. This growth underlines AudioEye's increasing market share as they continue to provide essential accessibility services.
The gross profit also saw an uptick, reaching $7.9 million or 77% of total revenue, reflecting strong performance despite a slight decline in gross margin due to higher operational costs relating to platform migrations and increased customer service expenses. The total operating expenses increased marginally by 2%, driven by higher selling and marketing costs, which indicate AudioEye’s strategic focus on expanding its market outreach. Notably, the net loss was reduced to $0.6 million, translating to $(0.04) per share, compared to a loss of $1.2 million or $(0.10) per share in the same period the previous year.
In terms of adjusted performance, AudioEye's adjusted EBITDA for Q3 was $2.5 million, with an adjusted earnings per share of $0.19, up from $2.0 million and $0.16 respectively from last year. These metrics are crucial for gauging ongoing performance as they factor out atypical cash fluctuations and expenses.
Annual Recurring Revenue (ARR)
As of September 30, 2025, AudioEye’s Annual Recurring Revenue (ARR) climbed to $38.7 million, a slight growth from $38.2 million in June 2025. This rising ARR reflects the company's ability to sustain and grow its subscription-based revenue streams, which are critical for long-term business health.
AudioEye's strong position is reinforced by its substantial customer base, which expanded by 3,000 to reach around 123,000 clients, fueled by the company’s partnerships and marketplace efforts.
Strategic Expansion and Market Developments
AudioEye is actively capitalizing on legislative changes that boost accessibility demands. The European Accessibility Act is creating new opportunities in Europe, leading to a strategic alignment with UK-based Creode, a digital agency. This partnership is expected to enhance accessibility compliance across various sectors as demand increases with the impending regulations.
David Moradi, the CEO of AudioEye, expressed optimism about the upcoming fourth quarter and the overall outlook for the company. He stated, “We anticipate continued business momentum to drive a notable increase in ARR, revenue, and adjusted EBITDA. Our aspirational goal remains to achieve annual growth rates of 30-40% in adjusted EPS and EPS over the next three years.”
Future Expectations and Projections
Looking ahead, AudioEye forecasts Q4 revenue between $10.45 million and $10.6 million, alongside expected adjusted EBITDA of $2.7 million to $2.8 million. Moreover, the full-year revenue projection has been updated to $40.3 million to $40.4 million for 2025, indicating a year-over-year growth rate of about 15% at the midpoint.
In conclusion, AudioEye is not just maintaining but accelerating its growth trajectory in digital accessibility, leveraging evolving regulations and innovative solutions to meet the needs of its diverse clientele. With a strong financial performance and strategic partnerships, the company is poised for continued success in the accessibility industry.