# AUDIOEYE INC (AEYE) Informational only - not investment advice. CIK: 0001362190 SIC: 7372 Services-Prepackaged Software SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7372 Services-Prepackaged Software](/industry/7372/) Latest 10-K filed: 2026-03-12 SEC page: https://www.sec.gov/edgar/browse/?CIK=1362190 Filing source: https://www.sec.gov/Archives/edgar/data/1362190/000110465926027159/aeye-20251231x10k.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-12 · accession 0001104659-26-027159 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362190.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 40,311,000 USD | 2025 | verified | | Net income | -3,077,000 USD | 2025 | verified | | Assets | 32,230,000 USD | 2025 | verified | | Free cash flow | 4,699,000 USD | 2025 | computed | | Net margin | -7.63% | 2025 | computed | | Operating margin | -4.54% | 2025 | computed | | Revenue YoY | +14.52% | 2025 | computed | | ROE | -64.05% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | AEYE | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -7.6% | 1.5% | 26 | 122 | | Operating margin | -4.5% | 1.3% | 36 | 121 | | Revenue growth | 14.5% | 13.5% | 54 | 124 | | FCF margin | 11.7% | 19.3% | 31 | 120 | | ROE | -64.1% | 2.0% | 6 | 112 | | ROA | -9.5% | 0.9% | 18 | 124 | | Liabilities / equity | 5.71 | 0.91 | 92 | 113 | | Current ratio | 0.88 | 1.57 | 13 | 124 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7372 Services-Prepackaged Software, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 40311000 | USD | 2025 | 2026-03-12 | | Net income | -3077000 | USD | 2025 | 2026-03-12 | | Assets | 32230000 | USD | 2025 | 2026-03-12 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-12. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362190.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2013 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 338,863 | | 2,739,439 | 5,660,427 | 10,765,000 | 20,475,000 | 24,503,000 | 29,913,000 | 31,316,000 | 35,201,000 | 40,311,000 | | Net income | | | -9,578,630 | -5,607,839 | -5,019,874 | -7,783,000 | -7,158,000 | -14,209,000 | -10,433,000 | -5,872,000 | -4,254,000 | -3,077,000 | | Operating income | | | -4,478,214 | -4,518,646 | -4,573,820 | -7,818,000 | -7,133,000 | -15,513,000 | -10,429,000 | -5,965,000 | -3,390,000 | -1,830,000 | | Gross profit | | | -232,056 | 1,355,294 | 3,033,612 | 6,359,000 | 14,514,000 | 18,382,000 | 22,694,000 | 24,342,000 | 27,940,000 | 31,556,000 | | Diluted EPS | | | | | | | -0.77 | -1.29 | -0.91 | -0.50 | -0.36 | -0.25 | | Operating cash flow | | | -2,340,281 | -1,622,719 | -1,643,854 | -5,617,000 | -1,906,000 | -4,980,000 | -4,999,000 | 318,000 | 2,731,000 | 4,753,000 | | Capital expenditures | | | 0.00 | 41,167 | 10,893 | 56,000 | 0.00 | 82,000 | 72,000 | 171,000 | 128,000 | 54,000 | | Share buybacks | 573,022 | | | | | | | 0.00 | 756,000 | 1,122,000 | 2,016,000 | 4,575,000 | | Assets | | | 4,488,600 | 5,034,388 | 9,104,079 | 9,152,000 | 18,254,000 | 29,313,000 | 24,428,000 | 25,495,000 | 29,766,000 | 32,230,000 | | Liabilities | | | 4,181,363 | 4,338,377 | 3,229,177 | 7,586,000 | 10,620,000 | 11,716,000 | 13,839,000 | 18,788,000 | 20,330,000 | 27,426,000 | | Stockholders' equity | | | 307,237 | 696,011 | 5,876,000 | 1,566,000 | 7,634,000 | 17,597,000 | 10,589,000 | 6,707,000 | 9,436,000 | 4,804,000 | | Cash and cash equivalents | | | 1,409,418 | 1,960,430 | 5,742,000 | 1,972,000 | 9,095,000 | 18,966,000 | 6,904,000 | 9,236,000 | 5,651,000 | 5,288,000 | | Free cash flow | | | -2,340,281 | -1,663,886 | -1,654,747 | -5,673,000 | -1,906,000 | -5,062,000 | -5,071,000 | 147,000 | 2,603,000 | 4,699,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2013 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | -88.68% | -72.30% | -34.96% | -57.99% | -34.88% | -18.75% | -12.08% | -7.63% | | Operating margin | | | | | -80.80% | -72.62% | -34.84% | -63.31% | -34.86% | -19.05% | -9.63% | -4.54% | | Return on equity | | | | | -85.43% | -497.00% | -93.76% | -80.75% | -98.53% | -87.55% | -45.08% | -64.05% | | Return on assets | | | | -111.39% | -55.14% | -85.04% | -39.21% | -48.47% | -42.71% | -23.03% | -14.29% | -9.55% | | Liabilities / equity | | | 13.61 | 6.23 | 0.55 | 4.84 | 1.39 | 0.67 | 1.31 | 2.80 | 2.15 | 5.71 | | Current ratio | | | 0.35 | 0.49 | 2.22 | 0.83 | 1.62 | 2.21 | 1.17 | 1.28 | 1.05 | 0.88 | ## As-reported value updates No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks. ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001362190.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2018-Q3 | 2018-09-30 | | | -0.19 | reported discrete quarter | | 2021-Q3 | 2021-09-30 | | | -0.41 | reported discrete quarter | | 2022-Q1 | 2022-03-31 | | | -0.32 | reported discrete quarter | | 2022-Q2 | 2022-06-30 | | | -0.23 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | -0.20 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.17 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | -0.17 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -1,973,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 7,838,000 | | -0.11 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 7,870,000 | -533,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 8,083,000 | -829,000 | -0.07 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -829,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 8,470,000 | | -0.06 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -735,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 8,925,000 | | -0.10 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 9,723,000 | -1,488,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 9,733,000 | -1,469,000 | | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -1,469,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 9,857,000 | | | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -2,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 10,227,000 | | | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 10,494,000 | -1,052,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 10,553,000 | -2,114,000 | | reported discrete quarter | | 2026-Q2 | 2026-03-31 | | -2,114,000 | | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 10,716,000 | | -0.07 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from AEYE's latest 10-K: [/company/AEYE/business/](/company/AEYE/business/). ## Risk Factors Verbatim Item 1A Risk Factors from AEYE's latest 10-K: [/company/AEYE/risk-factors/](/company/AEYE/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1362190/000110465926096032/aeye-20260630x10q.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-13 Report date: 2026-06-30 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following Management’s Discussion and Analysis of Financial Condition and Results of Operations, or MD&A, should be read in conjunction with our consolidated financial statements and related notes in Part I, Item 1 of this report. As used in this quarterly report, the terms “we,” “us,” “our” and similar references refer to AudioEye, Inc., unless otherwise indicated. Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you may be able to identify forward-looking statements by terms such as “may,” “should,” “will,” “forecasts,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential” or “continue,” the negative of these terms and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements relate to our future plans, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements, and are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions and speak only as of the date on which they are made. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including our plans, objectives, expectations and intentions and other factors discussed in “Part I, Item 1A. Risk Factors” contained in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Risk factors that could cause actual results to differ from those contained in the forward-looking statements include but are not limited to risks related to: [[GREPCENT_TABLE]] [["","\u25cf","the uncertain market acceptance of our existing and future products;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","our need for, and the availability of, additional capital in the future to fund our operations and the development of new products;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","the success, timing and financial consequences of new strategic relationships, acquisitions or licensing agreements we may enter into;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","rapid changes in internet-based applications that may affect the utility and commercial viability of our products;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","the timing and magnitude of expenditures we may incur in connection with our ongoing product development activities;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","judicial applications of accessibility laws to the internet;"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","the level of competition from our existing competitors and from new competitors in our marketplace; and"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","\u25cf","the regulatory environment for our products and services."]] [[/GREPCENT_TABLE]] Readers of this report are cautioned not to rely on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our subsequent SEC filings. This cautionary note is applicable to all forward-looking statements contained in this report. 18 Table of Contents AudioEye Solutions At its core, AudioEye’s offering provides ongoing testing, automated fixes, and 24/7 monitoring that continually improves conformance with Web Content Accessibility Guidelines (“WCAG”). This in turn helps businesses and organizations comply with WCAG standards as well as applicable U.S. and foreign accessibility laws. Our technology is capable of immediately identifying and fixing most of the common accessibility errors and addresses a wide range of disabilities including dyslexia, color blindness, epilepsy and more. AudioEye also offers additional solutions to provide for enhanced compliance and accessibility, including periodic auditing, custom fixes by experts, and legal support services. Our solutions may be purchased through a subscription service on a month-to-month basis or with one or multi-year terms. We also offer PDF remediation services, as well as mobile application and audit reporting services, including Voluntary Product Accessibility Template (VPAT) audits, to help our customers with their digital accessibility needs. Intellectual Property Our intellectual property is primarily comprised of copyrights, trademarks, trade secrets, issued patents and pending patent applications. We have a patent portfolio comprised of twenty-five (25) issued patents in the United States and three (3) pending U.S. patent applications. The commercial value of these patents is unknown. We plan to continue to invest in research and development and expand our portfolio of proprietary intellectual property. Our Annual Report filed on Form 10-K for the year ended December 31, 2025 as filed with the SEC on March 12, 2026 provides additional information about our business and operations. Executive Overview AudioEye is an industry-leading digital accessibility platform delivering Americans with Disabilities Act (“ADA”) and WCAG compliance at scale. Our solutions advance accessibility with patented technology that reduces barriers, expands access for individuals with disabilities, and enhances the user experience for a broader audience. In the three months ended June 30, 2026, we continued to focus on product innovation and expanding revenue. We have two sales channels to deliver our product, the Partner and Marketplace channel and the Enterprise channel. AudioEye continues to focus on recurring revenue growth in both channels, while still offering one-time website and mobile application reporting services as well as PDF remediation services that provide non-recurring revenue. In the three months ended June 30, 2026, total revenue increased by 9% over the prior year comparable period. As of June 30, 2026, Annual Recurring Revenue (“ARR”) was approximately $42.3 million, which represented an increase of 11% year-over-year. Refer to “Other Key Operating Metrics” below for details on how we calculate ARR. As of June 30, 2026, AudioEye had approximately 129,000 customers, a 7% increase from 120,000 customers at June 30, 2025. The increase in customer count was attributable to an increase in our Partner and Marketplace channel customers. In the three months ended June 30, 2026, revenue from our Partner and Marketplace channel grew 16% over the prior year comparable period, primarily due to continued expansion with existing partners. The Partner and Marketplace channel represented about 59% of ARR as of June 30, 2026. In three months ended June 30, 2026, total Enterprise channel revenue remained consistent with the prior year comparable period, as the growth in recurring revenue was mostly offset by attrition of customers added through acquisition and a reduction in non-recurring revenue. The Enterprise channel represented about 41% of ARR as of June 30, 2026. We had two customers (including, for each such customer, the customer’s affiliates) which accounted for 10% and 13% of our total revenue, respectively, or 23% in aggregate, in the three months ended June 30, 2026. One customer accounted for 13% of our total revenue in the six months ended June 30, 2026. The Company continued to invest in research and development in the second quarter of 2026. Total research and development cost, as defined under the “Research and Development Expenses” section in the “Results of Operations” below, was 12% of total revenue in the three months ended June 30, 2026. In the three months ended June 30, 2026, research and development expenses decreased from the prior year comparable period primarily due to a reduction in employee headcount as a result of efficiency gains from newly implemented AI tools and automation. 19 Table of Contents In the three months ended June 30, 2026, selling and marketing expense decreased from the prior year comparable period. The decrease in selling and marketing expense was mainly driven by a reduction in marketing personnel resulting from efficiencies gained with the implementation of AI tools and automation, partially offset by higher third-party marketing expenses. In the three months ended June 30, 2026, general and administrative expense increased from the prior year comparable period. The increase in general and administrative expenses was due primarily to higher litigation expense, severance associated with a reduction in headcount, and amortization expenses. We provide further commentary on our Results of Operations below. Results of Operations Our unaudited consolidated financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP” or “GAAP”). The discussion of the results of our operations compares the three and six months ended June 30, 2026 with the three and six months ended June 30, 2025. Our results of operations in these interim periods are not necessarily indicative of the results which may be expected for any subsequent period. Due to rounding, numbers presented throughout this document may not add precisely to the totals provided and percentages may not precisely reflect the absolute figures. [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1362190/000110465926027159/aeye-20251231x10k.htm Complete FY 2025 MD&A: /company/AEYE/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-12 Report date: 2025-12-31 Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with our audited consolidated financial statements and the related notes for the years ended December 31, 2025 and 2024 that appear elsewhere in this annual report on Form 10-K. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include but are not limited to those discussed below and elsewhere in this annual report on Form 10-K, particularly in “Risk Factors.” The forward-looking statements included in this annual report on Form 10-K are made only as of the date hereof. Executive Overview AudioEye is an industry-leading digital accessibility platform delivering Americans with Disabilities Act (“ADA”) and Web Content Accessibility Guidelines (“WCAG”) compliance at scale. Our solutions advance accessibility with patented technology that reduces barriers, expands access for individuals with disabilities, and enhances the user experience for a broader audience. In 2025, we continued to focus on product innovation and expanding revenue. We have two sales channels to deliver our product, the Partner and Marketplace channel and the Enterprise channel. AudioEye continues to focus on recurring revenue growth in both channels, while still offering our website and mobile application reporting services and PDF remediation services that provide non-recurring revenue. For the year ended December 31, 2025, total revenue increased by 15% over the prior year. As of December 31, 2025, Annual Recurring Revenue (“ARR”) was approximately $40.0 million, which represented an increase of 9% from December 31, 2024. Refer to “Other Key Operating Metrics” below for details on how we calculate ARR. As of December 31, 2025, AudioEye had approximately 131,000 customers, an increase from 127,000 customers at December 31, 2024. The increase in customer count was attributable to an increase in customers in our Partner and Marketplace channel. In the twelve months ended December 31, 2025, revenue from our Partner and Marketplace channel grew 10% over the prior year. This channel represented about 58% of ARR at December 31, 2025. In the twelve months ended December 31, 2025, total Enterprise channel revenue increased by 21% over the prior year. The Enterprise channel represented about 42% of ARR at December 31, 2025. We had one major customer (including the customer’s affiliates reflecting multiple contracts and a partnership with the Company) which accounted for approximately 13% and 15% of our revenue in the years ended December 31, 2025 and 2024, respectively. The Company continued to invest in research and development in 2025. Total research and development cost, as defined under the “Research and Development” section in the “Results of Operations” below, was 16% of total revenue in 2025. Total research and development cost decreased from the prior year due to lower personnel cost. For the year ended December 31, 2025, both selling and marketing expense and general and administrative expense increased over the prior year. The increase in selling and marketing expense was mainly driven by higher investment in third-party marketing services. The increase in general and administrative expense for the year ended December 31, 2025 was due primarily to higher amortization expense associated with our intangible assets, as well as increases in personnel costs, including stock compensation expense, and litigation expenses. We provide further commentary on our Results of Operation below. 21 Table of Contents Results of Operations Our consolidated financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP” or “GAAP”). The discussion of the results of our operations compares the year ended December 31, 2025 with the year ended December 31, 2024. Our results of operations in these periods are not necessarily indicative of the results which may be expected for any subsequent period. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year ended December 31,","\u200b","Change"],["(in thousands)","\u200b \u200b \u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","$","\u200b \u200b \u200b","%","\u200b"],["Revenue","\u200b","$","40,311","\u200b","$","35,201","\u200b","$","5,110","\u200b","15","%"],["Cost of revenue","\u200b","","8,755","\u200b","","7,261","\u200b","","1,494","\u200b","21","%"],["Gross profit","\u200b","","31,556","\u200b","","27,940","\u200b","","3,616","\u200b","13","%"],["Operating expenses:","\u200b","","\u200b","\u200b","","\u200b","\u200b","","\u200b","\u200b","\u200b","\u200b"],["Selling and marketing","\u200b","","14,897","\u200b","","12,668","\u200b","","2,229","\u200b","18","%"],["Research and development","\u200b","","4,590","\u200b","","5,077","\u200b","","(487)","\u200b","(10)","%"],["General and administrative","\u200b","","15,249","\u200b","","13,445","\u200b","","1,804","\u200b","13","%"],["Change in fair value of contingent consideration","\u200b","","(1,350)","\u200b","","140","\u200b","","(1,490)","\u200b","(1,064)","%"],["Total operating expenses","\u200b","","33,386","\u200b","","31,330","\u200b","","2,056","\u200b","7","%"],["Operating loss","\u200b","","(1,830)","\u200b","","(3,390)","\u200b","","1,560","\u200b","(46)","%"],["Other expense:","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Interest expense, net","\u200b","\u200b","(947)","\u200b","\u200b","(864)","\u200b","\u200b","(83)","\u200b","10","%"],["Loss on extinguishment of debt","\u200b","\u200b","(300)","\u200b","\u200b","\u2014","\u200b","\u200b","(300)","\u200b","100","%"],["Total other expense","\u200b","\u200b","(1,247)","\u200b","\u200b","(864)","\u200b","\u200b","(383)","\u200b","44","%"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Net loss","\u200b","$","(3,077)","\u200b","$","(4,254)","\u200b","$","1,177","\u200b","(28)","%"]] [[/GREPCENT_TABLE]] ​ Revenue The following table presents our revenues disaggregated by sales channel: ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","Year ended December 31,","\u200b \u200b \u200b","Change"],["(in thousands)","2025","\u200b","2024","\u200b","$","\u200b","%"],["Partner and Marketplace","$","22,233","\u200b","$","20,249","\u200b","$","1,984","\u200b","10","%"],["Enterprise","","18,078","\u200b","","14,952","\u200b","","3,126","\u200b","21","%"],["Total revenue","$","40,311","\u200b","$","35,201","\u200b","$","5,110","\u200b","15","%"]] [[/GREPCENT_TABLE]] ​ The Partner and Marketplace channel consists of our CMS partners, platform & agency partners, authorized resellers and the Marketplace. This channel serves small and medium sized businesses that are on a partner or reseller’s web-hosting platform or that purchase our solutions from our Marketplace. The Enterprise channel consists of our larger customers and organizations, including those with non-platform custom websites, who generally engage directly with AudioEye sales personnel for custom pricing and solutions. This channel also includes federal, state and local government agencies. For the year ended December 31, 2025, total revenue increased by 15% over the prior year. The 10% increase in Partner and Marketplace channel revenue was the result of continued expansion with existing partners and the execution of new partnerships agreements in the year. The 21% increase in Enterprise channel revenue was driven primarily by new customer relationships, including from our expansion into the European Union. 22 Table of Contents Cost of Revenue and Gross Profit ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year ended December 31,","\u200b","Change"],["(in thousands)","\u200b \u200b \u200b","\u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","$","\u200b \u200b \u200b","%"],["Revenue","\u200b","$","40,311","\u200b","$","35,201","\u200b","$","5,110","\u200b","15","%"],["Cost of revenue","\u200b","","8,755","\u200b","","7,261","\u200b","","1,494","\u200b","21","%"],["Gross profit","\u200b","$","31,556","\u200b","$","27,940","\u200b","$","3,616","\u200b","13","%"]] [[/GREPCENT_TABLE]] ​ Cost of revenue consists primarily of compensation and related benefits costs for our customer experience team, as well as a portion of our technology operations team that supports the delivery of our services, fees paid to our managed hosting and other third-party service providers, amortization of capitalized software development costs and patent costs, and allocated overhead costs. For the year ended December 31, 2025, cost of revenue increased by 21% over the prior year. The increase in cost of revenue was primarily due to increased costs incurred for service delivery, which were in line with the increase in revenue, and higher amortization expense related to our capitalized software development costs. For the year ended December 31, 2025, gross profit increased by 13% over the prior year. The increase in gross profit was a result of increased revenue. Selling and Marketing Expenses ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","Year ended December 31,","\u200b","Change","\u200b"],["(in thousands)","\u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","$","\u200b \u200b \u200b","%"],["Selling and marketing","\u200b","$","14,897","\u200b","$","12,668","\u200b","$","2,229","\u200b","18","%"]] [[/GREPCENT_TABLE]] ​ Selling and marketing expenses consist primarily of compensation and benefits related to our sales and marketing staff, as well as third-party advertising and marketing expenses. For the year ended December 31, 2025, selling and marketing expenses increased by 18% over the prior year. The increase in selling and marketing expenses resulted primarily from higher investment in third-party marketing services and higher personnel costs. Research and Development Expenses ​ [[GREPCENT_TABLE]] [["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","Year ended December 31,","\u200b","Change","\u200b"],["(in thousands)","\u200b","2025","\u200b \u200b \u200b","2024","\u200b \u200b \u200b","$","\u200b \u200b \u200b","%"],["Research and development expense","\u200b","$","4,590","\u200b","$","5,077","\u200b","$","(487)","\u200b","(10)","%"],["Plus: Capitalized research and development cost","\u200b","","1,876","\u200b","","1,771","\u200b","","105","\u200b","6","%"],["Total research and development cost","\u200b","$","6,466","\u200b","","6,848","\u200b","$","(382)","\u200b","(6)","%"]] [[/GREPCENT_TABLE]] ​ Research and development (“R&D”) expenses consist primarily of compensation and related benefits related to our employees involved in research and development activities. Total research and development cost includes the amount of research and development expense reported within operating expenses as well as development cost that was capitalized during the f [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/AEYE/mda/fy2025/ All MD&A years: /company/AEYE/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/AEYE/mda/fy2024/): filed 2025-03-12; accession 0001558370-25-002819 (https://www.sec.gov/Archives/edgar/data/1362190/000155837025002819/aeye-20241231x10k.htm) - [FY 2023 MD&A](/company/AEYE/mda/fy2023/): filed 2024-03-07; accession 0001410578-24-000150 (https://www.sec.gov/Archives/edgar/data/1362190/000141057824000150/aeye-20231231x10k.htm) - [FY 2022 MD&A](/company/AEYE/mda/fy2022/): filed 2023-03-09; accession 0001410578-23-000236 (https://www.sec.gov/Archives/edgar/data/1362190/000141057823000236/aeye-20221231x10k.htm) - [FY 2021 MD&A](/company/AEYE/mda/fy2021/): filed 2022-03-11; accession 0001410578-22-000353 (https://www.sec.gov/Archives/edgar/data/1362190/000141057822000353/aeye-20211231x10k.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7372 Services-Prepackaged Software) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/AEYE.md · JSON record: /company/AEYE.json · verified financials: /company/AEYE/financials.json / /company/AEYE/financials.csv · machine TOC for the whole site: /llms.txt