AudioEye Marks Decade of Growth, Touts Strong EU Expansion

TUCSON, Ariz. – January 13, 2026 – Digital accessibility leader AudioEye, Inc. today announced preliminary financial results for the fourth quarter of 2025, marking its fortieth consecutive period of record revenue—a full decade of uninterrupted top-line growth. The company projects strong performance driven by significant expansion in the European Union, setting a positive tone for its upcoming 2026 guidance.

In its preliminary outlook, AudioEye (Nasdaq: AEYE) anticipates fourth-quarter revenue of approximately $10.5 million. More significantly, its Annual Recurring Revenue (ARR), a key metric for its subscription-based business, is expected to reach between $39.9 million and $40.0 million by the end of 2025. This represents a notable increase from the $38.7 million reported just three months earlier at the end of the third quarter.

The company also projects robust profitability, with adjusted EBITDA expected to hit approximately $2.75 million, translating to a healthy 26% margin.

"We are pleased to expect to report our fortieth consecutive period of record revenue with ARR growth driven by strong results in the European Union," said David Moradi, CEO of AudioEye, in the official press release. He added that the company anticipates providing full-year 2026 guidance later in the quarter, which is "expected to include strong growth and continued operating leverage throughout the year."

A Ten-Year Trajectory of Consistent Growth

The announcement of a 40th consecutive record quarter underscores AudioEye's sustained momentum in the burgeoning digital accessibility market. This milestone is not an anomaly but the continuation of a well-established trend of sequential and year-over-year expansion. The preliminary Q4 2025 revenue of $10.5 million builds upon the $10.2 million reported in Q3 2025 and the $9.7 million from Q4 2024.

This consistent performance has propelled the company's annual revenue from just over $20 million in 2020 to a record $35.2 million in 2024, with 2025 results poised to set another new high.

The growth in Annual Recurring Revenue (ARR) paints an even clearer picture of the company's scaling subscription model. The projected $40.0 million ARR for the end of 2025 is a significant step up from the $36.6 million recorded at the close of 2024 and the $31.2 million at the end of 2023. This steady climb in recurring revenue highlights customer retention and the successful expansion of its service offerings. This growth is further supported by an expanding customer base, which has grown from approximately 127,000 at the end of 2024 to over 131,000 as of the latest announcement.

The European Catalyst and Regulatory Tailwinds

A key driver behind AudioEye's recent acceleration, particularly in ARR, is its strategic expansion into the European Union. CEO David Moradi explicitly credited "strong results in the European Union" for the growth, a direct consequence of a shifting regulatory landscape across the continent.

The primary catalyst is the European Accessibility Act (EAA), which officially came into force on June 28, 2025. This landmark legislation mandates that a wide range of digital products and services—from e-commerce sites to banking apps—must be accessible to people with disabilities. With significant penalties for non-compliance, the EAA has created an urgent and widespread demand for accessibility solutions like those offered by AudioEye.

Anticipating this shift, the company has made "meaningful investments in EU sales and marketing infrastructure" to capture this new market opportunity. The sharp increase in ARR between the third and fourth quarters of 2025 suggests this strategy is already yielding substantial returns. The EAA has effectively transformed digital accessibility from a best practice into a legal necessity for businesses operating in the EU, providing a powerful and long-term tailwind for specialized providers.

Navigating a Competitive Accessibility Market

AudioEye operates in an increasingly crowded and competitive digital accessibility space, with rivals including AccessiBe, UserWay, and Level Access all vying for market share. However, the company has carved out a strong position through a combination of proprietary technology, a diverse business model, and a focus on comprehensive compliance.

The company’s core offering combines industry-leading AI automation with fixes and testing conducted by human experts, many of whom are members of the disability community. This hybrid approach is designed to deliver more robust and reliable compliance with standards like the Web Content Accessibility Guidelines (WCAG) than purely automated solutions can offer. This technological edge is protected by a portfolio of 25 U.S. patents.

AudioEye's business model is structured to serve a wide spectrum of clients. Its Partner and Marketplace channel caters to small and medium-sized businesses (SMBs) through content management systems and web-hosting platforms, creating a scalable engine for customer acquisition. Meanwhile, its Enterprise channel directly serves large organizations, including major global brands like Samsung and Calvin Klein. This high-touch enterprise segment has been a significant growth engine, showing 26% year-over-year growth in Q3 2025 and accounting for 45% of revenue. Recent achievements, such as obtaining HIPAA Compliance and SOC 2 Type II Certification, further strengthen its appeal to large, security-conscious enterprise clients.

A Closer Look at the Numbers

While the headline figures are strong, the company's announcement comes with the standard "cautionary language" that the results are preliminary and subject to final review and audit procedures. This means the final, audited figures reported later could vary from these initial estimates.

The company also prominently features non-GAAP financial measures, particularly adjusted EBITDA. AudioEye defines this metric to exclude certain expenses like stock-based compensation, depreciation and amortization, and specific litigation or acquisition costs. Management argues this provides a clearer view of core operational performance. The projected adjusted EBITDA of $2.75 million for Q4 2025, representing a 26% margin, suggests improving profitability and operational efficiency, up from the 24% margin reported in the previous quarter. This indicates that as revenue grows, the company is successfully managing its cost structure to generate more profit.

Investors and analysts will be looking for more detail later this week, as AudioEye's management is scheduled to present at the 28th Annual Needham Growth Conference. The company is expected to elaborate on its performance and provide its much-anticipated full-year guidance for 2026 during the event.