AudioEye Reports 16% Revenue Growth to $9.9 Million in Q2 2025

AudioEye, Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 16% to $9.9 million compared to $8.5 million in the same period last year. For the first half of 2025, total revenue reached $19.6 million, an 18% rise from $16.6 million in the prior year. The company achieved a gross profit of $7.6 million for the quarter, up from $6.7 million, while the gross profit margin remained stable at approximately 77%. Despite these gains, AudioEye reported a net loss of $2, a significant improvement from a net loss of $735,000 in the second quarter of 2024.

The company’s financial performance reflects strategic developments, including the acquisition of ADA Site Compliance, which was completed in September 2024. This acquisition is expected to enhance AudioEye's customer relationships and expand its revenue base. Additionally, the company has been focusing on product innovation and expanding its digital accessibility solutions, which are critical for compliance with the Americans with Disabilities Act (ADA) and Web Content Accessibility Guidelines (WCAG).

Operationally, AudioEye reported a slight decrease in customer count, with approximately 120,000 customers as of June 30, 2025, down from 121,000 a year earlier. This decline was attributed to a contract renegotiation within the Partner and Marketplace channel. However, the company noted a 14% year-over-year increase in Annual Recurring Revenue (ARR), which stood at approximately $38.2 million. The Partner and Marketplace channel contributed 57% of ARR, while the Enterprise channel accounted for 43%, with the latter experiencing a 27% revenue growth compared to the previous year.

The company’s operating expenses increased, driven by higher selling and marketing costs, which rose by 28% to $3.8 million in the second quarter. General and administrative expenses also increased by 24% to $3.7 million, primarily due to higher litigation costs and amortization expenses related to intangible assets. Despite these increases, AudioEye's operating loss narrowed to $242,000 from $497,000 in the prior year, indicating improved operational efficiency.

Looking ahead, AudioEye remains focused on leveraging its recent acquisitions and expanding its product offerings to drive future growth. The company has also initiated a share repurchase program, authorizing up to $12.5 million in stock buybacks, which reflects its commitment to enhancing shareholder value. As of June 30, 2025, AudioEye had $6.9 million in cash and cash equivalents, positioning it well for continued investment in growth initiatives and operational stability.