AudioEye Inc. Common Stock (AEYE)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits, carry little debt, and trade at a sensible price. AudioEye does not fit that mold. It sells website accessibility software, a useful niche with recurring compliance needs, but scale is small: filed FY2025 revenue was $40.3 million, up from $35.2 million in FY2024 and $31.3 million in FY2023, yet it still lost $3.1 million in FY2025, after losing $4.3 million in FY2024 and $5.9 million in FY2023. The latest filed quarter, fiscal Q2 2026 ended 2026-06-30, showed revenue of $10.7 million and a net loss of $865,000, or diluted EPS of -$0.07. That is not a durable earnings record. The balance sheet is stretched: D/E is 5.19, Altman Z-Score is -2.34, and FairStock P/B is 26.88 at the 2026-10-13 close of $6.99. FairStock P/E is negative because earnings are negative. The one bright spot is cash generation: trailing free cash flow was $4.0 million, a 4.5% FCF yield, and Piotroski F-Score is 7/9. But EV/EBITDA of 255.69 shows how little operating profit supports the enterprise value. I see no clear moat; patents and compliance needs help, but competitors can build similar services, and switching costs may be modest. The Lynch category is none because the company has lost money in each of the last four years. A low price versus the 52-week high of $16.39 is not value by itself. Until profits are consistent and debt is reduced, this remains speculative.

In plain English: AudioEye sells software and services that help websites work better for people with disabilities. Sales are growing, but the company still loses money and carries a lot of debt for its size. At the 2026-10-13 close of $6.99, the shares look expensive compared with its weak profits and the value of its assets after debts, even though it does generate some free cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer