AudioEye, Inc. (AEYE): History, Ownership, Mission, How It Works & Makes Money

When you look at the digital accessibility market, how does AudioEye, Inc. (AEYE) manage to secure its position as a clear leader, especially with a full-year 2025 revenue guidance projecting between $40.3 million and $40.4 million? This isn't just a compliance play; the company's core Software-as-a-Service (SaaS) model, which helps over 120,000 customers meet Americans with Disabilities Act (ADA) and Web Content Accessibility Guidelines (WCAG) standards, has driven its 38th consecutive period of record revenue as of Q2 2025. With Annual Recurring Revenue (ARR) sitting at $38.2 million, understanding the company's history, its unique ownership structure-where insiders hold about 33.89%-and how it defintely converts regulatory demand into a scalable business is crucial for your investment thesis.

AudioEye, Inc. (AEYE) History

You need to understand the roots of a company to truly assess its trajectory, and AudioEye, Inc. is a great example of a business that fundamentally changed its model to meet a growing market need. The company started as a small research and development firm, but its major growth came from pivoting to a scalable, automated Software-as-a-Service (SaaS) platform for digital accessibility.

This evolution is what allowed them to report a record quarterly revenue of $10.2 million in the third quarter of 2025, a clear sign the strategy is working. To be fair, that pivot from service to software was defintely the game changer.

AudioEye, Inc.'s Founding Timeline

Year established

AudioEye, Inc. was established in 2005.

Original location

The company was originally headquartered in Tucson, Arizona.

Founding team members

The original founding team included Nathaniel Bradley, Sean Bradley, James Crawford, and David J. Ide.

Initial capital/funding

While the precise initial capital from founders and early angel investors isn't publicly detailed, the company's focus was on developing its core patented technology. Overall, AudioEye has raised a total funding of approximately $11.5 million across 10 rounds, with a significant Post IPO round of $6.5 million occurring in August 2018.

AudioEye, Inc.'s Evolution Milestones

AudioEye, Inc.'s Transformative Moments

The company's trajectory was shaped by a few critical, high-stakes decisions that moved it from a niche service provider to a scalable technology platform.

• The SaaS Pivot: The most important shift was moving away from custom service engagements to a scalable, subscription-based model. This change, which centered on their patented automation technology, allowed them to serve over 123,000 customers as of September 30, 2025, making the business model highly repeatable.
• Strategic Acquisitions: The 2022 acquisition of BoIA and the 2024 acquisition of ADA Site Compliance were key for consolidating the market and immediately adding recurring revenue streams. This is how you quickly expand market share and expertise.
• European Market Entry: The June 2025 enactment of the European Accessibility Act (EAA) was a major tailwind. AudioEye is capitalizing on this regulatory change, which is expected to drive significant new demand in the EU market, building on the 26% year-over-year growth seen in their Enterprise Channel in Q3 2025.

Here's the quick math: Q3 2025 Adjusted EBITDA hit a record $2.5 million, up from $1.9 million sequentially, showing that the focus on operational efficiency is paying off alongside revenue growth. If you want a deeper dive into the financials, you can check out Breaking Down AudioEye, Inc. (AEYE) Financial Health: Key Insights for Investors.

AudioEye, Inc. (AEYE) Ownership Structure

AudioEye, Inc. is controlled by a close mix of institutional investors and company insiders, a dynamic that often signals high-conviction investment but also potential volatility in decision-making.

The largest single shareholder, David Moradi, is also the Chief Executive Officer, meaning the company's strategic direction is defintely tied to his vision and long-term commitment.

Given Company's Current Status

AudioEye, Inc. is a publicly traded company, listed on The Nasdaq Capital Market under the ticker symbol AEYE. This status subjects the company to rigorous reporting requirements by the Securities and Exchange Commission (SEC), providing investors with transparency into its financial health and governance.

As of November 2025, the company has a market capitalization of approximately $156.72 million, reflecting its valuation as a small-cap software application firm focused on digital accessibility.

For the 2025 fiscal year, the company narrowed its full-year revenue guidance to a range of $40.3 million to $40.4 million, with adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) expected to be between $9.0 million and $9.1 million.

You can see a deeper dive into the major players and their motivations here: Exploring AudioEye, Inc. (AEYE) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

The ownership structure is highly concentrated, with institutions and insiders holding the vast majority of shares. This means a few large players can significantly influence the stock price and corporate strategy, so you need to watch their trading activity closely.

Here's the quick math on who holds the equity as of November 2025, showing a near-even split between the professional money managers and those running the business day-to-day.

Given Company's Leadership

The governance is steered by a lean, experienced management team, with the CEO consolidating power by also holding the Executive Chairman role as of mid-2025.

David Moradi, the CEO, has demonstrated high confidence in the company's future by reducing his annual base salary to just $1 starting in the second quarter of 2025, opting instead for performance-based Restricted Stock Units (RSUs) that vest over two years.

The core leadership team that executes the strategy includes:

• David Moradi: Chief Executive Officer & Executive Chairman. He is also the largest individual shareholder.
• Kelly Georgevich: Chief Financial Officer (CFO). She brings over 15 years of experience with high-growth, entrepreneurial companies, particularly in the Software as a Service (SaaS) sector.
• John Postlethwait: Chief Operating Officer (COO). He leads product engineering and expert service delivery.
• Chad Sollis: Chief Marketing Officer (CMO). He spearheads strategic initiatives in brand development and growth.
• Mike Paciello: Chief Accessibility Officer. He is a key figure in the accessibility industry, aligning product with compliance.

This structure, where the CEO is also the largest shareholder and Chairman, offers clear, unified direction, but still, it's something you should monitor for potential governance risks.

AudioEye, Inc. (AEYE) Mission and Values

AudioEye's core purpose is to close the digital accessibility gap, ensuring the internet is usable for everyone, especially the one in six people globally living with a disability. This mission drives their technology and their business model, mapping a clear path from compliance to true digital inclusion.

You're not just buying software; you're investing in a cultural shift toward universal design (making things accessible to all people, regardless of ability). Honestly, this mission-driven approach is a key reason for their strong growth, with full-year 2025 revenue guidance set between $40.3 million and $40.7 million.

AudioEye's Core Purpose

The company's purpose goes beyond simply avoiding lawsuits; it's about making digital platforms truly accessible and usable for the expansive global population of individuals with disabilities. This is a huge market, and it's defintely the right thing to do.

• Universal Access: Making the internet accessible for the 1 in 6 people globally living with a disability.
• Ethical Technology: Combining industry-leading AI automation with expert human fixes informed by the disability community.
• Risk Mitigation: Providing a comprehensive solution that helps organizations comply with Web Content Accessibility Guidelines (WCAG) and U.S. and foreign accessibility laws.

Official Mission Statement

The mission is centered on empowering organizations and their teams with the necessary knowledge and tools to embed accessibility into their core digital processes.

• Help organizations achieve their accessibility and compliance goals.
• Empower everyone involved in creating digital experiences with the knowledge and tools they need.
• Detect and fix accessibility violations that impact customers and create legal risk.

Here's the quick math on their scale: their platform delivers over one billion automated accessibility fixes to customer sites daily, plus it runs over 2,000 accessibility scans per second. You can see why their solution is trusted by over 120,000 customers, including brands like Samsung and Calvin Klein.

For a deeper look at the financial engine powering this mission, check out Breaking Down AudioEye, Inc. (AEYE) Financial Health: Key Insights for Investors.

Vision Statement

AudioEye's vision is a future where digital accessibility is the default, not an afterthought. They aim to be the gold standard in the industry, which means constant innovation and a commitment to transparency.

• Ensure the digital future we build is accessible.
• Be the marketplace technology leader providing a comprehensive accessibility solution.
• Maintain an aspirational goal of increasing adjusted EBITDA and adjusted EPS by 30% to 40% annually for the next three years.

What this estimate hides is the human element: they work directly with 46 members of the disability community to test websites, ensuring their fixes actually work for the people who need them.

AudioEye Slogan/Tagline

The company uses a simple, collaborative phrase to summarize its purpose and invite participation.

• Let's build an accessible digital future, together.

Still, the real takeaway for you is the impact: customers who use their complete solution are 4X less likely to receive a valid legal claim compared to other solutions, showing the mission directly translates to tangible business protection. Their expected full-year 2025 adjusted EBITDA is strong, forecasted between $9 million and $9.1 million.

AudioEye, Inc. (AEYE) How It Works

AudioEye, Inc. operates as a digital accessibility platform, using a patented, hybrid combination of artificial intelligence (AI) automation and human-assisted technology to find and fix website compliance issues in real-time. The company's solution ensures that client websites conform to the Web Content Accessibility Guidelines (WCAG) and US laws like the Americans with Disabilities Act (ADA), mitigating legal risk for businesses.

AudioEye, Inc.'s Product/Service Portfolio

The company primarily generates revenue through a Software-as-a-Service (SaaS) subscription model, offering tiered solutions that scale from basic automation to fully managed expert services. As of the 2025 fiscal year, the company had approximately 123,000 customers across its Enterprise and Partner & Marketplace channels.

AudioEye, Inc.'s Operational Framework

The operational process is built on a 'Find, Fix, Monitor' loop, which is central to delivering value and maintaining the high Annual Recurring Revenue (ARR), which reached $38.7 million as of September 30, 2025.

• AI-Driven Detection: The platform continuously scans client websites for Web Content Accessibility Guidelines (WCAG) violations, employing patented technology to identify issues across all pages.
• Automated Remediation: Proprietary AI and machine-learning algorithms automatically apply code-level fixes to common accessibility errors, such as missing image alternative text or poor color contrast, without requiring manual intervention from the client's development team.
• Expert Intervention: For complex or nuanced issues that automation cannot resolve, certified human accessibility experts perform manual audits and apply custom code fixes, ensuring full compliance. About 33% of issues typically require this manual intervention.
• SaaS and Channel Focus: The company focuses on a scalable SaaS subscription model, with growth driven by two main channels: the Enterprise channel (which grew 25% year-over-year as of Q2 2025) and the Partner and Marketplace channel.
• Financial Performance: For the full fiscal year 2025, the company projects revenue between $40.3 million and $40.4 million, with an expected Adjusted EBITDA of $9.0 million to $9.1 million. Here's the quick math: the Adjusted EBITDA margin is projected to be around 22.5% at the midpoint of the guidance range, showing strong operating leverage.

You can learn more about the company's core values by reviewing its Mission Statement, Vision, & Core Values of AudioEye, Inc. (AEYE).

AudioEye, Inc.'s Strategic Advantages

The company's market success is defintely driven by its ability to capitalize on regulatory pressure and a unique service delivery model that competitors struggle to replicate at scale.

• Hybrid AI-Human Model: This is the key differentiator. While many competitors rely on automation-only, AudioEye combines AI with expert human auditors, addressing the approximately 50% of WCAG issues that automation alone cannot reliably fix. This hybrid approach offers up to 400% more protection from legal claims compared to automation-only solutions.
• Regulatory Tailwinds: The enforcement of the European Accessibility Act (EAA) in June 2025 and forthcoming US Department of Justice (DOJ) Title II regulations are driving significant demand in both the EU and US markets. This creates a mandatory, non-discretionary spending environment for compliance services.
• High Gross Margin: The business model is highly scalable, demonstrated by a consistently strong Gross Profit margin of approximately 77% in the third quarter of 2025. This allows for increased investment in R&D and market expansion.
• Strategic Partnerships: Key partnerships, such as those with CivicPlus (providing access to over 10,000 government clients) and Finalsite (in the K-12 education sector), provide a powerful, low-cost distribution channel into high-value, compliance-sensitive markets.

AudioEye, Inc. (AEYE) How It Makes Money

AudioEye, Inc. makes money by selling subscription-based digital accessibility solutions, primarily through an Annual Recurring Revenue (ARR) model, which helps organizations comply with web accessibility standards like the Americans with Disabilities Act (ADA) and Web Content Accessibility Guidelines (WCAG). Their core offering is a blend of automated, AI-driven technology and human-expert remediation, essentially selling peace of mind and legal compliance as a service to over 123,000 customers globally as of September 30, 2025.

AudioEye's Revenue Breakdown

The company structures its sales through two main channels, which reflect different customer segments and scale, and the Partner and Marketplace channel is currently the larger revenue contributor. This dual-channel approach is smart because it diversifies risk and captures both large enterprise contracts and the long tail of small-to-midsize businesses (SMBs).

Business Economics

You need to look at the business economics (the core financial logic) to understand the sustainability of their growth, and honestly, the numbers here tell a strong story about scalability. The high proportion of revenue from the Partner and Marketplace channel (55% in Q3 2025) reflects a scalable model targeting a massive SMB market, while the faster growth in the Enterprise Channel (26% YoY) shows success in landing larger, stickier contracts.

Here's the quick math on their core economic fundamentals:

• High Gross Margin: The gross profit margin was a healthy 77% in Q3 2025, which is typical for a software-as-a-service (SaaS) business with a strong automation component.
• Recurring Revenue: The Annual Recurring Revenue (ARR) hit $38.7 million as of September 30, 2025, which is the foundational metric for a SaaS business, showing a predictable revenue base.
• Regulatory Tailwinds: Demand is defintely being driven by new regulations, like the European Accessibility Act and the impending US Department of Justice (DOJ) Title II rules, which effectively mandate their service for many organizations. This regulatory pressure acts as a powerful, non-cyclical sales driver, a key advantage.
• Pricing Strategy: The model is subscription-based, likely tiered by website size, traffic, and feature set (e.g., automated versus expert-led services). The focus on integrating AI is a direct effort to improve that 77% gross margin by lowering the cost of delivering the service over time.

The integration of acquired customers onto their core platform is expected to further improve margins, a classic post-acquisition synergy play. You can read more about what drives this demand in the Mission Statement, Vision, & Core Values of AudioEye, Inc. (AEYE).

AudioEye's Financial Performance

The company is showing a clear trend toward profitability, which is what you want to see from a growth-stage SaaS firm. They are managing to grow revenue while simultaneously improving their bottom line, a difficult balancing act.

• Full-Year Revenue: AudioEye updated its full-year 2025 revenue guidance to be between $40.3 million and $40.4 million, representing approximately 15% year-over-year growth at the midpoint.
• Adjusted Profitability: The company is projecting full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to be between $9.0 million and $9.1 million, a significant increase that shows operational leverage.
• Earnings Per Share (EPS): For the full year 2025, the company expects Adjusted EPS of between $0.72 and $0.73 per share.
• Net Loss Improvement: The GAAP net loss in Q3 2025 was $0.6 million, a marked improvement from the $1.2 million net loss in the comparable period last year. This is a critical sign that scale is starting to overcome operating expenses.
• Operating Expenses: Total operating expenses were relatively stable, increasing only 2% year-over-year to $8.2 million in Q3 2025, even with increased sales and marketing investment, which highlights cost discipline.

What this estimate hides is the potential for a faster ramp in the Enterprise channel, which could push total revenue toward the higher end of the guidance range if a few large deals close in Q4 2025. Still, the core takeaway is that the business model is highly scalable, driving high margins and improving adjusted profitability.

AudioEye, Inc. (AEYE) Market Position & Future Outlook

AudioEye, Inc. is strategically positioned to capitalize on the escalating global demand for digital accessibility, driven by tightening regulatory mandates. The company's forward trajectory is focused on scaling its hybrid AI-human solution, aiming for full-year 2025 revenue between $40.3 million and $40.4 million, and adjusted EBITDA of $9.0 million to $9.1 million, reflecting strong margin expansion.

This growth is defintely tied to capturing larger enterprise and government contracts, which value the comprehensive legal protection its expert-backed platform provides over automation-only tools.

Competitive Landscape

In the Website Accessibility Testing Software category, AudioEye competes primarily against automation-focused solutions and full-service consulting platforms. As of October 2025, the company holds a notable presence, but it faces stiff competition from market leaders who often prioritize the small to mid-market with purely automated tools.

Opportunities & Challenges

The market is being reshaped by major regulatory deadlines, which create clear opportunities, but they also introduce execution risks for all players. Here's the quick map of what's ahead.

Industry Position

AudioEye has carved out a strong position as the gold standard for comprehensive digital accessibility, especially among larger entities where legal risk is paramount. The company's financial stability is underscored by achieving its 39th consecutive quarter of record revenue in Q3 2025, reaching $10.2 million.

This success comes from a commitment to a solution that goes beyond simple overlays, which is key for enterprise buyers. You can see more about this foundational approach in the Mission Statement, Vision, & Core Values of AudioEye, Inc. (AEYE).

• Maintain a high gross profit margin of around 77%, despite temporary dips from platform migration costs.
• Enterprise channel growth is robust, increasing around 26% year-over-year, indicating success in landing larger, more stable contracts.
• The company's hybrid approach, which includes expert testing and a legal guarantee, offers up to 400% more legal protection than automation-only solutions.

Still, the market is highly competitive, and the company must ensure its AI advancements drive the expected margin improvements and ARR reacceleration to meet its ambitious 30-40% annual adjusted EPS growth goal for the next three years.