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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
AUDIOEYE INC generated $40.31M of revenue in fiscal 2025, with net loss of $3.08M and an operating cash inflow of $4.75M. The $40.31M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Compared with $35.20M in fiscal 2024, revenue recorded a 14.5% year-over-year increase. Diluted earnings per share were -$0.25, translating the period’s attributable earnings into the amount reported for each diluted share. Total assets stood at $32.23M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. Revenue equaled 1.25x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.Profitability
The first profit layer was $31.56M of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 78.3%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $1.83M, reflecting costs that exceeded gross profit. An operating margin of -4.5% reflected costs exceeding revenue-level gross profit by 4.5% of sales. After all below-operating-line items, the company recorded a net loss of $3.08M for the fiscal year. The net loss equaled 7.6% of revenue, showing the bottom-line deficit relative to the company’s sales base. Income tax expense totaled $0.00, providing the reported tax component that separates pretax and after-tax earnings. Relative to period-end equity, the net loss represented 64.1%. Relative to total assets, the net loss represented 9.5%.Liquidity and Capital Structure
The company held $32.23M of assets against $27.43M of liabilities and $4.80M of equity, revealing how the asset base was financed. At period end, current assets of $12.62M compared with current liabilities of $14.42M, defining the company’s short-term resource position. The current ratio was 0.88x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Reported cash and equivalents were $5.29M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 36.7% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $12.98M, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 2.7x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 40.3%, showing how much of the asset base was matched by borrowing. Relative to total assets, liabilities measured 85.1%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 16.4% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 8.3% from $29.77M in fiscal 2024, leaving current total assets higher year over year. Book equity was 49.1% lower than fiscal 2024 equity of $9.44M, showing how shareholder capital changed year over year. Compared with $5.65M in fiscal 2024, the current cash balance moved 6.4% and finished lower.Cash Flow and Earnings Quality
Cash flow from operations was $4.75M, a reported cash inflow that can be compared directly with net income and capital spending. Capital expenditures used $54.00K, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 1.1% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $4.70M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 11.7%, showing how much sales converted into cash after investment. Free cash flow equaled 14.6% of total assets, relating post-investment cash generation to the company’s resource base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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