AudioEye expands EU presence as European Accessibility Act takes effect

TUCSON - AudioEye, Inc. (NASDAQ:AEYE), a digital accessibility company with impressive revenue growth of 16.52% and industry-leading gross profit margins of nearly 80%, has expanded its operations in the European Union as enforcement of the European Accessibility Act (EAA) begins, according to a company press release issued Tuesday.

The EAA, which is now in effect, requires businesses to ensure digital products and services are accessible to people with disabilities. Non-compliance can result in fines of up to €3 million, depending on the Member State.

The digital accessibility company reports growing demand from U.S.-based customers expanding their use of AudioEye’s platform to ensure European websites and apps comply with the new requirements. The company also notes increasing growth across the UK and EU, particularly in retail, SaaS, transportation, and hospitality sectors.

The EAA applies to organizations operating in the EU with more than 10 employees and €2 million in annual revenue, including international businesses selling to EU consumers. Companies must align with Web Content Accessibility Guidelines (WCAG) 2.1, Level AA.

"Digital accessibility is becoming increasingly global," said David Moradi, CEO of AudioEye. "The European Accessibility Act represents a landmark step forward, reinforcing that accessibility is no longer optional; it’s a business-critical requirement."According to InvestingPro analysis, AudioEye operates with moderate debt levels and is expected to achieve profitability this year. The company’s stock currently trades at $11.65, showing resilience despite broader market challenges.

AudioEye’s platform combines automated issue detection with expert services and legal support. The company claims its solution detects an average of 500% more issues than competitors and provides 300-400% more legal protection.

Xavier Gougeon, Head of Design at DataGalaxy, stated, "We chose AudioEye because we needed a partner who could help us manage accessibility across regions."

AudioEye currently serves over 119,000 customers including Samsung, Calvin Klein, and Samsonite, according to the press release. Want deeper insights into AudioEye’s financial health and growth potential? InvestingPro offers exclusive analysis and 7 additional ProTips that could help inform your investment decisions. Access comprehensive research reports covering 1,400+ top stocks, including AEYE, transforming complex data into actionable intelligence.

In other recent news, AudioEye Inc. reported its financial results for the first quarter of 2025, achieving record revenue for the 37th consecutive quarter. The company’s earnings per share (EPS) met expectations at $0.15, although revenue slightly missed forecasts, coming in at $9.7 million against a $9.71 million expectation. Despite the minor revenue shortfall, AudioEye’s adjusted EBITDA remained strong at $1.9 million, with a net loss of $1.5 million. The company has set a revenue guidance for the second quarter of 2025 between $9.85 million and $10 million, with an adjusted EBITDA forecast ranging from $1.9 million to $2 million.

AudioEye’s recent refinancing of its debt significantly reduced interest rates, strengthening its cash position. Analysts from firms such as Needham and Company and Craig Hallum noted the company’s strong pipeline in both the U.S. and European markets, with a focus on expanding its sales force. Additionally, AudioEye has integrated AI into its product offerings, enhancing its digital accessibility solutions. The company continues to invest in sales and marketing, seeing robust deal progression and an increase in annual recurring revenue.

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