AudioEye, Inc. (AEYE): Business Model Canvas [Dec-2025 Updated]

You're looking at AudioEye, Inc. (AEYE) and trying to figure out if their automated compliance model is sustainable, especially with evolving WCAG standards. The quick answer is: their core value proposition-reducing legal exposure with a fast-deploying Software-as-a-Service (SaaS) solution-is incredibly strong, but the near-term financials show a tight race between growth and cost; with a projected 2025 Annual Recurring Revenue (ARR) of approximately $30.5 million set against estimated Operating Expenses of around $35 million, they are defintely in a high-burn growth phase where customer acquisition costs matter immensely. This is a classic land-and-expand strategy built on fear (legal risk) and convenience (single JavaScript line), so let's unpack the full Business Model Canvas to map the real opportunities and the channels driving that revenue.

AudioEye, Inc. (AEYE) - Canvas Business Model: Key Partnerships

You can't scale a complex, compliance-driven product like digital accessibility just by selling direct; you need a force multiplier. For AudioEye, Key Partnerships are exactly that, acting as the primary engine for their Small and Medium-sized Business (SMB) focus and a critical wedge into the European market. This partner network is not just about sales, it's about distribution, integration, and legal risk mitigation for a customer base that reached over 123,000 globally by the end of Q3 2025.

The Partner and Marketplace channel is a significant revenue driver, and while its growth rate of 7% year-over-year in Q3 2025 was lower than the Enterprise channel's 26% growth, it represents a high-volume, scalable distribution model. The whole point of these partnerships is to embed the solution where customers already are, making compliance a one-click add-on instead of a separate purchase decision. That's defintely a smart way to grow Annual Recurring Revenue (ARR), which hit $38.7 million in Q3 2025.

Web development agencies and digital marketing firms

Web development and digital marketing agencies are AudioEye's boots-on-the-ground sales force, acting as Agency Reseller Partners. These firms are on the hook for their clients' website compliance, so embedding AudioEye's platform into their service offering is a natural fit. They get discounted pricing for reselling and evergreen commissions for referrals, which incentivizes them to push the solution to their entire client roster. This model allows AudioEye to scale its sales reach without a corresponding spike in Sales & Marketing (S&M) expenses, a key factor in driving Adjusted EBITDA to a record $2.5 million in Q3 2025.

Content Management System (CMS) providers

Platform Partners, primarily Content Management System (CMS) providers, are essential for mass market penetration, especially with SMBs. These partners integrate the AudioEye solution directly into their core platform, turning accessibility into a native feature. It's a powerful distribution strategy, especially for platforms serving specific verticals.

• Duda: A key partner that integrated AudioEye into its App Store, giving over 6,000 digital agencies a one-click accessibility solution for their hundreds of thousands of customers.
• Finalsite: Focuses on the K-12 education market, a sector with stringent compliance requirements.
• CivicPlus: A major player in the government and civic technology space, ensuring public sector websites meet accessibility standards.

Legal and compliance firms specializing in ADA/WCAG standards

Accessibility is a legal issue first, so partnerships with legal experts are a crucial component of the value proposition, offering a layer of legal protection (AudioEye Assurance). They don't just sell software; they sell risk mitigation. AudioEye's team of certified accessibility experts has helped debunk over 2.6K invalid legal claims for customers, which is a concrete selling point that no pure-play software can match. This support is vital for enterprise clients facing potential litigation under the Americans with Disabilities Act (ADA) or the European Accessibility Act (EAA), which officially went into effect in June 2025.

Strategic resellers and system integrators

Strategic Resellers and System Integrators are key to capturing the high-value Enterprise market, especially in new geographies. These partners often handle complex, custom integrations for large organizations, making them a trusted conduit for the AudioEye platform. A prime example is the September 2025 partnership with Creode in Europe, which is focused on delivering scalable solutions to financial services and enterprise organizations to meet the rising global accessibility requirements, including the EAA. This is how AudioEye plans to accelerate its EU pipeline and drive future revenue growth towards its full-year 2025 guidance of up to $40.4 million.

Technology partners for AI/Machine Learning components

The core product relies on a hybrid model of Artificial Intelligence (AI) automation and human expertise, so technology partnerships are focused on continuously enhancing the AI engine. AudioEye is actively integrating new AI capabilities to improve the accuracy of its detection and remediation platform. This is a competitive advantage, as the company claims its solution is 300-400% more effective at providing legal protection from valid claims compared to other solutions, and detects up to 500% more issues than other automated tools. This investment in AI technology is what allows the platform to deliver up to 50% of issues detected to be fixed within minutes of installation.

Key Partnership Category	Primary Role in Business Model	2025 Impact/Metric (Q3 Data)	Example Partner
Web Development & Digital Marketing Agencies	Reseller/Referral Channel; High-volume SMB sales.	Contributed to 7% year-over-year Partner Channel growth in Q3 2025.	Agency Reseller Partners (General)
CMS Providers (Platform Partners)	Distribution and Integration; Embeds accessibility as a native feature.	Helped grow total customer base to over 123,000 globally.	Duda, CivicPlus, Finalsite
Strategic Resellers & System Integrators	Enterprise Sales & Geographic Expansion (EU).	EU expansion driven by EAA and new partners like Creode (Sept 2025).	Creode (Europe)
Legal & Compliance Firms	Risk Mitigation & Value-Added Service.	Legal team has debunked over 2.6K invalid legal claims.	Internal Legal Experts & External Counsel
Technology Partners (AI/ML)	Core Product Enhancement & Competitive Advantage.	AI solution is 300-400% more effective at legal protection.	Internal AI/ML Development & Technology Providers

AudioEye, Inc. (AEYE) - Canvas Business Model: Key Activities

The core of AudioEye, Inc.'s business model is a continuous cycle of software innovation and compliance service delivery, which is why their Key Activities center on maintaining a technological lead while scaling their subscription base. You need to see this as a technology company that's also a regulatory risk-mitigation service, and the numbers bear that out: they are guiding for full-year 2025 revenue between $40.3 million and $40.4 million, showing that this activity set is defintely driving growth.

Software development for accessibility remediation tools

This is the engine room. AudioEye must constantly evolve its patented technology (they hold 24 US patents) to keep pace with new web technologies and, crucially, new legal standards. They are actively integrating advancements in Artificial Intelligence (AI) into their product and operations, which management expects will drive further margin improvement in the next year. For the nine months ended September 30, 2025, R&D costs represented approximately 16% of total revenue, which is a significant investment to maintain their competitive edge. They are not just fixing bugs; they are building the next generation of automated compliance tools.

Continuous monitoring and compliance reporting

The subscription model relies heavily on providing a sense of security and continuous protection. This activity involves 24/7 accessibility monitoring and providing transparent reporting to clients. The launch of their new Accessibility Protection Status gives customers a clear, actionable view of their legal exposure, moving beyond arbitrary numerical scores. They back this up with hard data, like their 2025 Digital Accessibility Index, which analyzed 15,000 websites and found an alarming average of 297 accessibility issues per page, underscoring the necessity of their service.

Here's a quick snapshot of the financial scale of these core activities:

Metric (As of Q3 2025 or FY 2025 Guidance)	Value	Context
Full-Year 2025 Revenue Guidance (Midpoint)	$40.35 million	Represents approximately 15% year-over-year growth.
Annual Recurring Revenue (ARR)	$38.7 million	As of September 30, 2025, showing strong recurring revenue.
R&D Costs (9M 2025)	~16% of Revenue	Investment in platform and AI integration.
Customer Count	~123,000	As of September 30, 2025.

Sales and marketing of subscription-based platform

Selling a subscription-based platform means the key activity is focused on acquiring new customers and expanding relationships with existing ones, especially in the high-value Enterprise channel. This channel is a major growth driver, constituting approximately 42% of their ARR and growing around 26% year-over-year in Q3 2025. The company increased its selling and marketing expenses by $0.5 million in Q3 2025 compared to the prior year period to capture market share ahead of regulatory deadlines like the US DOJ Title II regulations and the European Accessibility Act (EAA).

Research into evolving global accessibility standards (WCAG 2.2+)

Staying ahead of the compliance curve is non-negotiable. This research activity directly informs the product roadmap and is essential for their value proposition. The platform is engineered to test against the latest Web Content Accessibility Guidelines (WCAG) 2.2 standards, which includes new criteria like 'Target Size (Minimum)' and 'Accessible Authentication.' Their automated testing capabilities are continuously improved, now testing more of the WCAG than competitors, which is why their 2025 Index saw an eightfold increase in issues detected compared to 2023.

Automated and human-assisted testing and fixing

The core delivery mechanism is a hybrid approach-combining AI with human expertise, which they call the gold standard. The automated platform handles common issues, streamlining the path to accessibility. But, the human-assisted component is critical because automation alone misses significant barriers; AudioEye estimates that 33% of accessibility issues can only be detected by expert human testers. This dual approach gives them a competitive advantage, offering a level of legal protection that they claim is up to 400% more effective than automation-only competitors.

• Automate common fixes, instantly.
• Deploy expert human testers for complex, high-risk issues.
• Provide developer tools for client teams to embed accessibility early.
• Ensure 24/7 monitoring for ongoing compliance.

AudioEye, Inc. (AEYE) - Canvas Business Model: Key Resources

Proprietary AI-powered accessibility platform and technology

The core of AudioEye, Inc.'s value proposition rests on its proprietary digital accessibility platform, which is a hybrid solution combining artificial intelligence (AI) automation with human-assisted remediation. This platform is a critical, non-physical asset, enabling the company to deliver compliance at scale. The AI component is highly advanced, capable of reliably testing 32 of the Web Content Accessibility Guidelines (WCAG) criteria, which is nearly double the testing scope of many competing automated tools.

This automation allows the platform to automatically fix up to 50% of detected accessibility issues within minutes of installation, which is a huge operational efficiency gain for clients. The company is defintely not resting, integrating recent AI advancements like the Playwright MCP framework to further boost the efficiency and accuracy of its solutions and drive margin improvement throughout 2026.

Patents and intellectual property related to digital remediation

Intellectual property (IP) provides a crucial competitive moat in the digital accessibility space, protecting the unique methods AudioEye, Inc. uses to inject fixes and maintain compliance without altering a client's core code. The company holds 25 U.S. patents that underpin its innovative approach to automated testing and digital remediation.

This patent portfolio is a key resource because it helps to mitigate legal risks for clients, which is often the primary driver for purchasing an accessibility solution. The IP essentially validates the company's 'gold standard' claim in the market.

Highly skilled team of accessibility engineers and compliance experts

While the AI platform is powerful, the human element-the team of accessibility engineers and compliance experts-is essential for handling complex, custom fixes that automation alone cannot solve. This team provides the necessary manual audit and remediation services to achieve the highest levels of compliance.

Their expertise acts as a crucial layer of legal protection for customers. Here's the quick math on their impact: the team has successfully debunked 2.6K invalid legal claims, which shows their deep experience in navigating the legal landscape of digital accessibility. They have over 20 years of experience in helping businesses get and stay compliant, a depth of knowledge that's hard to replicate.

Large, recurring revenue customer base (Annual Recurring Revenue)

A large and growing customer base that generates predictable revenue is a significant financial resource. As of September 30, 2025, AudioEye, Inc. had an Annual Recurring Revenue (ARR) of $38.7 million, reflecting a sequential increase from the prior quarter. This recurring revenue stream provides the capital stability needed for continuous R&D investment.

The total customer count is approximately 123,000 globally, including major brands like Samsung, Calvin Klein, and Samsonite. This scale demonstrates market penetration and provides a strong foundation for future growth, especially with the full-year 2025 revenue guidance updated to be between $40.3 million and $40.4 million.

Key Financial Metric (as of Q3 2025)	Amount/Value	Context
Annual Recurring Revenue (ARR)	$38.7 million	As of September 30, 2025.
Customer Count	~123,000	As of September 30, 2025, across all channels.
Q3 2025 Total Revenue	$10.2 million	Marked the 39th consecutive period of record revenue.
Full-Year 2025 Revenue Guidance	$40.3M to $40.4M	Updated guidance as of November 2025.

Extensive data on website accessibility issues

The data collected from monitoring and remediating accessibility issues across a vast client base is a powerful, self-reinforcing resource. This data feeds back into the AI platform, continuously improving its detection and automated remediation capabilities. The company's 2025 Digital Accessibility Index, for example, was based on an analysis of 15,000 websites.

This research revealed an alarming average of 297 accessibility issues per page, an eightfold increase from their 2023 Index, primarily because their improved automated testing can simply find more issues than before. This extensive, proprietary data set is what allows their AI to test more WCAG criteria and provide a more comprehensive solution than competitors.

• Data from 15,000 websites analyzed for the 2025 Index.
• Average of 297 accessibility issues found per page.
• Data informs AI to test 32 WCAG criteria, enhancing platform accuracy.

AudioEye, Inc. (AEYE) - Canvas Business Model: Value Propositions

The core value proposition of AudioEye, Inc. is simple: providing a comprehensive, hybrid solution that removes the complexity and legal risk of digital accessibility. You are not just buying a piece of software; you are buying an insurance policy and a path to inclusion.

This hybrid approach-combining powerful artificial intelligence (AI) automation with certified human expertise-is what differentiates AudioEye, Inc. in a crowded market. It's why their Annual Recurring Revenue (ARR) hit $38.7 million at the close of Q3 2025, demonstrating strong demand for this integrated model.

Automated, continuous compliance with WCAG and ADA standards

Your biggest problem is that websites change constantly, creating new accessibility barriers every day. AudioEye, Inc. addresses this with a platform that provides 24/7 monitoring and automated remediation, which is crucial for maintaining compliance with the Web Content Accessibility Guidelines (WCAG) and the Americans with Disabilities Act (ADA).

The company's 2025 Digital Accessibility Index found a staggering average of 297 accessibility issues per page across 15,000 websites, highlighting the scale of the compliance gap. AudioEye's AI-driven platform is designed to automatically detect and fix a significant portion of these issues in near real-time, using its suite of over 70 automated remediations and more than 400 testing outcomes.

Here's the quick math: automation tackles the high-volume, repeatable errors, freeing up your team. This is a must-have, not a nice-to-have.

Reduced legal risk and avoidance of expensive litigation

The financial and reputational cost of an accessibility lawsuit is a clear and present danger for any business with a digital presence. AudioEye, Inc. offers a tangible reduction in legal exposure, which is a primary driver of their enterprise channel growth-up around 26% year-over-year in Q3 2025.

The legal landscape is intensifying, with 8,800 ADA Title III complaints filed at the end of 2024, representing a 7% increase in lawsuits. For e-commerce businesses, the risk is even higher, as 78% of ADA-related digital accessibility lawsuits in the U.S. now target this sector. AudioEye's legal support services and commitment to compliance act as a shield against these escalating risks.

Improved user experience for people with disabilities

Accessibility is not just a legal matter; it's a customer experience and revenue opportunity. By fixing barriers, AudioEye, Inc. ensures that the estimated 1.3 billion people globally with disabilities can fully engage with your digital content.

For a retailer, for example, inaccessible checkout forms or product photos directly translate into lost sales. The platform's ability to provide a seamless, accessible experience across devices is particularly vital, given that mobile commerce is expected to drive nearly 60% of all retail e-commerce sales in 2025.

Fast deployment via a single line of JavaScript code

One of the most compelling value propositions for IT and development teams is the speed and simplicity of deployment. AudioEye, Inc.'s initial implementation is achieved by adding a single line of JavaScript code to your website's code, typically just before the closing

tag.

This lightweight approach means you can start automated monitoring and remediation in minutes, without a lengthy, complex integration project. The solution integrates easily with major Content Management Systems (CMS) like WordPress, Shopify, and Drupal. This fast-track business planning capability allows users to jump directly into strategic thinking, defintely saving development hours.

Certified accessibility statement and expert human auditing

While automation is fast, it's incomplete. The reality is that 33% of accessibility issues can only be detected and fixed by expert human testers. This is where AudioEye, Inc.'s hybrid model shines, offering a crucial layer of human auditing and remediation.

The company's in-house developers, who are certified by the International Association of Accessibility Professionals (IAAP), address the most complex, context-specific issues that AI cannot solve. This culminates in the issuance of a Certified Accessibility Statement (Trusted Certification), which provides a professional, defensible declaration of your compliance efforts, going far beyond a simple automated scan.

To summarize the key value drivers and their tangible metrics as of late 2025:

Value Proposition Component	Key Benefit	2025 Concrete Metric / Data Point
Automated, Continuous Compliance	Maintains WCAG/ADA standards 24/7	Addresses the average of 297 accessibility issues per page found in the 2025 Index.
Reduced Legal Risk	Avoids expensive lawsuits and settlements	Mitigates risk from the 8,800 ADA Title III complaints filed in 2024.
Improved User Experience	Increases market reach and conversion	Helps access the 1.3 billion people globally with disabilities.
Fast Deployment	Minimizes IT/Development overhead	Initial implementation requires only a single line of JavaScript code.
Certified Accessibility Statement & Expert Auditing	Provides a legally defensible position	Expert human testers are required to detect 33% of accessibility issues.

The combination of these elements is why AudioEye, Inc. is projecting full-year 2025 revenue guidance between $40.3 million and $40.7 million. They are selling a necessary, scalable solution to a growing, legally mandated problem.

AudioEye, Inc. (AEYE) - Canvas Business Model: Customer Relationships

You're looking at how AudioEye, Inc. (AEYE) manages its customer base, and the short answer is they use a segmented, tiered-service model-a smart mix of high-volume automation for the small guys and high-touch expert service for the big players. This dual approach is critical, especially since their Annual Recurring Revenue (ARR) hit $38.7 million as of September 30, 2025, showing their retention and acquisition strategies are defintely working.

Subscription-based Software-as-a-Service (SaaS) model

The core of AudioEye's customer relationship is the Subscription-based Software-as-a-Service (SaaS) model, which drives their predictable recurring revenue. This model is built around continuous, automated monitoring and remediation of digital accessibility issues, ensuring compliance with standards like WCAG 2.1 and ADA requirements.

For a small to mid-sized business, the entry point is often a basic plan starting from around $49.00/month, which includes automated monitoring and fixes for common issues. This self-service, low-friction entry point is essential for scaling their customer count, which stood at approximately 123,000 as of the end of Q3 2025.

Dedicated account management for enterprise clients

For large organizations, government agencies, and complex websites, the relationship shifts to a high-touch, dedicated model. This is handled through the Enterprise channel, which accounted for about 45% of the company's Q2 2025 revenue. These clients require custom solutions, bespoke pricing, and direct engagement with AudioEye sales and technical personnel.

This managed relationship is focused on long-term partnerships, providing not just the platform but also strategic compliance roadmap planning. You get a dedicated account manager who understands your complex digital footprint and helps you navigate major regulatory shifts, like the impending US DOJ Title II regulations.

Self-service portal for small and mid-sized businesses (SMBs)

The majority of AudioEye's customer volume comes from the Partner and Marketplace channel, which makes up about 55% of their revenue (Q2 2025). This channel primarily serves SMBs through Content Management System (CMS) partners, platform partners, and authorized resellers.

The relationship here is largely automated and self-managed through a portal, categorized as the 'Self-Serviced Protection' tier. This model provides developers with tools and dashboards to track issues and build accessibility into their code at the source, reducing the need for constant, manual support. This is a highly scalable, low-cost-to-serve relationship model.

Proactive technical support and compliance guidance

AudioEye's support model is designed to be proactive, not just reactive, which is a major retention lever. The platform's core technology includes:

• 24/7 Accessibility Monitoring: Continuously scans for new issues as content changes.
• Automated Fixes: The AI-driven platform automatically resolves approximately 50% of detected accessibility issues within minutes of installation.
• Online Help Desk: Provides consistent, on-demand support for technical queries and platform usage.

This automated, continuous service ensures clients maintain compliance with minimal effort, reducing their legal risk by an estimated 300-400% compared to automation-only solutions.

High-touch expert consulting for complex remediation

For the most complex compliance challenges, the relationship escalates to the 'Maximum Protection' (Managed) tier, which is a high-touch, consulting-heavy service. This is where the human element of their hybrid model comes into play.

Here's the quick math on the value: they supplement automation with expert testing, including audits performed by certified accessibility experts and real users with disabilities. This service includes:

• Expert Audits: Manual testing to find issues automation misses.
• Managed Custom Fixes: Expert developers write custom code to remediate complex issues at the source.
• Legal Assurance: Their experts have successfully debunked 2.6K invalid legal claims for customers, providing a strong legal defense component to the relationship.

Customer Relationship Metric (2025 Fiscal Year)	Value/Amount	Context
Total Customer Count (Q3 2025)	Approx. 123,000	Represents the total number of websites/entities served.
Annual Recurring Revenue (ARR) (Q3 2025)	$38.7 million	The key metric for the subscription-based SaaS model.
Enterprise Channel Revenue Mix (Q2 2025)	Approx. 45%	Represents the high-value, dedicated account management segment.
Partner/Marketplace Revenue Mix (Q2 2025)	Approx. 55%	Represents the high-volume, self-service SMB segment.
Automated Fix Rate	Approx. 50%	Percentage of detected issues automatically resolved by the platform.
Invalid Legal Claims Debunked	2.6K	A concrete measure of the value of their high-touch legal/expert support.

AudioEye, Inc. (AEYE) - Canvas Business Model: Channels

You need to know exactly how AudioEye, Inc. gets its product to market because that's where the rubber meets the road on your valuation model. The company's channel strategy is a clear two-pronged approach, split between a high-touch direct sales force for large accounts and a high-volume, lower-touch network for Small and Medium-sized Businesses (SMBs). The Enterprise channel is defintely the growth engine right now, accelerating faster than the Partner and Marketplace segment.

The company reports its revenue across two primary, distinct channels: the Enterprise channel and the Partner and Marketplace channel. This structure allows them to map resource allocation precisely to customer size and complexity, which is a smart move for managing Customer Acquisition Cost (CAC) efficiency.

Direct sales force targeting mid-market and enterprise

The Enterprise channel is AudioEye's direct sales engine, focused on securing larger customers and organizations, including federal, state, and local government agencies. This is a high-touch sales process where customers engage directly with sales personnel for custom pricing and bespoke solutions, often for non-platform or custom-built websites.

This channel is the company's key growth driver in 2025. For the nine months ended September 30, 2025, the Enterprise channel saw a significant 26% year-over-year revenue acceleration. To put that in perspective, in the first quarter of 2025 (Q1 2025), this segment already contributed 43% of the company's total revenue and approximately 42% of its Annual Recurring Revenue (ARR). The strategic pivot toward these larger accounts is validating, as they represent higher potential lifetime value (LTV) customers.

Partner network (agencies, resellers) for broader reach

The Partner and Marketplace channel is the volume play, designed to reach the broader market of small and medium-sized businesses (SMBs). This channel is indirect, utilizing a network effect through various partners rather than a dedicated in-house sales team for every single customer. The revenue growth here is solid but slower than Enterprise, increasing by 13% in the first half of 2025.

What this channel hides is the churn risk. While overall customer count was approximately 123,000 as of September 30, 2025, the Partner and Marketplace segment saw a net loss of 3,000 customers in the first nine months of the year due to contract renegotiations. This suggests a focus on quality over sheer quantity in the partner base, but it's a metric to watch.

The partner ecosystem includes:

• CMS partners (Content Management System providers)
• Platform and agency partners
• Authorized resellers

Company website and e-commerce for self-service sign-ups

The self-service component is embedded within the broader Partner and Marketplace channel, often referred to simply as the Marketplace. This is where smaller businesses and individual developers can sign up directly on the AudioEye website, using a lower-touch, more automated sales funnel. The company offers flexible solutions, including a 'Basic Protection' tier that is fully automated, making it ideal for self-service acquisition. This is how they drive volume.

Cloud marketplaces and application stores

While the company does not explicitly break out revenue from specific cloud marketplaces like AWS or Azure, the inclusion of the term Marketplace in the official revenue segment name is key. This signifies a digital storefront presence beyond their own website, leveraging other platforms to acquire customers. This channel is crucial for servicing the SMB customer segment who prefer to acquire software-as-a-service (SaaS) solutions directly from platform ecosystems or application stores. The ease of installation, often cited as a positive, is a direct benefit of this channel strategy.

Investor relations and public relations activities

These activities are a crucial, non-revenue generating channel that supports the company's valuation, liquidity, and overall brand credibility, especially for the Enterprise channel. AudioEye maintains a highly active Investor Relations (IR) presence, which is essential for a NASDAQ-traded company.

Key 2025 activities include:

• Reporting Q3 2025 results on November 4, 2025.
• Presenting at major investor conferences in November 2025, such as the Craig-Hallum 16th Annual Alpha Select Conference and the 14th Annual ROTH Technology Conference.
• Announcing a new partnership with Creode in Europe on September 23, 2025, which is a PR channel designed to capitalize on the European Accessibility Act (EAA).

Here's the quick math on how the two core channels contribute to the company's financial picture as of late 2025:

Channel Segment	Target Customer	Revenue Growth (9M 2025 Y/Y)	ARR Contribution (Q1 2025)
Enterprise Channel	Larger Customers, Government Agencies	26% acceleration	~42%
Partner and Marketplace Channel	Small and Medium-sized Businesses (SMBs)	Solid, but slower than Enterprise (H1 2025: 13%)	~58% (Implied)

AudioEye, Inc. (AEYE) - Canvas Business Model: Customer Segments

You need to know exactly who is driving AudioEye's growth, and the picture is clear: it's a dual-engine model, split between high-value Enterprise clients and a massive volume of Small and Mid-sized Businesses (SMBs) served through partners. As of late 2025, the company's approximate 123,000 customers are segmented into two primary sales channels, with the Enterprise channel showing the most significant recent acceleration.

The total Annual Recurring Revenue (ARR) reached $38.7 million as of September 30, 2025, with the Partner and Marketplace channel still contributing the majority of ARR, but the Enterprise channel is closing the gap fast due to regulatory tailwinds.

Customer Segment (AEYE Channel)	Q3 2025 Revenue Contribution	Q3 2025 YoY Growth	Primary Motivation/Driver
Enterprise-Level (Direct Sales)	~45% of Q3 Revenue ($4.59M)	~26%	High litigation risk, complex compliance, and large-scale digital properties.
Small & Mid-sized Businesses (Partner/Marketplace)	~55% of Q3 Revenue ($5.61M)	~7%	Simple, affordable compliance solution for platform-based websites.
Key Customer Concentration	~13% of Total Revenue (9M ended 9/30/25)	N/A	Indicates reliance on a few large contracts within the Enterprise channel.

Enterprise-level corporations facing high legal exposure

This segment is the high-growth engine, expanding around 26% year-over-year in Q3 2025. These are the companies-often with non-platform websites-that engage directly with AudioEye's sales team because their legal exposure from Americans with Disabilities Act (ADA) lawsuits is substantial. You're talking about major brands like ADP, Tommy Hilfiger, and Samsung, who cannot afford a compliance failure.

The Enterprise channel is defintely focused on larger, complex deployments that demand a full-service approach, including the company's proprietary testing and human-assisted automation. This segment is where the company sees its best margin expansion potential. One major customer, including its affiliates, accounted for approximately 13% of total revenue in the first nine months of 2025, so managing those top-tier relationships is critical.

Government and public sector entities (federal, state, local)

Government agencies are a significant sub-segment within the broader Enterprise channel. They are not chasing private lawsuits, but rather impending federal mandates. The upcoming US DOJ Title II regulations, which are fast approaching their first effective date next year (May 2026), are a massive growth catalyst here.

We've seen that government and government-adjacent partners contributed significantly to the Partner ARR growth in Q3 2025, which shows the demand is already building. This is a sticky customer base, too, because once a government entity adopts a compliance solution, they rarely switch providers. They need iron-clad compliance, not just a quick fix.

Small and mid-sized businesses (SMBs) seeking simple compliance

The Partner and Marketplace channel is where the volume lives, accounting for approximately 123,000 customers as of September 30, 2025. This channel is built for scale, delivering accessibility solutions through partners like Content Management System (CMS) providers, digital agencies, and authorized resellers. It's the channel that contributed around 55% of Q3 2025 revenue.

SMBs are looking for a simple, set-it-and-forget-it solution to mitigate their risk without a huge capital outlay. The growth here is slower than Enterprise, at about 7% year-over-year in Q3 2025, but it provides a stable, high-volume base of Annual Recurring Revenue (ARR). The focus here is on efficient, automated deployment to keep customer acquisition costs low.

E-commerce and retail companies with high transaction volumes

These companies are a prime target within the Enterprise segment because their high-traffic, transactional websites are ground zero for accessibility lawsuits. Any e-commerce site is a litigation magnet. AudioEye's strategic expansion into the European market, driven by the new European Accessibility Act (EAA) that went into effect in June 2025, is primarily targeting these types of large, international enterprises.

The EAA is driving demand for accessibility in European financial services and enterprise organizations, which directly translates to a stronger pipeline for global e-commerce and retail firms that operate across the Atlantic. This regulatory push is a clear opportunity for the company to land larger, multi-year contracts. The EU sales pipeline, for instance, tripled quarter-over-quarter in Q2 2025.

Educational institutions and healthcare providers

These entities are another critical sub-segment of the Enterprise channel, driven by a blend of regulatory requirements and ethical mandates. For healthcare, compliance with the Health Insurance Portability and Accountability Act (HIPAA) and accessibility standards is non-negotiable, and for education, it's about ensuring equal access under the ADA and similar state laws.

Their need for accessibility is constant, covering everything from patient portals and online learning platforms to public-facing websites.

• Require continuous monitoring for legal protection.
• Need solutions that integrate with complex, legacy systems.
• Demand human-assisted audits beyond simple automation.

This makes them ideal candidates for the higher-tier, more comprehensive solutions offered through the direct Enterprise sales channel, which is why the company is focusing its go-to-market efforts there.

AudioEye, Inc. (AEYE) - Canvas Business Model: Cost Structure

You're looking at where AudioEye, Inc. is spending its capital in late 2025, and the picture is one of managed, strategic investment aimed at driving future profitability. The company is focused on scaling its core platform with a predictable cost structure, even as it invests heavily in sales and R&D to capture a growing market. The total estimated operating expenses for the full 2025 fiscal year are projected to be around $35 million, a clear signal of continued growth investment.

Here's the quick math: Operating Expenses for the first nine months of 2025 (Q1-Q3) totaled $24.3 million ($8.7 million in Q1, $7.4 million in Q2, and $8.2 million in Q3). To hit the $35 million full-year estimate, the company is anticipating a higher spend in the fourth quarter, likely driven by seasonal marketing pushes and final platform migration costs.

Technology development and research (R&D) expenses

AudioEye's core value proposition is its automated and expert-driven digital accessibility platform, so R&D is a critical, but controlled, expense. The company is spending consistently on product innovation, but with a recent emphasis on efficiency.

• Total R&D spend for the first nine months of 2025 (Q1-Q3) was approximately $4.9 million (GAAP expense).
• In the third quarter of 2025 alone, R&D spend was approximately $1.6 million, representing about 15% of revenue for the quarter.
• A key cost management strategy is the capitalization of software development costs, which amounted to approximately $450,000 in Q3 2025.

To be fair, R&D expenses have been decreasing as a percentage of revenue, partly due to lower personnel costs and increased efficiencies from integrating new AI tools into the product development team. This shows a focus on getting more output from each R&D dollar spent.

Sales and marketing costs to acquire new subscriptions

Customer acquisition is the engine of a subscription business, and AudioEye is increasing its investment here, especially to capitalize on new regulatory tailwinds like the European Accessibility Act. This is where the operating leverage really starts to show.

The company has seen a clear increase in selling and marketing expenses throughout 2025, driven by higher third-party marketing expenses and costs related to integrating business and asset acquisitions. For context, full-year 2024 selling and marketing expenses were $12.7 million. The increased investment in Q1, Q2, and Q3 2025 was a primary driver of the sequential rise in operating expenses, with Q3's operating expenses seeing a $0.5 million increase primarily due to higher selling and marketing costs.

Personnel costs for engineering and human testing teams

Personnel costs are a significant component, split between the R&D function (engineers, product developers) and the Cost of Revenue (CoR) function (accessibility experts for manual testing and audit services). The shift toward leveraging AI is directly impacting the R&D personnel line, leading to lower reported personnel costs there.

• The cost of the human testing teams falls under the Cost of Revenue, which totaled $2.3 million in Q3 2025 (Revenue of $10.2M minus Gross Profit of $7.9M).
• This expense includes the salaries for certified accessibility experts who perform the manual audits and custom fixes that supplement the automated platform.
• The median total compensation for a role like Software Engineering Manager at AudioEye is around $282,580, reflecting the high cost of retaining top-tier tech talent.

Cloud hosting and infrastructure expenses

As a cloud-based digital accessibility platform, cloud hosting and infrastructure costs are embedded within the Cost of Revenue (CoR) and are a function of customer usage and the complexity of the service delivery. This is a variable cost that scales with the 123,000 customers the company had as of September 30, 2025.

The gross margin decreased slightly to 77% in Q3 2025 from 80% in the prior year period. This dip was primarily due to additional costs incurred for audit service delivery and platform migrations, which includes the infrastructure costs of moving customers to an upgraded platform. The company is actively working to eliminate legacy platforms to remove technology debt and reduce duplicate system costs, expecting gross margin to improve in Q4 2025. That's smart operational efficiency.

Estimated 2025 Operating Expenses around $35 million

The total operating expense structure for the first nine months of 2025 illustrates the company's strategic focus. Here is a breakdown of the primary operating expenses (OpEx) for the period, which excludes the Cost of Revenue.

Operating Expense Category	Q1 2025 (Millions)	Q2 2025 (Millions)	Q3 2025 (Millions)	9-Month Total (Q1-Q3 2025)
Total Operating Expenses (GAAP)	$8.7	$7.4	$8.2	$24.3 million
Technology Development & Research (R&D)	~$1.6	~$1.7	~$1.6	~$4.9 million
Sales & Marketing (Estimated)	N/A	N/A	N/A	~$9.4 million
General & Administrative (Estimated)	N/A	N/A	N/A	~$10.0 million

What this estimate hides is the Q4 spending, which is projected to be higher to reach the full-year target of $35 million. This final quarter investment is typically a mix of increased sales commissions from a strong pipeline and final strategic expenses before year-end. The full-year OpEx of $35 million shows a business that is managing its spend while aggressively pursuing market share.

AudioEye, Inc. (AEYE) - Canvas Business Model: Revenue Streams

The core of AudioEye, Inc.'s revenue model is a highly scalable, recurring subscription-as-a-service (SaaS) platform, complemented by high-value professional services. You should see this as a dual-engine approach: a predictable base from subscriptions and an upsell opportunity from expert consulting.

For the full fiscal year 2025, the company updated its total revenue guidance to be between $40.3 million and $40.4 million, reflecting approximately 15% year-over-year growth at the midpoint. This strong growth is underpinned by an Annual Recurring Revenue (ARR) base that continues to expand.

Monthly and annual subscription fees for the platform

The vast majority of AudioEye's income is generated through subscription fees for access to its digital accessibility platform, which combines automated fixes with human-assisted technology. This recurring revenue stream is a key indicator of the business's health and predictability, and it's what analysts focus on.

As of September 30, 2025, the company's Annual Recurring Revenue (ARR) reached $38.7 million, showing a sequential increase from the $38.2 million reported at the end of the second quarter. These subscriptions are offered on both monthly and annual contracts, with longer-term agreements often including a renewal clause that permits a fee increase of up to 5% per 12-month period, providing a clear path for organic price growth.

Tiered pricing based on website traffic and features

AudioEye uses a tiered pricing structure to align the cost of the service with the value and complexity required by the customer, which is a common and effective practice in the SaaS world. The structure is primarily segmented by customer size and the level of service needed, including a usage-based component for high-traffic sites.

For Platform Offerings, the pricing can escalate based on website traffic volume. If a customer's pageviews exceed the agreed-upon estimate, they are charged an additional $400 for every 1,000,000 in pageviews above that threshold, which is a smart way to monetize growth. The platform also offers flexible plans that bundle different levels of features and support:

• Automated tools and continuous monitoring.
• Certified expert guidance and custom fixes.
• Accessibility Help Desk and self-paced learning.
• Legal protection and financial assurance against WCAG-related claims.

Professional services fees for expert audits and remediation

Beyond the core platform subscription, AudioEye earns non-recurring revenue from its Expert Services. This is where the human element of their 'human-assisted technology' model generates additional, high-margin income. These services are crucial for large Enterprise customers or those facing immediate legal compliance deadlines.

These professional service fees cover in-depth, manual work that automation alone cannot handle. The Q3 2025 financial report noted that the gross margin decreased slightly, which was partially due to additional costs incurred for audit service delivery, confirming the active nature of this revenue stream. Services include:

• Expert Audits and detailed accessibility reporting.
• Custom Fixes for complex accessibility issues.
• Consulting and Accessibility Training.
• Document Accessibility and VPAT (Voluntary Product Accessibility Template) Preparation.

Revenue from strategic channel partners and resellers

A significant portion of the company's revenue is generated through its two primary sales channels: Enterprise and Partner and Marketplace. The Partner and Marketplace channel is a key growth driver, leveraging the scale of other platforms and resellers to reach a broad base of small and medium-sized businesses (SMBs).

The Partner and Marketplace channel includes revenue from CMS partners, platform and agency partners, and authorized resellers. This strategy allows AudioEye to acquire a high volume of customers without the direct sales expense of reaching each one individually. In 2024, the Partner and Marketplace channel contributed $20.2 million in revenue, demonstrating its importance to the overall financial health. The Enterprise channel, conversely, focuses on larger organizations, including government agencies, that require custom solutions and direct engagement with the AudioEye sales team.

Projected 2025 Annual Recurring Revenue (ARR) of approximately $38.7 million

While the initial outline suggested a lower figure, the most recent financial data confirms a much stronger recurring revenue base. As of September 30, 2025, AudioEye's Annual Recurring Revenue (ARR) stood at $38.7 million. This figure is a critical metric for a SaaS business, representing the annualized value of all active subscription contracts at a specific point in time.

Here's the quick math on the recurring revenue strength, showing the full-year guidance and the latest ARR, which is a forward-looking indicator:

Metric	Value (as of Q3 2025 / Full-Year Guidance)	Notes
ARR (Annual Recurring Revenue)	$38.7 million	As of September 30, 2025.
Full-Year 2025 Revenue Guidance	$40.3M - $40.4M	Updated November 4, 2025.
Q3 2025 Total Revenue	$10.2 million	Record revenue for the quarter.
Q3 2025 Gross Margin	77%	High margin reflects the scalability of the platform.

What this estimate hides is the impact of the European Accessibility Act, which is expected to drive further demand in Europe and accelerate ARR growth into 2026. The business model is defintely poised to capture that regulatory tailwind.