Good afternoon, and welcome to AudioEye's fourth quarter and full-year 2025 earnings conference call. Joining us for today's call are AudioEye CEO, Mr. David Marati, and CFO, Ms. Kelly Georgievich. Following the remarks, we will open the call for questions from the company's publishing analysts. I'd like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at www.audioeye.com. Before I turn the call over to ODLI's Chief Executive Officer, the company would like to remind all participants that statements made by ODLI management during the course of this conference call that are not historical facts are considered to be forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for which such forward-looking statements. The words believe, expect, anticipate, estimate, confident, will, and other similar statements of expectation identify forward-looking statements. These statements are predictions, projections, or other statements about future events and are based on current expectations and assumptions that are subject to risk and uncertainties. Actual results could differ materially because of factors discussed in today's press release. In the comments made during this conference call and in the risk factor section of the company's annual report on Form 10-K, its quarterly reports on Form 10-Q, and in its other reports and filings with the Securities and Exchange Commission. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's beliefs only as of the date hereof. AudioEye does not undertake any duty to update or correct any forward-looking statements. Further, management's remarks today will include certain non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures to these non-GAAP financial measures is available in the company's earnings release or otherwise posted in the investor relations section of the website at www.audioi.com. Now, I'd like to turn the call over to AudioEye's Chief Executive Officer, Mr. David Marati. Sir, please proceed.

Thank you, Operator, and good afternoon, everyone. I'm pleased to report our results for 2025, highlighted by our 40th consecutive quarter of record revenue growth, a remarkable achievement. We are not aware of any other SaaS company in the public markets which have grown sequentially for 40 straight quarters or more. In addition to 40 sequential quarters of revenue growth, we also demonstrated strong operating cash flow in recent years. In 2025, adjusted EBITDA grew by approximately 35% to a record $9.1 million, with a record margin of 22%. For the full year 2025, AudioEye achieved record revenue, which was even more impressive given that a performance includes our previously noted accelerated customer migrations last year. I'm happy to report that the integration of these acquired customers is now substantially complete, which should drive meaningful ARR acceleration in 2026 with business momentum in the U.S. and E.U. In 2026, we expect adjusted EBITDA to grow by at least 30%, implying adjusted EBITDA of at least $11.8 million for the year. Looking a couple of quarters ahead, we expect to generate a run rate adjusted EBITDA of $15 million by year end, driven by AI efficiency across our products and operations. This implies an accelerating rate of cash flow growth into 2027, potentially higher than the 30% we are guiding for this year. As we survey today's technology landscape, while AI coding has been top of mind in 2026, the tangible impacts on people with disabilities are largely being overlooked. AI is accelerating how businesses build digital experiences, but it is also accelerating the pace at which accessibility failures compound. Since LLNs draw on data that is not accessible to begin with, digital accessibility on the internet is not improving and may even be getting worse. With this backdrop, we are seeing increased rates of litigation utilizing AI to detect accessibility issues. We believe 2026 will be the highest year of digital accessibility lawsuits on record. Yesterday, we released our next-generation platform to address these market needs. The next-gen platform unifies AI detection, expert audits, and custom fixes in a single platform that delivers unmatched transparency, ease of use, and three to four times the legal protection of other solutions. The platform also utilizes years of proprietary data from detecting and fixing accessibility issues across hundreds of thousands of sites and billions of unique visits. Additionally, we are unaware of any other accessibility solution that delivers custom fixes directly within the platform, which gives customers a complete picture of their accessibility compliance. Other solutions may make claims of custom fixes, but cannot back them up. In prior years, on these conference calls, we called out similar claims from the same vendors that automation couldn't fix 100% of accessibility issues, which proved accurate. The NextGen platform uses our proprietary data engine to power its results. In February, an independent study conducted by audience found that AudioEye detected between 89 and 253% more WCAG issues than competitive products. AudioEye was the only solution that identified issues at all WCAG levels, including AA, AA, AAA, across every website analyzed. Combining our proprietary data set with newly released Agenic models creates opportunities to solve digital accessibility in ways that were not possible before. Our pace of innovation, which is leveraging our proprietary data, is rapidly accelerating, and we look forward to sharing more updates with you soon. As we enter 2026, we see meaningful opportunities ahead. The EAA is expanding the market globally. The DOJ rule under Title II is increasing regulatory requirements. Record litigation is driving demand. And businesses increasingly recognize that accessibility is not just about compliance. It's about reaching the broadest possible audience, including AI agents that scan a website's accessibility tree instead of the DOM. Based on our momentum and the market dynamics we're seeing, we are providing the following guidance for 2026. For the first quarter of 2026, we expect revenue of between $10.5 to $10.6 million, adjusted EPA of $2.2 to $2.3 million, and adjusted EPS of $0.17 to $0.18. cents. We typically see lower cash flow in the first quarter as we pay Social Security taxes and legal and administrative fees associated with the proxy, and this year we are attending an industry event during the quarter. For the full year, 2026, we expect revenue of between $43 and $44.5 million, and we expect the rate of ARR growth to outpace the rate of revenue growth as we focus less on non-recurring revenue. We expect adjusted EBITDA will grow by at least 30%, reaching $11.8 million, representing a 27% margin at the revenue midpoint. I'll now turn the call over to AudioEye CFO, Kelly, to review our results in detail. Kelly.

Thank you, David, and good afternoon, everyone. Revenue again reached record levels with Q4 2025 revenue at $10.5 million, an 8% increase from Q4 2024, and a 10% annualized increase sequentially from Q3 2025. On a full-year basis, our revenue grew 15% to $40.3 million from $35.2 million in 2024. Breaking this down by channel, our partner Marketplace channel includes all revenue from our SMB-focused marketplace products and revenues from partners who deployed these same products for their SMB customers. For the fourth quarter of 2025, this channel grew 8% year-over-year and represented approximately 59% of ARR. For the full year 2025, this channel's revenue grew 10% from $20.2 million in 2024 to $22.2 million. We continue to see expansion of existing customers and new partners engaging with audioi contributing to this channel's growth audioi's enterprise enterprise channel consists of our larger customers and organizations including those with non-platform custom websites who generally engage directly with audioi sales personnel for pricing and solutions in q4 2025 the enterprise channel grew eight percent from the comparable period of the prior year and for the full year 2025 it grew 21 to 18.1 million from 15 million. This growth was driven in part by our expansion into the EU in 2025, which we expect to continue to grow in future periods. The enterprise channel represents approximately 41% of ARR as of December 31, 2025. Annual recurring revenue, or ARR, at the end of the fourth quarter of 2025 was $40 million, a 9% increase over ARR at the end of the fourth quarter of 2024 and an increase of $1.3 million sequentially. Gross profit for the fourth quarter was $8.3 million or approximately 79% of revenue compared to $7.8 million or 80% of revenue in Q4 of 2024. For the full year 2025, our gross margin was approximately 78% with gross profit increasing from $27.9 million in 2024 to $31.6 million in 2025. Going forward, we will be reporting Adjusted Growth Margin, a SaaS industry non-GAAP metric that provides insights in the underlying profitability of our core operations by excluding stock-based compensation and depreciation and amortization included in our costs of revenue. Adjusted Growth Margin was 85% in Q4 2025 compared to 86% in the prior comparable period. Adjusted gross margin was 84% for the full year 2025 compared to 85% in the prior year comparable period. Even with an 8% increase in revenue, operating expenses in the fourth quarter of 2025 remained consistent with the same quarter last year. On a full year basis, with revenue increasing 15% over the prior year, operating expenses increased 7%, or approximately $2 million, to $33.4 million, driven primarily by increases in sales and marketing expense. Increasing items such as stock compensation expense, depreciation and amortization, and litigation expense were mostly offset by savings in non-cash valuation adjustments to liabilities and lower business combination expenses year-over-year. Our total R&D spend in Q4 was approximately $1.6 million with approximately $450,000 reflected the software development costs in the Investing section of the cash flow statement, a decrease from $1.8 million in the fourth quarter of 2024. Total R&D spend was around 15% in Q4 2025 revenue versus 18% in Q4 2024. For the full year, R&D spend was 16% of 2025 revenue versus 19% in 2024 and 29% for 2023, demonstrating our continued progress in operating leverage. Net loss in the fourth quarter of 2025 was $1.1 million or $0.08 per share, compared to a net loss of $1.5 million or $0.12 per share in the same year ago period. On a full-year basis, net loss for 2025 was $3.1 million, or $0.25 per share, compared to a net loss of $4.3 million, or $0.36 per share, in 2024, an improvement of $1.2 million. In the fourth quarter of 2025, we achieve adjusted EBITDA of approximately $2.8 million, or $0.22 per share, compared to an adjusted EBITDA of $2.3 million, or $0.18 per share, in the same year-ago period. On a full-year basis, we produced adjusted EBITDA of approximately $9.1 million, or $0.72 per share, compared to $6.7 million, or $0.55 per share, in 2024. This 35% increase in adjusted EBITDA was driven by $5.1 million of revenue growth, a $3.9 million increase in adjusted gross profit, and approximately $1 million in state savings in adjusted R&D and G&A expenses, partially offset by additional investments in sales and marketing. In the fourth quarter, we repurchased approximately $1 million worth of shares. During the full year 2025, we repurchased approximately $4.6 million worth of shares. The successful refinancing of our debt facility with Western Alliance Bank in Q1 2025 strengthened our balance sheet and reduced our interest expense, positioning us for continued growth with greater financial flexibility. Our balance sheet remains full capitalized with $5.3 million in cash as of December 31, 2025 and an additional $6.6 million in debt facilities available. As of December 31, 2025, our net debt, defined as total debt less cash, was $8.1 million and our net debt to adjusted EBITDA ratio was approximately 0.7 times. In the fourth quarter, we generated $2.3 million of free cash flow, calculated as adjusted EBITDA of $2.8 million less $500,000 in software development costs and improvement of $400,000 from the fourth quarter of 2024. For the full year 2025, adjusted free cash flow was $7.2 million versus $4.9 million in 2024. With that, I'll turn the call back to the operator to open the line for questions. Operator?

Thank you. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, please press star 1 on your telephone keypad. We ask you please limit yourselves to one question and one follow-up, then return to the queue. If you'd like to remove yourself from the queue, please press star 2. A confirmation tone will indicate your line is in the question queue when you press star And as a reminder, please ask one question and one follow-up, then return to the queue. Our first question today is coming from Joshua O'Reilly from Needham & Company. Your line is now live.

Thanks for taking my questions. Maybe just starting off, just kind of on the platform updates here, you know, a big piece of what you've done historically is the custom human fixes combined with the automated fixes. And I guess I'm just curious, how much human involvement do you see going forward in the custom fixes relative to what AI can do and how that might drive greater automation in the platform and efficiencies for you?

Yeah, the tools aren't really that good. at accessible content because the Internet wasn't coded with accessibility in mind. And as you know, the amount of sites and content are exploding on the Internet. We're seeing an all-time high in litigation. We think lawyers are using AI to detect issues and draft all these complaints with more websites even to choose from. So I'm not sure when it's going to get there. It's very far away from that now. It's actually getting worse. and the problem hasn't been solved in 25 years, the issue is when you push code, even if the code was coded with accessibility, someone else touches it and it's not accessible anymore. And this is especially true for sites like e-com that are constantly changing. So it's very far off to answer your question, in my opinion.

Got it. And then so along with that, how does the changes you made to the platform, along with that concept that you do need to keep the human involvement going, maybe further your differentiation versus some of the competitors.

No one has it right in the platform for the custom fixes. So that's the difference. And we're using more and more agents with that as well to streamline it further.

Gotcha. That's helpful. And then if we look at the initial revenue guidance for 2026, maybe you can just kind of help us understand what are the puts and takes investors should be considering, including visibility to that revenue guidance relative to the ARR exit rate of about $40 million for Q4 and kind of the growth trends that you saw in 2025 relative to what you're assuming in 2026. Thanks, guys.

Yeah, we're being pretty conservative. The major factor is we expect less non-recurring revenue as we focus more on ARR. and some of the acquired customers initially have non-recurring revenue that we phased out. Kelly can get into this, what this means from a financial standpoint, but we're very bullish about the opportunities in front of us more than ever. We're in a unique position with massive amounts of data from 10 years of these custom and automated fixes and seeing all these edge cases over the years. It's a treasure trove of information to drive agents in the future. But I'll let Kelly answer the rest of that question. Okay.

Yeah, just getting into it a little bit further, if you look at the guidance for the year, it implies revenue growth of nearly 10%, and that's assuming lower non-recurring revenue. We do anticipate higher ARR growth in this, so kind of low to mid-teens on the ARR side. Non-recurring is a small percent of our revenue, about 5% overall, but we're aiming to reduce this even further to focus on ARR this year, and that's impacting that guidance somewhat.

Got it. That's helpful. I'll pass along the cue here. Thank you, guys.

Thank you.

Thank you. Next question is coming from George Sutton from Craig Hallam. Your line is now live. Thank you.

So relative to EAA, I'm just wondering if you could give us an update on the investments you're making there, some of the opportunities that you're seeing. You know, for example, we have been seeing some hires in Netherlands as an example, but I know you've signed some nice partners. Just any update on Europe and sort of the opportunity you're seeing there?

Yeah, sure. As expected, the EU tends to move a bit slower than the U.S. It's a bit bureaucratic, as you know. GDPR took a while to enforce, and then the adoption followed over the next few years. But we are seeing pipeline building nicely, big deals in the pipeline, closed a big one in the fourth quarter. And we expect to continue ramping up the EU as the year goes on. But if enforcement happens, which it will at some point, all bets are off. Demand is going to ramp very, very quickly.

Gotcha. And just as my follow-up, on the AI side, I was intrigued by your thought that the failures are more pronounced when AI is involved relative to disability. You mentioned Internet wasn't necessarily built with disability involved, and I'm going to assume AI hasn't been either. Can you just walk through what would potential partnerships be relative to AI? Could you ultimately be partnering with some of the LLMs, for example, or folks that are building out agents? Just curious your thoughts there.

Yeah, we have very unique data. You can do a lot with that. I don't want to give away strategies on this call, but this data unlocks a lot of potential. Those with data own the gold.

Thank you. Our next question is coming from Zach Cummins from B-Riley. Your line is now live.

Hi, good afternoon, David and Kelly. Thanks for taking my questions. David, can you give us an update on potentially a ramp-up in enforcement on the DOJ Title II side? I mean, we have the initial compliance date coming up here a little over a month. So just curious, any update on that and progress you're seeing with some of your major partners on the federal side?

Yeah, the DOJ's requirements are going to go into effect next month, as you said. We haven't heard anything to the contrary. We continue to see momentum on the reseller and even direct channels from states. We're seeing strong momentum from both partners, Final Side Civic Plus, and I think there's a huge opportunity to unlock those and really penetrate the customer bases over the next two, three years.

And one follow-up question is for Kelly. How should we be thinking about gross margin on, I guess, an adjusted basis now that you're giving out that metric? Rick, I know a little bit of a headwind as you did the final migration work with some of those customers to the new platform, but how are you thinking about gross margin as we go through 2026?

Yeah, gross margin and adjusted gross margin, I think we expect to stay relatively consistent to what we've seen. So on a gross margin basis, kind of mid to high 70s as we pay for more AI compute, but we could see higher margins over the next couple of quarters. and then adjusted gross margin we did want to introduce because I think a lot of other SaaS companies use it, and it just is a little bit mucky with stock compensation and depreciation and amortization in there. But I think we expect both to kind of be at similar levels and with opportunities to see further growth in both of those different levers.

Well, thanks for taking my questions, and best of luck with the rest of the quarter.

Thank you. Thank you. And as a reminder, that's star one to be placed in the question queue. Our next question is coming from Richard Baldry from Roth Capital Partners. Your line is now live.

Thanks. I'm not sure if I missed this, but the 8,000 customer ads looks to me like the strongest in about two years. I'm sort of curious what do you think the drivers were underneath that, whether they look sustainable or extensible heading forward? yeah that was a large reseller in the eu the deal we signed in the fourth quarter uh that made up a lot of that uh we're still in the early innings in the eu as you know and expect to see a lot more momentum and then if i look at the spending side the gna and r d has been you know basically flattish for about two years but the sales and marketing has been rising so can you talk about how you view your current level of sales productivity uh how much more you think you want to invest in that going ahead in fiscal 26 in particular?

Yeah, we're always pretty strategic with investments in sales and marketing. I think we'll continue to invest in sales and marketing as long as we keep seeing that ROI, and we do expect to continue to invest in the EU as well.

Okay, thanks. And we're looking for 30% growth in cash flow this year, so tons of leverage dropping to the bottom line. Got it. Great. Thanks.

Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over for any further closing comments.

I'd like to thank our employees, customers, and investors for their support. We look forward to providing an update on the next quarter. Thank you.

Thank you. That does conclude today's teleconference webcast. Meet this connector line at this time, and have a wonderful day. We thank you for your participation today.