Key Takeaways SoundHound reported Q3 revenues of $42M, up 68% YoY, and raised its full-year guidance.The stock fell 7% after earnings, trailing industry and market gains despite margin improvements.Proprietary AI models and $269M in cash support growth, but losses, costs, and competition pose risks.SoundHound AI, Inc. (SOUN) has had an eventful few weeks. The conversational AI company reported strong third-quarter 2025 results on Nov. 6, delivering 68% year-over-year revenue growth, improving margins and ra ...

Key Points SoundHound continues to see strong revenue growth. The company has big potential opportunities ahead with AI agents and voice commerce. However, the stock's valuation is pricey, and it remains a speculative investment. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN) shares soured despite the artificial intelligence (AI) voice-focused company seeing surging revenue growth and offering upbeat guidance. The stock continues to be volatile, up 88% over the past yea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File No. 001-40193 SOUNDHOUND AI, INC. (Exact name of registrant as specified in its charter) Delaware 86-1286 ...

Core Insights - SoundHound AI, Inc. (SOUN) reported a record quarter with a 68% year-over-year revenue increase to $42 million, driven by growth in automotive, restaurant, and enterprise sectors, leading to an upward revision of full-year revenue guidance to $165–$180 million [1][10] Financial Performance - Non-GAAP gross margin improved to 59%, up from 42.6% on a GAAP basis, supported by in-house model migration and cloud efficiencies [2] - Adjusted EBITDA loss narrowed by 8% sequentially to $14.5 million, with a non-GAAP net loss per share of 3 cents, indicating progress towards breakeven by 2026 [2] - The company holds $269 million in cash with no debt, allowing for sustained R&D investment and potential M&A opportunities [2] Strategic Positioning - SoundHound is enhancing its technology moat through its proprietary Polaris foundation model and Amelia platform, integrating deterministic automation with generative AI for efficient deployments [3] - The company is expanding its enterprise client base, including new Fortune 100 customers and early-stage Voice Commerce pilots, indicating significant monetization potential [3] Competitive Landscape - As SoundHound focuses on profitability, it faces competition from Palantir Technologies and C3.ai, both of which are rapidly scaling in adjacent markets [5][6] - SoundHound's scalable licensing model offers faster deployments compared to Palantir's deep integration contracts, positioning it favorably in the enterprise AI ecosystem [7] Market Performance - SoundHound shares have increased by 28.5% over the past six months, outperforming the Zacks Computers - IT Services industry, which declined by 11.3% [8] - The forward 12-month price-to-sales ratio for SOUN is 27.84, significantly higher than the industry's 16.65 [12] Earnings Estimates - The Zacks Consensus Estimate for SOUN's 2025 loss per share remains unchanged at 13 cents, showing improvement from a loss of $1.04 per share in the previous year [14]

Company Overview - SoundHound AI Inc is an innovator in conversational intelligence, providing an independent Voice AI platform that enhances customer interactions across various industries such as retail, financial services, healthcare, automotive, smart devices, and restaurants [10][11] Current Market Sentiment - Recent options trading indicates a bearish sentiment among large investors, with 44% of trades being bearish compared to 11% bullish [1] - The average target price from industry analysts is $20.5, with one maintaining a Neutral rating at a price target of $15 and another holding a Buy rating with a target of $26 [12][13] Options Trading Insights - The average open interest for SoundHound AI options is 3,591.78, with a total volume of 2,532.00, indicating significant trading activity [3] - Whales have targeted a price range of $13.0 to $35.0 for SoundHound AI over the last three months, reflecting their expectations for the stock's movement [2] Recent Trading Activity - The largest observed options trades include bearish puts and neutral calls, with total trade prices of $95.5K and $53.6K for puts, and $40.9K and $36.4K for calls [9] - The stock price of SoundHound AI is currently at $14.95, reflecting a 5.73% increase, with a trading volume of 17,219,304 [15]

Core Viewpoint - The U.S. stock market saw strong performance in AI application stocks on Monday, indicating a positive trend in this sector [2] Group 1: Stock Performance - Applovin (APP.US) experienced an increase of over 8% [2] - Palantir (PLTR.US) and Unity Software (U.US) both rose by more than 6% [2] - SoundHound AI (SOUN.US) and Tempus AI (TEM.US) saw gains exceeding 3% [2]

Core Viewpoint - The strong performance of AI application stocks in the US market indicates investor confidence despite concerns about valuations, credit, and the labor market, with a notable divergence between investor sentiment and actions [1] Group 1: Stock Performance - Applovin (APP.US) rose over 8%, while Palantir (PLTR.US) and Unity Software (U.US) increased by more than 6%, and SoundHound AI (SOUN.US) and Tempus AI (TEM.US) gained over 3% [1] Group 2: Investor Sentiment - Citigroup's report highlights a significant disconnect between investor concerns regarding valuations, credit, and the labor market, and their steadfast allocation to US large-cap stocks, with sentiment indices reaching "euphoric" levels [1] Group 3: Market Valuation - Current US stock valuations are at historical highs, but strong earnings are seen as a crucial support pillar, with Citigroup suggesting that there is no bubble in AI stocks and recommending opportunistic buying on dips [1]

Core Insights - SoundHound AI reported Q3 CY2025 revenue of $42.05 million, exceeding analyst expectations of $40.93 million, reflecting a year-on-year growth of 67.6% [6] - The company's non-GAAP loss per share was -$0.03, aligning with analysts' consensus estimates [6] Financial Performance - Revenue: $42.05 million vs analyst estimates of $40.93 million (67.6% year-on-year growth, 2.7% beat) [6] - Adjusted EPS: -$0.03 vs analyst estimates of -$0.03 (in line) [6] - Adjusted EBITDA: -$6.32 million vs analyst estimates of -$12.34 million (-15% margin, 48.8% beat) [6] - Operating Margin: -118%, improved from -135% in the same quarter last year [6] - Market Capitalization: $5.92 billion [6] Business Growth Drivers - The growth was attributed to rising adoption of AI-powered voice solutions across various sectors, including automotive, restaurants, and financial services [3] - Management highlighted the integration of proprietary AI models and recent acquisitions as factors contributing to improved cost efficiency and operational leverage [3][5] Future Outlook - Guidance for continued enterprise AI expansion and cross-selling opportunities from the Interactions acquisition [4] - Anticipated hyper growth coupled with a breakeven profitability profile as the company scales its recurring, outcome-based contracts [4] Key Developments - Expansion of the Amelia agentic AI platform in customer service and contact center automation, with several Fortune 100 customers added [7] - Transition to the Polaris multimodal, multilingual foundation model resulted in reduced error rates and improved efficiency [7] - Significant contracts in IoT and automotive sectors, including a major deal with a large Chinese company for smart devices [7] Revenue Model Evolution - Shift towards recurring, outcome-based contracts, with an increasing proportion of revenue tied to customer success metrics [8] - Integration of Interactions expected to yield cost and revenue synergies by migrating products to SoundHound's in-house models [8]

Core Insights - SoundHound AI Inc claims to outperform major tech companies in the AI sector, achieving 35%-40% higher accuracy and lower operational costs [1] - The company reported a 68% year-over-year revenue increase, reaching a record $114 million in 2025, and has raised its 2026 outlook due to growing enterprise demand [2] - SoundHound's proprietary technology allows for faster deployment and higher quality, providing a competitive edge over newer AI entrants [3] Financial Performance - Revenue surged to $114 million in 2025, marking a 68% increase compared to the previous year [2] - The company has raised its outlook for 2026, indicating strong future growth prospects [2] Strategic Initiatives - SoundHound has secured an "eight-figure" robotics contract in China and completed the acquisition of Interactions, enhancing its presence in financial services and healthcare [3] - The company is piloting voice commerce solutions with multiple OEMs and retail brands, aiming to integrate voice technology into everyday transactions [4] Market Position - SoundHound emphasizes its leadership in performance and recurring revenue growth, positioning itself as a formidable player in the voice-AI industry despite not having the scale of larger tech firms [4]

Core Insights - The company has achieved significant growth, with Q3 revenue reaching $114 million, a 127% increase year-over-year, marking a record year for revenue [2] - The company is focusing on enterprise AI, with a strong position in various industries and a commitment to innovation and strategic execution [2][28] Company Overview - SoundHound AI, Inc. started with a mission to voice-enable the world and has evolved over two decades to capitalize on AI opportunities [1] - The company has pioneered technologies such as speech-to-meaning and deep meaning understanding, leading to superior speed and accuracy in voice technology [5] Financial Performance - Q3 revenue was $42 million, up 68% year-over-year, with all three business pillars showing double-digit growth [29][35] - The company expects full-year 2025 revenue to be between $165 million and $180 million, with Q4 anticipated to be adjusted EBITDA profitable [44] Product and Technology Development - The company introduced the Amelia 7 platform, which has seen significant upgrades and improvements in conversational latency and handling [22] - Polaris, the company's multimodal multilingual foundation model, is proving superior in accuracy, speed, and cost, with a threefold reduction in error rates for clients transitioning from legacy systems [6][7] Market Position and Strategy - The company is expanding its presence in enterprise AI, with a focus on agentic AI solutions that integrate generative AI with deterministic flows [21][30] - Recent acquisitions, such as Interactions, are expected to enhance the company's capabilities in workflow optimization and customer service automation [10][19] Customer Engagement and Partnerships - The company has secured significant contracts across various sectors, including IoT, automotive, healthcare, and financial services, demonstrating strong customer diversification [13][15][19] - The company is actively pursuing partnerships with leading technology providers to enhance its offerings and market reach [20][63] Future Outlook - The company anticipates continued high growth and near breakeven profitability levels as it aligns with market trends and customer needs [44][45] - The introduction of Voice Commerce is expected to drive new opportunities, with successful pilots already in progress [25][66]