SoundHound AI Reports Record Q3 Revenue of $42 Million, Up 68%, Raises Full Year Outlook; $269 Million in Cash

Core Insights - SoundHound AI, Inc. reported a strong financial performance for Q3 2025, with revenue reaching $42.0 million, a 68% increase year-over-year [6][14] - The company is expanding its presence in key vertical markets and forming strategic partnerships to enhance its AI leadership through the Agentic+ framework [1][4] Financial Highlights - Revenue for Q3 2025 was $42.0 million, up from $25.1 million in Q3 2024, marking a 68% increase [6][14] - GAAP gross margin was 42.6%, while non-GAAP gross margin was 59.3% [6][14] - GAAP net loss was $109.3 million, compared to a loss of $21.8 million in the same quarter last year [6][14] - Adjusted EBITDA loss was $14.5 million, showing an improvement from a loss of $15.9 million in Q3 2024 [6][14] Business Developments - The company launched the Amelia 7.3 update, enhancing its voice AI capabilities with Speech-to-Meaning technology [7] - Significant contracts were secured across various sectors, including automotive, healthcare, and financial services, indicating a diverse customer base [12][19] - SoundHound is raising its full-year 2025 revenue outlook to a range of $165 - $180 million [18] Strategic Partnerships and Market Position - SoundHound is working with major brands in automotive and healthcare to deploy its AI solutions, including a custom assistant for a sports car brand and a pioneering AI solution for a precision medicine provider [12][19] - The company has established partnerships with leading technology distributors and service providers to enhance its market reach [12][19] Cash Flow and Liquidity - As of September 30, 2025, the company had total cash and cash equivalents of $269 million, with no debt [16]