SoundHound AI Reports Record Annual Revenue of $169 Million, Up Nearly 100%, Forecasts Strong Growth

Core Insights - SoundHound AI, Inc. reported a record number of enterprise deals in Q4 2025, positioning itself as a leading partner for businesses amid the disruption of traditional software and services [4][6] - The company experienced significant growth in revenue and key profit metrics, driven by increased demand for enterprise-grade AI solutions [4][6] Financial Highlights - Q4 2025 revenue reached $55.1 million, a 59% increase year-over-year [7][15] - Full year 2025 revenue was $168.9 million, marking a 99% increase year-over-year [7][16] - Q4 GAAP gross margin was 47.9%, while non-GAAP gross margin was 60.5% [7][15] - Full year GAAP gross margin was 42.4%, and non-GAAP gross margin was 58.0% [7][16] - Q4 GAAP net income was $40.1 million, with a non-GAAP net loss of $7.3 million [7][15] - Full year GAAP net loss was $14.0 million, and non-GAAP net loss was $53.9 million [7][16] Business Developments - The company signed a new prominent OEM in Japan with a seven-digit unit commitment and closed a deal with a new Korean OEM [8] - SoundHound expanded its partnerships with various automotive manufacturers, including a major American automaker and several global brands [13] - The company enhanced its voice commerce capabilities by adding new merchants and expanding its ecosystem [13] Liquidity and Cash Flow - As of December 31, 2025, SoundHound had total cash and cash equivalents of $248 million with no debt [18] - The net cash used in operating activities for the year was $98.2 million, while net cash provided by financing activities was $208.1 million [19] Business Outlook - The revenue outlook for full year 2026 is projected to be between $225 million and $260 million [20]