SoundHound AI (NasdaqGM:SOUN) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsKeyvan Mohajer - Co-Founder and CEONitesh Sharan - CFOScott Smith - Head of Investor RelationsConference Call ParticipantsBrian Schwartz - Managing Director and Senior AnalystJames Fish - Managing Director and Senior Research AnalystScott Buck - AnalystVijay Devar - AnalystNone - AnalystOperatorGood day, everyone, thank you for standing by. SoundHound AI Q4 2025 earnings conference call. At this time, all p ...

SoundHound AI (NasdaqGM:SOUN) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Company ParticipantsKeyvan Mohajer - Co-Founder and CEONitesh Sharan - CFOScott Smith - Head of Investor RelationsConference Call ParticipantsBrian Schwartz - Managing Director and Senior AnalystJames Fish - Managing Director and Senior Research AnalystScott Buck - AnalystVijay Devar - AnalystNone - AnalystOperatorGood day, everyone, thank you for standing by. SoundHound AI Q4 2025 earnings conference call. At this time, all p ...

SoundHound AI (NasdaqGM:SOUN) Q4 2025 Earnings call February 26, 2026 05:00 PM ET Speaker5Good day, everyone, thank you for standing by. SoundHound AI Q4 2025 earnings conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You'll hear an automated message advising your hand is raised. To withdraw your question, please pres ...

We've been trying to make these human voices for literally since the 1700s. Then in the early 1900s, we had the first digital synthesizers. >> Are you um >> that it doesn't cross that threshold of actually sounding like a human and actually making you feel something.Then it shifted into Siri, which has kind of a bit of back and forth. that sounds more realistic, but again, it doesn't cross that threshold of actually sounding like a human and actually making you feel something. >> Marty, it's so great to hav ...

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements, highlighting upgrades for various companies based on their recent performance and future potential [1] Group 1: Company Upgrades - B. Riley upgraded Snap (SNAP) to Buy from Neutral with a price target of $10, citing early signs of progress in revenue growth from premium subscribers and higher margin advertising formats [2] - Seaport Research upgraded FuboTV (FUBO) to Buy from Neutral with a price target of $3, viewing the recent drop in shares post-merger with Disney's Hulu Live as an opportunity amidst uncertainty [2] - Wolfe Research upgraded Zoom Communications (ZM) to Outperform from Peer Perform with a price target of $115, believing the company's growth is set to reaccelerate, particularly in its contract center and phone business, along with emerging voice AI [2] - Jefferies upgraded Celanese (CE) to Buy from Hold with a price target of $86, indicating that despite expected choppy earnings in the first half of 2026, it is a good time to buy the dips [2] - Cantor Fitzgerald upgraded DigitalOcean (DOCN) to Overweight from Neutral with a price target of $68, emphasizing the company's developer-first approach to hyperscale services as well positioned for market growth [2]

Voice AI company ElevenLabs said today it raised $500 million in a new funding round led by Sequoia Capital, which was an investor in the startup’s last secondary round through a tender. Sequoia partner Andrew Reed is joining the company’s board. The startup is now valued at $11 billion, more than three times its valuation in its last round in January 2025. Earlier in the year, the Financial Times reported that the startup was looking to raise at that valuation. The company said that existing investor ...

Financial Data and Key Metrics Changes - Revenues for Q4 2025 were $62.6 million, a 1.7% increase from $61.6 million in Q4 2024. Full year 2025 revenues were $245.6 million, up 1.4% from $242.2 million in 2024 [8][10] - Services revenues for Q4 2025 were $34.6 million, accounting for 55.3% of total revenues, with a 1% increase year-over-year. Annual services revenues reached $130.7 million, a 0.4% increase from $130.2 million in 2024 [8][10] - GAAP gross margin for Q4 2025 was 65.6%, down from 66.2% in Q4 2024. Operating income for Q4 was $3.7 million, or 6% of revenues, compared to $4.1 million, or 6.7% of revenues in Q4 2024 [9][10] - Full year 2025 net income was $9 million, or $0.31 per diluted share, down from $15.3 million, or $0.15 per diluted share in 2024 [10][11] Business Line Data and Key Metrics Changes - The connectivity business accounted for approximately 93% of total revenue, maintaining a stable operating margin above 14% in 2025, with a long-term target of 16%-18% [18][19] - The Voice AI business generated about 7% of total revenue, growing from over $12 million in 2024 to nearly $17 million in 2025, representing a 35% year-over-year increase [19][30] - Annual recurring revenue from the combined live managed services and Voice AI business reached $79 million at the end of 2025, reflecting a 22% growth year-over-year [15][16] Market Data and Key Metrics Changes - Revenue by geographical region for Q4 2025: North America (47%), EMEA (35%), Asia Pacific (13%), and Central and Latin America (5%) [9] - The backlog for live services reached $75 million at the end of 2025, compared to $69 million at the end of 2024 [17] Company Strategy and Development Direction - The company aims to transition from a focus on connectivity solutions to an AI-first, Voice AI-led business application model, targeting significant growth in the Voice AI sector [15][19] - Continued investment in sales and marketing for Voice AI is expected to drive further growth, with a goal of reaching $50 million in revenue by 2028 [19][30] - The company plans to maintain revenue growth and margin expansion while strengthening its leadership in Voice AI-driven applications for UCaaS and CX markets [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the connectivity business and the growth trajectory of the Voice AI segment, with expectations of continued strong annual recurring revenue momentum [14][15] - The company anticipates revenues for 2026 to be in the range of $247 million to $255 million, with non-GAAP diluted earnings per share projected at $0.60 to $0.75 [13][24] Other Important Information - The company declared a cash dividend of $0.20 per share, totaling approximately $5.4 million, to be paid on March 6, 2026 [12] - The company ended 2025 with 981 employees, an increase from 946 at the end of 2024 [22] Q&A Session Summary Question: Is the 40%-50% annual growth for conversational AI intended to be a CAGR through 2028? - Management expects growth to come from both new customer acquisition and increased spending per customer, with significant investments in R&D for Voice AI [42][44] Question: How has the shift in market expectations around AI impacted pipeline visibility? - Management noted improved visibility and size of the pipeline as customers move from testing to broader adoption of voice AI products [46] Question: What impact from tariffs should be considered for 2026 financials? - Tariff impacts are expected to decrease from $2.7 million in 2025 to approximately $2.3 million in 2026, with gross margins anticipated to improve due to a shift towards software and services [47][49]

Core Insights - AudioCodes reported a revenue increase of 1.7% year-over-year for Q4 2025, reaching $62.6 million, and a full-year revenue increase of 1.4% to $245.6 million [2][7] - The company experienced a decline in both GAAP and Non-GAAP net income for Q4 2025 compared to Q4 2024, with GAAP net income at $1.9 million ($0.07 per diluted share) and Non-GAAP net income at $4.5 million ($0.16 per diluted share) [4][5] - Annual Recurring Revenue (ARR) grew by 22% year-over-year to $79 million, driven by strong performance in managed services and conversational AI [10][11] Financial Performance - Q4 2025 EBITDA was $4.9 million, down from $5.2 million in Q4 2024, while full-year EBITDA decreased to $18.3 million from $21.1 million [3] - Non-GAAP EBITDA for Q4 2025 was $6.5 million, compared to $8.5 million in Q4 2024, with full-year Non-GAAP EBITDA at $24.8 million, down from $31.4 million [3] - The company reported a gross margin of 65.6% for Q4 2025 on a GAAP basis and 65.9% on a Non-GAAP basis [7] Shareholder Returns - AudioCodes repurchased 667,193 ordinary shares for $6.1 million during Q4 2025, with a total of $20.6 million available for further repurchases or dividends as of December 31, 2025 [12][13] - A cash dividend of $0.20 per share was declared, amounting to approximately $5.4 million, payable on March 6, 2026 [14] Strategic Focus - The company is transitioning towards becoming a Voice AI-focused hybrid cloud software and services provider, with significant growth in its conversational AI portfolio, which saw over 50% revenue growth in Q4 2025 [9][11] - Investments in Live services and conversational AI are expected to contribute to sustained growth in the coming years [11]

Core Thesis - SoundHound AI, Inc. is viewed as a compelling investment opportunity despite a recent stock decline of over 50% due to its strong positioning in the voice AI market and significant revenue growth potential [4][6]. Company Overview - SoundHound AI specializes in advanced speech recognition and conversational AI, focusing on applications in customer service, in-vehicle voice assistants, and restaurant ordering [2]. - The company's proprietary language-understanding technology allows for fast, accurate, and customizable voice interactions, differentiating it from generic voice assistants [2][3]. Market Positioning - SoundHound's platform is designed for integration into enterprise workflows, enabling clients to customize voice experiences for specific applications [3]. - The total addressable market for voice AI is estimated to exceed $140 billion, indicating substantial long-term growth potential [4]. Financial Performance - The company reported a 68% year-over-year revenue growth, reflecting strong adoption of its services [6]. - SoundHound holds approximately $269 million in cash with zero debt, providing a solid financial foundation for scaling operations and expanding partnerships [6]. Future Prospects - As voice interfaces expand into broader commerce and navigation applications, the revenue potential per user is expected to increase significantly [5]. - CEO Keyvan Mohajer has emphasized the potential for voice AI to become a central interface for everyday decisions, further supporting the growth narrative [5].

Company Overview - SoundHound AI (NASDAQ: SOUN) is a developer of audio and speech recognition tools, experiencing rapid growth due to the rise of AI-powered voice services [1] - The company generates most of its revenue from Houndify, a platform for creating customized voice recognition applications [1] Market Position and Growth - SoundHound serves various sectors, including automakers like Stellantis, restaurants like Chipotle, and financial services like Mastercard [2] - The company has made several acquisitions to enhance its presence in the restaurant and AI chatbot industries, including SYNQ3, Allset, Amelia, and Interactions [2] Financial Performance - From 2020 to 2024, SoundHound's revenue is projected to grow at a CAGR of 60%, with expectations of a 49% CAGR from 2024 to 2027, reaching $283 million [3] - Adjusted EBITDA is expected to turn positive in 2027 [3] Valuation and Risks - SoundHound is valued at a market capitalization of $4.18 billion, trading at 18 times its 2026 sales [4] - The company is increasingly reliant on acquisitions to counteract slowing organic growth, with declining gross margins [4] - It is anticipated to remain unprofitable under GAAP through 2027, and its outstanding share count has more than doubled since its SPAC merger in April 2022, indicating potential dilution [4] Business Model Sustainability - SoundHound has not yet demonstrated a sustainable business model, leading to suggestions that investors may prefer more stable options like Apple for exposure to the voice AI market [5]