Key Takeaways SoundHound reported Q2 revenue of $42.7M, up 217% year over year, led by rapid QSR expansion.SOUN added major clients like IHOP and Red Lobster, expanding to 14,000+ restaurants globally.Strategic tech partnerships and platform gains are driving upsells, despite ongoing net losses.SoundHound AI, Inc. (SOUN) delivered a record-setting second-quarter 2025, with revenue surging 217% year over year to $42.7 million. While growth was broad-based, the restaurant vertical emerged as a standout, under ...

Core Insights - SoundHound AI Inc. reported strong second-quarter 2025 earnings, with a narrower adjusted loss of $0.03 per share compared to the Zacks Consensus Estimate of a loss of $0.06 and a loss of $0.11 per share a year ago. Quarterly revenues reached $42.7 million, reflecting a 217% year-over-year increase and surpassing the Zacks Consensus Estimate of $33 million [1][9]. Financial Performance - The stock price of SoundHound AI surged 26.4% following the earnings report, although it remains down 19.8% year to date, while the S&P 500 and Nasdaq Composite have increased by 8.5% and 10.9% respectively [2]. - Management raised the 2025 sales outlook to a range of $160 to $178 million, indicating nearly double the revenues year over year, with the midpoint representing a 99.5% growth [12]. Technological Advancements - SoundHound AI introduced Vision AI, which integrates visual understanding with its voice-first platform, aiming to penetrate the emerging voice commerce market [3]. - The company is focusing on its multilingual and multimodal foundation model, Polaris, to maintain a competitive edge in the voice AI sector, facing competition from major tech firms [5]. Client Base and Market Opportunities - SoundHound AI has a robust clientele, particularly in the automotive sector, with major clients including Mercedes-Benz, Honda, and Hyundai [10]. - The company estimates that in-car voice commerce could represent a $35 billion annual opportunity for automakers [11]. Future Projections - Sequential growth is anticipated in the second half of 2025, with the fourth quarter expected to outperform the third quarter due to seasonal enterprise and automotive momentum. The company projects adjusted EBITDA profitability by year-end 2025 [13]. - For the third quarter of 2025, the Zacks Consensus Estimate indicates revenues of $44.69 million, a 78.1% year-over-year increase, and an EPS of -$0.04, reflecting a 33.3% improvement year over year [14]. Valuation and Market Position - SoundHound AI's stock is currently trading at a 45.8% discount to its 52-week high, and the company is benefiting from accelerating adoption across various sectors, including enterprise, automotive, and restaurant verticals [17][18].

Core Insights - SoundHound AI, Inc. (SOUN) achieved record second-quarter 2025 results, exceeding Wall Street expectations on both revenue and earnings [1][8] - The company's strategic investments, particularly its 2024 acquisitions, have led to significant growth and operational improvements [1][2] Revenue and Earnings - SoundHound reported revenues of $42.7 million, representing a 217% year-over-year increase, surpassing the Zacks Consensus Estimate of $33 million [3][8] - The company recorded a non-GAAP net loss of 3 cents per share, which is narrower than the expected 6-cent loss [3] Margins and Profitability - GAAP gross margin was 39%, down from 63% a year ago, while non-GAAP gross margin was 58.4%, reflecting improvements in cost synergies and product mix [4] - Adjusted EBITDA loss was $14.3 million, with an adjusted EBITDA margin of negative 33% [4] Business Highlights - Enterprise AI saw its highest number of monthly go-lives, driven by the Amelia 7 agentic AI platform [5] - Restaurant AI deployments expanded to over 14,000 locations, with more than 1,000 added in the quarter [5] - Automotive growth was supported by a major OEM win in China and increased average selling prices from Generative AI integration [5] Balance Sheet & Liquidity - At the end of the second quarter, SoundHound had $230 million in cash and equivalents, with no long-term debt, indicating strong liquidity for strategic initiatives [6] Guidance & Outlook - Management raised its 2025 revenue outlook to between $160 million and $178 million, citing strong close rates and expanding AI adoption [7][8] - The company anticipates adjusted EBITDA profitability by year-end 2025, supported by ongoing cost synergies and scaling Voice Commerce opportunities [7]