Both SoundHound and GitLab look poised to rebound in 2026.The stocks of SoundHound AI (SOUN 2.44%) and GitLab (GTLB 2.07%) have both had a rough go in 2025. The former trades down more than 40% on the year, as of this writing, while the latter has lost more than 30% of its value.However, both stocks could be poised to rebound in 2026. Let's take a close look to see which one has the better opportunity to outperform next year. The case for SoundHoundAISoundHound's underperformance in 2025 has more to do with ...

During the quarter, licensing revenue increased 56% to $515 million, reflecting deeper relationships and growing interest in AI-optimized systems. Profitability also increased, with adjusted earnings per share (EPS) rising by 30% to $0.39. Beyond the data center, Arm is expanding its AI footprint into edge devices and automotive systems. Strategic collaborations with Meta (META) and Samsung aim to boost AI efficiency across wearables and flagship smartphones, while new platforms such as Lumex CSS provide po ...

Core Insights - SoundHound AI (SOUN) is experiencing significant enterprise adoption with its Agentic+ framework, leading to a 68% year-over-year revenue growth to $42 million in Q3 2025 as deployments expand across various sectors [1][11] Group 1: Product and Technology - The growth is driven by SoundHound's Agentic AI architecture, now integrated into the Amelia 7 platform, featuring the Speech-to-Meaning technology for improved latency and natural interactions [2] - The hybrid system combines generative AI, deterministic flows, and multi-agent orchestration, addressing common challenges in AI project deployments [2] - Early users of Agentic AI report up to 10-fold improvements in containment, 25% higher Net Promoter Scores, and 15% higher customer satisfaction, with reduced deployment efforts compared to legacy systems [3] Group 2: Market Position and Strategy - SoundHound is positioning itself as a next-generation customer experience (CX) infrastructure provider, focusing on scalable AI automation and multimodal interfaces [4] - The company aims for breakeven profitability by 2026 while targeting a share of the $140 billion conversational AI market [4] - SoundHound's acquisition of Interactions enhances its workflow automation capabilities and expands its reach into Fortune 100 accounts [3] Group 3: Competitive Landscape - In the enterprise CX market, SoundHound faces competition from Nuance and LivePerson, both of which are pushing for more automated conversational interfaces [6] - Nuance leverages its established presence in healthcare and call centers but relies on legacy architectures, while LivePerson struggles with platform modernization [7][8] - SoundHound's Agentic+ framework and real-time Speech-to-Meaning engine provide a competitive edge, particularly for enterprises seeking effective voice-led automation [8] Group 4: Financial Performance and Valuation - SoundHound's shares have declined by 36.1% year-to-date, underperforming compared to the Zacks Computers - IT Services industry's 13.6% decline [9] - The company is currently trading at a forward 12-month price-to-sales ratio of 23.06, higher than the industry's 17.01 [13] - The Zacks Consensus Estimate for SOUN's 2025 loss per share remains at 13 cents, indicating improvement from a loss of $1.04 per share a year ago [15]

Core Viewpoint - SoundHound AI is positioned to outperform BigBear.ai in 2026 despite its stock underperformance in 2025, due to strong operational performance and revenue growth [2][12][13] Summary by Sections SoundHound AI - SoundHound AI's stock decreased by 37% in 2025, while its revenue more than doubled in the first nine months of the year, with a year-over-year growth of 68% in Q3 [2] - The company improved its gross margin from 39% in Q2 to 42.6% in Q3, with adjusted gross margin rising from 58.4% to 59.2% [3] - SoundHound is focusing on agentic AI, leveraging its acquisition of Amelia to create voice-powered AI agents, which is expected to drive growth in 2026 [5][6] - The company is nearing EBITDA profitability and has a market cap of $5 billion, with a current stock price of $12.76 [4][5] BigBear.ai - BigBear.ai's stock increased by 53% in 2025, but it has seen a revenue decline, with a 20% drop in sales last quarter [2][11] - The company is pursuing growth through its pending acquisition of Ask Sage, which offers a rapidly growing AI platform for secure AI model deployment [10] - BigBear.ai's gross margin is low at 22.4%, down from 25.9% a year ago, primarily due to the need for on-site engineers for government projects [3][8] - The company has a market cap of $3 billion, with a current stock price of $6.82, and trades at about 15 times 2026 analyst estimates on a forward price-to-sales ratio [9][11] Comparative Analysis - SoundHound has shown better operational performance and revenue growth compared to BigBear.ai, which is struggling with declining revenue [2][12] - Despite BigBear.ai's stock performing better in 2025, SoundHound is considered to have a larger growth opportunity in the agentic AI space due to its voice-first approach [12][13]

Core Viewpoint - SoundHound AI is positioned as a potential rebound candidate in the AI sector, with significant stock price declines over the past year, suggesting a possible recovery by 2026 [1][2]. Company Overview - SoundHound AI initially gained attention after Nvidia acquired a stake in the company, but the stock price fell sharply after Nvidia sold its shares for profit [2]. - The company has evolved from a music recognition app to a voice AI platform, demonstrating adaptability in the tech landscape [3]. Technology and Innovation - SoundHound's voice technology goes beyond basic transcription, utilizing patented "speech-to-meaning" and "deep meaning understanding" technologies to interact more naturally with users [4]. - The company has established a presence in the automotive sector, enabling voice commands for navigation and real-time assistance from auto manuals [5]. - In the restaurant industry, SoundHound's technology facilitates order-taking through various channels, enhancing operational efficiency [6]. Strategic Developments - The acquisition of Amelia, a provider of virtual agents, has allowed SoundHound to enhance its voice platform and pivot towards voice-powered AI agents capable of complex interactions [7][8]. - The new Amelia 7 platform is being rolled out to major customers, focusing on AI agents that can handle intricate customer and employee interactions [9]. Market Position and Growth Potential - As the industry shifts from generative AI to AI agents, SoundHound's voice-first approach may provide a competitive advantage [10]. - The company has experienced rapid revenue growth, with a doubling of revenue in the first nine months of the year and a 68% increase in the last quarter [11]. - SoundHound is approaching EBITDA profitability, with expectations to achieve this milestone in Q4 if revenue targets are met [11][12]. - The company has significant growth potential as it embarks on its AI agent journey, with prospects for continued revenue growth and improved gross margins [12].

Core Insights - SoundHound AI, Inc. reported a strong third-quarter 2025 performance with a 68% year-over-year revenue growth, raising its full-year outlook, yet the stock experienced a 7% decline post-earnings, underperforming the industry and broader market [1][9][22] Financial Performance - The company achieved third-quarter revenues of $42 million, marking a 68% increase year-over-year, driven by growth in enterprise AI, restaurants, automotive, IoT, and financial services [9][12] - SoundHound ended the quarter with $269 million in cash and no debt, providing flexibility for future investments [13] - Non-GAAP net loss narrowed to $13 million, with an adjusted EBITDA loss of $14.5 million, while non-GAAP gross margin improved to 59% [14] Growth Prospects - The company is experiencing strong enterprise demand across various sectors, including healthcare, financial services, and telecom, with significant multi-year deals [12] - SoundHound's proprietary Polaris speech foundation model is enhancing product performance and supporting margin expansion [11] - Analysts project revenues to nearly double in 2025 and grow about 39% in 2026, reflecting expectations of scaling and margin gains [15] Valuation - SoundHound trades at a forward 12-month P/S ratio of 26, significantly higher than the industry average of 16.67, indicating strong revenue growth expectations and market optimism [6][21] - Despite the premium valuation, the company's rapid growth and increasing market share could justify the current price [21] Competitive Landscape - SoundHound faces competition from major players like Nuance Communications, Verint Systems, and LivePerson, but its proprietary technology provides a competitive edge in accuracy and deployment flexibility [25] - The company is expanding into Voice Commerce, with commercial rollouts expected to begin in 2026 [12][26] Market Sentiment - The recent 7% decline in stock price reflects investor concerns over near-term challenges, including weakness in the automotive sector and rising operating costs due to acquisitions [22][23] - The stock's current setup suggests that investors may want to wait for clearer signs of profitability and market stability before making significant investments [29]

Core Insights - SoundHound AI's stock has experienced volatility, with an 88% increase over the past year but a nearly 32% decline year to date, despite strong revenue growth and positive guidance [1] Revenue Performance - SoundHound's revenue grew by 68% year-over-year to $42 million, surpassing the analyst consensus of $32.9 million [2] Financial Metrics - The adjusted net loss improved from $0.04 per share to $0.03 per share, while adjusted EBITDA loss decreased from $15.9 million to $14.5 million year-over-year [3] - The company reported an operating cash outflow of $32.8 million for the quarter and $71 million for the first nine months of the year [3] Gross Margins - GAAP gross margins fell 600 basis points year-over-year from 48.6% to 42.6%, but improved from 39% in Q2 [4] - Adjusted gross margins decreased by 40 basis points year-over-year to 59.2%, yet improved from 58.4% in Q2 [4] - The pressure on GAAP gross margins is attributed to noncash amortization from the acquisition of Amelia, with adjusted gross margins reflecting ongoing operations [5] Strategic Initiatives - The company is shifting towards an outcome-based pricing model in sectors like healthcare and hospitality to enhance growth and improve gross margins [7] - SoundHound is upgrading customers to its new Amelia 7 platform, expecting three-quarters of its customer base to transition by mid-2026 [8] - The company is exploring partnerships with smart TV manufacturers for voice ordering integration and has partnered with technology distributors to expand in the enterprise space [8]

Core Insights - SoundHound AI Inc. (NASDAQ:SOUN) is experiencing significant stock decline, dropping 11.57% to close at $15.13 as investors sell off ahead of its upcoming earnings report [1] - The company is set to release its financial results for Q3 after market close on November 6, with a revenue target for full-year 2025 projected between $160 million and $178 million [2] - SoundHound AI has partnered with Telarus to promote its AI solutions, including the Amelia 7 AI Agent and Autonomics platforms, to technology advisors and enterprise customers [3] Financial Performance - The stock has shown a notable decline of 11.57% in recent trading sessions, indicating investor apprehension ahead of earnings [1] - The revenue target for 2025 is set between $160 million and $178 million, reflecting the company's growth ambitions [2] Product Development - The Amelia 7 platform is designed to manage complex user queries through multiple AI agents, facilitating transactions and problem resolution without human intervention [4] - The Autonomics platform offers end-to-end automation of IT systems, enhancing traditional IT infrastructure monitoring by providing insights into issue resolution [5]

Core Insights - SoundHound AI, Inc. has been recognized as a Leader in Everest Group's 2025 PEAK Matrix® Assessment for Conversational AI and AI Agents in Customer Experience Management [2][5] - The evaluation highlights the evolution of conversational AI products into autonomous AI agents capable of managing multi-step tasks [3][4] Company Overview - SoundHound AI specializes in voice and conversational AI, providing solutions that enhance customer experiences across various industries including retail, financial services, healthcare, and automotive [8] - The company’s proprietary voice engine, Polaris, is noted for its superior word error rates and advanced conversational features [4][8] Product Features - The Amelia platform, particularly its latest version Amelia 7 launched in May 2025, offers agentic capabilities allowing AI agents to listen, reason, and act on complex tasks [5][6] - Amelia's AI agents can operate across multiple channels such as chat, text, and voice, utilizing advanced speech recognition technology [6][8] Technological Innovations - SoundHound AI's architecture integrates cognitive reasoning, orchestration, and execution to support complex enterprise AI use cases [5] - The platform includes a no-code agent designer for simplified deployment and a Supervisor AI layer for dynamic agent coordination [5] Market Position - The recognition from Everest Group underscores SoundHound AI's commitment to delivering innovative solutions that enhance customer interactions and operational efficiency [5][8]

Core Insights - SoundHound AI, Inc. (NASDAQ:SOUN) has seen a significant increase in stock price, rising 10.46% to close at $17.84, driven by strong customer satisfaction for its AI software, Amelia [1][3]. Company Performance - SoundHound AI has extended its winning streak to three consecutive days, reflecting positive market sentiment [1]. - The company was recognized as a leader in the IDC MarketScape for Worldwide General-Purpose Conversational AI Platforms 2025 Vendor Assessment for its AI software, Amelia [2]. Customer Satisfaction - According to the IDC, customers of Amelia reported high satisfaction with the quality of its voice AI, particularly its ability to handle complex requests with multiple intents [3]. - The IDC MarketScape highlighted that large enterprises should consider the Amelia 7 platform for its capabilities in generating dynamic, human-like responses and strong support for voice channels [4]. Product Features - The Amelia 7 platform, launched in May 2025, is noted for its agentic capabilities, allowing AI agents to listen, reason, act, and complete complex multi-step tasks [4]. - The platform's Agentic+ framework enables businesses to utilize reasoning and planning skills of large language models (LLMs) alongside deterministic flows and human-in-the-loop processes [5].