SoundHound AI Reports Record Q2 Results, Sparking Stock Surge and Raising AI Profitability Hopes

SoundHound AI Stock Jumps 25% on Strong Results, Raised Guidance

The artificial intelligence voice software maker also reported a lower-than-expected loss. SoundHound AI (SOUN) shares took off, soaring 25% in morning trading, when the maker of artificial intelligence voice software reported record sales and boosted its outlook as it added more customers, especially in China. The company reported second-quarter revenue that skyrocketed 217% to $42.68 million, about $10 million more than analysts from Visible Alpha anticipated. Its per share loss of $0.03 was less than a year ago, and also beat estimates. Co-founder and CEO Keyvan Mohajer said it was SoundHound AI's "strongest ever quarter," and that several of its previous strategic moves "delivered high-impact results with growth across every business unit." Among the gains, the Automotive business scored what the company called a "significant new win in China for our voice assistant to be integrated in a major OEM with vehicles spanning China and worldwide, including the development of multiple new languages." SoundHound AI raised its full-year revenue guidance to a range of $160 million to $178 million, compared to its earlier forecast of $157 million to $177 million. Despite today's advance, shares of SoundHound AI have lost about a third of their value in 2025.

SoundHound AI Stock Jumps 25% on Strong Results, Raised Outlook

The artificial intelligence voice software maker also reported a lower-than-expected loss. SoundHound AI (SOUN) shares took off, soaring 25% in morning trading, after the maker of artificial intelligence voice software reported record sales and boosted its outlook as it added more customers, especially in China. The company reported second-quarter revenue that skyrocketed 217% year-over-year to $42.68 million, about $10 million more than analysts from Visible Alpha anticipated. Its loss of $0.03 per share narrowed from a year ago, and also beat estimates. Co-founder and CEO Keyvan Mohajer said it was SoundHound AI's "strongest ever quarter," and that several of its previous strategic moves "delivered high-impact results with growth across every business unit." Among the gains, the Automotive business scored what the company called a "significant new win in China for our voice assistant to be integrated in a major OEM with vehicles spanning China and worldwide, including the development of multiple new languages." SoundHound AI raised its full-year revenue forecast to a range of $160 million to $178 million, compared to its earlier forecast of $157 million to $177 million. Despite today's advance, shares of SoundHound AI have lost about a third of their value in 2025.

SoundHound (SOUN) surprises Wall Street with strong Q2 earnings, stock jumps 7% -- is this the breakout voice AI investors have been waiting for?

SoundHound (SOUN) surprised Wall Street with strong Q2 earnings, reporting $42.7 million in revenue, easily beating estimates. The stock jumped 7% in after-hours trading as investors reacted to the upbeat report and raised full-year revenue guidance to $160-$178 million. As voice AI adoption rises across industries like restaurants and automotive, SoundHound is gaining serious momentum. With a growing $1.2 billion backlog and fresh investor interest, many now wonder -- is SOUN finally ready for a breakout? This surge in SoundHound stock marks a potential turning point in the race to dominate the voice AI space.

SoundHound AI Stock Surges 20% Premarket After Record Q2 Revenue Beat - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc. SOUN stock jumped 20.15% in premarket trading on Friday to $12.88 after reporting record quarterly results that crushed Wall Street estimates. The voice AI company posted second-quarter revenue of $42.7 million, beating analyst expectations of $32.88 million and marking 217% year-over-year growth. Adjusted losses narrowed to $0.03 per share versus the $0.09 consensus estimate. CEO Keyvan Mohajer called it "our all-time strongest quarter," with growth across automotive, enterprise AI, and restaurant automation segments. The platform now processes over 1 billion monthly queries. See Also: Trade Desk Sinks 29% After Hours Despite Revenue Beat as CEO Warns Tariffs Are Hammering Big-Brand Advertisers SoundHound raised 2025 revenue guidance to $160-$178 million, above the $159.54 million estimate, and expects adjusted EBITDA profitability by year-end. Key drivers included new automotive wins in China, restaurant partnerships with Red Lobster and IHOP, and strong adoption of its Polaris AI model. Restaurant locations using voice AI ordering exceeded 14,000, adding 1,000 in Q2. According to the earnings call transcript, acquired businesses showed 100%+ sales attainment and 120%+ net revenue retention. Read Next: Dow Tumbles Over 200 Points Following Earnings Reports: Fear & Greed Index Remains In 'Neutral' Zone Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock SOUNSoundHound AI Inc$12.8920.2%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum91.88GrowthN/AQualityN/AValue7.50Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

As Markets Question AI Profitability, SoundHound AI's 217% Revenue Surge Aims To Rewrite The Growth Narrative - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN shares are trading higher Monday afternoon after a strong second-quarter performance and a bullish analyst rating. Here's what investors need to know. What To Know: The company reported record-breaking quarterly revenue of $42.7 million, a 217% year-over-year increase that beat the consensus estimate of $32.88 million. Adjusted losses were three cents per share, outperforming the Street's expectation of a nine-cent loss. Following the impressive results, SoundHound raised its full-year 2025 revenue forecast to a range of $160 million to $178 million, up from a previous estimate of $159.54 million. In the earnings call, CEO Keyvan Mohajer highlighted the company's strongest quarter ever, with significant growth across its automotive, enterprise AI and restaurant automation businesses. The company now processes over one billion queries per month and serves over 14,000 restaurant locations. This momentum was further bolstered by an upgrade from Ladenburg Thalmann, which raised its rating on the stock from Neutral to Buy and increased its price target from $9 to $16. The combination of a strong earnings beat and a positive analyst outlook has contributed to the stock's upward movement. The company's cash and equivalents stood at $230 million with no debt at the end of the quarter. Management expressed confidence in achieving adjusted EBITDA profitability by the end of 2025. Benzinga Edge Rankings: According to Benzinga Edge rankings, which provide scores to identify strong and weak stocks, SoundHound AI exhibits exceptionally strong momentum with a score of 94.51. However, its value score is very low at 6.23. The data also indicates a positive price trend across short, medium and long-term outlooks. Price Action: According to data from Benzinga Pro, SOUN shares are trading higher by 15.5% to $15.65 Monday morning. The stock has a 52-week high of $24.98 and a 52-week low of $4.32. Read Also: AMC Stock Climbs After Q2 Revenue, EPS Top Estimates How To Buy SOUN Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in SoundHound AI's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock SOUNSoundHound AI Inc$15.6015.1%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum94.51GrowthN/AQualityN/AValue6.23Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Why SoundHound AI Stock Skyrocketed Today | The Motley Fool

Soaring sales momentum is powering huge growth for the stock. Shares of SoundHound AI (SOUN 26.26%) posted explosive gains in Friday's trading. The conversational and agentic artificial intelligence (AI) specialist's stock closed out the daily session up 26.4% and had been up as much as 32.9% earlier in trading today. SoundHound AI released its second-quarter results after the market closed yesterday and delivered performance that crushed Wall Street's expectations. Besides sales and earnings beats last quarter, the company issued guidance that has investors feeling bullish. The company reported an adjusted loss of $0.03 per share on sales of $42.7 million in the second quarter. Although it posted a loss in the period, performance came in far better than the market had anticipated. The average Wall Street analyst estimate had called for an adjusted loss of $0.05 per share on revenue of roughly $32.9 million. Instead, it delivered a huge sales beat in the quarter, and revenue was up roughly 217% year over year. On the heels of its strong second-quarter results, SoundHound AI raised its full-year revenue forecast to between $160 million and $178 million. Previously, management had guided for sales between $157 million and $177 million this year. Hitting the midpoint of management's new guidance range would mean delivering annual sales growth of roughly 99.5%. Company revenue has actually been accelerating significantly recently, and there seems to be a good chance that SoundHound AI can meet or exceed the high range of its updated sales guidance.

SoundHound Crushed Earnings and the Stock Soared. Here's What Could Come Next. | The Motley Fool

When I last spoke to you about SoundHound AI (SOUN -2.18%) in mid-July, I outlined three reasons the stock could explode to the upside. The stock rocketed 40% since the article was published, assisted by another stellar earnings report. Given the recent action, a debriefing is definitely in order. Let's take a look at what went right and what's next for this up-and-coming artificial intelligence (AI) player. The first pillar I mentioned in the previous article was the massive market that speech recognition has. Automobiles, drive-thrus, retail, and customer service are some of the largest and most obvious markets. Voice recognition technology in automobiles is advancing rapidly thanks to companies like SoundHound AI. The days of simply saying "play music" and hoping it doesn't make another phone call are gone. Future voice technology in vehicles will enable complex interactions, such as "give me directions to the highest rated Italian restaurant within five miles of my route home." Quite a step up! Drive-thrus and customer service will also be served by AI technology with limited human involvement. This is a game-changer for the cost structures of businesses. The savings will be immense, and companies can't afford to be left behind. Statista pegs the market opportunity at $16 billion by 2030; however, this estimate may be too conservative. Other research firms peg the total addressable market at more than $140 billion. The truth probably lies somewhere in between. The key for SoundHound to capture as large a piece of the pie as possible is to win new customers and expand offerings with current customers. SoundHound's customer list is impressive, with well-known brands like Stellantis, Hyundai, White Castle, Jersey Mike's, and many more. SoundHound reported Q2 wins of Red Lobster, Applebee's, IHOP, and a major Chinese automotive brands, and expansions with current customers like Chipotle and Firehouse Subs. SoundHound tech is now operating at more than 10,000 restaurant locations. The terrific execution translated easily to the top line with 217% year-over-year sales growth from $13.5 million to $42.7 million. As shown below, not only is SoundHound's revenue growing, but the growth rate is accelerating. Sales grew 151% year over year in Q1 2025, which was exciting. But the 217% growth in Q2 took it to a new level. In addition to the obvious use cases for speech recognition AI, emerging markets include smart homes, financial services, smart TVs and entertainment, healthcare, and employee training. Using AI in employee training, for example, will be a huge time and cost saver. A new team member can request step-by-step instructions for procedures, seek specific guidance from company handbooks, and receive coaching from AI on best practices, brand features, and more. The technology is only scratching the surface so far. But what does this mean for SoundHound stock? It's important to note that SoundHound isn't profitable and is losing cash from its operations. This isn't unusual for smaller, fast-growing tech companies, but it means that the company raises money to fund growth by selling additional shares of stock. This dilutes current shareholders. It isn't ideal, but it is necessary for now. The plan is for the company to become cash-flow-positive as revenue continues to rise. The stock trades for 46 times the last 12 months' sales; however, this will drop to 36 if SoundHound hits the high end of its 2025 guidance of $178 million in revenue. The valuation is high by traditional metrics, but a company growing sales by more than 200% is not at all typical. The bottom line is that the stock is exceedingly difficult to value at this stage. For this reason, the stock isn't for everyone, and investors should be cautious. Here's a handy guide to risk tolerance. The biggest long-term factor for success for investors will be whether the company continues to execute its growth strategy. So far, so good. The stock will likely experience significant fluctuations as it matures. Long-term investors should consider taking some profits when it rises, and adding to a core position on significant dips.

Why SoundHound AI Stock Soared 17.3% Today | The Motley Fool

The voice-focused artificial intelligence (AI) company's stock is continuing to climb after releasing better-than-expected earnings on Thursday and announcing major new capabilities and partnerships on Friday. SoundHounds' second quarter was a major success for the company and its "strongest ever quarter," according to CEO Keyvan Mohajer. The company delivered an adjusted loss per share of $0.03, better than Wall Street's expected loss of $0.05 per share. Sales jumped 217% year over year, hitting $43 million and handily beating the expected $33 million. CFO Nitesh Sharan said that the company was "moving with speed to capture the explosion we're seeing in the voice and conversational AI industry." The success looks like it will continue in the near term with the company lifting its full-year guidance of between $157 million and $177 million to $160 million to $178 million. The company followed up the positive earnings with the launch of its" Vision AI," an "advanced visual understanding engine." CEO Keyvan Mohajer said that the product's integration in their platform "[is] extending our leadership in voice and conversational AI to redefine how humans interact with products and services offered and used by businesses." Investors appeared to agree. There is no doubt that SoundHound has significant momentum, and its Vision AI product will help it continue its technical leadership. However, its current valuation is too high for my taste. The company's stock trades at nearly 50 times sales.

Prediction: This Artificial Intelligence (AI) Stock Could Double by 2026 | The Motley Fool

This voice-AI specialist delivered terrific results recently, and its fast-growing customer base points toward better times ahead. SoundHound AI (SOUN 0.60%) has had a forgettable 2025 despite reporting strong growth quarter after quarter, with shares of the company trading down about 20% so far this year as of this writing. However, it looks like the voice-powered artificial intelligence (AI) company's fortunes are about to change following its latest quarterly results. SoundHound AI stock shot up more than 26% after releasing its second-quarter 2025 results on Aug. 7. Let's see what has investors excited and check why this beaten-down AI stock has the potential to double by next year. SoundHound AI provides a platform that allows its customers in various industries to develop different types of voice AI systems, including AI assistants, chatbots, and online ordering systems (among other things). The company's platform has quickly gained traction, and it's now being deployed in the automotive, hospitality, healthcare, retail, financial services, and e-commerce industries. That's why revenue more than tripled in the previous quarter to a record level of $43 million. The company also managed to reduce its adjusted loss per share by a penny to $0.03 despite a significant increase of 64% in its research and development expenses and a 180% spike in sales and marketing outlay. Wall Street would have settled for $33 million in revenue and a loss of $0.09 per share. SoundHound blew past those estimates thanks to new customers last quarter. The company reports that 15 large enterprise customers are now using its voice-powered agentic AI platform, Amelia, which is impressive considering that it was introduced just three months ago. The company reported "numerous wins, renewals, expansions, and cross-selling" in the restaurant industry. Other customer additions included a new automotive original equipment manufacturer (OEM) in China and bigger contracts with four of its financial services customers. In all, it benefited from a combination of new customers and more business from existing ones. This trend is likely to continue, considering the $140 billion total addressable market that management projects across various industries. Also, the company says that it has been granted over 190 patents for its voice AI solutions, with another 110 pending. A strong intellectual property (IP) portfolio should provide a competitive advantage in the voice AI market and open up new sources of revenue growth through licensing. As such, it is easy to see why the company is confident about its prospects and has raised its full-year revenue guidance to a range of $160 million to $178 million. That's up from its earlier guidance range of $157 million to $177 million. The updated forecast indicates that its top line could more than double in 2025 from last year's $85 million. However, don't be surprised to see the company exceed its own expectations in 2025 and deliver stronger growth next year. SoundHound operates in a fast-growing and lucrative market and is quickly expanding its customer base. As a result, there is a strong possibility that it will be able to maintain its outstanding revenue growth in 2026 as well. Consensus estimates, however, project a slowdown in its top-line growth next year, followed by an acceleration in 2027. But then, investors should note that SoundHound's cumulative subscriptions and bookings backlog stood at $1.2 billion at the end of last year. This metric provides insight into its future revenue generation ability and indicates that it is in a position to blow past consensus estimates in 2026 as well. Assuming the company's growth next year slows down to even 50% in 2026 from the 100% increase that it is projecting in 2025, its top line could jump to at least $253 million next year (based on the midpoint of its 2025 revenue range). The stock trades at 47 times sales right now. That multiple is, of course, expensive. But SoundHound's remarkable growth justifies its rich valuation, especially considering that AI companies with slower growth command a bigger premium. So there is a good chance that the market could continue putting a premium on the company's valuation. A price-to-sales ratio of even 40 in 2026 could take the stock's market cap to more than $10 billion, which is around double its current valuation. However, SoundHound AI could deliver stronger growth than what's projected above, which could lead to even bigger gains in the market.

SoundHound AI (SOUN) Q2 Revenue Up 217% | The Motley Fool

SoundHound AI (SOUN -0.28%), a voice artificial intelligence technology provider, delivered a standout earnings report for the quarter ended June 30, 2025, released on August 7, 2025. The company announced revenue of $42.7 million, more than doubling results from the prior year, up 217% year-over-year thanks to rapid expansion and key acquisitions. This total exceeded Wall Street's consensus estimate of $32.9 million by nearly $9.8 million, or 29.9%. Non-GAAP earnings per share came in at a loss of $(0.03), comfortably ahead of the $(0.09) per share non-GAAP loss analysts expected. Despite the record topline growth and narrowed non-GAAP net loss, gross margins compressed to 39.0% from 63.0% last year, reflecting the impact of newly acquired, lower-margin businesses. Overall, the period marked significant revenue progress and important customer wins -- balanced by the need for ongoing margin improvement and further operational efficiencies. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. SoundHound AI specializes in voice artificial intelligence solutions for businesses, enabling spoken interactions and intelligent responses in products and services. Its technology powers conversational agents for automotive, restaurants, enterprise, and various customer-facing applications. The company has developed proprietary models like Speech-to-Meaning and Deep Meaning Understanding. These technologies allow users to interact with machines in natural language, providing accurate and real-time communication. Recently, SoundHound AI has focused on expanding its product family -- spanning agentic AI platforms, voice commerce capabilities, and broad language support. The business is driven by three revenue pillars: royalties from integrations, subscriptions, and usage-based monetization. Maintaining a competitive edge requires continuous innovation, effective integration of acquisitions, and forging global partnerships that open new opportunities across sectors. The quarter showcased exceptional revenue growth, with reported revenue surging 217% year-over-year. This leap was spurred by strong adoption in key verticals and incremental contributions from integration of acquisitions. However, gross margin fell sharply to 39.0%, down from 63.0% in Q2 2024. The main driver of this contraction was the addition of lower-margin professional services and call center businesses, acquired through companies like Amelia and SYNQ3. Management clarified that this mix impact was expected and that efforts to return to prior margin levels are underway. Non-GAAP net loss improved to $(11.9) million, marking progress from a $(14.9) million non-GAAP net loss a year earlier. Diluted operating losses, both GAAP and Non-GAAP, remained a reality for the period, highlighting how scale and cost discipline are works in progress. The quarter included a significant one-time, non-cash mark-to-market expense of $31 million tied to acquisition liabilities, which unfavorably affected the company's GAAP results. During the quarter, SoundHound AI saw wins and expansions across several industry verticals. In restaurants, it renewed and expanded contracts with brands like MOD Pizza and Chipotle, while adding new customers such as Red Lobster and IHOP. The number of sites using its restaurant solutions topped 13,000. Automotive growth was enriched by new original equipment manufacturer (OEM) awards in China, rollout of chat AI in North America, and continued expansion with KIA India. Its healthcare push added large group clients like Primary Health Solutions and Allina Health. SoundHound works with seven of the top ten global financial institutions, and either renewed or had upsells with four of them. The quarter also saw the debut and commercial uptake of new offerings. "Amelia 7" was launched as a next-generation agentic AI platform -- meaning a software agent able to understand, reason, and act in more human-like ways -- which now has 15 enterprise customers piloting or migrating to it. The company emphasized the value of its proprietary foundation model (Polaris) and continued its focus on multi-language capabilities and white-label solutions, which let customers retain full brand and data control. Strategic alliances were also expanded, including a new partnership with global restaurant technology specialist Acrelec and channel partners such as AVANT Communications, all aimed at broadening the company's international presence. From a financial perspective, diversification improved, with no single customer making up more than 10% of revenue. This trend reduces risk concentration and reflects broad-based momentum. Cash and equivalents stood at $230 million as of June 30, 2025, and the company reported having no debt. Cash used in operations for the first half of 2025 was $(43.7) million, showing a slight increase in net cash used in operating activities (cash burn) for the six months ended June 30, 2025, versus the prior year. SoundHound AI raised its full-year 2025 revenue outlook, now expecting $160 million to $178 million, up from a prior full-year 2025 range of $157 million to $177 million. Management reiterated its target of achieving adjusted EBITDA profitability by year-end 2025. The company continues to pursue margin recovery and increased automation. Looking ahead, key areas for investors to monitor include progress in recovering gross margins and the pace of integration and retention within acquired businesses. The ongoing expansion into new geographies and verticals, paired with continued innovation in language models and agentic AI, remain focal points.

SoundHound AI Skyrocketed Today -- Is the Stock a Buy Right Now? | The Motley Fool

SoundHound AI (SOUN 17.49%) stock booked another day of big gains in Monday's trading. The conversational artificial intelligence (AI) company's share price closed out the day's trading up 17.3% despite the S&P 500 and the Nasdaq Composite both retreating 0.3% in the session. SoundHound AI saw big stock gains in conjunction with the blockbuster quarterly results it published last week, and the AI player has continued to see strong valuation momentum early in this week's trading, thanks in part to bullish analyst coverage. Despite a massive rally recently, SoundHound AI stock is still down roughly 20% across this year's trading. With the coverage it published today, Ladenburg upgraded its rating on SoundHound AI stock from neutral to buy. The investment firm also raised its one-year price target on the stock from $9 per share to $16 per share and cited strong contract momentum and long-term growth opportunities in the conversational AI space as reasons for its staunchly bullish pivot. Notably, the stock closed out today's trading at $15.90 per share, which leaves very little potential upside in relation to Ladenburg's updated price target. On the heels of its recent valuation run-up, SoundHound AI is now valued at approximately 38 times this year's expected sales and has margins that still look relatively low for a software services company. That makes the stock a risky investment at current levels. Alternatively, the business has been posting very strong sales momentum -- with revenue rising 217% year over year to reach $42.7 million last quarter. SoundHound AI's valuation profile means that the stock comes with a high level of downside risk, but the possibility that the company is still in the early stages of a much bigger long-term growth story suggests the stock could be a worthwhile portfolio addition for AI-focused investors with high risk tolerance.

SoundHound Shares Jump as Voice AI Begins to Take Off. Can the Momentum Continue, Or Is It Too Late to Buy the Stock? | The Motley Fool

Shares of SoundHound AI (SOUN 0.60%) skyrocketed after the artificial intelligence (AI) voice company reported soaring revenue growth and upped its guidance. It's been a volatile past year for the stock, with it up 200% over the past year but down about 30% year to date, as of this writing. With the stock climbing higher, let's take a look at its most recent results and future prospects to see if the momentum can continue, or if it's too late to buy the stock. After seeing 151% revenue growth in the first quarter, SoundHound followed that up by growing its revenue by 217% to $42.7 million in the second quarter. That easily trounced the $32.9 million analyst consensus, as compiled by FactSet. The company's adjusted net loss improved from $0.04 per share to $0.03 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was a loss of $14.3 million, compared to a loss of $13.8 million a year ago. It had an operating cash outflow of $25.5 million in the quarter and $43.7 million through the first half of the year. Its gross margins remain under pressure, but it did see some nice sequential improvement. GAAP gross margins fell from 63% to 39% year over year, but were up from 36.5% in Q1. Adjusted gross margin dropped 810 basis points year over year to 58.4%, but that was a huge improvement from 50.8% in Q1. Much of the GAAP gross margin decline comes from the non-cash amortization of purchase intangibles stemming from its Amelia acquisition, which is more of an accounting function than anything. However, Amelia's business also came with some lower-margin contracts, and SoundHound said that it is still evaluating them as they come up for renewal. It also said that inference costs on like-for-like models are declining rapidly. Despite the initial negative effect on gross margins, SoundHound's acquisition of Amelia is a potential long-term game-changer. The deal gave SoundHound both access to additional verticals, and to Amelia's "conversational intelligence," which it can now pair with its "speech-to-meaning" and "deep meaning understanding" technology. Amelia also became the foundation for SoundHound's new voice-powered agentic AI technology with the launch of the Amelia 7 platform. While it's still early, SoundHound said it is in the process of migrating 15 of its largest enterprise customers onto the Amelia 7 platform. The platform allows for low- to no-code development of AI agents. It also uses SoundHound's Polaris speech recognition engine, which the company says offers better accuracy, speed, and domain-specific capabilities. The company has also added vision AI to its tech stack, bringing real-time visual capabilities into its conversational AI ecosystem. It said that the combination of voice AI and vision AI could exponentially increase the number of use cases it can address. Meanwhile, SoundHound said that it is seeing strength across verticals. It had several notable wins in the restaurant space, including with chains such as IHOP (owned by Dine Brands Global), Red Lobster, and Peter Piper Pizza. It also secured a deal with a large automobile customer in China and expanded its relationship with Kia into India, while also noting strength in the financial services sector. Looking ahead, management lifted its full-year forecast, calling for revenue between $160 million to $178 million, up from prior guidance of $157 million to $177 million. It said that the revised forecast was due to accelerating demand for its solutions and better close rates on major deals. It expects to reach adjusted EBITDA profitability by the end of 2025. SoundHound is in hypergrowth mode, with it seeing rapid revenue growth as its solutions continue to gain traction. However, the best may be yet to come. The potential of voice-powered agentic AI, and the addition of vision AI to its tech stack, open up a whole new world of potential growth possibilities. From a valuation standpoint, SoundHound trades at a price-to-sales (P/S) multiple of about 34 times the consensus analyst estimate for 2025. Given that it just tripled its revenue last quarter, that's not unreasonable. Its gross margins need to continue improving, but they're starting to head in the right direction. Overall, SoundHound AI is a high-risk, high-potential-reward stock. It's still in the very early stages of a potentially huge opportunity. As such, I don't think it's too late to buy the stock, but just realize that this is a very speculative investment at this point.

Why Shares of SoundHound Are Soaring Higher This Week | The Motley Fool

Could the company's strong earnings report from last week still be moving investors to click the buy button on this AI stock? After climbing 34% last week, shares of SoundHound AI (SOUN 0.24%) are maintaining their upward trajectory. The company reported strong second-quarter 2025 financial results last week, and investors seem intent on continuing to pick up shares of the artificial intelligence (AI) company, while an analyst's optimistic outlook on the stock from earlier this week is contributing to investors' ebullience. According to data provided by S&P Global Market Intelligence, shares of SoundHound have risen 21.3% from the end of trading last Friday through 3:32 p.m. ET on Thursday. On Monday, investors learned that they weren't the only ones enthusiastic about SoundHound's Q2 2025 financial results. Ladenburg analyst Glenn Mattson upgraded SoundHound stock to buy from neutral and hiked his price target to $16 from $9. With shares of SoundHound closing at $13.55 last Friday, Mattson's price target implies upside of 18.1%. According to The Fly, Ladenburg predicates its view on SoundHound on the belief that the company is adding value to companies seeking to integrate AI functionality, and the company is demonstrating strong growth potential in the near term. Last week, SoundHound reported impressive second-quarter 2025 financial results. In addition to revenue growing 217% year over year, SoundHound reported non-GAAP (generally accepted accounting principles) earnings per share of negative $0.03, beating analysts' expectations. For innovative companies such as SoundHound, there's often volatility in the stock prices as investors wrestle with the company's growth into a more mature company. The recent rise shouldn't dissuade those interested in SoundHound stock. While notable over the past couple of weeks, shares are still down about 16% since the start of the year as of this writing.

SoundHound AI: Why Is the Stock Surging After Q2 Earnings? | Investing.com UK

SoundHound AI (NASDAQ:SOUN) shares are soaring 22.11% in premarket trading to $13.09 after the voice artificial intelligence company reported explosive second-quarter results that more than tripled revenue year-over-year. The company posted record revenue of $42.7 million, up 217% from $13.5 million in the prior year period, significantly beating analyst expectations of $32.9 million. CEO Kayvan Mohajer declared that enterprises are now at "the inflection point of AI adoption," with businesses increasingly viewing voice AI automation as a necessity rather than an option. SoundHound AI's second quarter performance showcased the company's transition from a niche player to a major force in enterprise voice AI. Revenue of $42.7 million represented a massive 217% increase from the $13.5 million reported in Q2 2024, while also beating Wall Street expectations by nearly 30%. The company's non-GAAP gross margin reached 58.4%, demonstrating improving operational efficiency as the business scales. The earnings beat was accompanied by strong guidance revisions, with SoundHound raising its full-year 2025 revenue outlook to $160-178 million from the previous range of $157-177 million. This reflects management's confidence in sustained demand across multiple verticals as enterprises accelerate their adoption of conversational AI technologies. The company's adjusted EBITDA loss narrowed slightly to $14.3 million compared to $13.8 million in the prior year. CFO Nitesh Sharan emphasized that Q2 represented a "strong quarter where our underlying momentum manifested in financial results," highlighting how earlier strategic investments are now generating outsized returns. The company's customer diversification strategy has proven successful, with no single customer now representing more than a small percentage of total revenue, compared to three customers accounting for 70% of revenue in previous periods. SoundHound's success stems from solving the critical "hallucination" problem in AI where language models generate false responses, making their solutions enterprise-ready for customer-facing applications. This technological breakthrough has positioned the company to capture the growing demand as businesses recognize that AI automation is becoming essential for competitiveness in today's market environment. SoundHound AI operates as a global leader in voice and conversational artificial intelligence, providing enterprise-grade solutions that enable businesses to offer superior customer experiences through voice automation. The company's proprietary technology stack includes the Polaris (NYSE:PII) speech foundation model and the newly unveiled Amelia 7.0 platform, which delivers what the company calls "Agentic AI" - fully autonomous AI agents capable of handling complex customer interactions across multiple channels. The company's solutions span multiple high-growth sectors including automotive voice assistants, restaurant drive-thru automation, healthcare patient engagement, and financial services customer support. Notable wins in Q2 included major automotive OEMs in China and North America, restaurant chains like Red Lobster and IHOP, and healthcare systems including Allina Health. SoundHound's voice commerce initiatives are advancing with pilot programs involving large automotive brands and national merchants for ordering food, coffee, and parking services. SoundHound's competitive advantage lies in its ability to customize large language models for specific business needs, offering a level of specialization that generic AI platforms cannot match. The company's solutions achieve the enterprise-grade accuracy required for customer-facing applications, where CEO Mohajer notes "you cannot be 70% right. You have to be 100% right." This precision has enabled SoundHound to secure contracts with seven of the top 10 global financial institutions and expand into new verticals. The market opportunity appears substantial as businesses shift from viewing AI as experimental to essential infrastructure. Restaurant operators who previously needed convincing about AI automation are now "knocking on our doors" according to Mohajer, representing a fundamental shift in enterprise AI adoption patterns that should continue driving SoundHound's growth trajectory. *** Looking to start your trading day ahead of the curve?