SoundHound AI (NASDAQ:SOUN) Issues Quarterly Earnings Results, Meets Expectations

by · The Markets Daily

SoundHound AI (NASDAQ:SOUN – Get Free Report) announced its earnings results on Thursday. The company reported ($0.02) EPS for the quarter, meeting analysts’ consensus estimates of ($0.02), FiscalAI reports. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the prior year, the company earned ($0.05) earnings per share. The firm’s revenue was up 59.4% on a year-over-year basis.

Here are the key takeaways from SoundHound AI’s conference call:

  • Q4 and FY2025 revenue accelerated sharply — Q4 revenue was $55.1M (+59% YoY) and full‑year revenue was $169M (+99% YoY), and management guided 2026 revenue of $225M–$260M.
  • Commercial traction was broad and deep — management closed 100+ customer deals in Q4 across automotive, telecom, retail, healthcare and government, including multiple seven‑figure channel deals and large OEM unit commitments in Asia and Europe.
  • Product differentiation centers on its Agentic platform and Polaris speech model — migrating customers to Agentic is expected to increase containment rates, drive upsells and produce incremental outcome‑based revenue.
  • Profitability and unit economics improved — GAAP gross margin was 48% (non‑GAAP 61%), adjusted EBITDA loss narrowed to $7.4M, and the company finished Q4 with $248M cash and no debt while targeting long‑term 70%+ gross and 30%+ EBIT margins.
  • Reported GAAP net income was materially affected by an ~$85M non‑cash fair‑value change tied to contingent acquisition liabilities, and management warned stock‑based compensation and acquisition accounting can cause earnings volatility and dilution.

SoundHound AI Stock Up 5.4%

NASDAQ SOUN traded up $0.46 during trading hours on Thursday, reaching $8.98. The company’s stock had a trading volume of 42,904,872 shares, compared to its average volume of 24,888,964. SoundHound AI has a 1 year low of $6.52 and a 1 year high of $22.17. The company has a market capitalization of $3.77 billion, a price-to-earnings ratio of -10.69 and a beta of 2.64. The firm’s 50-day moving average price is $9.63 and its 200-day moving average price is $12.98.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 29,676 shares of the stock in a transaction dated Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, the chief technology officer owned 544,179 shares of the company’s stock, valued at $6,530,148. This represents a 5.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Majid Emami sold 32,741 shares of the firm’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the transaction, the senior vice president owned 532,845 shares of the company’s stock, valued at approximately $5,680,127.70. The trade was a 5.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 460,922 shares of company stock worth $5,199,073. Insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

A number of large investors have recently added to or reduced their stakes in SOUN. EP Wealth Advisors LLC raised its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after buying an additional 706 shares during the period. Newbridge Financial Services Group Inc. lifted its position in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after acquiring an additional 830 shares during the last quarter. Parallel Advisors LLC raised its position in SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after buying an additional 960 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Finally, Integrated Wealth Concepts LLC boosted its stake in shares of SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after acquiring an additional 1,201 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price target for the company from $13.00 to $15.00 in a report on Friday, December 12th. Piper Sandler decreased their price objective on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, DA Davidson set a $14.00 target price on shares of SoundHound AI in a report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $16.07.

Read Our Latest Report on SoundHound AI

Key SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

  • Positive Sentiment: Q4 results beat revenue expectations and showed strong top‑line growth: revenue of $55.06M topped consensus and full‑year 2025 revenue was a record $169M (near 100% annual growth), signaling accelerating demand. SoundHound AI, Inc. (SOUN) Reports Q4 Loss, Beats Revenue Estimates
  • Positive Sentiment: Management set FY2026 revenue guidance of $225M–$260M (consensus ~$231M), which supports continued top‑line expansion and likely underpins investor optimism despite mixed margin trends. Press Release / Earnings Presentation
  • Positive Sentiment: Product and footprint catalysts: launch of the Sales Assist voice agent at MWC and opening of a new innovation hub in Bengaluru expand addressable markets (retail + global engineering capacity). These moves drove earlier volume spikes and positive investor sentiment. SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight
  • Neutral Sentiment: EPS in Q4 was ($0.02), in line with estimates — this met expectations but did not resolve profitability concerns. Earnings Report / Call
  • Negative Sentiment: Profitability and balance‑sheet risks remain: large GAAP losses, a negative net margin (~211%) and negative ROE were highlighted by the report; analysts still expect negative FY EPS and short interest plus notable insider sales add downside pressure. SoundHound AI Reports Record Annual Revenue

About SoundHound AI

(Get Free Report)

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.

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