SoundHound AI (NASDAQ:SOUN) Posts Earnings Results, Hits Expectations

SoundHound AI (NASDAQ:SOUN) issued its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02), FiscalAI reports. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The business had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the firm posted ($0.05) earnings per share. The business’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 Performance

NASDAQ SOUN traded up $0.46 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 twelve month low of $6.52 and a twelve month high of $22.17. The firm’s 50 day moving average is $9.63 and its two-hundred day moving average is $12.98. The stock has a market cap of $3.77 billion, a PE ratio of -10.69 and a beta of 2.64.

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 32,741 shares of the company’s stock in a transaction on Friday, December 26th. The stock was 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. This represents a 5.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This trade represents a 3.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 460,922 shares of company stock worth $5,199,073. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Morgan Stanley boosted its position in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. State Street Corp raised its stake in shares of SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after purchasing an additional 80,908 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of SoundHound AI by 13.4% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,697,346 shares of the company’s stock worth $91,604,000 after purchasing an additional 672,714 shares in the last quarter. Northern Trust Corp lifted its holdings in shares of SoundHound AI by 1.2% during the 3rd quarter. Northern Trust Corp now owns 3,181,651 shares of the company’s stock valued at $51,161,000 after buying an additional 38,966 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after buying an additional 1,085,473 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a report on Thursday, January 8th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Piper Sandler dropped their price target on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $16.07.

SoundHound AI Company Profile

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.