SoundHound AI (NASDAQ:SOUN) Announces Quarterly Earnings Results

SoundHound AI (NASDAQ:SOUN) posted its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting 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 firm had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the firm earned ($0.05) EPS. The business’s revenue for the quarter was up 59.4% compared to the same quarter last year.

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 Down 2.6%

SoundHound AI stock traded down $0.23 during trading on Friday, hitting $8.75. The stock had a trading volume of 27,002,313 shares, compared to its average volume of 26,911,088. The stock’s 50 day moving average is $9.63 and its two-hundred day moving average is $12.98. SoundHound AI has a 1 year low of $6.52 and a 1 year high of $22.17. The stock has a market cap of $3.68 billion, a price-to-earnings ratio of -10.46 and a beta of 2.64.

SoundHound AI News Roundup

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

• Positive Sentiment: Revenue beat and strong growth — Q4 revenue rose ~59% year‑over‑year to $55.06M, slightly above consensus, and annual revenue hit a record ~$169M, signaling continued enterprise adoption. SoundHound Posts Better-Than-Expected Sales
• Positive Sentiment: Healthy liquidity — the company ended the quarter with roughly $248M in cash, providing runway to invest in product development and integrations without immediate financing pressure. SoundHound Beats Revenue Estimates, Ends Quarter With $248M Cash
• Positive Sentiment: Product & geographic expansion — launch of the Sales Assist retail agent (MWC) and a new innovation hub in Bengaluru expand addressable markets and engineering capacity, supporting future enterprise deal flow. Sales Assist Launch
• Neutral Sentiment: Mixed EPS signal — outlets describe results differently (some call EPS in‑line at a ($0.02) loss, others highlight an EPS beat), leaving short‑term interpretation varied; investors are focused on margin trajectory and management commentary. SOUN Posts In-Line Earnings
• Negative Sentiment: Profitability and margin pressure — GAAP losses widened, non‑GAAP net loss persisted, and net margins/ROE remain deeply negative, keeping the path to sustained profitability uncertain. Earnings Call Highlights
• Negative Sentiment: Market skepticism signals — high short interest and significant insider selling increase volatility risk and could amplify downward pressure if growth or margin improvements disappoint. QuiverQuant Summary (includes insider/short data)

Insider Transactions at SoundHound AI

In other news, COO Michael Zagorsek sold 73,406 shares of the company’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the transaction, the chief operating officer owned 1,787,459 shares of the company’s stock, valued at $20,162,537.52. This represents a 3.94% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Keyvan Mohajer sold 144,326 shares of the stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $1,627,997.28. Following the transaction, the chief executive officer owned 2,198,287 shares of the company’s stock, valued at $24,796,677.36. The trade was a 6.16% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. lifted 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 in the last quarter. Danske Bank A S bought a new stake in SoundHound AI during the 3rd quarter valued at $26,000. Parallel Advisors LLC lifted its position in shares of SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after acquiring an additional 960 shares in the last quarter. Advisors Asset Management Inc. boosted its holdings in shares of SoundHound AI by 58.2% in the fourth quarter. Advisors Asset Management Inc. now owns 7,012 shares of the company’s stock worth $70,000 after acquiring an additional 2,579 shares during the period. Finally, PNC Financial Services Group Inc. grew its position in shares of SoundHound AI by 20.4% in the fourth quarter. PNC Financial Services Group Inc. now owns 8,583 shares of the company’s stock valued at $86,000 after purchasing an additional 1,456 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently weighed in on SOUN shares. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Piper Sandler dropped their price target on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and a consensus price target of $16.07.

About SoundHound AI

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.