SoundHound AI (NASDAQ: SOUN) closed 2025 on a high note, posting record quarterly and annual revenue while signaling continued expansion across multiple industries.
Moreover, the results surpassed Wall Street forecasts and underscored the growing adoption of the company’s AI solutions.
Key Points
- Q4 revenue jumped 59% year-over-year to $55.1 million, beating analysts’ $54 million estimate.
- Full-year 2025 revenue nearly doubled to $168.9 million, reflecting strong enterprise demand for AI solutions.
- GAAP net income in Q4 surged to $40.1 million, driven by adjustments to contingent acquisition liabilities.
- SoundHound expanded partnerships across automotive, restaurant, and voice commerce sectors, including new OEM deals in Korea and Japan.
- The company ended 2025 debt-free with $248 million in cash, supporting continued investment and growth.
- 2026 revenue guidance of $225–$260 million signals confidence in ongoing expansion and AI adoption.
Q4 Beats Estimates
The fourth quarter marked a major milestone for SoundHound AI, with revenue reaching $55.1 million—a 59% increase from a year ago—thereby surpassing analysts’ estimate of $54 million. Non-GAAP earnings per share showed a $0.02 loss, improving from a $0.05 loss in Q4 2024.
Following the announcement, the company’s shares (NASDAQ: SOUN) rose 3.45% in morning trading to $9.30, reflecting investor optimism. Over the past week, shares have gained 14.69%, though they remain down 10% year-to-date.
On a GAAP basis, the company reported net income of $40.1 million, or $0.10 per share, primarily driven by adjustments to contingent acquisition liabilities. Gross margins stood at 47.9% (GAAP) and 60.5% (non-GAAP), reflecting the balance between top-line growth and continued investment.
Adjusted EBITDA recorded a $7.4 million loss, highlighting management’s decision to prioritize scaling operations over short-term profitability.
CEO Keyvan Mohajer emphasized the company’s strong momentum, noting that SoundHound closed a record number of customer deals during the quarter amid rising enterprise demand for AI solutions.
Full-Year Growth Nearly Doubles
The robust quarterly results contributed to an exceptional full-year performance, with revenue reaching $168.9 million, nearly doubling from 2024 and approaching the upper end of prior guidance. GAAP gross margin came in at 42.4%, while non-GAAP gross margin reached 58%, signaling efficient revenue expansion.
GAAP net loss for the year totaled $14.0 million, and adjusted EBITDA loss stood at $58.4 million as the company continued investing in product innovation, sales capacity, and global expansion. SoundHound ended 2025 with $248 million in cash and zero debt, providing a solid foundation for future growth.
Looking ahead, the company expects 2026 revenue between $225 million and $260 million, reflecting continued confidence in its growth trajectory.
Broad Industry Adoption Drives Momentum
SoundHound’s growth was supported by strong adoption across multiple sectors. For context, in the automotive industry, the company expanded partnerships with global manufacturers, secured new OEM deals in Korea and Japan, and advanced generative AI features for in-car experiences.
Voice commerce also gained traction, highlighted by the first major rollout with a global automaker and ecosystem integrations with partners such as OpenTable, embedding SoundHound’s technology further into consumer-facing platforms.
In the restaurant sector, SoundHound strengthened relationships with Panda Express and added new franchise partnerships, including Jersey Mike’s and IHOP. Its voice automation solutions continued to streamline drive-thru and phone ordering operations.
CFO Nitesh Sharan observed that rapid industry changes amplify the value of SoundHound’s voice AI and agentic AI offerings. He noted that the Q4 results reflected broad customer adoption, faster time-to-value, and growing market differentiation.
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