SOUNDHOUND AI (SOUN) Company Report

SoundHound reported strong growth, with the last quarter up 68% year-over-year and a multi-year compound annual growth rate (CAGR) of 40%-50%, reaching triple-digit growth with acquisitions.
The company's revenue base is diversifying, with five industries now contributing double-digit percentages, a shift from 80% automotive in 2023, and significant traction in restaurants and enterprise verticals such as financial services and healthcare.
SoundHound differentiates its technology with its proprietary Polaris speech foundation model, which demonstrates 20%-35% better accuracy and 4x lower latency at one-tenth the cost footprint compared to generic models from competitors.
The business model is built on three pillars: royalty economics from voice-enabled products, subscription SaaS economics from voice-enabled services, and transactional/advertising economics from voice commerce, with a projected balanced contribution from all three in five years.
SoundHound is targeting a break-even zone next year and projecting to be EBITDA positive, aiming for a long-term 30%+ EBIT margin business by continuing to fuel hypergrowth in an underpenetrated market.

Dec 11, 2025, 9:55 PM

Transcript

SoundHound CFO Highlights Strong Growth, AI Differentiation, and Profitability Outlook

SOUN

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

SoundHound reported 68% revenue growth last quarter and a multi-year 40%-50% compound annual growth rate (CAGR), driven by customer service, automotive, and enterprise AI.
The company's proprietary voice AI technology, including its Polaris model, offers significant differentiation with 20%-35% higher accuracy than competitors like OpenAI Whisper on generic models, alongside lower latency and cost.
SoundHound has diversified its revenue streams, with five industries now contributing double-digit percentages of total revenue, a shift from 80% reliance on automotive in 2023.
The company is targeting to be EBITDA positive next year (2026) and is moving towards a break-even zone, with a long-term goal of achieving a 30+% EBIT margin.
SoundHound is expanding its voice commerce ecosystem through new partnerships, such as with OpenTable and Parkopedia, aiming to generate new revenue streams by sharing transaction economics with device manufacturers.

Dec 11, 2025, 9:55 PM

Transcript

SoundHound Reports Strong Growth, Diversifying Revenue, and Path to Profitability

SOUN

Revenue Acceleration/Inflection

New Projects/Investments

Guidance Update

SoundHound (SOUN) reported 68% growth last quarter and has achieved a 40%-50% CAGR for several years, with acquisitions contributing to triple-digit growth.
The company has significantly diversified its revenue, moving from 80% automotive business until 2023 to having five industries contribute double-digit percentages to total revenue, including rapid expansion in restaurants and enterprise sectors.
SoundHound is on a path to profitability, projecting to be EBITDA positive next year (2026) and aiming for a long-term 30-plus% EBIT margin.
Its proprietary Polaris speech foundation model offers a competitive advantage with 20%-35% better accuracy and 4x lower latency at one-tenth the size of some large language models, enhancing gross margins.
Strategic partnerships are expanding its voice commerce ecosystem, including recent integrations with OpenTable for reservations and and Parkopedia for parking.

Dec 11, 2025, 9:55 PM

Transcript

SoundHound AI Reports Strong Q3 2025 Results and Raises Full-Year Revenue Guidance

SOUN

Earnings

Guidance Update

Revenue Acceleration/Inflection

SoundHound AI reported a 68% year-over-year revenue increase to $42 million in Q3 2025, surpassing analyst expectations.
The company narrowed its adjusted loss per share to $0.03 in Q3 2025 and maintains a strong cash position of $269 million with no debt.
SoundHound raised its full-year 2025 revenue guidance to $165–180 million, with the midpoint exceeding previous consensus estimates.
Despite strong financial performance and raised guidance, SoundHound's adjusted EBITDA missed consensus at -$14.5 million for Q3 2025, and its shares declined 2% to over 3% in after-hours trading.

Nov 7, 2025, 12:04 PM

Morningstar

SoundHound Reports Q3 2025 Results and Raises Full-Year Outlook

SOUN

Earnings

Guidance Update

M&A

SoundHound reported Q3 2025 revenue of $42 million, a 68% increase year-over-year, contributing to a record $114 million in revenue for the first three quarters of 2025, up 127%.
The company achieved a non-GAAP gross margin of 59% in Q3 2025, with a non-GAAP net loss of $13 million (or $0.03 per share), and ended the quarter with a strong balance sheet of $269 million in cash and equivalents and no debt.
Strategic initiatives included the acquisition of Interactions in Q3 to expand contact center and customer service offerings, and a significant IoT deal with a Chinese company to integrate SoundHound Chat AI into double-digit millions of smart devices for the Indian market.
SoundHound raised its full-year 2025 revenue guidance to a range of $165-$180 million and anticipates being Adjusted EBITDA profitable at the higher end of the Q4 revenue outlook.

Nov 6, 2025, 10:00 PM

Transcript

SoundHound AI Reports Record Q3 2025 Revenue and Raises Full Year Outlook

SOUN

Earnings

Guidance Update

Revenue Acceleration/Inflection

SoundHound AI reported record Q3 2025 revenue of $42.0 million, an increase of 68% year-over-year, and raised its full year 2025 revenue outlook to a range of $165 - $180 million.
The company reported a GAAP net loss of $(109.3) million and a non-GAAP net loss of $(13.0) million for Q3 2025.
As of September 30, 2025, SoundHound AI held $269 million in cash and cash equivalents.
SoundHound AI extended its presence in key vertical markets, strengthened its AI leadership through new strategic partnerships, and acquired Interactions to enhance its Agentic AI capabilities.

Nov 6, 2025, 9:26 PM

8-K

SoundHound AI discusses Polaris, Interactions acquisition, and growth strategy

SOUN

M&A

New Projects/Investments

Revenue Acceleration/Inflection

SoundHound AI has developed Polaris, its own foundation model, which demonstrates 30-40% better accuracy than OpenAI's Whisper or Google, with improved speed and a smaller cost footprint. Deployment across restaurants is complete, and migration within the enterprise space is expected in quarters, not years.
SoundHound recently acquired Interactions for an upfront consideration of $60 million, with potential for earnouts. This acquisition is expected to accelerate growth through a strong customer base, patent portfolio, and opportunities for cross-sell and upsell.
The company has approximately 14,000 deployments in restaurants, primarily for phone ordering, and has achieved record deployment numbers for the past two to three quarters. SoundHound anticipates much greater deployment numbers in the future due to low market penetration.
SoundHound AI has a bookings backlog of over $1 billion and aims to be a strong double-digit grower for a very long time, driven by deep penetration within its existing customer base and a massive pipeline of new opportunities.

Sep 11, 2025, 7:00 PM

Transcript

SoundHound AI Discusses Polaris, Interactions Acquisition, and Growth Strategy

SOUN

M&A

Product Launch

Revenue Acceleration/Inflection

SoundHound AI announced the acquisition of Interactions for $60 million upfront with earnout potential, aiming to leverage its customer base and patent portfolio for faster scaling and cross-sell/upsell opportunities.
The company is deploying Polaris, its proprietary foundation model, which offers 30-40% better accuracy at a lower cost compared to competitors like OpenAI's Whisper or Google, and is already deployed across all its restaurant solutions.
In the restaurant vertical, SoundHound AI has reached 14,000 deployments, with a recent record of approximately 1,000 new deployments per quarter, indicating significant growth potential given the low market penetration.
SoundHound AI is expanding its automotive business by focusing on EVs, increasing average selling price (ASP) through new product sets like GenAI integration and voice commerce, and expects to be a strong double-digit grower for a very long time with a bookings backlog exceeding $1 billion.

Sep 11, 2025, 7:00 PM

Transcript

SoundHound AI discusses Polaris model, Interactions acquisition, and growth outlook

SOUN

M&A

New Projects/Investments

Revenue Acceleration/Inflection

SoundHound AI's new Polaris foundation model demonstrates 40%, 30%, 30%, 40% better accuracy compared to competitors like OpenAI's Whisper or Google, with better speed and lower cost, and is being deployed across all restaurants and into the enterprise space over quarters, not years.
The company recently acquired Interactions for $60 million upfront with earnout potential, aiming to accelerate growth, expand customer reach, and leverage cross-sell/upsell opportunities in the enterprise sector.
SoundHound AI is observing a general shift towards overall growth in recurring revenue and more usage and consumption-based models, where unit economics expand as technology usage and use cases grow.
With approximately 14,000 deployments in restaurants, primarily through phone ordering, the company expects these numbers to be significantly higher in the future due to very small market penetration.
SoundHound AI anticipates being a strong double-digit grower for a very long time, supported by a bookings backlog north of $1 billion and a massive pipeline, given its early stage in the burgeoning conversational AI market.

Sep 11, 2025, 7:00 PM

Transcript

SoundHound AI Discusses Polaris, Interactions Acquisition, and Growth Outlook

SOUN

M&A

New Projects/Investments

Revenue Acceleration/Inflection

SoundHound AI's proprietary Polaris foundation model demonstrates 30-40% better accuracy compared to OpenAI's Whisper and Google, with faster speed and lower cost, and is being deployed across enterprise solutions within quarters.
The company recently acquired Interactions for $60 million upfront, aiming to accelerate growth through cross-sell/upsell opportunities, leveraging Interactions' customer base and patent portfolio, and realizing cost synergies.
SoundHound AI is expanding its presence in the automotive sector with GenAI and voice commerce, and has achieved ~14,000 restaurant deployments, primarily in phone ordering, with substantial market penetration potential.
The company maintains a strong growth outlook, supported by a bookings backlog exceeding $1 billion, with expectations to be a "strong double-digit grower" for an extended period.