SoundHound AI Shares Plunge 3.31% as $280M Volume Ranks 417th Ahead of Earnings

SoundHound AI (SOUN) fell 3.31% on August 6, with a trading volume of $280 million, ranking 417th among stocks. The company is set to release Q2 2025 earnings on August 7, with analysts forecasting $32.9 million in revenue (145% YoY growth) and a non-GAAP EPS loss of $0.05, unchanged from Q1. Management reaffirmed its full-year revenue guidance of $157 million to $177 million and aims to achieve adjusted EBITDA profitability by year-end.

Investor focus will center on progress in high-margin verticals like restaurants, automotive, and healthcare, as well as the pace of deployments for AI ordering systems and Smart Answering solutions. Updates on signed contract value and gross margin recovery—currently at 51% in Q1 due to legacy contracts—will be critical. Management targets a return to 70% gross margins by 2025, with Q2 results potentially signaling early momentum.

Strategic partnerships, including recent agreements with Acrelec and Allina Health, will test the company’s execution confidence. While the stock has halved in 2025, it remains up 180% year-to-date. Liquidity and cash burn management remain key risks amid high volatility.

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