SoundHound AI 2025 Q3 Earnings Beats Expectations with 67.6% Revenue Growth

SoundHound AI (SOUN) reported fiscal 2025 Q3 earnings on Nov 11, 2025, delivering a 67.6% year-over-year revenue increase to $42.05 million, surpassing the $40.49 million analyst consensus. The company raised its full-year 2025 revenue guidance to $165–$180 million, reflecting strong enterprise AI adoption and strategic contract wins.

Revenue

SoundHound AI’s total revenue surged to $42.05 million in Q3 2025, driven by robust performance across core segments. Hosted services led with $27.67 million, underscoring the company’s cloud-based AI solutions. Licensing revenue grew to $10.40 million, while professional services added $3.86 million. The monetization segment contributed $114,000, rounding out the $42.05 million total.

Earnings/Net Income

The company’s losses widened significantly, with a net loss of $109.27 million in Q3 2025, a 402.4% increase from $21.75 million in 2024 Q3. Earnings per share (EPS) fell to -$0.27, a 350% wider loss compared to -$0.06 in the prior year. Despite the financial challenges, the company noted strategic investments in AI development as a priority for long-term growth.

Price Action

SoundHound AI’s stock faced post-earnings volatility, dropping 6.01% on the latest trading day, 11.17% for the week, and 22.58% month-to-date. Analysts highlighted mixed reactions: Piper Sandler raised its price target to $15 but maintained a Neutral rating, while H.C. Wainwright upgraded its stance to Buy with a $26 target, citing strong revenue momentum and expanding margins.

Post-Earnings Price Action Review

Following the Q3 earnings report, SoundHound AI’s stock experienced a sharp decline, with shares falling 6.01% on the most recent trading day and 22.58% month-to-date, despite beating revenue estimates. Analysts attributed the selloff to concerns over the company’s widening net loss and high R&D costs, though bullish ratings from H.C. Wainwright and others pointed to long-term growth potential. The stock’s recent volatility reflects investor uncertainty about balancing near-term losses with strategic AI investments and expanding enterprise partnerships.

CEO Commentary

Keyvan Mohajer, CEO of SoundHound AI, emphasized the company’s Q3 performance during the earnings call, stating that its AI technology “beat the big tech by as much as 35%–40% in accuracy and latency.” He highlighted a $100M+ robotics contract in China and growing traction in automotive, healthcare, and voice commerce sectors. Mohajer expressed cautious optimism, noting that while the company’s net loss reflects heavy reinvestment in AI innovation, the raised full-year guidance and $269 million in cash reserves position SoundHound to capitalize on enterprise demand.

Guidance

SoundHound AI raised its full-year 2025 revenue forecast to $165–$180 million, up from $160–$178 million, citing strong enterprise adoption and new partnerships. Management expects revenue to grow by at least 40% in 2026, with improving gross margins and a clear path to positive EBITDA. The CEO reiterated a focus on scaling AI-driven solutions while managing cash flow to support long-term profitability.

Additional News

Recent developments for SoundHound AI include a $100M+ robotics contract in China and expanded partnerships in healthcare and automotive sectors. CEO Keyvan Mohajer highlighted the company’s AI technology outperforming competitors in accuracy and latency. Analysts at H.C. Wainwright upgraded their rating to Buy with a $26 price target, while Piper Sandler raised its target to $15 but maintained a Neutral stance. The company also reported $269 million in cash reserves, bolstering confidence in its ability to fund growth initiatives.