SoundHound AI Reports 217% YoY Q2 Revenue Growth, Beats Estimates

SoundHound AI (SOUN) reported Q2 2025 revenue of $42.7 million, up 217% YoY, beating analyst estimates by nearly $9.8 million. Non-GAAP EPS loss of $(0.03) topped expectations. Gross margin contracted to 39.0%, primarily due to lower-margin acquisition-related business mix. The company's focus on expansion and key acquisitions drove revenue growth.

SoundHound AI, Inc. (Nasdaq: SOUN) reported its financial results for the second quarter 2025, showcasing significant growth across all key business units. The company delivered a record revenue of $42.7 million, representing a 217% increase year-over-year (YoY), which exceeded analyst estimates by nearly $9.8 million [1].

The strong performance was driven by robust growth in AI for automotive, enterprise AI for customer service, and AI automation for restaurants. Keyvan Mohajer, CEO and Co-Founder of SoundHound AI, commented, "In SoundHound’s strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit" [1].

Despite the impressive revenue growth, the company reported a non-GAAP EPS loss of $(0.03), which topped expectations. The gross margin contracted to 39.0%, primarily due to lower-margin acquisition-related business mix. Nitesh Sharan, CFO of SoundHound AI, attributed the financial results to the company's "underlying momentum manifested in financial results, and our earlier investments began showing outsized returns" [1].

SoundHound AI's expansion and key acquisitions have been instrumental in driving revenue growth. The company secured numerous new wins and cross-sell deals, demonstrating the potential of its market-leading solutions. Highlights include the integration of its voice assistant in a major OEM in China and the expansion of its presence in the Indian market with KIA. Additionally, the company has seen significant growth in its healthcare and retail segments, with notable partnerships and deployments [1].

Looking ahead, SoundHound AI has raised its full-year 2025 revenue outlook to a range of $160 - $178 million, reflecting the company's continued momentum and growth opportunities. The company's strategic partnerships and acquisitions position it well to capitalize on the expanding voice and conversational AI industry [1].

References:
[1] https://investors.soundhound.com/news-releases/news-release-details/soundhound-ai-reports-record-second-quarter-all-time-high-427