SoundHound AI (SOUN) stock jumped 14% in extended trading just after the company posted its strongest quarter ever. Also, the company raised its 2025 revenue outlook, citing strong tailwinds from voice AI adoption and a recovering pipeline.
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The company delivered record Q2 revenue of $42.7 million, a 217% year-over-year surge due to strong momentum in voice AI across restaurants, automotive, and enterprise platforms. The top-line also easily surpassed the consensus estimate of $32.8 million.
While revenue soared, SoundHound reported an adjusted net loss of $11.9 million or $0.03 per share. However, the reported figure compared favorably with the analysts’ expectations of a $0.09 loss and improved from the prior-year loss of $0.04.
Gross margins dipped due to low-margin acquired contracts, but management expects a recovery to about 70% over the next 18 to 24 months through automation and product mix shifts.
CEO Keyvan Mohajer credited the performance to strategic acquisitions made in 2024 and a “repeatable success formula” that’s now translating into real-world traction. “Our financial results speak for themselves,” Mohajer said, underscoring the company’s growing influence in the voice AI space.
2025 Outlook
SoundHound raised its full-year revenue forecast to between $160 million and 178 million, above its earlier estimate of $157 million to $177 million. Analysts are currently expecting $161.2 million.
Is SOUN a Good Stock to Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with three Buys and four Holds assigned in the last three months. The average SoundHound stock price target is $11.50, suggesting a potential upside of 7.28% from the current level.
