SoundHound AI (SOUN) Is About to Report Q1 Earnings Tomorrow. Here Is What to Expect

SoundHound AI (SOUN), a voice AI software company, will release its Q1 2025 results on May 8. SOUN stock has declined over 54% year-to-date, driven by factors such as delayed financial reporting, growing competitive pressures, and valuation concerns. Additionally, Nvidia (NVDA), a significant investor, disclosed in early 2025 that it had sold its entire stake in SoundHound, which may have raised red flags for investors. Wall Street analysts anticipate that the company will post a net loss of around $0.09 per share, lower than the $0.12 per share loss reported in the prior-year quarter.

Meanwhile, the analysts expect the company to report revenues of $30.38 million in the first quarter. According to Main Street Data, service subscription revenues rose by 58% sequentially, reaching $30.1 million for the quarter ending December 31, 2024. At the same time, product royalty revenues fell by 27%, totaling $4.37 million.

It’s important to highlight that SOUN has struggled to meet its earnings expectations. It has missed earnings estimates in six out of the past nine quarters.

Analysts’ Views on SOUN Ahead of Q1 Results

Heading into Q1 2025 results, DA Davidson analyst Gil Luria lowered his price target on the stock from $13 to $10 per share. He expects the U.S. economy to slow this year, possibly with one or two weak quarters. Luria also thinks both consumers and businesses may cut back on spending in the near term, which could hurt SoundHound’s short-term performance. Still, he remains positive about the company’s long-term potential and maintains his Buy rating on the stock.

Meanwhile, Cantor Fitzgerald analyst Thomas Blakey lowered his price target from $10 to $8.50 and maintained a Neutral rating on the stock. The firm noted that software stocks have struggled this year, with the IGV (iShares Expanded Tech-Software Sector ETF) index down 10% year-to-date. As a result, Cantor trimmed its target on SoundHound to reflect sector-wide weakness.

Notably, IGV tracks the performance of major software companies in the U.S., including names like Microsoft (MSFT), Salesforce (CRM), and Adobe (ADBE).

Options Traders Anticipate a Large Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting an 12.8% move in either direction.

Is SoundHound Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on SOUN stock based on 3 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average SOUN price target of $14.90 per share implies 63.02% upside potential.

See more SOUN analyst ratings