SoundHound AI (NASDAQ:SOUN) Announces Quarterly Earnings Results, Hits Estimates

SoundHound AI (NASDAQ:SOUN) announced its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02), FiscalAI reports. The business had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.82% and a negative net margin of 8.71%.SoundHound AI’s revenue was up 59.4% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.05) earnings per share.

Here are the key takeaways from SoundHound AI’s conference call:

• Q4 and FY2025 revenue accelerated sharply — Q4 revenue was $55.1M (+59% YoY) and full‑year revenue was $169M (+99% YoY), and management guided 2026 revenue of $225M–$260M.
• Commercial traction was broad and deep — management closed 100+ customer deals in Q4 across automotive, telecom, retail, healthcare and government, including multiple seven‑figure channel deals and large OEM unit commitments in Asia and Europe.
• Product differentiation centers on its Agentic platform and Polaris speech model — migrating customers to Agentic is expected to increase containment rates, drive upsells and produce incremental outcome‑based revenue.
• Profitability and unit economics improved — GAAP gross margin was 48% (non‑GAAP 61%), adjusted EBITDA loss narrowed to $7.4M, and the company finished Q4 with $248M cash and no debt while targeting long‑term 70%+ gross and 30%+ EBIT margins.
• Reported GAAP net income was materially affected by an ~$85M non‑cash fair‑value change tied to contingent acquisition liabilities, and management warned stock‑based compensation and acquisition accounting can cause earnings volatility and dilution.

SoundHound AI Stock Down 4.3%

NASDAQ:SOUN traded down $0.38 during mid-day trading on Friday, hitting $8.60. 47,062,538 shares of the stock traded hands, compared to its average volume of 25,894,358. The business’s 50-day moving average price is $9.58 and its 200 day moving average price is $12.93. The company has a market cap of $3.61 billion, a PE ratio of -171.91 and a beta of 2.64. SoundHound AI has a 12-month low of $6.52 and a 12-month high of $22.17.

Key Headlines Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Revenue beat and strong growth — Q4 revenue rose ~59% year‑over‑year to $55.06M, topping Street estimates and contributing to record annual revenue of $169M. This headline growth is the primary bullish driver for the stock. GlobeNewswire: Press Release
• Positive Sentiment: Strong cash position — company reported ending the quarter with about $248M in cash, supporting execution of product rollouts and R&D as it scales agentic AI for enterprise customers. Benzinga: Cash / Results
• Positive Sentiment: Product and expansion catalysts — company launched a “Sales Assist” retail voice agent and opened a new innovation hub in Bengaluru to accelerate agentic AI development, moves that expand TAM and execution capacity. Yahoo Finance: Bengaluru hub
• Neutral Sentiment: EPS and margins — reported EPS roughly in line with consensus (company reported ($0.02) EPS / in‑line with estimates), while GAAP and non‑GAAP losses persist; investors interpreted the EPS print as neither a clear beat nor a cure for ongoing profitability concerns. Zacks: Q4 recap
• Negative Sentiment: Analyst reaction: Piper Sandler cut its price target to $9 (from $11) and kept a “neutral” rating — the lower target and lack of an upgrade reduce near‑term upside expectations and likely weighed on the stock. Benzinga / TickerReport: Piper Sandler update
• Negative Sentiment: Profitability & guidance ambiguity — despite revenue beats, the company still reports negative margins and a FY‑2026 revenue guide range ($225M–$260M) that leaves room for investor concern vs. consensus; rising expenses and continued losses keep sentiment cautious. Company: Q4 presentation / press release

Insiders Place Their Bets

In related news, CTO Timothy Stonehocker sold 29,676 shares of the business’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, the chief technology officer directly owned 544,179 shares in the company, valued at $6,530,148. The trade was a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. This trade represents a 3.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 460,922 shares of company stock worth $5,199,073. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently modified their holdings of SOUN. Danske Bank A S purchased a new stake in shares of SoundHound AI during the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Parallel Advisors LLC boosted its position in SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after buying an additional 960 shares during the period. Advisors Asset Management Inc. boosted its position in SoundHound AI by 58.2% during the 4th quarter. Advisors Asset Management Inc. now owns 7,012 shares of the company’s stock valued at $70,000 after buying an additional 2,579 shares during the period. Finally, PNC Financial Services Group Inc. grew its holdings in SoundHound AI by 20.4% in the 4th quarter. PNC Financial Services Group Inc. now owns 8,583 shares of the company’s stock worth $86,000 after acquiring an additional 1,456 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

SOUN has been the subject of several research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $15.79.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.