SoundHound AI (SOUN) stock jumped 14% in extended trading just after the voice AI 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 is starting to pay off. “Our financial results speak for themselves,” Mohajer said, pointing to 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.
