Shares of SoundHound AI (SOUN) surged over 25% in pre-market trading hours on Friday after the company smashed Wall Street expectations in Q2 2025 results. The growth was driven by rising demand for automated voice AI in sectors like restaurants and automotive. As more companies embrace automation, SoundHound is ready to capture a big share of the growing voice commerce market. This momentum has lifted SOUN stock, potentially signaling a key turning point for investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
SoundHound Reported ‘Strongest Ever Quarter’
In the second quarter, SoundHound posted record Q2 revenue of $42.7 million, up 217% year-over-year. This was well above the expected $32.8 million. Although revenue grew sharply, the company reported an adjusted net loss of $11.9 million, or $0.03 per share. However, the loss was smaller than analysts’ expectations of $0.09 per share. Notably, SoundHound now has about $1.2 billion in orders waiting to be completed, showing strong future demand.
Following the results, co-founder and CEO Keyvan Mohajer praised the performance as SoundHound’s “strongest ever quarter.”
Looking ahead, the company raised its full-year revenue forecast to $160 million–$178 million, showing strong confidence in its future pipeline and long-term goals. This is an increase from the earlier range of $157 million–$177 million.
What Next for SOUN’s Investors?
SoundHound’s Q2 earnings highlight both promises and challenges. The company is growing quickly with strong bookings and a solid product lineup. However, high valuation, continued losses, and tough competition may cause short-term obstacles.
Even with past ups and downs and competition from big companies like Amazon (AMZN), Google (GOOGL), and Apple (AAPL), SoundHound stands out by focusing on customizable voice AI built into devices.
For long-term investors, SOUN presents a high-risk, high-reward opportunity. The coming quarters will show if SoundHound becomes a key player in the AI revolution or just another overhyped stock.
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 downside of 13.3% from the current level.
