- Ticker/Exchange: SOUN / NASDAQ. As of Oct 13, 2025 the stock traded around $19 (intraday high ~$19.39) [1]. It has surged roughly +240% YTD [2] on enormous volume (October 13 saw ~56M shares, ~20% above average) [3].
- Market Cap & Valuation: ~$7.8 billion market cap [4]. 52-week range ~$4.86–$24.98 [5], P/E negative (~–30×). Trading well above its 50-day (~$14.80) and 200-day (~$11.61) moving averages [6].
- Q2 2025 Results: Record revenue $42.7M (all-time high), up +217% YoY [7], beating consensus by ~30%. GAAP loss $0.19/share, non-GAAP loss $0.03/share [8]. (Gross margin was 39% GAAP, 58.4% non-GAAP [9], compressed by recent acquisitions.)
- Full-Year Outlook: SoundHound raised 2025 revenue guidance to $160–178M (from $157–177M prior) [10], roughly double 2024’s ~$84.6M. Management projects 50%+ annual organic growth “for the foreseeable future” [11].
- Cash & Backlog: Strong balance sheet: ~$230M cash, no debt (June 2025) [12]. 2025 Q2 backlog exceeded $1.2 billion [13] (over 7× current revenue). Analysts note a “subscription and booking backlog … over $1 billion” [14], underscoring future growth potential.
- Key Partnerships: Recent wins include Red Lobster (all restaurants, AI phone ordering) [15] and Apivia Courtage (insurance, deploying Amelia 7 AI agents in contact centers) [16]. Longtime auto deals (7-year Hyundai/Kia voice AI) [17] continue; SoundHound is integrated into Stellantis cars in Europe [18]. Others include Chipotle, Mastercard (via Houndify) and credit unions.
- Products & Tech: Offers a B2B voice-AI platform (“Houndify”) with proprietary Speech-to-Meaning models. Its Polaris speech model is touted ~30–40% more accurate than OpenAI’s Whisper or Google’s voice AI in tests [19]. It sells Smart Ordering/Answering solutions, Dynamic Drive-Thru, and Amelia enterprise AI agents. New “agentic AI” platform Amelia 7 (launched May 2025) can “listen, reason and act” on complex tasks [20]. It also markets SoundHound Chat AI, a voice assistant with integrated generative-LLM capabilities [21].
- Industry Recognition: Named an IDC MarketScape “Leader” in 2025 for Conversational AI Platforms [22]. IDC analysts and customers “highly praised” its Amelia platform for handling complex, multi-intent requests [23]. Many highlight SoundHound’s strong NLU and on-device/cloud (“Edge+Cloud”) hybrid tech [24] [25].
- Analyst Sentiment: Moderately bullish. Consensus rating is Moderate Buy (approx. 5 “Buy” vs 2 “Hold” in the last 3 months) [26]. Average 12-month price target ~$15–$16 [27], below current price. HC Wainwright and Ladenburg recently upgraded shares on strong sales momentum [28] [29]. TipRanks notes the “AI boom has put SoundHound on the radar as a potential long-term winner” [30]. Zacks, however, keeps a Hold (Rank #3), warning that profitability remains elusive [31].
Recent Stock Performance
SoundHound’s shares have exploded higher in late 2025, in sync with the AI stock rally. On Oct 13 the stock spiked ~10% intraday to ~$19.14 [32] (from a previous close ~$17.36) on unusually high volume. That rally was triggered in part by a flurry of news: its Q2 earnings and guidance (Aug 7) beat estimates, and an IDC report (late Sept) named SoundHound a Conversational AI leader [33] [34]. Over the past 12 months the stock is up roughly +240% [35], reflecting a year-long run of positive updates. Market cap is now about $7.8B [36]. Despite the recent rally, the shares remain volatile – for example, they briefly reached ~$25 last spring [37] before pulling back. The short interest is high (~30% of float) [38], suggesting the move may have been amplified by retail momentum and short-covering.
Business Highlights and Partnerships
SoundHound AI is a B2B voice AI company that sells enterprise voice assistants and generative-AI agents (it does not sell consumer devices). Its technology powers voice ordering and automation for restaurants, contact centers, cars, and other industries. Recent business wins demonstrate broad traction: in September 2025 it announced a nationwide rollout with Red Lobster – an AI phone-ordering bot to handle all takeout calls [39]. That deployment, trained on Red Lobster’s menu, allows handling multiple simultaneous calls and automatically feeds orders into the POS [40]. In October 2025 SoundHound and French insurer Apivia Courtage expanded their partnership: Apivia will deploy SoundHound’s new Amelia 7 agentic-AI platform across its contact centers [41]. Trials had already shown a 20% productivity lift [42], and the new system can autonomously verify customers and process complex insurance requests.
The company also has long-standing auto-industry contracts. SoundHound’s Edge+Cloud voice AI (in multiple languages) was announced with Hyundai/Kia (7-year deal) and is in production on Genesis/Hyundai/Kia vehicles [43] [44]. A parallel rollout is underway with Stellantis (former PSA/FCA brands) in Europe [45], bringing its hybrid on-vehicle/cloud assistant (and custom wake words, multi-language support) into popular Stellantis models. In Q2 it reported a new major OEM win in China to integrate its voice assistant (with LLM-enhanced Chat AI) across a global vehicle lineup [46].
Beyond auto and restaurants, SoundHound has many enterprise customers: it claims 7 of the top 10 global banks, plus customers in healthcare and retail. It’s cross-selling its Amelia agents (and partnerships with integrators like EXL) into these sectors [47]. The bulk of its revenue comes from subscriptions/integrations (e.g. licensing Houndify voice AI) and usage fees. Its “take rate” is supported by successful proofs – the Red Lobster and Apivia deals were cited as major validation of its tech [48] [49].
Products and Technology
SoundHound’s platform is built on proprietary voice-AI models. Its “Speech-to-Meaning” engine and deep-language-understanding technology allow much more natural interactions than keyword-based systems. In fact, SoundHound reports that its new Polaris speech model is “30–40% more accurate” at transcribing speech than even OpenAI’s Whisper or Google’s models in certain tests [50]. This core technology supports multiple products: Smart Ordering/Answering systems for restaurants (handling phone calls/orders), Dynamic Drive-Thru solutions, etc. Crucially, SoundHound has embraced generative AI: its SoundHound Chat AI is a voice assistant that uses a connected LLM (ChatGPT-style) to answer questions in real time. This allows its assistants (e.g. Amelia agents) to remember context and perform complex multi-step tasks, blurring the line with chatbots.
The flagship enterprise product is Amelia 7, launched May 2025. Amelia 7 can autonomously “listen, reason, and act” on behalf of users. For example, Amelia agents can handle entire service calls – validating a customer, updating information, and scheduling follow-ups – without human help [51] [52]. IDC’s 2025 MarketScape notes that Amelia customers praise its voice AI – particularly its LLM-enhanced capabilities for intent recognition. In IDC’s assessment, “SoundHound AI has robust conversational AI capabilities, including strong NLU and LLM intent recognition, [with] customers highly praised [its] ability to handle complex requests, including those with multiple intents” [53]. In practice, this means SoundHound’s systems can juggle follow-up questions and context shifts far better than older AI assistants.
Finally, the company offers Autonomics (AI-driven IT operations) and consumer apps (e.g. a mobile SoundHound music assistant), but these are smaller contributors. Overall, SoundHound’s tech differentiators include its hybrid Edge+Cloud architecture (so the assistant still works offline for car controls) [54] and full data privacy control (customers keep their data). In sum, SoundHound positions itself as an open, independent voice-AI platform – in contrast to closed ecosystems like Alexa/Siri.
Financial Performance and Outlook
SoundHound’s growth has been explosive but it remains unprofitable. Q2 2025 revenue of $42.7M was a record, up 217% YoY [55]. Revenue beats and strong demand allowed management to raise its full-year guide to $160–178M [56] (versus ~84.6M in 2024). This implies the company expects 90–110% growth for 2025 as a whole. The backlog of signed contracts (~$1.2B) [57] suggests significant revenue is already booked beyond this year.
On the bottom line, SoundHound is still in investment mode. GAAP net loss in Q2 was $74.7M (EPS –$0.19) due to stock-based comp and acquisition accounting; non-GAAP loss was $11.9M (–$0.03 per share) [58]. Gross margins are currently low (39% GAAP) because of lower-margin business added via acquisitions [59], though the non-GAAP gross margin (58.4%) and adjusted EBITDA (–$14.3M) are improving [60]. Management says it aims for breakeven later in 2025 after fixed costs from acquisitions are absorbed [61].
The balance sheet is strong: roughly $230M cash, no debt [62], meaning it can fund growth without raising equity for now. Indeed, SoundHound used cash ($60M in Sept 2025 [63]) to buy Interactions Corp – a customer-service AI provider – bolstering its enterprise offerings. (This deal adds new talent and clients, and is expected to be immediately accretive to margins [64].) Overall, investors view SoundHound as a classic “growth-at-all-costs” story: burn cash to capture a $50B+ voice-AI market, then scale.
Competitive Position
SoundHound sits in a competitive field. Major tech companies (Google, Apple, Amazon, Microsoft, Meta) are all racing in voice and AI. Unlike them, SoundHound sells to businesses (it’s B2B), which avoids direct competition in the consumer device space. Still, it goes up against other voice-AI vendors (Microsoft’s Azure, Nuance/VoiceAI, etc.). Its edge is its proprietary tech (Speech-to-Meaning) and flexibility. As Oppenheimer analyst Brian Schwartz noted, SoundHound has a “technology advantage in the Voice AI market” and a high “backlog-to-revenue ratio” [65], thanks to enterprise-focused use cases. IDC and other benchmarks give it top marks in conversational AI (with low latency and multi-language support) [66].
On the other hand, the company’s valuation is rich by any measure. TraxTech notes SoundHound trades at ~42× trailing sales [67] (similar to early-stage cloud stocks) and uses that to caution about execution risk. Analysts echo this: Oppenheimer warns that SoundHound’s ~26× 2026 sales multiple (and ~50× earlier sales) is “rich” [68]. Any delays or tech disappointments could expose that risk. SoundHound’s CEO has claimed the company’s AI is uniquely capable, but others point out that giants like Google continuously improve their voice models. Still, SoundHound’s niche – especially in regulated industries (insurance, finance) – may insulate it somewhat.
Analyst Commentary & Outlook
Wall Street is cautiously optimistic. As of Oct 2025, 8 analysts cover SOUN: 5 Buys and 3 Holds [69]. Price targets range $12–$18 (avg ~$15.4) [70] – roughly 20–25% below the current price. Recent upgrades (Ladenburg boosting PT to $16; DA Davidson to $17) hinge on the company’s strong Q2 and the strategic value of the Interactions acquisition [71] [72]. Oppenheimer’s new Perform (Neutral) rating praises SoundHound’s platform and “durable growth potential” [73], but flags heavy competition and a crowded market.
In their research notes, analysts note SoundHound’s massive growth and pipeline, but also the high bar set by expectations. “SoundHound’s premium valuation is backed by its strong backlog,” says HC Wainwright’s Scott Buck [74]. D.A. Davidson’s Gil Luria believes the Interactions deal will boost margins and strengthen its voice leadership [75]. On the flip side, Zacks’ Tirthankar Chakraborty cautions that “SoundHound has struggled to achieve profitability” despite the growth, advising investors to be patient [76]. Indeed, Q2 loss widened from a year ago.
Looking ahead, if SoundHound can sustain double-digit or triple-digit growth (as guided) and convert backlog to revenue, the stock could go higher. A MarketBeat analysis sees catalysts ahead (AI hype, new deals) and expects Q3 growth above consensus given the backlog [77]. But it also stresses the risks: high short interest and the current ~30× sales multiple mean any disappointment could trigger a selloff.
In summary, SoundHound AI is riding the AI wave with impressive momentum: best-in-class revenue growth, marquee partnerships, and cutting-edge tech [78] [79]. Yet it faces deep-pocketed rivals and must prove it can turn this hype into a profitable, enduring business. As one TipRanks analyst put it, “the AI boom has put SoundHound on the radar as a potential long-term winner” [80] – but only time will tell if it remains there.
Sources: Recent financial filings and earnings releases from SoundHound AI [81] [82]; SoundHound news releases (Red Lobster [83], Apivia [84], IDC leader [85]); market data and analyst reports [86] [87] [88] [89] [90]; tech industry coverage (TS2, TipRanks, MarketBeat, Motley Fool) [91] [92] [93].
References
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