SoundHound AI (SOUN) Stock Forecast After November’s Sell-Off: Can Record Q3 Earnings Power the Next Leg Higher in 2026?

Updated: November 15, 2025

Key Takeaways

• SOUN is trading around $12.17 today, down sharply over the last month but still up strongly over the past year. ^[1]
• Q3 2025 delivered record revenue of $42M (+68% YoY), with management raising full‑year 2025 revenue guidance to $165–$180M and reiterating a path toward adjusted EBITDA profitability around late 2025 / early 2026. ^[2]
• The company is expanding aggressively across restaurants, automotive and enterprise contact centers, helped by the 2025 acquisition of Interactions, a contact-center AI specialist. ^[3]
• Despite strong growth and a cash balance of $269M with no debt, SOUN still burns cash and reported a GAAP net loss of $109M in Q3, driven in part by a large non‑cash fair‑value charge. ^[4]
• At roughly $5B market cap, SOUN trades at high‑20s times 2025 sales, a premium that leaves little room for execution missteps. ^[5]
• Wall Street consensus 12‑month price targets cluster around $16–$17, implying about 30–40% upside from today, but with wide disagreement (low ~$8, high $26). ^[6]

Disclaimer: This article is for informational and educational purposes only and is not financial advice. It does not take into account your individual circumstances. Always do your own research or consult a licensed financial professional before investing.

SOUN Stock Today: Volatile Favorite in the AI Trade

As of midday on November 15, 2025, SoundHound AI (NASDAQ: SOUN) trades around $12.17 per share, with an intraday range between about $11.06 and $12.49 and heavy volume.

Price action has been wild:

• TipRanks notes that SOUN has fallen about 17% over the last five trading days and more than 40% over the past month, even after a small bounce. ^[7]
• A recent Motley Fool analysis said the stock is up roughly 80–90% over the past year but down more than 30% year‑to‑date, underscoring extreme volatility. ^[8]
• Earlier in 2025, SOUN surged from roughly $6 to nearly $20, with Investopedia and Investor’s Business Daily (IBD) highlighting an all‑time high around $19–$20 as enthusiasm for AI and a prior Nvidia connection peaked. ^[9]

In other words, SOUN is still very much a momentum‑driven AI stock: huge upside moves when sentiment is euphoric, and brutal drawdowns when risk appetite cools or news disappoints.

Q3 2025 Earnings: Record Revenue and a Higher Outlook

The main driver of November’s headlines is SoundHound’s Q3 2025 earnings, released on November 6.

Headline numbers

According to the company’s earnings release: ^[10]

• Revenue: $42.0M, up 68% year over year
• GAAP gross margin: 42.6%
• Non‑GAAP gross margin: 59.3%
• GAAP net loss: $109.3M
• Non‑GAAP net loss: $13.0M
• Adjusted EBITDA: ‑$14.5M, an 8% improvement vs. last year

The massive GAAP loss is largely explained by a $66M non‑cash mark‑to‑market charge tied to contingent acquisition liabilities (earn‑out shares whose fair value jumps when the stock rallies). ^[11]

On a normalized basis, non‑GAAP net loss per share improved to just $0.03, and adjusted EBITDA losses narrowed, suggesting the core business is moving toward breakeven even as headline GAAP numbers look ugly.

Raised 2025 revenue guidance and profitability goals

The other big news: management raised its 2025 revenue outlook.

• Full‑year 2025 revenue is now guided to $165–$180M, up from prior guidance of $160–$178M and above earlier Street expectations around $160M. ^[12]

Several post‑earnings recaps and call summaries highlight management’s profitability roadmap: ^[13]

• Target: adjusted EBITDA profitability by around year‑end 2025, depending on revenue landing near the high end of guidance.
• Q4 2025 guidance: management suggested Q4 could be adjusted‑EBITDA positive at the top of the revenue range and only a small single‑digit‑million loss at the low end.
• Looking into early 2026, they anticipate high growth with near‑breakeven profitability, helped by cost synergies from acquisitions (roughly $20M annual synergy potential as integrations mature).

The November 14 Motley Fool/Nasdaq column framed this as “record‑breaking growth” and a raised outlook that could put SoundHound on a “strong trajectory toward profitability.” ^[14]

Where the Growth Is Coming From: Restaurants, Autos and Agentic AI

SoundHound has evolved from a niche voice‑assistant technology player into a broader “agentic AI” platform spanning restaurants, automotive, contact centers, and more.

1. Restaurants and quick‑service chains

The restaurant vertical is one of SoundHound’s clearest growth engines:

• Q3 disclosures show full deployments of its AI phone and drive‑thru ordering solutions across major chains, including MOD Pizza, Habit Burger, Red Lobster, and Torchy’s Tacos, alongside existing relationships with brands like Chipotle and Casey’s. ^[15]
• Franchise wins in Firehouse Subs, Five Guys, and McAlister’s Deli extend the footprint further across quick‑service and fast‑casual concepts. ^[16]
• A recent feature on Red Lobster’s rollout of AI‑powered phone ordering across 545 locations highlighted how SoundHound’s system can answer multiple calls simultaneously, handle routine questions, and offload staff while still allowing escalation to human agents. ^[17]

The restaurant pitch is straightforward: higher throughput, shorter wait times, and better upselling without requiring more staff.

2. Automotive and in‑car commerce

Automotive remains a core franchise:

• SoundHound is working with multiple OEMs, including Jeep in Europe, Turkish EV maker Togg, and a major sports‑car brand, plus new deals with an Italian commercial vehicle manufacturer and two‑wheeler brands in India. ^[18]
• At CES 2025, the company showcased its first in‑vehicle assistant that enables on‑the‑go food ordering from the car, integrating automakers and restaurant partners. ^[19]

Research commissioned by SoundHound found that nearly 80% of U.S. drivers would rather order food via an in‑car voice assistant than wait at the drive‑thru, implying a potential $63B revenue opportunity for restaurants. ^[20]

If in‑car commerce actually scales, SoundHound could participate not just in software licensing but also volume‑based transaction or revenue‑share models, which may structurally improve its margins over time.

3. Enterprise & contact centers: Amelia + Interactions

SoundHound has also been building a serious presence in enterprise AI agents and contact centers:

• In 2024 it acquired Amelia, an AI platform for customer service, and in September 2025 it announced a $60M all‑cash acquisition of Interactions, a long‑standing contact‑center AI specialist. ^[21]
• The company frames this as strengthening its leadership in agentic AI – systems that can orchestrate multi‑step workflows, escalate to humans when needed, and operate across voice, chat, and digital channels. ^[22]

Analysts covering the Interactions deal emphasize that it significantly expands SoundHound’s addressable market in customer service, giving it a broader omnichannel platform that can plug into existing contact center infrastructure. ^[23]

4. Other verticals

Q3 commentary and filings also point to wins in: ^[24]

• Financial services (multiple top‑10 global institutions increasing contracts)
• Healthcare (regional hospital system and precision medicine provider rollouts)
• Insurance, energy, telecom, retail and fitness

The unifying idea: voice and conversational AI as a horizontal capability that can be sold into many industries via prebuilt products (Smart Answering, Dynamic Drive‑Thru, Amelia 7, etc.).

Financial Health: Cash Rich but Still Loss‑Making

Balance sheet and cash flow

As of September 30, 2025, SoundHound reported: ^[25]

• Cash and cash equivalents: $269M
• Debt: $0

Nine‑month cash‑flow figures show:

• Net cash used in operating activities: about $76.3M
• Net cash used in investing activities: ~$57.0M (including acquisition‑related outlays)
• Net cash provided by financing activities: ~$204.5M

Net result: cash actually increased by about $71M over the first nine months of 2025, thanks mainly to capital raises and financing, not organic free cash flow. ^[26]

That gives SoundHound a multi‑year runway at current burn rates, but shareholders should recognize that the path to true self‑funding profitability is still ahead, not behind.

Profitability and accounting noise

On a non‑GAAP basis, trends are encouraging:

• Non‑GAAP gross margin sits near 59%, consistent with a software‑style model. ^[27]
• Adjusted EBITDA loss of $14.5M in Q3 improved vs. last year and is expected to narrow further in Q4 and into 2026. ^[28]

But GAAP results remain messy:

• Q3’s $109M GAAP loss was inflated by that $66M non‑cash fair‑value hit on contingent earn‑out liabilities. ^[29]

Earlier in 2025, SoundHound also delayed its 10‑K filing due to complex accounting around the Synq3 and Amelia acquisitions. Barron’s and IBD both flagged ongoing material weaknesses in internal controls, even as management promised remediation. ^[30]

Those control issues appear to be improving, but for a company valued as richly as SOUN, any future accounting surprises would likely be punished severely.

Valuation Check: Is SOUN Stock Priced for Perfection?

Using Q3’s share count (~410M basic shares) and today’s price (~$12.17), SoundHound’s market capitalization is roughly $5.0B. ^[31]

Against that:

• Midpoint of 2025 revenue guidance: $172.5M
• 2026 consensus revenue forecast: around $203M, per analyst compilations. ^[32]

That implies approximate valuation multiples:

• Price‑to‑sales 2025: ~29×
• Price‑to‑sales 2026: ~25×
• EV‑to‑sales (net of cash) 2025: ~27×

(These are rough calculations based on publicly available numbers as of November 15, 2025; they will move quickly with the share price and updated estimates.)

For comparison, many mature software or AI infrastructure names trade at single‑digit to low‑teens forward sales multiples, while the highest‑growth AI leaders can command 15–25× at peak enthusiasm. SOUN is firmly in the premium bucket and arguably needs to keep delivering hyper‑growth and margin expansion to justify its current valuation.

Analyst Sentiment and Price Targets

Despite the recent pullback, Wall Street is generally positive on SoundHound:

• MarketBeat and StockAnalysis both show an average 12‑month price target around $16.3–$17.4, with lows near $8 and highs at $26. ^[33]
• TipRanks aggregates several recent notes and reports a Moderate Buy / Buy consensus, with an average target around $17.20. ^[34]
• A recent Nasdaq/Motley Fool piece noted that the median target of ~$16 could actually imply downside from prices earlier this autumn, suggesting some analysts think the stock got ahead of itself after the big rally. ^[35]

On the bullish side:

• Wedbush previously set a Street‑high $22 target when SOUN hit record highs, calling it an “underappreciated pure‑play AI company.” ^[36]
• HC Wainwright currently sits at the $26 high end, arguing that expanding margins and a clear path to EBITDA positivity support the case for substantial upside. ^[37]
• D.A. Davidson has raised its target into the mid‑teens after strong quarters and the Interactions acquisition. ^[38]

Net‑net, analysts see upside from today’s $12 level but with very wide uncertainty, reflecting both big potential and meaningful risk.

Bull Case for SOUN: Growth + Massive Voice‑AI TAM

Supporters of SoundHound tend to focus on several themes:

1. Exploding demand for voice and conversational AI.
   Industry research cited in recent coverage projects the voice‑response AI market to grow from about $5.4B in 2024 to $21.8B by 2030, as voice becomes a default interface across devices and services. ^[39]
2. Category leadership and differentiation.
   Q3 materials note that SoundHound has been named a leader in IDC and Everest Group evaluations for general‑purpose conversational AI platforms and AI agents, reinforcing its reputation among enterprise buyers. ^[40]
3. Broad, diversified customer base.
   The Q3 release lists deployments and wins across restaurants, automotive, financial services, healthcare, insurance, energy, and telecom, including full rollouts at major QSR chains and expanding automotive programs. ^[41]
4. Improving unit economics and operating leverage.
   • Non‑GAAP gross margins near 59% suggest attractive underlying economics. ^[42]
   • Adjusted EBITDA losses are shrinking even as revenue grows ~70%+ YoY. ^[43]
   • Management expects cost synergies from acquisitions and cloud‑efficiency gains to further improve margins through 2026. ^[44]
5. Takeover or strategic partner optionality.
   Broader coverage of the voice‑assistant sector notes that smaller players like SoundHound and Cerence could be attractive acquisition targets for larger tech or customer‑experience vendors wanting a turnkey conversational AI stack. ^[45]

If SoundHound hits the top of its guidance range, crosses into adjusted EBITDA profitability in late 2025, and maintains ~25–30% revenue growth into 2027, bulls argue that today’s valuation could still be reasonable – especially if the company secures more large‑scale, transaction‑based revenue streams.

Bear Case for SOUN: Rich Valuation, Execution Risk and Tough Competition

Skeptics, however, have plenty to worry about:

1. Very rich valuation.
   With EV/sales in the mid‑20s on forward estimates, SOUN is priced more like a hyper‑growth category leaderthan a niche specialist still proving durable profitability. Any slowdown in growth or delay in hitting EBITDA targets could trigger a sharp re‑rating.
2. Persistent losses and cash burn.
   • Q3 GAAP net loss was $109M; non‑GAAP net loss still $13M, and operating cash burn over the first nine months was > $76M. ^[46]
   • While the balance sheet is strong today, more capital raises in the future are not impossible if profitability timelines slip.
3. Accounting and governance concerns.
   SoundHound’s 10‑K delay in early 2025 due to complex deal accounting, plus disclosed weaknesses in internal controls, raised governance red flags. ^[47]
   Even if these issues are largely cleaned up, they highlight the risks that come with rapid “roll‑up” acquisition strategies.
4. Intense competition from Big Tech.
   Articles on the broader voice‑assistant space point out that Amazon (Alexa), Apple (Siri), Google (Gemini), and Microsoft (Copilot) are pushing aggressively into conversational AI, including in the car and in the home. ^[48]
   SoundHound has carved out niches, but it must continuously differentiate on accuracy, latency, integrations, and domain expertise to avoid being commoditized.
5. Share‑price volatility and sentiment risk.
   • Nvidia’s exit from its SoundHound stake at the start of 2025 saw the stock drop around 10–30% in short order, and volatility remained elevated for months. ^[49]
   • TipRanks and others have highlighted double‑digit declines over days or weeks even against a positive long‑term chart, suggesting a high proportion of momentum‑oriented holders. ^[50]

In short: execution has to be near‑flawless to keep the bull case intact at this valuation.

Scenario‑Based Outlook for SoundHound AI Stock (2026–2027)

Rather than a single “price prediction,” it’s more realistic to think in scenarios. The numbers below are illustrative, not guarantees or advice.

Bullish scenario

Assumptions:

• SoundHound hits or exceeds the upper end of 2025 revenue guidance (~$180M) and grows another 25–30% in 2026, consistent with current analyst projections. ^[51]
• Q4 2025 turns adjusted‑EBITDA positive, and 2026 is modestly EBITDA‑positive overall. ^[52]
• Restaurant and automotive deployments expand smoothly, and Interactions integration delivers the expected ~$20M annual synergies. ^[53]
• The market continues to award SoundHound a high‑teens to low‑20s EV/sales multiple on 2026 revenue.

In this world, consensus analyst targets in the mid‑teens could prove conservative, and the more optimistic $22–$26 targets might not be far‑fetched if risk appetite for AI remains strong. ^[54]

Base‑case scenario

Assumptions:

• Revenue lands near the middle of 2025 guidance (~$172.5M) and grows in the low‑20% range in 2026 as growth inevitably moderates. ^[55]
• Adjusted EBITDA improves but hovers around breakeven for several quarters, weighed by integration costs and aggressive product investment. ^[56]
• The market re‑rates SOUN to a more modest mid‑teens EV/sales on 2026 numbers as AI enthusiasm normalizes.

In that case, stock performance might roughly track earnings growth, and returns could look similar to current consensus upside (~30–40% over 12 months) but with big swings along the way. ^[57]

Bearish scenario

Assumptions:

• Revenue or margins disappoint – perhaps due to slower restaurant rollouts, weaker macro conditions, or integration hiccups with Interactions and Amelia. ^[58]
• Adjusted EBITDA profitability slips out beyond 2026, and cash burn remains heavy.
• The market shifts focus from AI growth at any price to profitability and discipline, compressing SOUN’s multiple toward single‑digit EV/sales, closer to other software names.

Under this scenario, substantial downside from current levels is entirely plausible, especially given the stock’s history of 40–50% pullbacks in short periods. ^[59]

Bottom Line: Who Might Consider SOUN – and What to Watch Next

SoundHound AI today is a high‑growth, high‑risk pure play on voice and agentic AI, with:

• Rapidly growing revenue and a widening commercial footprint
• A solid cash position and a credible path toward adjusted EBITDA profitability
• A very demanding valuation, complex accounting, and intense competition

SOUN may appeal most to risk‑tolerant investors who:

• Believe voice and conversational AI will be a core interface across restaurants, cars, and contact centers, and
• Are comfortable with volatility and premium valuations, and
• Can monitor quarterly progress on revenue growth, margin expansion, and cash burn.

More conservative investors might prefer to watch from the sidelines until:

• Adjusted EBITDA is consistently positive,
• Free cash flow trends improve, and
• The valuation multiple comes down or earnings catch up.

Key metrics to track in coming quarters

1. Revenue growth vs. guidance (does SOUN hit the $165–$180M range for 2025?) ^[60]
2. Adjusted EBITDA and non‑GAAP net income (do they actually cross into sustained profitability in late 2025 / 2026?) ^[61]
3. Cash burn and capital raises (does the $269M cash pile last comfortably without heavy dilution?) ^[62]
4. Adoption milestones (new restaurant chains, automakers, and enterprise logos, plus proof that in‑car commerce and AI ordering meaningfully lift per‑site economics). ^[63]

Again, none of this is a recommendation to buy or sell SOUN – but it should give you a structured framework to think about the stock after November’s sell‑off and record Q3 earnings.

References

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