SoundHound AI (NASDAQ:SOUN) jumped 32.4% on Friday after the voice artificial intelligence firm reported second-quarter results that beat expectations and raised its full-year revenue guidance, buoyed by strong demand across automotive, restaurant, and retail sectors.
The company posted a narrower-than-expected adjusted loss of $0.05 per share, compared to Wall Street estimates of a $0.10 loss. Revenue doubled year-over-year to $34.5 million, topping the $33.66 million consensus.
“We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions,” CEO Keyvan Mohajer told shareholders.
SoundHound raised its full-year 2025 revenue forecast to a range of $160 million to $178 million, up slightly from its previous guidance of $157 million to $177 million. At the midpoint, that would represent an annual growth rate of 97%, underscoring continued momentum across multiple industries despite a competitive and uncertain macroeconomic backdrop.
Analysts at Wedbush called the results “solid” and raised their price target on the stock to $16 from $15, citing confidence in SoundHound’s growth trajectory. “The company continues to see increased momentum across all verticals…driven by new logo wins and increased cross-sell deals,” the firm wrote.
SoundHound’s gross margin improved to 58.4% on a non-GAAP basis, while adjusted EBITDA came in at a loss of $14.3 million—narrower than the $17.8 million loss analysts had projected. The company reaffirmed that it expects to achieve EBITDA profitability by the end of fiscal 2025, driven by cost synergies from its 2024 acquisitions and operating efficiencies.
Wedbush described SoundHound as an “under-appreciated pure-play AI company” and said the latest results mark “a major step in the right direction,” as it looks to scale further in the second half of the year.