Revenue
$42.7 million in Q2 2025, up 217% year-over-year. This growth was driven by strong revenue contributions from Enterprise AI, automotive, and restaurants.
Gross Margin (GAAP)
39% in Q2 2025, down year-over-year due to the impact of business and product mix of recent acquisitions. However, it was up sequentially due to acquisition synergies and better product mix.
Gross Margin (Non-GAAP)
58% in Q2 2025, adjusted for non-cash amortization of purchased intangibles and employee stock compensation. This was also up sequentially.
R&D Expenses
$25.8 million in Q2 2025, reflecting a 64% year-over-year increase. This was primarily driven by acquisitions and investments in enhancing the Polaris speech foundation model.
Sales and Marketing Expenses
$15.8 million in Q2 2025, reflecting a 180% year-over-year increase. This was driven by acquisitions and investments in growth opportunities through direct sales, customer support, and channel expansion.
G&A Expenses
$18.2 million in Q2 2025, reflecting a 91% year-over-year increase. This was primarily driven by acquisitions, with sequential stability due to disciplined post-acquisition integration.
Non-Cash Employee Stock Compensation
$23.8 million in Q2 2025, partly due to a small workforce reduction program resulting from acquisition integrations.
Depreciation and Amortization
$7.8 million in Q2 2025, including the amortization of intangibles.
Adjusted EBITDA
Loss of $14.3 million in Q2 2025.
GAAP Net Loss
$74.7 million in Q2 2025, negatively impacted by a $31 million loss related to the change in fair value of contingent liabilities.
Non-GAAP Net Loss
$11.9 million in Q2 2025.
Cash and Equivalents
$230 million at the end of Q2 2025, with no debt.
SOUN
$10.9345+Infinity%1D
Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 17.20 USD with a low forecast of 13.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 17.20 USD with a low forecast of 13.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 10.790
Low
13.00
Averages
17.20
High
26.00
Current: 10.790
Low
13.00
Averages
17.20
High
26.00
Cantor Fitzgerald
Neutral -> Overweight
upgrade
$13 -> $15
2025-12-12
New
Reason
Cantor Fitzgerald
Price Target
$13 -> $15
2025-12-12
New
upgrade
Neutral -> Overweight
Reason
Cantor Fitzgerald last night upgraded SoundHound to Overweight from Neutral with a price target of $15, up from $13. The firm recommends taking advantage of the recent pullback in the shares. SoundHound has executed "very well," cross- selling and upselling voice and conversational artificial intelligence services to its installed base, the analyst tells investors in a research note. Cantor believes expectations are relatively low heading into 2026. It continues to view conversational AI and voice AI as meaningful beneficiaries of secular AI growth trends.
Cantor Fitzgerald
Thomas Blakey
Neutral -> Overweight
upgrade
$13 -> $15
2025-12-11
New
Reason
Cantor Fitzgerald
Thomas Blakey
Price Target
$13 -> $15
2025-12-11
New
upgrade
Neutral -> Overweight
Reason
Cantor Fitzgerald analyst Thomas Blakey upgraded SoundHound to Overweight from Neutral with a price target of $15, up from $13.
Piper Sandler
Neutral
maintain
$12 -> $15
2025-11-07
Reason
Piper Sandler
Price Target
$12 -> $15
2025-11-07
maintain
Neutral
Reason
Piper Sandler raised the firm's price target on SoundHound to $15 from $12 and keeps a Neutral rating on the shares following quarterly results. The firm notes the company reported results that were slightly better than expected, with a large IoT win an interesting highlight as SoundHound shows traction in APAC, but Q4 organic guide was implicitly lowered.
H.C. Wainwright
Buy
maintain
$18 -> $26
2025-10-16
Reason
H.C. Wainwright
Price Target
$18 -> $26
2025-10-16
maintain
Buy
Reason
H.C. Wainwright raised the firm's price target on SoundHound to $26 from $18 and keeps a Buy rating on the shares. The firm sees "material outperformance" of the shares as likely over the coming months, with the Q3 results in November serving as a potential catalyst. SoundHound's 2026 Street revenue forecasts do not include any contribution from the recent acquisition of Interactions Corporation, which should contribute materially in 2026, the analyst tells investors in a research note.
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
