SoundHound AI Reports Record Q3 Revenue of $42 Million, Up 68%, Raises Full Year Outlook; $269 Million in Cash
SoundHound AI (Nasdaq: SOUN) reported Q3 2025 revenue of $42.0M, up 68% year‑over‑year, and raised full‑year 2025 revenue guidance to $165M–$180M. The company held $269M in cash and reported GAAP gross margin of 42.6% (non‑GAAP gross margin 59.3%). GAAP net loss was $109.3M while non‑GAAP net loss was $13.0M; GAAP results include a $66M mark‑to‑market loss on contingent acquisition liabilities. Business wins span automotive, restaurants, healthcare, finance, telecom and IoT; product updates include Amelia 7.3, Vision AI and the Interactions acquisition.
SoundHound AI (Nasdaq: SOUN) ha riportato entrate del terzo trimestre 2025 di 42,0 milioni di dollari, in crescita del 68% rispetto all'anno precedente, e ha innalzato la guidance sulle entrate per l'intero 2025 a 165–180 milioni di dollari. L'azienda possedeva 269 milioni di dollari in cash e ha riportato un margine lordo GAAP del 42,6% (margine lordo non GAAP 59,3%). L'utile netto GAAP è stato di −109,3 milioni di dollari mentre l'utile netto non GAAP è stato di −13,0 milioni di dollari; i risultati GAAP includono una perdita di fair value di 66 milioni di dollari legata a una rivalutazione contabile su passività di acquisizione contingenti. Le opportunità di business spaziano in settori automobilistico, ristorazione, sanità, finanza, telecomunicazioni e IoT; gli aggiornamenti di prodotto includono Amelia 7.3, Vision AI e l'acquisizione di Interactions.
SoundHound AI (Nasdaq: SOUN) reportó ingresos del 3er trimestre de 2025 de $42.0M, un incremento del 68% interanual, y elevó la guía de ingresos para todo 2025 a $165M–$180M. La empresa contaba con $269M en efectivo y reportó un margen bruto GAAP de 42.6% (margen bruto no GAAP 59.3%). La pérdida neta GAAP fue de $109.3M mientras que la pérdida neta no GAAP fue de $13.0M; los resultados GAAP incluyen una pérdida de valoración de $66M sobre pasivos de adquisición contingentes. Las victorias de negocio abarcan automoción, restaurantes, salud, finanzas, telecomunicaciones e IoT; las actualizaciones de producto incluyen Amelia 7.3, Vision AI y la adquisición de Interactions.
SoundHound AI (나스닥: SOUN)은 2025년 3분기 매출 4,200만 달러, 전년 동기 대비 68% 증가를 보고했고, 2025년 전체 매출 가이던스를 165M–180M 달러로 상향했다. 회사는 현금 2.69억 달러를 보유했고 GAAP 매출 총이익률은 42.6%, 비-GAAP 매출 총이익률은 59.3%였다. GAAP 순손실은 −1억 9300만 달러, 비-GAAP 순손실은 −1300만 달러였으며, GAAP 결과에는 조건부 인수 부채의 공정가치 평가 손실 6600만 달러가 포함된다. 비즈니스 수주는 자동차, 음식점, 헬스케어, 금융, 통신 및 IoT 분야에 걸쳐 있다; 제품 업데이트로 Amelia 7.3, Vision AI, Interactions 인수 등이 포함된다.
SoundHound AI (Nasdaq : SOUN) a enregistré un chiffre d'affaires du 3e trimestre 2025 de 42,0 M$, en hausse de 68% d'une année sur l'autre, et a relevé ses prévisions de chiffre d'affaires pour l'ensemble de l'année 2025 à 165–180 M$. L'entreprise disposait de 269 M$ en liquidités et a déclaré une marge brute GAAP de 42,6% (marge brute non-GAAP de 59,3%). La perte nette GAAP s'est élevée à −109,3 M$; la perte nette non-GAAP a été de −13,0 M$; les résultats GAAP incluent une perte de juste valeur sur des passifs d'acquisition contingents de 66 M$. Les opportunités d'affaires couvrent l'automobile, la restauration, les soins de santé, la finance, les télécommunications et l'IoT; les mises à jour produit incluent Amelia 7.3, Vision AI et l'acquisition d'Interactions.
SoundHound AI (Nasdaq: SOUN) meldete Umsatz im Q3 2025 von 42,0 Mio. USD, ein Anstieg von 68% gegenüber dem Vorjahr, und hob die Umsatzprognose für das Gesamtjahr 2025 auf 165–180 Mio. USD an. Das Unternehmen verfügte über 269 Mio. USD in Bargeld und meldete eine GAAP-Bruttomarge von 42,6% (non-GAAP Bruttomarge 59,3%). Der GAAP-Nettoverlust betrug −109,3 Mio. USD, während der non-GAAP Nettoverlust −13,0 Mio. USD betrug; GAAP-Ergebnisse beinhalten einen Mark-to-Market-Verlust von 66 Mio. USD auf kontingente Erwerbsverbindlichkeiten. Geschäftserfolge erstrecken sich über Auto, Restaurants, Gesundheitswesen, Finanzen, Telekommunikation und IoT; Produktaktualisierungen umfassen Amelia 7.3, Vision AI und die Interactions-Übernahme.
SoundHound AI (ناسداك: SOUN) أعلنت عن إيرادات الربع الثالث من عام 2025 تبلغ 42.0 مليون دولار، بزيادة 68% على أساس سنوي، ورفعت توجيهات الإيرادات للسنة الكلية 2025 إلى 165 مليون–180 مليون دولار. الشركة لديها 269 مليون دولار نقداً وذكرت هامش الربح الإجمالي وفق مبادئ GAAP قدره 42.6% (الهامش الإجمالي غير-GAAP 59.3%). صافي الخسارة وفق GAAP كان −109.3 مليون دولار بينما صافي الخسارة غير-GAAP كان −13.0 مليون دولار؛ نتائج GAAP تشمل خسارة تقييم سوقاً بمقدار 66 مليون دولار على مطلوبات استحواذ محتملة. فرص الأعمال تغطي السيارات، والمطاعم، والرعاية الصحية، والمالية، والاتصالات، وإنترنت الأشياء؛ وتحديثات المنتج تشمل Amelia 7.3، Vision AI واستحواذ Interactions.
- Revenue of $42.0M in Q3 2025 (+68% YoY)
- Raised 2025 revenue outlook to $165M–$180M
- Total cash and cash equivalents of $269M
- Non‑GAAP gross margin at 59.3%
- GAAP net loss of $109.3M in Q3 2025
- Q3 included a $66M mark‑to‑market contingent liability loss
- GAAP gross margin declined 6.0 percentage points year‑over‑year
- Net cash used in operating activities of $76.3M (nine months)
Insights
Strong revenue growth and upgraded guidance supported by Agentic+ momentum and a healthy cash position.
Revenue grew to
Reported GAAP net loss widened to
Key dependencies and risks include continued conversion of announced partnerships into revenue, successful launches (notably in‑vehicle and large device integrations slated for
The company extends presence within key vertical markets, forging new strategic partnerships that strengthen AI leadership through its Agentic+ framework
SANTA CLARA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and conversational AI, today reported its financial results for the third quarter 2025.
“Enterprise AI adoption is booming globally, and SoundHound is strengthening its leading position with deployments in millions of end points across highly diversified industries and customers,’ said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. “We see enormous potential in the near and long-term horizon, and we’re positioning our business to take full advantage.”
Third Quarter Financial Highlights
- Reported revenue was
$42.0 million , an increase of68% year-over-year - GAAP gross margin was
42.6% ; non-GAAP gross margin was59.3% - GAAP net loss was (
$109.3) million ; non-GAAP net loss was ($13.0) million - Adjusted EBITDA was a loss of (
$14.5) million - GAAP earnings per share was a loss of (
$0.27) ; non-GAAP earnings per share was a loss of ($0.03) - GAAP results include a loss from the calculated fair value of contingent acquisition liabilities where future earnout shares are marked-to-market on a quarterly basis based on the company’s stock price. Non-GAAP measures exclude this non-operating/non-cash impact.
“Q3 was another strong mile marker on our journey to transform human-computer interfaces through natural language conversations and voice AI that makes technology more seamless and accessible," said Nitesh Sharan, CFO of SoundHound AI. "We continue to deliver high growth with a diverse customer base, expanding product suite, and a balance sheet that enables us to stay on the offense.”
Business Highlights
- Agentic AI: Amelia 7.3 update incorporates Speech-to-Meaning® to deliver industry-leading latency and even more natural voice experiences for customers. This further enhances the platform’s Agentic+ framework – a unique and flexible combination of generative AI, multi-agent autonomous orchestration, and deterministic models.
- Voice Commerce: In-vehicle monetization now includes restaurant reservations and parking payments alongside voice ordering, with global OEMs engaged to launch in 2026. Tech platform giants are also poised to deploy voice ordering capabilities to millions of users.
- IoT and Robotics: Won a large deal to integrate SoundHound Chat AI into a minimum commitment of double-digit millions of AI-enabled smart devices developed by a large China-based company offering intelligence-based interaction in hardware and software products.
- Automotive:
- Working with major globally renowned sports car brand to launch a custom “personality” for its assistant
- Flagship Chat AI voice technology now available in Jeep vehicles across Europe
- Expanded throughout Germany with growing EV automaker, Togg
- Signed an Italian-based commercial vehicle company offering SoundHound’s voice AI technology to its wide range of fleet vehicles
- Signed deals to integrate SoundHound’s advanced voice capabilities with two prominent two-wheeler brands in expansive Indian market
- Financial Services:
- Three of the top 10 global financial services institutions bought additional enterprise services, and two renewed existing contracts
- Signed a new enterprise technology deal with a prominent organization supporting credit unions throughout the United States
- Healthcare:
- Working with large precision medicine provider to launch a pioneering inbound and outbound agentic AI solution
- Won a deal with a U.S.-based regional hospital system to deploy the Amelia platform
- Signed a renewal with one of the leading healthcare companies for wholesale medical supplies
- Insurance:
- French insurer, Apivia Courtage, announced that it will deploy Amelia 7 to bring agentic AI to its contact centers
- Renewed contract with a global insurance company providing services to multinational corporations, individuals and families
- Secured a further renewal with a highly regarded Mexico-based automotive insurance company
- Restaurants:
- Signed a deal to deploy our AI ordering solutions with a nationally recognized full-service restaurant chain
- Franchise wins with Firehouse Subs, Five Guys, and McAllister’s Deli
- Full deployment for our voice solutions across all MOD pizza, Habit Burger, Red Lobster, and Torchy’s Tacos locations, in addition to existing brands Chipotle and Casey’s
- Peet’s Coffee expanded further with SoundHound’s category-leading Employee Assist technology, which will now be used by staff in all company owned locations
- Retail and Consumer Goods:
- Secured a net new upsell with a major multinational brand with an extensive product portfolio of food, beverage, and consumer goods
- Now working with one of the fastest growing global health clubs in the United States to deploy Smart Answering
- New deal to launch Smart Answering at a U.S.-based global franchise that offers state-of-the-art training facilities for elite athletes
- IT Services:
- Signed a leading provider of managed cybersecurity services, cloud, and IT infrastructure solutions, based out of the United States
- Renewed a multi-year contract and upsold to a dominant U.S.-based internet domain registry and web hosting company
- Energy: Two large U.S. electricity providers will soon go live with SoundHound’s enterprise AI solutions.
- Telecommunications: Signed a large telecommunications provider that offers internet and TV services to residential and business customers in over 20 U.S. states.
- Channel Partners:
- Announced a new strategic partnership with major technology distributor, Telarus, to bring Amelia 7 and Autonomics to their enterprise CX & EX landscape
- Signed multi-year deal with a longstanding partner that specializes in CRM, AI, and workforce engagement management
- Entered into a reseller agreement with VOXai, a company that offers purpose-driven customer experience management solutions
- Forged strategic partnerships with two of the leading software and services providers for full-suite studio, gym, health, and wellness club management
- Other Highlights:
- Launched Vision AI to bring real-time visual understanding to SoundHound’s conversational AI platform
- Acquired Interactions, a pioneer in AI for customer service and workflow orchestration, to strengthen leadership in Agentic AI
- Named a leader in IDC MarketScape for worldwide general-purpose conversational AI platforms 2025
- Named a leader in Everest Group’s conversational AI and AI agents in customer experience management Products PEAK Matrix® Assessment 2025
Third Quarter 2025 Financial Measures1
| Three Months Ended (thousands, unless otherwise noted) | September 30, 2025 | September 30, 2024 | Change | |||||
| Revenues | $ | 42,049 | $ | 25,094 | ||||
| GAAP gross profit | $ | 17,921 | $ | 12,193 | ||||
| GAAP gross margin | (6.0)pp | |||||||
| Non-GAAP gross profit | $ | 24,917 | $ | 14,983 | ||||
| Non-GAAP gross margin | (0.4)pp | |||||||
| GAAP operating loss2 | $ | (115,891) | $ | (33,767) | (243)% | |||
| Non-GAAP adjusted EBITDA | $ | (14,546) | $ | (15,869) | ||||
| GAAP net loss2 | $ | (109,271) | $ | (21,751) | (402)% | |||
| Non-GAAP net loss | $ | (13,022) | $ | (14,958) | ||||
| GAAP net loss per share2 | $ | (0.27) | $ | (0.06) | $ | (0.21) | ||
| Non-GAAP net loss per share | $ | (0.03) | $ | (0.04) | $ | 0.01 | ||
1) Please see tables below for a reconciliation from GAAP to non-GAAP.
2) GAAP-only operating loss includes a significant impact from the calculated fair value of contingent acquisition liabilities where future earn-out shares are marked-to-market on a quarterly basis, and with the increase in stock price compared to the previous quarter the loss associated with this item was
Liquidity and Cash Flows
The company’s total cash and cash equivalents was
Condensed Cash Flow Statement
| Nine Months Ended | ||||
| (thousands) | September 30, 2025 | September 30, 2024 | ||
| Cash flows: | ||||
| Net cash used in operating activities | $ | (76,336) | (75,755) | |
| Net cash used in investing activities | $ | (56,965) | (12,292) | |
| Net cash provided by financing activities | $ | 204,514 | 115,445 | |
| Effects of exchange rate changes on cash | $ | (257) | (16) | |
| Net change in cash and cash equivalents | $ | 70,956 | 27,382 | |
Business Outlook
SoundHound is raising its full year 2025 revenue outlook and now expects it to be in a range of
Additional Information
For more information please see the company’s SEC filings which can be obtained on the company’s website at investors.soundhound.com. The financial statements will be posted on the website, and will be included when the company files its 8-K. The financial data presented in this press release should be considered preliminary until the company files its 10-Q.
Conference Call and Webcast
Keyvan Mohajer, Co-Founder and CEO, and Nitesh Sharan, CFO will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. A live webcast and replay will also be accessible at investors.soundhound.com.
About SoundHound AI
SoundHound AI (Nasdaq: SOUN), a global leader in voice and conversational AI, delivers solutions that allow businesses to offer superior experiences to their customers. Built on proprietary technology, SoundHound’s voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants. The company’s various groundbreaking AI-driven products include Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, which powers AI Agents for enterprise. In addition, SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, and Autonomics, a category-leading operations platform that automates IT processes, have enabled SoundHound to power millions of products and services, and process billions of interactions each year for world class businesses. For more information, visit: www.soundhound.com
Forward Looking Statements
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, and guidance for financial results for 2025. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, our ability to successfully launch and commercialize new products and services and derive significant revenue, our market opportunity and our ability to acquire new customers and retain existing customers, unexpected costs, charges or expenses resulting from our recent acquisitions, the ability of our recent acquisitions to be accretive on the company's financial results, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures of Financial Performance
To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.
The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.
As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance.
The company defines its non-GAAP measures by excluding certain items:
The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets), and (ii) stock-based compensation and related payroll taxes.
The company arrives at adjusted EBITDA by excluding (i) total other income/(expense), net, (ii) income taxes, (iii) depreciation and amortization expense (including acquired intangible assets), (iv) stock-based compensation and related payroll taxes, (v) change in fair value of contingent acquisition liabilities, and (vi) acquisition-related costs.
The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) stock-based compensation and related payroll taxes, (iii) change in fair value of contingent acquisition liabilities, (iv) change in fair value of derivative, (v) acquisition-related costs, and (vi) income tax effects related to acquisitions.
Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.
To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.
Third Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin
| Three Months Ended | |||||
| (thousands, unless otherwise noted) | September 30, 2025 | September 30, 2024 | |||
| GAAP gross profit1 | $ | 17,921 | 12,193 | ||
| Adjustments: | |||||
| Amortization of intangibles | 4,334 | 2,691 | |||
| Stock-based compensation and related payroll taxes2 | 2,662 | 99 | |||
| Non-GAAP gross profit | $ | 24,917 | 14,983 | ||
| GAAP gross margin | 42.6% | 48.6% | |||
| Non-GAAP gross margin | 59.3% | 59.7% | |||
1) GAAP gross profit is calculated by subtracting the cost of revenues from revenues.
2) Q3 2025 includes employer payroll taxes that result from stock-based compensation in the amount of
Third Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
| Three Months Ended | |||||
| (thousands) | September 30, 2025 | September 30, 2024 | |||
| GAAP net loss | $ | (109,271) | (21,751) | ||
| Adjustments: | |||||
| Total other income (expense), net1 | (7,077) | (1,525) | |||
| Income taxes | 457 | (10,491) | |||
| Depreciation and amortization | 8,557 | 5,365 | |||
| Stock-based compensation and related payroll taxes2 | 21,217 | 9,060 | |||
| Change in fair value of contingent acquisition liabilities | 66,245 | (1,356) | |||
| Acquisition-related expenses | 5,326 | 4,829 | |||
| Non-GAAP adjusted EBITDA | $ | (14,546) | (15,869) | ||
1) Includes other income, net of
2) Q3 2025 includes employer payroll taxes that result from stock-based compensation in the amount of
Third Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
| Three Months Ended | ||||||
| (thousands, unless otherwise noted) | September 30, 2025 | September 30, 2024 | ||||
| GAAP net loss attributable to SoundHound common shareholders | $ | (109,271) | (21,751) | |||
| Adjustments: | ||||||
| Depreciation and amortization | 8,557 | 5,365 | ||||
| Stock-based compensation and related payroll taxes1 | 21,217 | 9,060 | ||||
| Change in fair value of contingent acquisition liabilities | 66,245 | (1,356) | ||||
| Change in fair value of derivative | (5,096) | - | ||||
| Acquisition-related expenses | 5,326 | 4,829 | ||||
| Income tax effects related to acquisitions | - | (11,105) | ||||
| Non-GAAP net loss | $ | (13,022) | (14,958) | |||
| GAAP net loss per share2 | $ | (0.27) | (0.06) | |||
| Adjustments | 0.24 | 0.02 | ||||
| Non-GAAP net loss per share2 | $ | (0.03) | (0.04) | |||
1) Q3 2025 includes employer payroll taxes that result from stock-based compensation in the amount of
2) Weighted average common shares outstanding (basic) for the three months ended September 30, 2025 and 2024 were 409,783,470 and 360,385,812, respectively.
Investors:
Scott Smith
408-724-1498
IR@SoundHound.com
Media:
Fiona McEvoy
415-610-6590
PR@SoundHound.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d4ff2b87-e44d-4649-85c3-35d4227950b9
FAQ
What were SoundHound AI (SOUN) Q3 2025 results?
Why did SOUN report a large GAAP loss in Q3 2025?
How much cash did SoundHound AI have at September 30, 2025?
What is SoundHound AI's updated 2025 revenue guidance (SOUN)?
What margin improvement did SoundHound report in Q3 2025?
Which verticals showed new enterprise deals in the Q3 2025 release for SOUN?
