TLDR
- SoundHound AI stock rose 5.4% after Q4 CY2025 earnings beat analyst expectations on both revenue and EPS.
- Revenue came in at $55.06 million, up 59.4% year-on-year, beating estimates by 2.3%.
- GAAP EPS loss of $0.03 beat the consensus estimate of -$0.10 by 69.1%.
- The company launched a voice-powered Sales Assist agent and opened a new engineering hub in Bengaluru.
- Analysts hold a Moderate Buy consensus with an average price target of $16.07, though high short interest and insider selling remain concerns.
SoundHound AI posted a strong Q4 CY2025 earnings report on February 26, 2026, sending its stock up 5.4% during Thursday trading.
SoundHound AI, $SOUN, Q4-25.
Top-line surge, margins expanding.
📊 Adj. EPS: -$0.02 🟢
💰 Revenue: $55.06M 🟢
📈 Net Income: $40.06MRevenue +59% YoY, GAAP gross margin up to 47.9%.
Record enterprise deals closed as AI demand accelerates. pic.twitter.com/TH8sMxxsPY— EarningsTime (@Earnings_Time) February 26, 2026
The stock hit a session high of $9.10 and last traded at $8.98, up from a prior close of $8.52. Trading volume was 41.6 million, about 55% above the average session volume.
Revenue for the quarter came in at $55.06 million, a 59.4% year-on-year increase. That beat Wall Street’s estimate of $53.84 million by 2.3%.
On the bottom line, SOUN posted a GAAP loss of $0.03 per share. Analysts had expected a loss of $0.10, making this a 69.1% beat.
Adjusted EBITDA came in at $72.28 million, representing a 131% margin and 530% year-on-year growth. Operating margin improved to 77.3%, compared to -744% in the same quarter last year.
Free cash flow was -$24.43 million, an improvement from -$32.83 million in the prior quarter.
Over the last four years, SoundHound AI has grown revenue at a 68% compounded annual rate. Its two-year annualized growth rate of 91.9% is even higher, suggesting demand has accelerated.
New Products and Expansion
Just ahead of earnings, SoundHound unveiled its Sales Assist agent at MWC — a real-time, voice-powered tool aimed at retail environments. The product is seen as a step toward growing enterprise revenue beyond its automotive and contact center base.
The company also opened a new engineering and innovation hub in Bengaluru, aimed at expanding its R&D capacity and accelerating the rollout of its agentic AI platform.
The stock is down from its 200-day moving average of $13.01, though it sits near its 50-day moving average of $9.67. Its market cap stands at $3.77 billion, with a beta of 2.64.
Analyst Views and Insider Activity
The analyst consensus sits at Moderate Buy, with an average price target of $16.07. Ladenburg Thalmann upgraded SOUN to Strong Buy in December. Piper Sandler cut its target from $15.00 to $11.00 in January with a Neutral rating. DA Davidson set a $14.00 target earlier this year.
Institutional investors have been adding exposure. Vanguard grew its position by 16.4% in Q3. Morgan Stanley lifted its stake by 48.1% in Q4. UBS boosted its holdings by 77.6% in the same period.
On the insider side, COO Michael Zagorsek sold 73,406 shares at $11.28 in December, a 3.94% reduction in his stake. CEO Keyvan Mohajer sold 144,326 shares at the same price. In total, insiders sold 460,922 shares worth roughly $5.2 million over the past three months.
Short interest remains elevated, which adds volatility risk if results or guidance disappoint.
Following the earnings release, the stock held relatively steady at $9.02.
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