SoundHound AI (NASDAQ:SOUN) delivered a record fourth quarter and full-year 2025 performance. The firm surpassed Wall Street expectations and demonstrated continued operating momentum as it scales across industries.
Q4 Beats Expectations
For the fourth quarter, SoundHound reported revenue of $55.1 million, up 59% year-over-year and ahead of consensus expectations of roughly $54 million.
Non-GAAP earnings per share came in at a loss of $0.02, matching analyst expectations and improving from a $0.05 loss a year earlier. On a GAAP basis, the company posted net income of $40.1 million, or $0.10 per share, reflecting a gain tied to the fair value adjustment of contingent acquisition liabilities.
Gross margin for the quarter was 47.9% on a GAAP basis and 60.5% on a non-GAAP basis, as the company continues to balance rapid top-line expansion with investments in growth. Adjusted EBITDA was a loss of $7.4 million, showing management’s intention to prioritize scale ahead of its targeted adjusted EBITDA break-even by late 2026.
“Our results speak for themselves. All key profit metrics were up, and in the last quarter we closed a record number of customer deals as we capitalized on the surge in demand for enterprise-grade AI,” said CEO Keyvan Mohajer.
Full-Year Revenue Nearly Doubles
For the full year, revenue reached $168.9 million, up 99% year-over-year and near the high end of prior guidance. The growth builds on a pattern of revenue beats through 2025 and reflects accelerating adoption across automotive, restaurants, retail, financial services, and telecom.
Full-year GAAP gross margin was 42.4%, with non-GAAP gross margin at 58.0%. GAAP net loss totaled $14.0 million, while adjusted EBITDA loss was $58.4 million as the company continued investing in product innovation, sales capacity, and global expansion.
SoundHound ended 2025 with $248 million in cash and cash equivalents and no debt, providing significant flexibility to fund expansion. The 2026 revenue guidance is set between $225 million and $260 million.
Highlights Across Verticals
Automotive remained a standout vertical, with new OEM wins in Japan and Korea, expanded deployments with global manufacturers, and growing traction in generative AI-enabled in-car experiences. Voice commerce also gained momentum, including the first major global automaker rollout and ecosystem expansion with partners such as OpenTable.
In restaurants, expanded relationships with brands like Panda Express and additional franchise signings with IHOP and Jersey Mike’s highlighted continued strength in drive-thru and phone ordering automation.
“The tremendous pace of change in our industry is creating a force multiplier for our voice AI innovation and agentic AI solutions. This traction was demonstrated once again in our Q4 results, with broad-based customer adoption, time to value acceleration, and deepening market differentiation,” said CFO Nitesh Sharan.
Image: Shutterstock
Recent Comments