TLDR

  • SoundHound AI shares climbed 5.4% following a Q4 CY2025 earnings report that surpassed analyst predictions for both revenue and earnings per share.
  • The company reported revenue of $55.06 million, a 59.4% increase compared to the previous year, exceeding estimates by 2.3%.
  • A GAAP EPS loss of $0.03 outperformed the consensus estimate of a $0.10 loss by 69.1%.
  • SoundHound introduced a voice-activated Sales Assist agent and established a new engineering center in Bengaluru.
  • Analysts maintain a Moderate Buy rating with an average price target of $16.07, although significant short interest and insider stock sales are noted as potential concerns.

SoundHound AI released a robust fourth-quarter earnings report for CY2025 on February 26, 2026, which propelled its stock price upward by 5.4% in Thursday’s trading session.

The stock reached a high of $9.10 during the session and was last traded at $8.98, an increase from the previous closing price of $8.52. Trading volume was 41.6 million shares, approximately 55% higher than the average volume.

Quarterly revenue was $55.06 million, marking a 59.4% year-over-year rise. This figure surpassed Wall Street’s forecast of $53.84 million by 2.3%.

SOUN Stock Card

In terms of profitability, the company reported a GAAP loss of $0.03 per share. This result was better than the anticipated loss of $0.10 per share, representing a 69.1% beat against expectations.

Adjusted EBITDA reached $72.28 million, equating to a 131% margin and reflecting a 530% increase from the same period last year. The operating margin showed significant improvement, rising to 77.3% from -744% in the year-ago quarter.

Free cash flow was negative $24.43 million, which is an improvement over the negative $32.83 million reported in the previous quarter.

Over the past four years, the company has achieved a compound annual revenue growth rate of 68%. Its two-year annualized growth rate is even more pronounced at 91.9%, indicating a recent acceleration in demand.

New Products and Expansion

Shortly before the earnings announcement, the company launched its Sales Assist agent at MWC. This is a real-time, voice-powered solution designed for retail settings, viewed as a move to diversify enterprise revenue beyond its core automotive and contact center markets.

SoundHound also inaugurated a new engineering and innovation hub in Bengaluru, intended to enhance its research and development capabilities and speed up the deployment of its agentic AI platform.

The current stock price is below its 200-day moving average of $13.01 but is trading close to its 50-day moving average of $9.67. The company’s market capitalization is $3.77 billion, and its beta is 2.64.

Analyst Views and Insider Activity

The prevailing analyst consensus is a Moderate Buy rating, with an average price target of $16.07. Ladenburg Thalmann upgraded the stock to a Strong Buy in December. In January, Piper Sandler reduced its price target from $15.00 to $11.00 while maintaining a Neutral rating. DA Davidson established a $14.00 price target earlier this year.

Institutional investors have been increasing their holdings. Vanguard expanded its position by 16.4% in the third quarter. Morgan Stanley raised its stake by 48.1% in the fourth quarter, while UBS increased its holdings by 77.6% during the same period.

Regarding insider transactions, COO Michael Zagorsek sold 73,406 shares at $11.28 each in December, reducing his stake by 3.94%. CEO Keyvan Mohajer sold 144,326 shares at the same price. In total, insiders sold 460,922 shares valued at approximately $5.2 million over the last three months.

Short interest in the stock remains high, which could lead to increased volatility if future results or guidance fall short of expectations.

After the earnings announcement, the stock price stabilized around $9.02.