TLDR
- SoundHound AI shares jumped 5.4% following Q4 CY2025 results that exceeded Wall Street projections for both top and bottom lines.
- Quarterly revenue reached $55.06 million, representing 59.4% growth year-over-year and surpassing forecasts by 2.3%.
- The company reported a GAAP EPS loss of $0.03, significantly better than the expected loss of -$0.10, exceeding estimates by 69.1%.
- SoundHound introduced a voice-enabled Sales Assist solution and established a fresh engineering center in Bengaluru.
- Wall Street maintains a Moderate Buy rating with a $16.07 average target price, while elevated short interest and recent insider transactions warrant attention.
SoundHound AI delivered impressive Q4 CY2025 financial results on February 26, 2026, propelling shares 5.4% higher in Thursday’s session.
Shares peaked at $9.10 during the trading day and settled at $8.98, representing a gain from the previous closing price of $8.52. Volume reached 41.6 million shares, approximately 55% higher than typical daily activity.
The company generated $55.06 million in quarterly revenue, marking a 59.4% increase compared to the same period last year. This figure exceeded analyst projections of $53.84 million by 2.3%.
Regarding profitability, SOUN recorded a GAAP loss per share of $0.03. Wall Street had anticipated a loss of $0.10, meaning the actual result beat expectations by 69.1%.
Adjusted EBITDA totaled $72.28 million, reflecting a 131% margin and remarkable 530% year-over-year expansion. The operating margin improved dramatically to 77.3%, a stark contrast to the -744% figure from the comparable quarter one year earlier.
Free cash flow registered at -$24.43 million, showing improvement from the previous quarter’s -$32.83 million.
Throughout the past four years, SoundHound AI has achieved revenue growth at a 68% compound annual rate. Its two-year annualized expansion rate of 91.9% indicates accelerating market demand.
New Products and Expansion
Prior to the earnings announcement, SoundHound introduced its Sales Assist agent at MWC — a voice-activated, real-time solution designed for retail applications. This launch represents a strategic move to diversify enterprise revenue streams beyond its established automotive and contact center segments.
Additionally, the company inaugurated an engineering and innovation facility in Bengaluru, designed to enhance R&D capabilities and expedite deployment of its agentic AI technology.
The stock currently trades below its 200-day moving average of $13.01, while hovering close to its 50-day moving average of $9.67. The company’s market capitalization stands at $3.77 billion, with a beta coefficient of 2.64.
Analyst Views and Insider Activity
Wall Street analysts maintain a Moderate Buy consensus rating, with a mean price target of $16.07. Ladenburg Thalmann raised SOUN to Strong Buy in December. Piper Sandler reduced its target from $15.00 down to $11.00 in January while maintaining a Neutral stance. DA Davidson established a $14.00 price target earlier this year.
Institutional investors have been increasing their positions. Vanguard expanded its holdings by 16.4% during Q3. Morgan Stanley increased its stake by 48.1% in Q4. UBS raised its position by 77.6% in the corresponding period.
Regarding insider transactions, COO Michael Zagorsek divested 73,406 shares at $11.28 in December, reducing his position by 3.94%. CEO Keyvan Mohajer sold 144,326 shares at the identical price point. Collectively, company insiders disposed of 460,922 shares valued at approximately $5.2 million during the last three months.
Short interest continues to be substantial, creating potential volatility if future results or guidance fall short of expectations.
After the earnings disclosure, shares stabilized around $9.02.
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