Major Takeaways
- SoundHound AI stock experienced a 5.4% increase after delivering fourth quarter CY2025 results that topped analyst expectations across revenue and earnings metrics.
- The voice AI company posted $55.06 million in revenue for the period, achieving 59.4% year-over-year growth and exceeding projections by 2.3%.
- GAAP earnings per share came in at a loss of $0.03, dramatically outperforming the consensus estimate of -$0.10 and representing a 69.1% positive surprise.
- The firm unveiled a new voice-powered Sales Assist agent and opened an engineering center in Bengaluru to accelerate innovation.
- Analysts maintain a Moderate Buy consensus rating with an average target price of $16.07, though high short interest levels and recent insider selling merit consideration.
SoundHound AI reported stellar fourth quarter CY2025 results on February 26, 2026, propelling the stock 5.4% higher during Thursday’s market session.
The stock reached an intraday high of $9.10 before settling at $8.98, marking a gain from the prior session’s close of $8.52. Trading volume hit 41.6 million shares, approximately 55% above the stock’s typical daily turnover.
Revenue for the quarter totaled $55.06 million, delivering 59.4% growth versus the year-ago period. The figure topped analyst consensus expectations of $53.84 million by 2.3%.
On the earnings front, SOUN posted a GAAP loss of $0.03 per share. This outcome substantially beat the Street’s consensus projection of a $0.10 loss per share, representing a 69.1% positive variance.
Adjusted EBITDA for the period climbed to $72.28 million, yielding a 131% margin and marking 530% expansion compared to the year-earlier quarter. Operating margin demonstrated meaningful improvement at 77.3%, a stark contrast to the -744% metric from the corresponding prior-year period.
Free cash flow came in at -$24.43 million, representing sequential improvement from the previous quarter’s -$32.83 million.
Over the trailing four years, SoundHound AI has delivered revenue growth at a 68% compound annual rate. The company’s two-year annualized expansion of 91.9% demonstrates accelerating momentum.
Product Innovation and International Expansion
Ahead of releasing quarterly results, SoundHound unveiled its Sales Assist agent at Mobile World Congress — a voice-enabled technology targeting real-time retail environments. This launch signals the company’s strategic effort to expand enterprise revenue opportunities beyond its core automotive and call center markets.
The company also opened a new engineering and innovation hub in Bengaluru, aimed at strengthening research and development capabilities while accelerating rollout of its agentic AI technology platform.
Shares currently trade beneath their 200-day moving average of $13.01, while hovering near the 50-day moving average of $9.67. The company maintains a market capitalization of $3.77 billion, with a beta reading of 2.64.
Analyst Ratings and Institutional Activity
Wall Street consensus currently points to a Moderate Buy rating, with a mean target price of $16.07. Ladenburg Thalmann upgraded SOUN to Strong Buy in December. Piper Sandler lowered its price objective from $15.00 to $11.00 in January while keeping a Neutral recommendation. DA Davidson set a $14.00 target earlier this year.
Institutional investment has grown substantially. Vanguard boosted its holdings by 16.4% during the third quarter. Morgan Stanley grew its position by 48.1% in the fourth quarter. UBS increased its stake by 77.6% in the same period.
On the insider trading front, COO Michael Zagorsek sold 73,406 shares at $11.28 in December, trimming his holdings by 3.94%. CEO Keyvan Mohajer disposed of 144,326 shares at the same price. In total, company insiders sold 460,922 shares worth roughly $5.2 million over the last three months.
Short interest remains at elevated levels, creating potential for increased volatility should upcoming results or guidance disappoint market expectations.
Following the earnings release, shares traded around $9.02.
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