SoundHound AI Inc. (SOUN) Stock: Rallies as Voice AI Player Crushes Wall Street Expectations

TLDR

Table of Contents

SoundHound stock jumped 23% in premarket trading after reporting its “strongest ever quarter” with revenue up 217% year-over-year
Second-quarter revenue hit $43 million, beating analyst expectations of $33 million by a wide margin
Adjusted loss per share narrowed to 3 cents, better than the expected 5-cent loss
Company raised full-year revenue guidance to $160-178 million range, above analyst consensus of $164 million
Retail sentiment turned “extremely bullish” on Stocktwits with message volume spiking 500%

SoundHound stock rocketed higher in premarket trading Friday after the voice AI company delivered what CEO Keyvan Mohajer called its “strongest ever quarter.” Shares climbed 23% to $13.14 before regular trading hours.

The Santa Clara-based company crushed Wall Street expectations across key metrics. Revenue soared 217% year-over-year to $43 million, crushing analyst estimates of $33 million.

The company’s adjusted loss per share came in at just 3 cents. This beat expectations for a 5-cent loss and showed improvement from the 4-cent loss posted a year ago.

SoundHound AI, $SOUN, Q2-25. Results:
📊 Adj. EPS: -$0.03 🟢
💰 Revenue: $42.7M 🟢
📈 Net Loss: $74.7M
🔎 Revenue hit an all-time high driven by broad-based growth across automotive, enterprise AI, and restaurants. pic.twitter.com/1WJ1hxQAIL
— EarningsTime (@Earnings_Time) August 7, 2025

CFO Nitesh Sharan highlighted the company’s momentum in the growing voice AI space. “We are moving with speed to capture the explosion we’re seeing in the voice and conversational AI industry,” he said Thursday evening.

The strong results led SoundHound to boost its full-year outlook. The company now expects revenue between $160 million and $178 million for 2025.

The midpoint of this range sits above the $164 million consensus estimate from FactSet. This represents a meaningful upgrade from the previous guidance range of $157 million to $177 million.

Strong Balance Sheet Position

SoundHound ended the quarter with $230 million in cash and cash equivalents. The company carries no debt on its balance sheet, providing financial flexibility for growth investments.

The revenue growth came from new customer wins and cross-selling existing products. CEO Mohajer credited strategic acquisitions made in 2024 for contributing to the quarter’s success.

D.A. Davidson analyst Gil Luria raised his price target to $15 from $10 following the results. He maintained a Buy rating on the stock, noting the company’s progress toward profitability.

“SoundHound is capturing market share across a massive and underpenetrated TAM while making progress toward profitability,” Luria wrote in a Friday research note.

Retail Trader Interest Explodes

The earnings beat sparked intense interest among retail traders on social platforms. SoundHound became the top-trending stock ticker on Stocktwits Thursday evening.

Retail sentiment shifted to “extremely bullish” from neutral just one day earlier. Message volume about the stock hit “extremely high” levels with activity spiking roughly 500%.

One trader noted that most recent trading volume occurred through dark pools and off-exchange transactions. They viewed the high short interest of 30.32% as potentially bullish for the stock.

Another retail investor pointed out the stock’s steep decline this year. SoundHound has fallen 46% in 2025 despite Thursday’s after-hours surge.

The stock traded around $24 at the start of the year. Some traders see the current $12 level as too low given the company’s improving fundamentals.

The average analyst price target sits at $11.81 according to Koyfin data. This implies upside potential of over 10% from Thursday’s closing price.

The voice AI market continues attracting major tech players. Meta recently acquired its second voice AI startup, WaveForms, just one month after purchasing PlayAI.

SoundHound’s short interest has remained above 30% since late May. If Friday’s premarket gains hold, it would mark the stock’s best session since late May.

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