SoundHound AI (NASDAQ:SOUN) Announces Earnings Results

SoundHound AI (NASDAQ:SOUN) issued its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01), FiscalAI reports. SoundHound AI had a negative return on equity of 41.46% and a negative net margin of 91.84%.The business had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the previous year, the business posted ($0.06) earnings per share. The business’s revenue was up 51.7% on a year-over-year basis.

Here are the key takeaways from SoundHound AI’s conference call:

• Q1 revenue was $44.2 million, up 52% year?over?year, with SoundHound’s automotive and IoT AI business up ~88% excluding acquisitions, driven by a growing enterprise pipeline.
• SoundHound signed a definitive agreement to acquire LivePerson (expected H2 close), expanding enterprise reach across 30+ countries and positioning the combined business to target roughly $500 million from the existing customer base (with at least ~$100M attributable from LivePerson in 2027).
• Introduced OASYS, an orchestrated agent system powered by SoundHound’s Polaris speech model that builds omni?channel AI agents in minutes, aims to cut operational costs, enable faster migrations, and reduce runtime reliance on third?party frontier models.
• Profitability remains pressured: adjusted EBITDA loss was -$26.7M and GAAP net loss was $25M (including a ~$39M non?cash contingent liability); S&M and G&A rose materially due to acquisitions though the company has $216M cash and expects cost synergies and time?boxed model investments to improve margins.

SoundHound AI Price Performance

Shares of SOUN traded down $0.75 during trading hours on Friday, hitting $8.88. The stock had a trading volume of 49,054,322 shares, compared to its average volume of 33,216,310. The firm has a 50 day simple moving average of $7.57 and a 200-day simple moving average of $10.18. The firm has a market capitalization of $3.75 billion, a P/E ratio of -18.89 and a beta of 2.58. SoundHound AI has a 1-year low of $5.83 and a 1-year high of $22.17.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. HC Wainwright decreased their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. DA Davidson reiterated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Wednesday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI News Roundup

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
• Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
• Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
• Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
• Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
• Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound’s stock falls as acquisitions weigh on earnings results

Insider Buying and Selling

In other news, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares in the company, valued at $5,244,351.56. This trade represents a 3.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Keyvan Mohajer sold 124,510 shares of the firm’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 over the last 90 days. 8.84% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the business. Amundi bought a new position in shares of SoundHound AI during the 4th quarter worth approximately $113,000. Arax Advisory Partners lifted its position in shares of SoundHound AI by 647.7% during the 4th quarter. Arax Advisory Partners now owns 13,854 shares of the company’s stock worth $138,000 after buying an additional 12,001 shares in the last quarter. Polymer Capital Management HK LTD bought a new position in shares of SoundHound AI during the 4th quarter worth approximately $122,000. CIBC Private Wealth Group LLC lifted its position in shares of SoundHound AI by 459.5% during the 4th quarter. CIBC Private Wealth Group LLC now owns 12,348 shares of the company’s stock worth $123,000 after buying an additional 10,141 shares in the last quarter. Finally, Caxton Associates LLP bought a new position in shares of SoundHound AI during the 2nd quarter worth approximately $120,000. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.