SoundHound AI Increases 2025 Revenue Forecast to $165–$180M; Q3 Hits $42M

Basio badr

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SoundHound AI Increases 2025 Revenue Forecast to $165–$180M; Q3 Hits $42M

SoundHound AI, Inc. (Nasdaq: SOUN), a leader in voice and conversational AI solutions, has reported encouraging financial results for Q3 2025. The company experienced a remarkable revenue increase of 68% year-over-year, totaling $42 million for the quarter.

Revenue Forecast and Financial Performance

In light of this strong performance, SoundHound has raised its full-year revenue guidance for 2025 to a range between $165 million and $180 million. This upward revision reflects the company’s expanding market presence and a growing demand for its AI-driven solutions.

Cash Position and Margins

As of September 30, 2025, SoundHound boasts a robust cash position with $269 million in cash and cash equivalents. The company’s financial health is further evidenced by a GAAP gross margin of 42.6% and a non-GAAP gross margin of 59.3%.

Loss Analysis

Despite the impressive growth in revenue, SoundHound reported a GAAP net loss of $109.3 million. This figure includes a non-cash, mark-to-market loss of $66 million related to contingent acquisition liabilities. In contrast, the non-GAAP net loss was significantly lower at $13 million.

Business Highlights

SoundHound’s success spans several industries, including automotive, healthcare, finance, and restaurants. Strategic partnerships and product updates continue to bolster its market position.

Product Innovations: Updates like Amelia 7.3 enhance user experience with increased speed and natural conversation capabilities.
Industry Collaborations: The company has secured contracts across various sectors, indicating a diversified business approach.
Expansions in Automotive: Collaborations with global automotive brands focus on integrating advanced voice capabilities into vehicles, projected for launch in 2026.

Future Outlook

The outlook for 2025 remains positive, reflecting management’s confidence in commercial traction. SoundHound aims to continue leveraging its comprehensive AI frameworks to enhance service delivery and gain a competitive edge.

Overall, SoundHound AI’s financial performance for Q3 2025 shows significant growth potential. The implemented improvements and strategic initiatives position the company favorably as it approaches the end of the fiscal year.