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SoundHound AI, Inc. (SOUN) has experienced a significant decline, falling 22.8% over the past month to approximately $11.78 as of December 3, contrasting with the Zacks Computers – IT Services industry, which gained 0.3% during the same period. This decline places SOUN shares well below its 52-week high of $24.98 and slightly above its low of $6.52, indicating a technically bearish setup as it trades below both the 50-day and 200-day moving averages.
Despite the recent stock performance slump, the company reported a 68% year-on-year revenue increase in its third-quarter 2025 results, amounting to $42 million, with total revenues for the first three quarters hitting a record $114 million, representing a 127% growth. SoundHound revised its full-year revenue expectations upwards to between $165 million and $180 million, reflecting strong demand across various sectors, particularly in AI adoption within automotive, healthcare, and the restaurant industry.
However, SoundHound’s profitability remains a concern, reporting a GAAP net loss of $109.3 million in Q3, with a cash outflow exceeding $76 million for the first nine months of the year. The competitive landscape is also intensifying, with significant competitors like Nuance Communications and Cerence increasing pressure in the voice and agentic AI markets.
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