SoundHound AI Inc. reported a second-quarter 2025 adjusted loss of $0.03 per share, outperforming the Zacks Consensus Estimate of a loss of $0.06 and an improvement from a loss of $0.11 per share a year earlier. The company achieved quarterly revenues of $42.7 million, a 217% year-over-year increase, exceeding the consensus estimate of $33 million. The earnings report was released after market close on August 7, and the stock rose 26.4% the following day, although it is still down 19.8% year-to-date compared to the S&P 500’s 8.5% gain.
SoundHound raised its 2025 revenue forecast to between $160 million and $178 million, indicating approximately 99.5% year-over-year growth. This adjustment follows the company’s success in expanding its AI technologies across various sectors, notably automotive, where it estimates a $35 billion annual opportunity in in-car voice commerce. For the third quarter, revenue is expected to hit $44.69 million, representing a 78.1% year-over-year increase.
The Zacks Consensus Estimate for full-year 2025 revenue stands at $167.3 million, a projected 97.5% increase year-over-year, with an EPS estimate of -$0.16, showing an 84.6% improvement. Despite current challenges, the company’s robust technological initiatives and strong client base, including major automotive brands, position it for growth.
