SoundHound AI (SOUN) Rises on Sales Surge but Can Revenue Growth Offset Profitability Setbacks?

• SoundHound AI, Inc. reported third-quarter 2025 results showing a 68% year-over-year revenue increase to US$42.05 million and raised its full-year revenue outlook to US$165 million–US$180 million.
• Despite the sales surge and upgraded guidance, the company remains unprofitable and continues to face execution and profitability challenges in key segments such as automotive.
• We'll explore how management's decision to raise revenue guidance after the strong quarter could impact SoundHound AI's long-term investment outlook.

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SoundHound AI Investment Narrative Recap

Owning SoundHound AI stock comes down to believing in the long-term acceleration of voice AI adoption across multiple industries and the company’s ability to turn rapid revenue growth into sustainable profits. The recent earnings report, showing a 68% year-over-year revenue jump and raised full-year guidance, strengthens confidence around growth catalysts but does not materially reduce the immediate risk: persistent unprofitability and large net losses continue to weigh on investor sentiment.

Among recent developments, SoundHound’s October partnership with Telarus stands out as highly relevant. This alliance has the potential to accelerate growth by expanding SoundHound’s reach for voice-enabled solutions, and its timing alongside stronger sales guidance suggests growing commercial traction, though the core challenge of achieving profit remains front and center.

Yet, against these growth signals, investors should be aware that...

Read the full narrative on SoundHound AI (it's free!)

SoundHound AI's narrative projects $308.5 million in revenue and $40.4 million in earnings by 2028. This requires 32.9% yearly revenue growth and a $265.8 million increase in earnings from -$225.4 million today.

Uncover how SoundHound AI's forecasts yield a $16.94 fair value, a 47% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community submitted 14 separate fair value estimates for SoundHound AI, ranging from US$3.41 to US$28.58 per share. While opinions vary widely, persistent profitability concerns remain a key topic that could shape performance going forward, so consider the full spectrum of views as you assess your own position.

Explore 14 other fair value estimates on SoundHound AI - why the stock might be worth less than half the current price!

Build Your Own SoundHound AI Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SoundHound AI research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free SoundHound AI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SoundHound AI's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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