SoundHound AI Inc - Class A

SoundHound AI kicked off 2025 with a record first quarter, posting revenue of $29.13 million — a 151% year-over-year surge — as the voice AI company continued to diversify its customer base to the point where no single client represented more than 10% of sales. The headline GAAP numbers looked extraordinary on the surface, but the apparent profit was almost entirely a mirage: a $176.10 million non-cash gain from the mark-to-market revaluation of contingent acquisition liabilities — tied to SoundHound's falling stock price during the quarter — inflated GAAP results beyond recognition. Strip that away, and the non-GAAP loss per share came to $0.06, with a non-GAAP net loss of $22.33 million, underscoring that the company remains deep in investment mode. Gross margins also compressed meaningfully, with non-GAAP gross margin falling to 50.8% from 65.5% a year ago. Still, management reaffirmed full-year 2025 revenue guidance of $157 million to $177 million, pointing to an expanding pipeline and growing cross-sell opportunities from its acquisitions as reasons for confidence heading into the rest of the year.