Live: Will Q2 Earnings Fuel SoundHound (SOUN) Next Rally?
Key Points
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Q2 revenue expected to double YoY, but losses persist as company invests heavily in AI infrastructure.
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Voice AI footprint hits 13,000+ restaurant locations, with ~10M quarterly interactions powering monetization upside.
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Enterprise platform gains traction with Amelia 7.0, as autonomous task completion becomes a new differentiator.
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Final Reactions
| Prior FY25 Estimate | Post-Q2 Implied | |
|---|---|---|
| FY25 Revenue | $159.6M | $160M–$178M |
| FY25 EPS (Non-GAAP) | –$0.16 | Likely better |
Sentiment Summary
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Revenue beat + guidance raise drove the stock higher.
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Cross-vertical expansion confirms enterprise repeatability.
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Non-GAAP losses narrowing; adjusted EPS improved YoY.
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Early-stage AI scale-up story with rising operating leverage.
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Execution appears strong — Amelia 7 rollout is key unlock.
What Changed This Quarter
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Revenue hit all-time high; full-year outlook raised.
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GAAP net loss widened to –$74.7M due to $31M non-cash earnout liability.
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15 enterprise customers migrated to Amelia 7 (agentic AI platform).
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Restaurant segment surged, with new wins (Applebee’s, Red Lobster), upsells (Red Robin), and expansions (Chipotle, Firehouse Subs).
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Auto vertical expanding in China, India, and NA via large OEMs.
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Financial services traction strong — 4 of top 10 global banks expanded use.
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Signed large healthcare names, expanding TAM.
Key Operating Highlights
SOUN is maintaining margin stability despite rapid growth and aggressive rollout — especially impressive given the ramp in restaurant and auto deployments.
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|---|---|---|---|
| Revenue | $42.7M | $13.5M | +217% |
| GAAP Gross Margin | 39.0% | 63.0% | –2400 bps |
| Non-GAAP Gross Margin | 58.4% | 66.5% | –810 bps |
| Non-GAAP EPS | –$0.03 | –$0.04 | ✅ Improved |
| Adjusted EBITDA | –$14.3M | –$13.8M | ⚖️ Stable |
| Cash & Equivalents | $230M | N/A | Solid Liquidity |
Guidance Update
While no EPS target was reaffirmed, the expanded revenue guide implies confidence in continued enterprise ramp and margin scaling.
| Metric | Prior FY25 Guide | New FY25 Guide | Change |
|---|---|---|---|
| Revenue | ~$159.6M | $160M–$178M | 📈 Raised |
| EBITDA or EPS Guide | Not previously quantified | Still not provided | ⚖️ Flat |
Management Commentary
“We have demonstrated a repeatable success formula. Our financial results speak for themselves…”
— Keyvan Mohajer, CEOs… we are moving with speed to capture the explosion we’re seeing in voice and conversational AI.”
— Nitesh Sharan, CFO
The tone was assertive and bullish, underscoring cross-sell traction, land-and-expand wins, and operational leverage. Leadership highlighted the maturity of the product stack and repeatability of wins.
Earnings Finally In
SOUN crushed revenue expectations with +217% YoY growth, driven by enterprise adoption across auto, restaurants, and financial services. Although the GAAP net loss widened due to a non-cash earnout liability, non-GAAP EPS beat, gross margins held steady, and guidance was raised. The +3% AH move reflects growing investor confidence that SOUN’s AI platform is scaling rapidly and profitably.
| Metric | Actual | Estimate | Beat/Miss |
|---|---|---|---|
| Revenue | $42.7M | $32.88M | ✅ Beat |
| EPS (GAAP) | –$0.19 | –$0.05 | ❌ Miss |
| EPS (Non-GAAP) | –$0.03 | –$0.05 | ✅ Beat |
| Gross Margin | 58.4% (non-GAAP) | ~58% guide | ⚖️ In Line |
How SOUN Performed After Recent Earnings
SoundHound has posted four straight EPS beats, but stock reaction has been mixed. Q3 2024 saw a sharp drawdown despite strong results, while Q2 and Q4 sparked short-term rallies. The Q1 2025 report initially drew a muted reaction but reversed strongly over the following week. The average 7-day move across the last four quarters is +4.19%, suggesting moderate upside skew despite volatility.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +16.7% | –2.07% | +20.07% | +4.14% |
| Q4 2024 | +16.7% | +13.06% | –0.21% | –6.90% |
| Q3 2024 | +42.9% | –19.31% | –16.22% | –2.06% |
| Q2 2024 | +52.9% | +13.26% | +15.12% | +14.65% |
SoundHound (Nasdaq: SOUN) will deliver Q2 2025 results after the close today. The voice AI platform is entering the print with strong year-over-year revenue momentum, underpinned by enterprise demand in automotive and smart device verticals. Yet, profitability remains distant as SoundHound continues to prioritize R&D and deployment scale.
We’ll be updating this live blog with news and analysis right after SounHound’s earnings hit the newswires. To receive updates, all you have to do is leave this page open, and updates will post automatically.
What to Expect
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Revenue: $32.88 million
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EPS (GAAP): –$0.05
Full-Year 2025:
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Revenue: $159.56 million
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EPS: –$0.16
Full-Year 2026:
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Revenue: $202.65 million
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EPS: –$0.05
Q2 revenue is expected to grow +144.3% YoY (vs. $13.46M in Q2 2024), while EPS narrows only slightly from –$0.04 last year, reflecting high reinvestment rates in AI infrastructure
Key Areas to Watch
Voice commerce flywheel building across OEM and restaurant ecosystems
Management highlighted growing momentum in its transactional voice AI platform, now covering 15+ major restaurant chains and gaining adoption with large automotive OEMs. This ecosystem effect — combining voice-enabled ordering, reservations, and payments — is expected to be a near-term monetization lever.
Agentic AI platform rollout and enterprise traction
The newly launched Amelia 7.0 platform introduces a proprietary Agentic Plus framework, enabling autonomous AI agents that can complete tasks with minimal human input. This system is already in production across multiple verticals and is seen as a differentiator in enterprise deployments.
Restaurant AI scale and expansion pace
SOUN reached 13,000+ live restaurant locations in Q1, a tenfold increase YoY, now handling ~10M interactions per quarter. With broad cuisine coverage and drive-thru traction, the company sees restaurants as a key revenue driver for 2025 and beyond.
Auto vertical evolution and royalty model
While unit softness persisted due to macro/geopolitical issues, SOUN is expanding within its 20+ OEM relationships and sees opportunity to move from cost-line vendor to revenue enabler through its embedded voice commerce platform.
Gross margin recovery path from acquisition digestion
Gross margin dipped to 37% GAAP / 51% non-GAAP due to low-margin acquired contracts. Management expects a gradual recovery to pre-acquisition levels (~70%) over the next 18–24 months through automation and product mix shift.
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