Live: SoundHound AI (SOUN) Earnings Coverage
Quick Read
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SoundHound AI (SOUN) needs Q4 revenue between $80M and $95M to validate raised full-year guidance of $165M to $180M.
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SoundHound’s gross margin compressed to 42.6% in Q3 from 48.6% a year earlier as acquisition integrations added costs.
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Non-cash earnout charges of $66M in Q3 inflated GAAP losses while short interest sits above 32% of float.
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What To Look For in the Earnings Call
The SoundHound AI Q4 earnings call begins at 5:00 PM ET tonight. Listen live at investors.soundhound.com.
As covered earlier, results are expected to be reported following the close of trading. The call is where management fills in the gaps the press release left open.
Top Questions to Watch For
- Margin trajectory: GAAP gross margin compressed to 42.6% in Q3, down from 48.6% the prior year. Can management reverse that trend in Q4 and into 2026?
- Path to profitability: With adjusted EBITDA still negative and cash at $269M as of Q3, when does the cash burn stabilize?
- Voice commerce OEM launches: Which partners go live in 2026 and on what timeline?
- Amelia and Interactions integration: Any quantifiable revenue contribution or synergy targets?
- FY2026 guidance: What revenue outlook will management provide for the coming fiscal year?
Prediction Markets
With the headline numbers and guidance already covered in earlier updates, the prediction market reaction offers a telling footnote. Heading into tonight’s report, Polymarket participants had priced in a 99.95% probability of a miss, defining a miss as non-GAAP EPS at or below -$0.02. SoundHound came in exactly at -$0.02, landing precisely on the threshold. The market resolved as a miss by the narrowest possible margin.
Meanwhile, SOUN shares have recovered from their initial 2% dip. As noted in our short interest update, the stock was trading at $8.98 as of market close, up 14.69% over the prior week heading into results. Much of the earnings optimism appears to have been priced in before the report dropped.
Short Interest
With Q4 results now out, short sellers remain a meaningful factor in SOUN’s volatility profile heading into any post-earnings reaction.
SoundHound’s float stands at approximately 379.2 million shares, with institutions holding roughly 47%. No current short interest data is available in our dataset, limiting precise days-to-cover or squeeze calculations. However, SOUN’s beta of 2.88 signals that the stock moves sharply relative to the broader market, amplifying both upside and downside pressure around catalysts like earnings.
The stock is currently trading at $8.98, up 5.4% on the day, well below its 52-week high of $22.17. That depressed price level, combined with high beta, means any short covering could accelerate moves quickly. The absence of hard short interest data limits the ability to calculate precise squeeze metrics or days-to-cover figures for this update.
Guidance Update
FY2026 Revenue Outlook: $225M–$260M
Growth continues but implies measured acceleration rather than step-change expansion.
Adjusted EBITDA remains negative but improving.
| Metric | Q4 FY25 | YoY |
|---|---|---|
| Revenue | $55.1M | +59% |
| GAAP Gross Margin | 47.9% | +8pp |
| Non-GAAP Gross Margin | 60.5% | +8pp |
| Cash | $248M | No debt |
Management Commentary
CEO Keyvan Mohajer emphasized:
“Closed a record number of enterprise deals in Q4… extending our lead as the agentic AI partner of choice.”
The company is positioning itself as a beneficiary of AI-driven disruption of legacy software vendors. The messaging focused heavily on enterprise deal velocity and multi-vertical adoption rather than near-term margin inflection.
SOUN Earnings Are In
Shares dropped 2% immediately.
| Metric | Actual | Pre-Earnings Expectation | Beat / Miss |
|---|---|---|---|
| Q4 Revenue | $55.1M | ~$54.0M | ✅ Beat |
| Q4 Non-GAAP EPS | –$0.02 | –$0.02 | ⚖️ In-Line |
| FY25 Revenue | $168.9M | Guide midpoint ~$167.9M | ✅ Beat |
Revenue came in slightly ahead of consensus, and EPS matched expectations. The stock being down modestly reflects that the quarter met — but did not materially exceed — what was already anticipated.
The key variable was Q4 revenue acceleration. At $55.1M, SoundHound delivered growth of 59% YoY, but the sequential step-up was moderate rather than explosive.
SoundHound AI (NASDAQ: SOUN) reports Q4 and full-year 2025 results today after the close. This is the quarter where the company either validates its aggressive growth story or forces investors to reckon with a widening gap between narrative and execution.
A Quarter That Needs to Deliver
Last quarter, SoundHound posted revenue of $42.05 million, up 68% year-over-year, and beat the non-GAAP EPS consensus by a wide margin, coming in at -$0.03 versus the -$0.09 estimate. Management followed that with a raised full-year revenue guide of $165 to $180 million.
Here is the math that matters: Q2 and Q3 combined for roughly $84.7 million in revenue. Hitting the full-year guidance midpoint requires Q4 to come in somewhere between $80 and $95 million, a meaningful sequential step up. That is not impossible given the deal pipeline, but it is the central question heading in.
The stock is trading at $8.96, down about 10% year-to-date and well off the 52-week high of $22.17. Prediction markets currently put the probability of an earnings beat at 74%, though that reflects EPS, not revenue, which is the harder bar to clear this time.
| Metric | Q4 2025 | Full-Year 2025 Guidance |
|---|---|---|
| Revenue | $53.98M | $167.85M |
| Non-GAAP EPS | -$0.02 | -$0.14 |
5 Things to Watch
1. Does Q4 Revenue Actually Hit the Guidance Range?
This is the headline number. Management raised guidance twice in 2025, which built credibility. Missing the range now would undo that. I will be watching not just whether they hit $165 million for the year, but whether they can show Q4 revenue accelerating sequentially. The CFO signaled Q4 adjusted EBITDA could reach profitability at the high end of the revenue range, which makes the top-line print even more consequential.
2. Gross Margin Direction
This one gets less attention than it deserves. GAAP gross margin compressed to 42.6% in Q3, down from 48.6% a year earlier. Non-GAAP held steadier at 59.3%, but even that has drifted lower as acquisition integrations add cost. You should watch whether the Interactions integration is starting to deliver the $20 million in annualized cost synergies the CFO referenced. Margin expansion here would be a genuine positive signal, not just a beat-the-number moment.
3. The GAAP Earnout Noise (and What It Hides)
SoundHound’s GAAP losses have been dramatically inflated by non-cash mark-to-market charges tied to contingent acquisition liabilities. Q3 included a $66 million charge of this type; Q2 carried a $31 million charge. These are real accounting entries, but they move with the stock price, not the business. Watch for the size of any Q4 earnout charge, and more importantly, watch whether management provides clearer guidance on when these charges roll off. The gap between GAAP and non-GAAP results is creating confusion and feeding short interest, which sits at over 32% of float.
4. Voice Commerce and 2026 Monetization Timeline
This is the growth story beyond the current revenue base. Management spent significant time on the Q3 call describing Voice Commerce progress, including completed end-to-end transactions from vehicles and near-complete integrations with two major tech platforms. Four OEMs were described as showing strong interest, with one poised to be first to market alongside a large quick-service restaurant chain. I want to hear a tighter timeline. Vague 2026 language is not enough at this valuation. Specific partner announcements or a go-live date would move the needle.
5. Amelia Migration Progress and Enterprise Stickiness
The Amelia 7 platform is SoundHound’s enterprise anchor. Management targeted 75% of customers migrated to Amelia 7 by mid-2026, with an early adopter cohort of 15 customers already progressing well. What I will be watching is whether the migration is translating into expanded contract values and outcome-based pricing adoption. Early Agentic AI customers are reportedly seeing up to a tenfold improvement in containment rates and 25% higher Net Promoter Scores. If those metrics are showing up in renewal and upsell activity, that is the kind of enterprise stickiness that justifies a premium multiple.
The Proof Point Quarter
SoundHound has built a genuinely interesting business across automotive, restaurants, financial services, healthcare, and IoT, with $269 million in cash and no debt giving it room to execute. Analysts carry an average price target of $16.31 against a current price near $9, implying significant upside if the story holds. But the stock has been cut nearly in half from its highs, short interest is elevated, and insiders have been net sellers. This quarter is where SoundHound has to show that the revenue acceleration is real, that margins are stabilizing, and that Voice Commerce is closer to launch than to concept. The guidance raise is only credible if Q4 delivers the numbers to back it up.
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