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That wraps up our initial coverage of SoundHound’s Q1 results. Thank you for stopping by!
Check out management’s earnings call at 5 PM EST for more updates.
$SOUN is down roughly 13% after earnings despite posting another strong growth quarter.
Revenue rose 52% YoY to $44.2 million and topped expectations, but EPS missed estimates, and management only reaffirmed full-year guidance rather than raising it.
That likely disappointed investors who had started pricing in accelerating AI demand and stronger forward momentum. In the current market, high-growth AI software names are increasingly being judged on profitability trends and upside guidance, not just revenue growth alone.
SoundHound CEO Keyvan Mohajer: “SoundHound started the year strong with our top line growing 52%. Excluding the impact of all acquisitions, revenue was up 88% in our core automotive and IoT AI vertical, highlighting incredible demand across all pillars of our business.”
SoundHound’s underlying AI voice platform is growing significantly faster than overall revenue, driven by continued momentum in automotive and IoT deployments.
SoundHound just reported earnings. Here are the key numbers:
Quick read:
Revenue rose 52% year over year and beat expectations, showing continued demand for the company’s voice AI platform.
Margins and profitability remain under pressure, with EPS missing estimates and revenue falling 20% sequentially from last quarter.
Shares are initially down 4% following the report.
With shares of SoundHound (NASDAQ:SOUN) at $9.54 and up 21.53% on the week, the bull/bear debate is sharp.
Wall Street is laser-focused on whether SoundHound (NASDAQ:SOUN) lifts its $225 million to $260 million FY2026 revenue range. Management has a clear beat-and-raise rhythm with the company raising FY2025 guidance in Q2 and again in Q3, finishing at $168.92M, nearly 99.45% growth.
Bullish signals: Guidance above $260M, signals of adjusted EBITDA breakeven by year-end, sustaining non-GAAP gross margin above 60%, and announcing a tier-1 OEM win.
Bearish signals: A simple guidance reaffirmation, slipping margins, or commentary on elongated enterprise sales cycles. Investors also want clarity on the -$98.2M operating cash burn against the $248.49M cash pile.
With Polymarket pricing a 58.5% probability of a beat and the stock up 39.85% in a month, only reaffirming guidance could risk deflating the stock’s recent rally.
With SoundHound AI (NASDAQ:SOUN) shares up 39.85% over the past month and Polymarket pricing a 58.5% probability of an earnings beat, here is what to track on tonight’s 5:00 PM ET call.
The stock has already priced in good news this month. For the rally to hold, management will likely need to reaffirm or raise the $225 million to $260 million revenue range and show that the path to lower cash burn is real.
Anything softer, and the stock could see a sell-off like the one that followed Q4 results.
Live coverage has ended. The full story is below.
Investors are watching SoundHound AI (NASDAQ: SOUN) ahead of first-quarter results expected today, May 7, at about 4:05 PM EST. After a hot run into the earnings report, the results need to validate the enterprise AI deal flow story.
Shares are up 13.4% over the past week and 34.81% over the past month, closing at $9.14 on May 5. That run reverses an ugly stretch after Q4. The stock fell 20.12% in the 30 days following the February 26 release, even though SoundHound beat on both lines.
Q4 2025 set a high bar. Revenue hit $55.06 million, up 59.39% year over year, and EPS of -$0.02 beat the -$0.0983 estimate by 79.65%. Non-GAAP gross margin expanded to 60.5% from 52.1%. CEO Keyvan Mohajer said, “Our results speak for themselves. All key profit metrics were up, and in the last quarter, we closed a record number of customer deals.” Management guided full-year 2026 revenue to $225 million to $260 million.
| Metric | Prior Year Comparable | FY2026 Guide |
|---|---|---|
| Q1 Revenue | $29.13M (Q1 25) | n/a |
| Q1 EPS | -$0.06 (Q1 25) | n/a |
| Full Year Revenue | $168.92M (FY25) | $225M to $260M |
I will be watching three things. First, deal with momentum. Q4 closed wins with a Korean OEM, an Italian sports car brand, BNP Paribas, Panda Express, IHOP, and Jersey Mike’s.
Second, margins. The non-GAAP gross margin trajectory is the cleanest tell on whether scale is finally translating to leverage. The contrast with GAAP gross margin sliding to 42.4% from 48.9% in FY24 is the bear case in one line.
Third, cash. SoundHound burned about $98.2 million in operating cash flow last year and carries $248.49 million in cash. Investors will look at whether the burn is narrowing alongside the EBITDA loss, which improved to -$7.43 million from -$16.79 million.
Sentiment heading in is mixed but tilting positive. Polymarket traders price a 59% probability of a beat, and the sell side shows six buys, two holds, and a $14.62 price target. SoundHound has logged six consecutive beats, so a clean beat is the base case, not the upside.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 250 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
He specializes in breaking down complex companies into clear, actionable insights for everyday investors, with a focus on fundamentals-driven research.
His work has also been featured on platforms including Seeking Alpha and Sure Dividend.
Outside of work, Thomas enjoys weight lifting and soccer.
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