SANTA CLARA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and conversational AI, today reported its financial results for the third quarter 2025.

"Enterprise AI adoption is booming globally, and SoundHound is strengthening its leading position with deployments in millions of end points across highly diversified industries and customers,' said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. "We see enormous potential in the near and long-term horizon, and we're positioning our business to take full advantage."

Third Quarter Financial Highlights

   -- Reported revenue was $42.0 million, an increase of 68% year-over-year 
 
   -- GAAP gross margin was 42.6%; non-GAAP gross margin was 59.3% 
 
   -- GAAP net loss was ($109.3) million; non-GAAP net loss was ($13.0) million 
 
   -- Adjusted EBITDA was a loss of ($14.5) million 
 
   -- GAAP earnings per share was a loss of ($0.27); non-GAAP earnings per 
      share was a loss of ($0.03) 
 
   -- GAAP results include a loss from the calculated fair value of contingent 
      acquisition liabilities where future earnout shares are marked-to-market 
      on a quarterly basis based on the company's stock price. Non-GAAP 
      measures exclude this non-operating/non-cash impact. 

"Q3 was another strong mile marker on our journey to transform human-computer interfaces through natural language conversations and voice AI that makes technology more seamless and accessible," said Nitesh Sharan, CFO of SoundHound AI. "We continue to deliver high growth with a diverse customer base, expanding product suite, and a balance sheet that enables us to stay on the offense."

Business Highlights

   -- Agentic AI: Amelia 7.3 update incorporates Speech-to-Meaning$(R)$ to 
      deliver industry-leading latency and even more natural voice experiences 
      for customers. This further enhances the platform's Agentic+ framework -- 
      a unique and flexible combination of generative AI, multi-agent 
      autonomous orchestration, and deterministic models. 
 
   -- Voice Commerce: In-vehicle monetization now includes restaurant 
      reservations and parking payments alongside voice ordering, with global 
      OEMs engaged to launch in 2026. Tech platform giants are also poised to 
      deploy voice ordering capabilities to millions of users. 
 
   -- IoT and Robotics: Won a large deal to integrate SoundHound Chat AI into a 
      minimum commitment of double-digit millions of AI-enabled smart devices 
      developed by a large China-based company offering intelligence-based 
      interaction in hardware and software products. 
 
   -- Automotive: 
 
          -- Working with major globally renowned sports car brand to launch a 
             custom "personality" for its assistant 
 
          -- Flagship Chat AI voice technology now available in Jeep vehicles 
             across Europe 
 
          -- Expanded throughout Germany with growing EV automaker, Togg 
 
          -- Signed an Italian-based commercial vehicle company offering 
             SoundHound's voice AI technology to its wide range of fleet 
             vehicles 
 
          -- Signed deals to integrate SoundHound's advanced voice capabilities 
             with two prominent two-wheeler brands in expansive Indian market 
 
   -- Financial Services: 
 
          -- Three of the top 10 global financial services institutions bought 
             additional enterprise services, and two renewed existing contracts 
 
          -- Signed a new enterprise technology deal with a prominent 
             organization supporting credit unions throughout the United States 
 
   -- Healthcare: 
 
          -- Working with large precision medicine provider to launch a 
             pioneering inbound and outbound agentic AI solution 
 
          -- Won a deal with a U.S.-based regional hospital system to deploy 
             the Amelia platform 
 
          -- Signed a renewal with one of the leading healthcare companies for 
             wholesale medical supplies 
 
   -- Insurance: 
 
          -- French insurer, Apivia Courtage, announced that it will deploy 
             Amelia 7 to bring agentic AI to its contact centers 
 
          -- Renewed contract with a global insurance company providing 
             services to multinational corporations, individuals and families 
 
          -- Secured a further renewal with a highly regarded Mexico-based 
             automotive insurance company 
 
   -- Restaurants: 
 
          -- Signed a deal to deploy our AI ordering solutions with a 
             nationally recognized full-service restaurant chain 
 
          -- Franchise wins with Firehouse Subs, Five Guys, and McAllister's 
             Deli 
 
          -- Full deployment for our voice solutions across all MOD pizza, 
             Habit Burger, Red Lobster, and Torchy's Tacos locations, in 
             addition to existing brands Chipotle and Casey's 
 
          -- Peet's Coffee expanded further with SoundHound's category-leading 
             Employee Assist technology, which will now be used by staff in all 
             company owned locations 
 
   -- Retail and Consumer Goods: 
 
          -- Secured a net new upsell with a major multinational brand with an 
             extensive product portfolio of food, beverage, and consumer goods 
 
          -- Now working with one of the fastest growing global health clubs in 
             the United States to deploy Smart Answering 
 
          -- New deal to launch Smart Answering at a U.S.-based global 
             franchise that offers state-of-the-art training facilities for 
             elite athletes 
 
   -- IT Services: 
 
          -- Signed a leading provider of managed cybersecurity services, cloud, 
             and IT infrastructure solutions, based out of the United States 
 
          -- Renewed a multi-year contract and upsold to a dominant U.S.-based 
             internet domain registry and web hosting company 
 
   -- Energy: Two large U.S. electricity providers will soon go live with 
      SoundHound's enterprise AI solutions. 
 
   -- Telecommunications: Signed a large telecommunications provider that 
      offers  internet and TV services to residential and business customers in 
      over 20 U.S. states. 
 
   -- Channel Partners: 
 
          -- Announced a new strategic partnership with major technology 
             distributor, Telarus, to bring Amelia 7 and Autonomics to their 
             enterprise CX & EX landscape 
 
          -- Signed multi-year deal with a longstanding partner that 
             specializes in CRM, AI, and workforce engagement management 
 
          -- Entered into a reseller agreement with VOXai, a company that 
             offers purpose-driven customer experience management solutions 
 
          -- Forged strategic partnerships with two of the leading software and 
             services providers for full-suite studio, gym, health, and 
             wellness club management 
 
   -- Other Highlights: 
 
          -- Launched Vision AI to bring real-time visual understanding to 
             SoundHound's conversational AI platform 
 
          -- Acquired Interactions, a pioneer in AI for customer service and 
             workflow orchestration, to strengthen leadership in Agentic AI 
 
          -- Named a leader in IDC MarketScape for worldwide general-purpose 
             conversational AI platforms 2025 
 
          -- Named a leader in Everest Group's conversational AI and AI agents 
             in customer experience management Products PEAK Matrix(R) 
             Assessment 2025 

Third Quarter 2025 Financial Measures(1)

 
  Three Months 
  Ended 
  (thousands, 
  unless 
  otherwise 
  noted)           September 30, 2025    September 30, 2024         Change 
                ---------------------  ---------------------  ------------ 
  Revenues        $            42,049       $         25,094           68% 
  GAAP gross 
   profit         $            17,921       $         12,193           47% 
  GAAP gross margin             42.6%                  48.6%       (6.0)pp 
  Non-GAAP 
   gross 
   profit         $            24,917       $         14,983           66% 
  Non-GAAP gross 
   margin                       59.3%                  59.7%       (0.4)pp 
  GAAP 
   operating 
   loss(2)        $         (115,891)       $       (33,767)        (243)% 
  Non-GAAP 
   adjusted 
   EBITDA         $          (14,546)       $       (15,869)            8% 
  GAAP net 
   loss(2)        $         (109,271)       $       (21,751)        (402)% 
  Non-GAAP net 
   loss           $          (13,022)       $       (14,958)           13% 
  GAAP net 
   loss per 
   share(2)       $            (0.27)       $         (0.06)    $   (0.21) 
  Non-GAAP net 
   loss per 
   share          $            (0.03)       $         (0.04)    $     0.01 
 
 

1) Please see tables below for a reconciliation from GAAP to non-GAAP.

2) GAAP-only operating loss includes a significant impact from the calculated fair value of contingent acquisition liabilities where future earn-out shares are marked-to-market on a quarterly basis, and with the increase in stock price compared to the previous quarter the loss associated with this item was $66 million in the third quarter. Non-GAAP measures exclude this non-operating/non-cash impact.

Liquidity and Cash Flows

The company's total cash and cash equivalents was $269 million at September 30, 2025, with no debt.

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November 06, 2025 16:04 ET (21:04 GMT)