SoundHound AI (SOUN) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $169 million in 2025, nearly doubling year-over-year, with Q4 revenue of $55.1 million, up 59% year-over-year, and over 100 customer deals signed across diverse industries including automotive, telecom, retail, healthcare, and more.

• Expanded global footprint with major wins in Japan, Korea, Italy, China, Vietnam, and the U.S., including multi-year, multi-million unit commitments and renewals with price increases and upsell opportunities.

• Demonstrated broad-based customer adoption and deepening market differentiation, with significant wins in automotive, voice commerce, and enterprise AI.

• Agentic AI platform and voice commerce solutions drove customer adoption, with strong momentum in automotive, restaurants, and enterprise AI.

• Demonstrated measurable customer outcomes, such as increased automation, higher containment rates, and cost reductions across industries.

Financial highlights

• Q4 revenue reached $55.1 million, up 59% year-over-year; full-year revenue was $169 million, up 99% from the prior year.

• Q4 GAAP gross margin was 48%; non-GAAP gross margin was 61%, reflecting efficiency gains and portfolio optimization.

• Adjusted EBITDA loss improved 56% year-over-year to $7.4 million; GAAP net income was $40.1 million, positively impacted by a non-cash change in fair value of contingent liabilities.

• Non-GAAP net loss was $7.3 million; cash and equivalents at quarter end were $248 million with no debt.

• Full year GAAP net loss was $14 million; non-GAAP net loss was $53.9 million; full year adjusted EBITDA loss was $58.4 million.

Outlook and guidance

• 2026 revenue expected in the range of $225 million–$260 million, with continued strong growth and improved seasonality as recurring business expands.

• Long-term targets include 70%+ gross margins and 30%+ EBIT margins; break-even phase expected to be progressive.

• Additional $20 million in annualized acquisition cost synergies expected to benefit future quarters.