Summary
SoundHound AI closed fiscal 2025 with fourth quarter revenue of $55.1 million, up 59% from the prior-year quarter. Full-year revenue reached $168.9 million, up 99%. The company said acquisitions contributed to the annual increase in service subscription revenue. Management also reported a record number of enterprise deals in the fourth quarter. The CEO described the quarter as a period when businesses sought AI natives amid disruption of legacy software and services.
The quarter's operational wins were broad. In automotive, SoundHound signed a new Japanese OEM with a seven-digit unit commitment and a new Korean OEM with a global footprint. An iconic Italian high-performance sports car manufacturer chose SoundHound to replace its incumbent native voice assistant. SoundHound expanded with Stellantis brands across Europe, Asia, and Latin America, and added Ultraviolette and Iveco. One of the largest American automobile manufacturers signed a multi-year renewal for enterprise AI solutions. In voice commerce, it confirmed its first major global automaker rollout and said four additional car brands are at various stages of development. A global smart TV manufacturer signed on for on-screen voice ordering, and Parkopedia and OpenTable joined the ecosystem. Restaurant wins included top 25 chains, Panda Express, Casey's, IHOP (over 1,800 locations), and Jersey Mike's (over 3,500 locations). Retail, financial services, healthcare, insurance, government, hospitality, and telecommunications also produced named customers. A global athletic footwear and apparel supplier renewed its corporate contract and expanded into Poland, Turkey, Greece, and Portugal. A nonprofit with over 2,500 fitness locations and another with over 3,200 retail thrift stores signed on for AI call management. BNP Paribas and a large American multinational payment card services corporation were among financial services wins. This deal activity supports the revenue growth story, but it also raises execution and integration demands.
The GAAP profit lines look dramatic because of a non-cash item. Fourth quarter GAAP operating income was $42.6 million, swinging to a profit from a loss a year earlier, and GAAP net income was $40.1 million, also swinging to a profit from a loss a year earlier. Operating margin was 77.3%, compared with a negative margin a year earlier. Full-year GAAP operating loss narrowed to $23.3 million, and full-year GAAP net loss narrowed to $14.0 million. Full-year diluted EPS was a loss of $0.28, narrowing from a loss a year earlier. Those results include a large gain from remeasuring contingent acquisition liabilities, which the company marks to market each quarter based on its stock price and earnout assumptions. Non-GAAP measures exclude that non-operating, non-cash impact. On a non-GAAP basis, fourth quarter net loss was $7.3 million and adjusted EBITDA loss was $7.4 million. For the full year, non-GAAP net loss was $53.9 million and adjusted EBITDA loss was $58.4 million. Non-GAAP gross margin was 60.5% in the fourth quarter and 58.0% for the full year. The underlying business still loses money.
Cash generation remains the main pressure point. Operating cash flow was negative $21.9 million in the fourth quarter and negative $98.2 million for the full year, though both improved from the prior-year periods. Capital expenditures were $0.4 million in the quarter and $0.9 million for the year. Deferred revenue, current portion, was $24.0 million, up 0.7% from the prior-year quarter. Remaining performance obligations were $79.5 million, down 4.6% from the prior-year quarter. The company reported no debt. The company issued a full-year 2026 revenue outlook that points to another year of strong growth. That outlook depends on converting the record deal pipeline into revenue while integrating SYNQ3, Amelia, and Interactions. The contingent earnout structure adds share issuance and cash payment risk. Seasonality is another factor. Management said that in the past about 40% of revenue came in the first half and 60% in the second half. The company had remaining capacity to sell up to an additional $48.5 million of common stock under its Second Equity Distribution Agreement. The Interactions purchase accounting is not yet complete, so the final allocation among purchase consideration, intangible assets, net assets acquired, and goodwill may change. The company remains exposed to long enterprise sales cycles and cash burn.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $55.1M | $42.0M | +30.9% | $34.5M | +59.4% |
| Gross profit | $26.4M | $17.9M | +47.0% | $13.8M | +91.2% |
| Gross margin | 47.9% | 42.6% | +5.2 pp | 39.9% | +8.0 pp |
| Research & development | $24.8M | $22.8M | +8.7% | $20.4M | +21.8% |
| Sales & marketing | $17.4M | $16.4M | +6.3% | $9.6M | +82.1% |
| General & administrative | $21.2M | $24.3M | -12.9% | $16.4M | +29.0% |
| Total operating expenses | $12.5M | $157.9M | -92.1% | $291.6M | -95.7% |
| Operating income (loss) | $42.6M | -$115.9M | +136.7% | -$257.1M | +116.6% |
| Operating margin | 77.3% | -275.6% | +352.9 pp | -744.2% | +821.5 pp |
| Net income (loss) | $40.1M | -$109.3M | +136.7% | -$258.6M | +115.5% |
| Net margin | 72.8% | -259.9% | +332.6 pp | -748.6% | +821.4 pp |
| Diluted EPS | $0.10 | -$0.27 | +$0.37 | -$0.76 | +$0.86 |
Risks
The company reported YTD net loss of $14.0 million for FY2025 even as current quarter net income was $40.1 million, and MD&A attributes recent net income periods primarily to non-cash changes in fair value of contingent acquisition liabilities rather than operations. This makes reported profitability volatile and dependent on mark-to-market gains.
Operating cash flow was negative $98.2 million for FY2025 YTD and negative $21.9 million in FY2025 Q4. Risk factors note the company may require additional capital and could face dilution if it raises funds, after raising $201.5 million gross under its ATM program in 2025.
FY2025 revenue growth of 99.4% YTD was driven in part by SYNQ3, Amelia and Interactions acquisitions, and MD&A notes significant integration costs. Risk factors warn the acquisitions may not be accretive and may subject the company to integration, accounting and customer-retention risks.
Although no customer exceeded 10% of FY2025 revenue, unbilled receivables from five customers collectively totaled 83% of the consolidated unbilled receivables balance at December 31, 2025, concentrating collection risk in a small group.
Risk factors state the company has identified material weaknesses in internal control over financial reporting and has previously filed late or sought extensions for periodic reports, including its Form 10-K for fiscal years 2023 and 2024. MD&A says G&A expenses are expected to increase in the short term as the company invests in its control environment.
The Voice AI market is characterized by intense competition from large technology companies and specialized vendors, and risk factors state competitors may incorporate AI into products more quickly or successfully. This could reduce pricing, volume or demand for SoundHound offerings.
MD&A reports gross margin decreased to 42% in 2025 from 49% in 2024, mainly due to amortization of acquired intangible assets from the Amelia and Interactions acquisitions. Risk factors also cite pricing pressure from large OEM customers.
The EU AI Act entered into force August 1, 2024, becomes fully applicable August 2, 2026, with some provisions applying from February 2025, and risk factors note it may impose additional costs, liability and compliance obligations on AI providers. U.S. state and local AI rules may also require business practice changes.
Risk factors state generative AI can produce false or hallucinatory output, and employee or vendor use of third-party AI tools could disclose confidential information or undermine IP rights. Content created with generative AI may also lack copyright protection.
Largest customers are in automotive, where production and sales are highly cyclical and affected by interest rates, tariffs, consumer confidence and labor relations. Adverse conditions in the Voice AI market or global economy could reduce demand.
Risk factors state skilled technical personnel are in high demand, and stock market volatility or new regulations could reduce the value of equity awards, forcing more cash compensation or harming retention.
Revenue from customers outside the United States was approximately 36% in 2025, 45% in 2024 and 85% in 2023, exposing results to foreign currency, tariffs, trade restrictions and regulatory changes.
The dual class structure gives Class B holders ten votes per share, and founders held approximately 47% of voting power as of December 31, 2025, limiting Class A stockholders' influence over corporate matters.
As of December 31, 2025, the company had $892.9 million of U.S. federal and $379.7 million of state net operating loss carryforwards, with some expiring starting in 2026 and subject to Section 382 limitations.
SaaS KPIs
All quarters →Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from SOUNDHOUND AI, INC.'s SEC filings for Q4 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.