SoundHound AI (SOUN) investor relations material

Executive summary

• Achieved record year-to-date revenue of $114 million, up 127% year-over-year, and Q3 revenue of $42 million, up 68% year-over-year, with strong growth across diversified industries and customers.

• Raised full-year 2025 revenue outlook to $165–$180 million, citing strong enterprise AI adoption and diversified industry presence.

• Expanded presence in key verticals through new strategic partnerships, product innovations, and updates to the Agentic+ framework.

• Celebrated 20th anniversary, highlighting two decades of innovation and successful commercialization of voice and conversational AI.

Financial highlights

• Q3 GAAP gross margin was 43% (42.6%); non-GAAP gross margin was 59% (59.3%), reflecting efficiency gains from acquisition integration and in-house models.

• R&D expenses rose 17% year-over-year to $22.8 million; sales and marketing up 96% to $16.4 million; G&A up 43% to $24.3 million, with $5 million in one-time M&A costs.

• Adjusted EBITDA loss was $14.5 million; non-GAAP net loss was $13 million ($0.03/share); GAAP net loss was $109.3 million ($0.27/share), impacted by a $66 million non-cash contingent liability adjustment.

• Ended Q3 with $269 million in cash and no debt.

Outlook and guidance

• Expects Q4 adjusted EBITDA profitability at the high end of revenue guidance; near break-even profitability targeted for 2026.

• Full-year 2025 revenue guidance raised to $165–$180 million.

• Anticipates $20 million in annual run-rate acquisition cost synergies to be realized in 2026.

• Plans to continue aggressive investment in innovation and customer expansion, leveraging strong financial position.