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.

• Closed a record number of over 100 customer and enterprise deals in Q4, spanning automotive, telecom, retail, healthcare, financial services, insurance, government, education, hospitality, and telecommunications.

• Expanded partnerships and renewals with major global brands, including automotive OEMs in Japan, Korea, Italy, China, the U.S., and large telcos and consumer brands.

• Demonstrated strong adoption of agentic AI platform, driving higher containment rates and customer automation, with significant wins in automotive and voice commerce.

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; non-GAAP net loss was $7.3 million.

• Q4 GAAP net income of $40.1 million and EPS of $0.10, positively impacted by a non-cash change in fair value of contingent liabilities.

• Ended Q4 with $248 million in cash and equivalents and no debt.

Outlook and guidance

• 2026 revenue guidance set at $225 million–$260 million, reflecting continued strong growth.

• Expects revenue ramp through the year due to seasonality and deal timing, with improving recurring revenue mix.

• Long-term targets include 70%+ gross margins and 30%+ EBIT margins; entering a break-even phase with progressive improvements.

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