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 in the quarter.

• Expanded across multiple industries and geographies, including major wins in automotive, telecommunications, retail, healthcare, financial services, insurance, government, education, hospitality, and voice commerce.

• Positioned as a leader in agentic and conversational AI, leveraging proprietary technology and data to deliver scalable, multi-modal solutions.

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

• Customers benefit from rapid deployment, improved automation, and measurable business outcomes, driving strong adoption and upsell opportunities.

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 ongoing efficiency improvements.

• Adjusted EBITDA loss was $7.4 million, a 56% improvement year-over-year.

• Q4 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.

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

Outlook and guidance

• 2026 revenue expected in the range of $225 million to $260 million, with continued strong growth anticipated.

• Revenue ramp expected through the year due to seasonality and deal timing; recurring business mix expected to increase.

• 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 be realized in future quarters.