• Revenue climbed 68% YoY to a record $42.05 million, with the growth decelerating from the 217% pace seen in the previous quarter.
• The company raised its full-year outlook.
• It flagged“enormous potential in the near and long-term horizon.”

Conversational artificial intelligence (AI) technology company SoundHound AI, Inc.'s (SOUN) stock edged up in Thursday's extended session after the company reported strong quarterly results, riding on the rising enterprise AI adoption. The retail community on the Stocktwits platform took a positive view of SoundHound stock following the earnings release.

SoundHound Q3 Earnings Snapshot

While acknowledging that enterprise AI adoption is booming globally, CEO and co-founder Keyvan Mohajer said,“SoundHound is strengthening its leading position with deployments in millions of endpoints across highly diversified industries and customers.”

The Santa Clara, California-based company's adjusted loss per share for the fiscal year 2025 third quarter narrowed slightly to $0.03 from a loss of $0.04 per share a year ago. The Fiscal consensus estimate called for a wider loss of $0.09 per share. 

Revenue climbed 68% year over year (YoY) to a record $42.05 million, with the growth decelerating from the 217% pace seen in the previous quarter. The topline, however, exceeded the $40.48 million consensus.

CFO Nitesh Sharan said, "We continue to deliver high growth with a diverse customer base, expanding product suite, and a balance sheet that enables us to stay on the offense.”

SoundHound's Outlook

Mohajer flagged“enormous potential in the near and long-term horizon” and said the company is positioning its business to take full advantage. The company raised its full-year revenue guidance to $165 million to $180 million, from $160 million to $178 million, ahead of the $166.03 million consensus.

On the earnings call, CFO Sharan said,“Our early expectations for 2026 are to continue delivering high growth, commensurate with levels we have been compounding the past several years,” according to a transcript provided by Investing. “We expect to do so with near break-even profitability levels because we want to reinvest when we foresee outsized returns.”

Retail Optimism On SoundHound Abounds

Following the earnings, retail sentiment among Stocktwits users improved to 'extremely high' as of late Thursday, up from the 'neutral' mood seen a day ago. The message volume on the stream spiked 217% over the 24 hours ending late Thursday.

“$SOUN getting to buy at these levels is a gift!” posted one bullish user.

"If anyone is looking to diversify their AI plays $SOUN got the same exact treatment after an earnings beat as PLTR. It is on the cusp of profitability, no debt, and 269 Million in cash reserves. CFO says break even for this upcoming Q, and going to be at least breakeven/profitable in 2026," said another watcher.

After rising about 800% in 2024, SoundHound's stock has faltered this year. The year-to-date performance shows a nearly 30% pullback, even as the broader market trades with solid gains despite the volatility.

The stock has traded within a 52-week range of $5.86 and $24.98, with the upper bound marking its all-time high, set on Dec. 26. The average price target for the stock is $16.56, according to Koyfin, implying over 16% upside from Thursday's closing price.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN06112025007385015968ID1110308887