Home / Business and Economy / SoundHound AI Forecasts Doubling of Revenue by 2025 Despite 27% Stock Plunge
SoundHound AI Forecasts Doubling of Revenue by 2025 Despite 27% Stock Plunge
16 Nov
Summary
- SoundHound AI stock down 27% in 2025 despite 68% revenue growth
- Company trading at 38x sales, much higher than Nasdaq's 5.5x
- SoundHound expects revenue to more than double to $172.5M in 2025
In 2025, voice artificial intelligence (AI) solutions provider SoundHound AI (NASDAQ: SOUN) has seen its stock price decline by 27% despite delivering impressive financial results. The company's shares are currently trading at a steep 38 times sales, significantly higher than the tech-focused Nasdaq Composite index's price-to-sales ratio of 5.5.
However, SoundHound's recent quarterly performance and guidance suggest the company has the potential to justify its expensive valuation. In Q3 2025, the company reported a 68% year-over-year spike in revenue to $42 million, exceeding analyst estimates. SoundHound also provided an upbeat outlook, forecasting $172.5 million in revenue for the full year 2025, slightly higher than the previous estimate of $169 million.
The strong growth trajectory can be attributed to SoundHound's rapidly expanding customer base across multiple industries, including automotive, healthcare, apparel, restaurants, insurance, and cybersecurity. The company's management remains confident in sustaining this momentum, citing the impressive traction it is witnessing in the voice AI market and the growing adoption of voice-based agentic AI solutions and voice commerce.
Despite the current stock price decline, SoundHound's long-term prospects appear promising as the company continues to capitalize on the massive market opportunity in the voice AI space.
