What were SoundHound AI's Q3 2025 financial results?

SoundHound AI reported an adjusted loss of 3 cents per share on sales of $42 million in the third quarter of 2025, beating Wall Street's expectations.

Why did SoundHound AI's stock price decline despite the strong Q3 results?

Despite the positive financial performance, SoundHound AI's stock fell more than 3% in extended trading on November 7th, 2025, and had already declined by 9.5% during the regular trading session earlier that day.

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SoundHound AI Beats Q3 Targets, Boosts Full-Year Outlook Despite Stock Slide

Q: How did SoundHound AI's full-year 2025 revenue outlook change?

SoundHound AI raised its full-year 2025 revenue guidance to a range of $165 million to $180 million, with the midpoint of $172.5 million topping the previous consensus estimate of $166 million.

7 Nov, 2025

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Summary

SoundHound AI reports Q3 results, beats Wall Street's targets
Company raises full-year revenue guidance to $165M-$180M
SoundHound stock falls over 3% in extended trading despite strong performance

SoundHound AI Beats Q3 Targets, Boosts Full-Year Outlook Despite Stock Slide

On November 7th, 2025, SoundHound AI, a prominent provider of conversational voice artificial intelligence solutions for businesses, announced its financial results for the third quarter. The Santa Clara, California-based company exceeded Wall Street's expectations, reporting an adjusted loss of 3 cents per share on sales of $42 million. This was a significant improvement from the year-ago period when it lost 6 cents per share on $25.2 million in revenue.

In addition to the strong Q3 performance, SoundHound also raised its full-year revenue guidance to a range of $165 million to $180 million, with the midpoint of $172.5 million topping the previous consensus estimate of $166 million. The company's technology is used by enterprises to enhance customer interactions in call centers and restaurant drive-thrus.