SoundHound AI (SOUN) is focusing on the development of voice recognition, sound recognition, search technologies, and natural language technologie sby using artificial intelligence (AI). Its customer base includes clients from smartphone technology, the aviation industry, automobile companies, and more.

Established in 2005, the company has operations all over the U.S., Canada, Germany, France, and Japan with its headquarters in Santa Clara, California.

About SoundHound Stock

SoundHound’s stock has largely underperformed this year, losing 46% YTD, but it is showing signs of stabilizing. The stock has gained 11.6% in the last month, signaling a possible reversal.

SoundHound is also up 62% from its 2025 lows, further strengthening its position.

SoundHound Lags Results

SoundHound reported its first-quarter results earlier this month, posting a loss of $0.06 per share against an estimate of a $0.07 loss per share. The company generated $29.13 million in revenue during the quarter, up a whopping 151% from Q1 2024. Despite this, SoundHound still missed analysts’ $30.21 million estimate.

The strong year-over-year growth underlines the company’s expansion efforts in the voice AI domain.

Its adjusted EBITDA came to a loss of $22.2 million, wider than last year’s $15.4 million figure. Its GAAP gross margin also declined from 59.7% to 36.5% reflecting rising acquisitions-linked costs. The company ended the quarter with a cash balance of $246 million and with no debt.

For the future, the company’s management has reiterated their 2025 revenue guidance between $157 million and $177 million, showcasing solid revenue growth for its voice AI solutions. Management also expects to reach positive adjusted EBITDA by the end of 2025.

Analyst Takes on SOUN Stock 

SoundHound has received a fresh “Overweight” rating from Piper Sandler analysts James E. Fish and Caden Dahl. The analysts have placed a $12 price target on shares, signaling upside potential of 14%. Piper Sandler described the company as a “direct play on the A.I. revolution” for its voice-based AI platforms.

Piper Sandler believes SoundHound’s technology provides it with a competitive advantage in real-time dynamic conversational AI experience. Analysts have also identified quick-service restaurants and customer experience as its most promising verticals.

Moreover, Fish and Dahl stated that the acquisition of Amelia has provided SoundHound access to conversational AI for contact centers, a market that is estimated to grow to $30 billion by 2027 with SoundHound being an early leader in each segment.

Piper Sandler further believes that the company’s subscription-based model and “Over-Time” revenue will constitute for 90% of its revenue by 2027, a big jump from 4% reported two years back. This, along with Amelia’s acquisition, is expected to improve margins by more than 10% over the next few years. 

Lastly, analysts also warned about the potential challenges faced by SoundHound in the auto sector where they expect a 4% decline in revenue this year.

Should You Buy SOUN?

Analysts, in general, are positive about the stock with a consensus “Moderate Buy” rating and a mean price target of $11.50, signaling upside potential of 9.3% from current price levels.

The stock has been covered by seven analysts while receiving four “Strong Buy” ratings and three “Hold” ratings.