SoundHound Q3 Earnings Beat as AI Momentum Drives 68% Sales Growth

SoundHound AI, Inc. SOUN reported another record quarter for the third quarter of 2025, with results surpassing the Zacks Consensus Estimate on both revenue and earnings.

The voice and conversational AI specialist continued to benefit from accelerating enterprise adoption and expanding deployments across multiple verticals, bolstered by strong execution in its Agentic+ framework and recent acquisitions. The company also hiked its 2025 sales guidance.

SOUN’s Revenues and Earnings

SoundHound posted third-quarter revenues of $42 million, up 68% year over year, outpacing the Zacks Consensus Estimate of $40 million. Growth was broad-based across Enterprise AI, Automotive, Restaurants and Financial Services.

The company reported a non-GAAP net loss of 3 cents per share, narrower than the consensus estimate of a loss of 4 cents and the year-ago loss of 4 cents per share. GAAP net loss stood at $109.3 million, impacted by a $66 million non-cash mark-to-market charge related to contingent acquisition liabilities.

Margins and Profitability of SoundHound

GAAP gross margin was 42.6% compared with 48.6% in the prior year, reflecting acquisition-related mix. Non-GAAP gross margin was 59.3%, essentially flat year over year, driven by improved product mix and operating leverage. Adjusted EBITDA loss narrowed to $14.5 million from $15.9 million a year ago, underscoring effective cost controls amid scaling operations.

SoundHound AI, Inc. Price, Consensus and EPS Surprise

SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote

Business Highlights

The quarter saw robust progress across all strategic verticals. Enterprise AI recorded additional go-lives on its Amelia 7.3 platform, integrating Speech-to-Meaning technology. Automotive momentum accelerated with new programs at Jeep in Europe, an EV expansion in Germany, and fresh wins with major two-wheeler brands in India. Restaurant AI deployments expanded across Firehouse Subs, Five Guys, MOD Pizza and Red Lobster. The company also launched Vision AI, enhancing real-time multimodal interaction and closed the acquisition of Interactions to strengthen its Agentic AI leadership.

SOUN’s Balance Sheet & Liquidity

SoundHound ended the quarter with $269 million in cash and equivalents and no long-term debt, providing ample capacity for strategic investments and integrations.

SoundHound’s Guidance & Outlook

Management raised its 2025 revenue outlook to $165–$180 million (prior expectation was $160-$178 million), citing rising demand across enterprise and automotive markets and strong adoption of its conversational AI suite. The company continues to target adjusted EBITDA profitability by year-end 2025, supported by scaling deployments, cloud optimizations and new Agentic+ use cases.

SOUN Stock’s Zacks Rank & Peer Releases

SoundHound currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CACI International Inc. CACI reported better-than-expected results for the first quarter of fiscal 2026. It reported first-quarter non-GAAP earnings of $6.85 per share, which beat the Zacks Consensus Estimate by 10.48%. The bottom line increased 15.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.
 
CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.67%. In the first quarter of fiscal 2026, contract awards totaled $5 billion, with approximately 60% for new business. For fiscal 2026, CACI continues to anticipate revenues between $9.2 billion and $9.4 billion.
 
Sabre Corporation SABR reported mixed results for the third quarter of 2025, wherein the top line surpassed the Zacks Consensus Estimate, while the bottom line missed the same. During the quarter, Distribution revenues increased 4% to $575 million, primarily driven by an increase in air and hotel distribution bookings, a favorable travel supplier mix and rate impacts, while IT Solutions’ revenues were $140 million, flat on a year-over-year basis.
 
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to be flat year over year, down from the earlier prediction of a low single-digit percentage increase. For the fourth quarter, Sabre anticipates pro-forma revenue growth in the low single-digit percentage range.
 
Paycom Software, Inc. PAYC reported lower-than-expected third-quarter 2025 results. The online payroll and human resource technology provider reported non-GAAP earnings of $1.94 per share, which missed the Zacks Consensus Estimate of $1.96.
 
Paycom reported revenues of $493.3 million, which outpaced the consensus mark of $492.4 million. The top line increased 9.1% year over year, primarily benefiting from increased sales momentum, international expansion and artificial intelligence (AI) integration in its products. Paycom reiterated its revenue guidance for 2025, with revenues expected in the band of $2.045-$2.055 billion and adjusted EBITDA between $872 million and $882 million.

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