SoundHound AI (NASDAQ:SOUN) Stock Price Up 5.4% After Better-Than-Expected Earnings

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was up 5.4% on Thursday following a stronger than expected earnings report. The company traded as high as $9.10 and last traded at $8.98. Approximately 41,625,899 shares were traded during mid-day trading, an increase of 55% from the average daily volume of 26,823,934 shares. The stock had previously closed at $8.52.

The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. The business’s revenue was up 59.4% on a year-over-year basis. During the same quarter last year, the business earned ($0.05) EPS.

More SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Q4 results beat revenue expectations and showed strong top‑line growth: revenue of $55.06M topped consensus and full‑year 2025 revenue was a record $169M (near 100% annual growth), signaling accelerating demand. SoundHound AI, Inc. (SOUN) Reports Q4 Loss, Beats Revenue Estimates
• Positive Sentiment: Management set FY2026 revenue guidance of $225M–$260M (consensus ~$231M), which supports continued top‑line expansion and likely underpins investor optimism despite mixed margin trends. Press Release / Earnings Presentation
• Positive Sentiment: Product and footprint catalysts: launch of the Sales Assist voice agent at MWC and opening of a new innovation hub in Bengaluru expand addressable markets (retail + global engineering capacity). These moves drove earlier volume spikes and positive investor sentiment. SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight
• Neutral Sentiment: EPS in Q4 was ($0.02), in line with estimates — this met expectations but did not resolve profitability concerns. Earnings Report / Call
• Negative Sentiment: Profitability and balance‑sheet risks remain: large GAAP losses, a negative net margin (~211%) and negative ROE were highlighted by the report; analysts still expect negative FY EPS and short interest plus notable insider sales add downside pressure. SoundHound AI Reports Record Annual Revenue

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, DA Davidson set a $14.00 price target on shares of SoundHound AI in a research report on Thursday, January 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $16.07.

Insider Buying and Selling at SoundHound AI

In other news, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the completion of the transaction, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at approximately $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Majid Emami sold 32,741 shares of the stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $10.66, for a total value of $349,019.06. Following the sale, the senior vice president owned 532,845 shares in the company, valued at $5,680,127.70. The trade was a 5.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 460,922 shares of company stock worth $5,199,073. 9.17% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its position in SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after buying an additional 66,714 shares during the period. Integrated Wealth Concepts LLC grew its position in shares of SoundHound AI by 8.9% during the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after acquiring an additional 1,201 shares during the last quarter. NewEdge Advisors LLC grew its position in shares of SoundHound AI by 12.9% during the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after acquiring an additional 4,692 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after acquiring an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in SoundHound AI by 10.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock valued at $5,620,000 after purchasing an additional 63,398 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Trading Up 5.4%

The company’s 50-day moving average is $9.63 and its two-hundred day moving average is $12.98. The stock has a market capitalization of $3.77 billion, a P/E ratio of -10.69 and a beta of 2.64.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.