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SoundHound AI Beats Q3, Raises Guidance as Shares Fall on Heavy GAAP Loss

A non-cash revaluation tied to acquisition earnouts swelled reported losses, prompting fresh scrutiny of SoundHound’s profitability timeline.

Overview

  • Revenue rose 68% year over year to $42.05 million, topping estimates, with a non-GAAP loss of $0.03 per share and an adjusted EBITDA loss of $14.5 million.
  • Full-year 2025 revenue outlook increased to $165 million to $180 million, up from prior guidance of $160 million to $178 million.
  • GAAP net loss reached about $109.3 million, largely reflecting $66 million in acquisition-related, non-cash earnout revaluations linked to stock movements.
  • The company ended the quarter with $269 million in cash and cash equivalents and reported no debt.
  • Shares fell roughly 9% after the report then steadied Friday, as Piper Sandler kept a Neutral rating and raised its price target to $15.