Overview

• SoundHound reported Q2 revenue of $42.7 million, up 217% year over year, and lifted its 2025 sales guidance to between $160 million and $178 million.
• The stock climbed more than 40% in two trading sessions and over 50% in the week following the earnings release as retail investors executed a buying binge in call options.
• Key Wall Street firms including Ladenburg Thalmann and Wedbush upgraded their ratings to buy or outperform and set price targets around $16.
• Despite strong top-line momentum, the company recorded a $78 million GAAP net loss while narrowing its non-GAAP loss to $11.9 million and ended the quarter with about $230 million in cash and no debt.
• Shares trade at an elevated price-to-sales multiple and nearly 35% of the float is sold short, underscoring both speculative demand and heightened risk.