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SoundHound AI’s Rapid Growth Collides With Profit Strains as Shares Whipsaw

Investors weigh rapid revenue gains versus widening losses.

Overview

  • The company reported third‑quarter 2025 revenue of $42 million, up 68% year over year.
  • Shares swung sharply in 2025, plunging more than 50% early in the year and falling roughly 40% from mid‑October levels after a brief recovery.
  • SoundHound cites a broad enterprise roster that includes Honda, Hyundai, Stellantis, Chipotle, Five Guys, Oracle, Qualcomm and Block’s Square unit.
  • Management highlights more than 220 patents granted and over 100 pending and estimates a $140 billion total addressable market for voice AI.
  • Profitability has lagged expectations as margins deteriorated and pre‑merger targets went unmet, and Nvidia exited its minor stake earlier this year.