Overview

• Revenue jumped 217% year over year to $42.7 million in Q2, with management indicating organic growth of 50% or higher.
• Adjusted gross margin fell to 55.3% in the first half of 2025 from 76.2% in 2023, reflecting acquisition integration, a higher services mix, cloud costs, and onboarding expenses.
• Management guides to adjusted EBITDA profitability by the end of 2025, though the company remains unprofitable on a GAAP basis.
• SoundHound is shifting from voice recognition to voice-first, agentic AI through acquisitions such as Amelia and Interactions, with migrations to Amelia 7 under way.
• Shares trade at rich multiples, including a roughly $7.4 billion market cap and about 28 times projected 2027 sales, even as analysts model a roughly 47% revenue CAGR through 2027.