SoundHound AI Soars with 151% Revenue Growth in Q1 2025, Reports $29.1 Million and Strong Cash Position

SoundHound AI Reports 151% Revenue Growth in Q1 2025

SoundHound AI, Inc. (Nasdaq: SOUN), a leader in voice artificial intelligence, announced strong financial results for the first quarter of 2025. The company reported revenue of $29.1 million, marking a 151% increase year-over-year. This growth reflects a broadening customer base, with no single client representing more than 10% of the total revenue.

At quarter-end, SoundHound held $246 million in cash and cash equivalents, maintaining a debt-free balance sheet.

Financial Highlights

• GAAP gross margin stood at 36.5%, while non-GAAP gross margin was 50.8%.
• GAAP diluted earnings per share (EPS) reached $0.31, compared to a non-GAAP diluted EPS loss of $0.06.
• GAAP net income was $129.9 million; non-GAAP net loss was $22.3 million.
• Adjusted EBITDA posted a loss of $22.2 million.

The GAAP results benefited from a $176 million gain related to the fair value adjustment of contingent acquisition liabilities. These adjustments are excluded from the non-GAAP figures to better reflect operational performance.

Business Progress and Market Expansion

SoundHound AI made significant strides across multiple sectors by launching Amelia 7.0, a comprehensive Agentic AI platform that enables advanced voice-enabled AI agents capable of humanlike reasoning and task execution.

• Voice Commerce: The platform now supports numerous restaurant brands and is running pilots with major automakers, including a top global automotive innovation team.
• Restaurants: Expanded services with major chains like a large U.S. pizza brand, Habit Burger, Casey’s, Five Guys, and Burger King UK.
• Automotive: Partnered with Tencent Intelligent Mobility and participated in NVIDIA GTC 2025 to integrate generative AI-powered voice assistants into intelligent vehicle cockpits.
• Healthcare: Renewed contracts with key healthcare providers and medical billing companies, launching multiple live deployments from deals won in late 2024.
• Retail: Initiated pilots with leading U.S. fitness chains and home services franchises, expanding the reach of Smart Answering solutions.
• Energy: Released an AI agent for a large utilities company and partnered with PowerConnect.AI to deliver voice AI agents to utility businesses.
• Information Technology & Telecom: Renewed contracts with multinational IT and telecom companies, supporting AI-powered employee IT support desks and system integration services.
• Travel and Hospitality: Secured deals with a luxury resort developer in Latin America and a major hotel chain to offer AI concierge services.
• Financial Services: Continued engagement with top financial institutions and secured a contract with a leading European insurance company.
• Channel Partners: Collaborated with global partners to win contracts across agriculture, tax preparation, travel, and IT services.

Additional Company Milestones

• Partnered with Pindrop to enhance security and authentication for voice AI agents.
• Recognized as an "exemplary" market leader for AIOps by ISG Research.
• Presented new voice commerce innovations at NVIDIA GTC 2025.
• Launched next-generation AI platform for restaurants improving dynamic drive-thru and omnichannel ordering.
• Introduced Brand Personalities feature in SoundHound Chat AI Automotive.
• Debuted the first in-vehicle voice commerce platform enabling seamless food ordering at CES 2025.

Q1 2025 Financial Summary

• Revenue: $29.1 million, up 151% from $11.6 million in Q1 2024.
• GAAP gross profit: $10.6 million (36.5% margin), compared to $6.9 million (59.7% margin) in prior year.
• Non-GAAP gross profit: $14.8 million (50.8% margin), down from 65.5% the previous year.
• GAAP operating income: $128.1 million versus a loss of $28.5 million last year.
• Adjusted EBITDA: loss of $22.2 million, wider than prior year’s $15.4 million loss.
• GAAP net income: $129.9 million, compared to a net loss of $33 million a year earlier.
• Non-GAAP net loss: $22.3 million, slightly improved from $20.2 million in Q1 2024.
• GAAP EPS: $0.31 diluted; Non-GAAP EPS: loss of $0.06 diluted.

Liquidity Position and Cash Flow

SoundHound closed the quarter with $246 million in cash and no debt. Operating activities used $19.2 million in cash, an improvement from $21.9 million in the same period last year. Investing cash outflows were minimal at $0.16 million, while financing activities generated $67 million. The net increase in cash and cash equivalents was $47.6 million.

Outlook for 2025

The company reaffirmed its full-year revenue guidance, forecasting between $157 million and $177 million for 2025.

Additional Resources

For detailed financial statements and SEC filings, visit SoundHound AI Investors.

About SoundHound AI

SoundHound AI specializes in voice and conversational intelligence, delivering AI-powered solutions across various sectors including retail, finance, healthcare, automotive, and restaurants. Its portfolio features Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, enabling enterprise AI agents. The firm also offers SoundHound Chat AI, integrating generative AI capabilities, and Autonomics, which automates IT processes. SoundHound powers millions of products and services, managing billions of interactions annually.