SoundHound AI (SOUN) , a leader in conversational intelligence, has captivated market interest with its substantial growth and strategic expansion in the last year.
In October 2024, it reached its lowest price of $4.45, but within a year, it saw a remarkable surge to $15.85, reaching a 52-week high of $24.98, signaling a significant return for investors who had bet on the voice AI revolution.
CFO Nitesh Sharan emphasizes that for the firm, “AI isn’t a buzzword. It’s who we’ve always been,” with a vision to enable natural conversation with technology.
Instead of typing on a phone or clicking menus, why not just talk and get things done? Filing an insurance claim, ordering food, navigating your car – our vision is that those things should all happen through natural conversation.
The company delivered strong financial results in Q2 2025, reporting revenue of $42.7 million, a 217% increase year over year. The non-GAAP gross margin was also strong, at 58.4%.
SoundHound AI/TheStreet
Major acquisitions and innovations
Earlier this month, SoundHound acquired Interactions for $60 million in cash, viewing it as an opportunity to boost margins.
DA Davidson raised the firm’s price target to $17 from $15, while maintaining a Buy rating following the deal.
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Oppenheimer believes SoundHound has growth potential, as evidenced by customers who see it as a leader in speech-to-meaning capabilities and data sciences.
However, it also faces new competitive threats that may negatively impact its 2026 revenue estimate, as reported at TheFly.
A significant driver of market attention for SoundHound has been the expansion of its technology platform and the signing of agreements with marquee clients over the past month.
Related: Analyst revisits SoundHound stock price target after price is halved
On Sept. 23, it announced a partnership with Red Lobster to roll out an AI-powered phone ordering agent across all locations.
Larry Konercny, COO of Red Lobster, said that through this technology, “we’re able to streamline the takeout process to make ordering faster and easier for our guests.”
Positive customer experiences have been key to the firm’s success; they are “quick to recognize the benefits of our quick and easy system, and employees are grateful for the extra breathing space it gives them to concentrate on delivering first rate customer service,” says Ben Bellettini, SVP of Restaurant Sales, SoundHound AI.
Insider stock sale causes drop
In August, the company also unveiled Amelia 7, a complete AI agent platform that integrates Polaris, SoundHound’s category-leading speech foundation model. It is already being rolled out in major enterprises.
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The company’s Q2 report notes a “significant new win in China ” for its voice assistant integration in vehicles worldwide, along with continued expansion with KIA in the Indian market.
Despite the positive business momentum and an astounding 60% growth over three months, the company’s stock price recently plummeted after Form 4 filings with the SEC revealed that company executives sold shares.
CEO Kevyan Mohajer, COO Michael Zagorsek, and CTO Timothy Stonehocker sold a majority of their shares, according to SEC filings, attributing the sale to tax withholding obligations.
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