Can SoundHound's Q2 Results Send the Stock Soaring on August 7?

SoundHound AI (SOUN) will announce its second-quarter financial results after the close this Thursday, Aug. 7. While the company is seeing significant demand for its artificial intelligence (AI)-powered voice technology offerings, the stock has underperformed the broader market. SOUN stock has fallen more than 46% year-to-date, a stark contrast to the S&P 500 Index’s ($SPX) 7.5% gain over the same period.

While the company’s stock has had a rough ride so far this year, the underlying business remains solid. The year began on a strong note for SoundHound. In the first quarter of 2025, the company reported $29.1 million in revenue, up 151% from the same quarter last year. That growth even outpaced the solid 101% year-over-year gain it posted in the fourth quarter of 2024.

This acceleration in its top-line growth rate shows high demand for its voice AI technology across various industries. As more industries look to integrate conversational AI into their customer experiences, SoundHound’s technology is finding wider adoption, helping to broaden its customer base and strengthening its position as a leader in the voice AI space.

SoundHound: Poised for Strong Growth in Q2 and Beyond

SoundHound is entering the second quarter with solid momentum, showing signs of robust growth despite ongoing macroeconomic challenges. The company’s generative AI, Agentic, and voice commerce platforms are gaining meaningful traction in the market, driving both customer adoption and revenue expansion.

One solid indicators of future growth is SoundHound’s bookings, which grew sequentially and posted high double-digit growth compared to the same period last year. Its cloud-based offerings are also seeing strong adoption, with active cloud users growing by over 50%, reflecting the rising demand for its voice-enabled technologies. Additionally, the company’s presence in the restaurant sector continues to expand rapidly. By the end of Q1, approximately 13,000 restaurant locations were actively using SoundHound’s AI voice ordering solutions.

Importantly, SoundHound's revenue base is becoming increasingly diversified. No single customer accounted for more than 10% of total revenue during the most recent quarter, which is a significant improvement from previous years. This broader revenue distribution reduces risk and reflects the company’s expanding reach across various sectors.

Growth in SoundHound’s customer service solutions has been robust, especially as it scales its offerings across more enterprise clients and restaurant locations. While average selling prices (ASPs) in the automotive segment are rising thanks to deeper integration of its generative AI capabilities, overall auto unit volumes remain under pressure due to broader geopolitical uncertainty in the industry. That said, SoundHound is building a solid pipeline of new OEM partnerships, which should provide a foundation for future growth as conditions stabilize.

Strategic acquisitions are likely to bolster SoundHound’s growth. Its recent acquisitions of SYNQ3, Amelia, and Allset are likely to add new capabilities that enhance its platform and open the door for significant cross-sell and upsell opportunities. Management expects these synergies to boost operational efficiency and drive accelerated growth through the remainder of 2025.

To support its expansion, SoundHound is ramping up efforts to increase brand awareness and stimulate demand. Early signs are encouraging, with a stronger sales pipeline and improved deal conversion rates indicating that these initiatives are beginning to pay off.

Looking ahead, management remains focused on strengthening the company’s financial foundation. Efforts to streamline costs are ongoing, and the team is targeting adjusted EBITDA profitability by the end of 2025. This milestone could further solidify investor confidence in SoundHound’s long-term growth story.

The Bottom Line on SoundHound

SoundHound’s upcoming Q2 earnings report could serve as a key inflection point for the stock. Despite its underperformance in the market so far this year, the company’s strong revenue growth, expanding customer base, and strategic acquisitions paint a promising picture for the quarters ahead.

With increasing adoption of its AI voice technologies across multiple sectors and a focus on profitability, SoundHound appears well-positioned for long-term growth.

Wall Street analysts remain cautiously optimistic heading into the Aug. 7 report. But if SoundHound delivers another strong quarter and keeps up its momentum, investor confidence could grow, potentially giving the stock a much-needed boost.