"Last quarter, SoundHound posted revenue of $42.05 million, up 68% year-over-year, and beat the non-GAAP EPS consensus by a wide margin, coming in at -$0.03 versus the -$0.09 estimate. Management followed that with a raised full-year revenue guide of $165 to $180 million."
"Here is the math that matters: Q2 and Q3 combined for roughly $84.7 million in revenue. Hitting the full-year guidance midpoint requires Q4 to come in somewhere between $80 and $95 million, a meaningful sequential step up. That is not impossible given the deal pipeline, but it is the central question heading in."
"GAAP gross margin compressed to 42.6% in Q3, down from 48.6% a year earlier. Non-GAAP held steadier at 59.3%, but even that has drifted lower as acquisition integrations add cost."
SoundHound AI reports Q4 and full-year 2025 results with significant implications for investor confidence. The company raised full-year revenue guidance to $165-180 million, requiring Q4 revenue between $80-95 million—a substantial sequential increase from combined Q2-Q3 revenue of $84.7 million. Last quarter showed strong performance with $42.05 million revenue (68% YoY growth) and significant EPS beat. The stock trades at $8.96, down 10% year-to-date from a 52-week high of $22.17. Key concerns include gross margin compression, with GAAP margins falling from 48.6% to 42.6% year-over-year, while non-GAAP margins have drifted lower due to acquisition integration costs. Prediction markets assign 74% probability to an earnings beat, though revenue represents the harder metric to achieve.
#soundhound-ai-earnings #q4-revenue-guidance #gross-margin-compression #growth-validation #acquisition-integration-costs
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