Right. So, SoundHound AI. (SOUN 0.51%). It’s been a bit of a tumble, hasn’t it? Down 62% from its October high. Honestly, it feels a bit like that dress I bought for a party, convinced it would be the dress, then realising it just…wasn’t. Still, I’m trying to be optimistic. There’s a sort of battered hopefulness about the recent results that suggests things might, just might, turn around. It’s a bit like a dating profile – promising potential, but requiring a leap of faith.
They released their Q4 numbers on February 26th, and, well, they weren’t terrible. Solid, actually. But then the Middle East happened, and everything just…wobbled. The market, my portfolio, my general sense of wellbeing. It’s always something, isn’t it? The question is, can SoundHound shake it off and actually do something? Can it deliver on the hype? I’ve been doing a lot of thinking, and a lot of staring at charts (units of coffee consumed: 7. Hours spent questioning life choices: 4).
SoundHound AI: A Growth Story (Possibly)
Okay, so revenue doubled in 2025 to $169 million. That’s…good. And they reduced their non-GAAP net loss by 22% to $54 million. Progress! Though, if I applied that logic to my own finances, it would involve reducing my debt by 22% while simultaneously acquiring a new handbag. It’s a different scale, obviously. Their Q4 numbers beat expectations, and their 2026 revenue guidance is between $225 and $260 million, which is higher than Wall Street expected (though Wall Street’s expectations are often…optimistic, let’s say).
The growth is predicted to slow to 43% this year. A bit of a downer, really. But CFO Nitesh Sharan mentioned something on the earnings call about a “ramp in revenue” and “seasonality.” Sounds…technical. And a bit like excuses. But he also said they expect the seasonality to improve as their recurring business grows. Which is good. I’m clinging to that. It’s like telling myself my gym membership is a good investment, even though I mostly use it to store my coat.
They closed over 100 deals in Q4. That’s a lot of deals. And they think they can sell more to those customers, through upselling and cross-selling. It’s the same principle as convincing yourself you need the extra avocado on your toast. It just…feels right. They’re focused on new voice AI and “agentic AI” capabilities. I’m not entirely sure what that means, but it sounds impressive.
Their voice AI is gaining traction in the automotive and restaurant industries. Apparently, monthly users in the automotive business grew by over 50% year-over-year. And audio queries increased by 75%. People are actually using the voice AI in their cars. Which is…encouraging. They estimate that penetration in the automotive industry could increase from 3% to 40-45% long-term. That’s a big jump. And they see a $1 billion revenue opportunity in the US restaurant industry. A billion! I could open a very nice bakery with that.
So, they might outperform their guidance. And they reduced their non-GAAP net loss per share from $0.20 to $0.13. That’s…progress. Small, incremental progress, but progress nonetheless. It’s a bit like finally folding that pile of laundry that’s been sitting in the corner for a week. It doesn’t solve all my problems, but it feels…good.
The Analysts Think $15 Is Possible (Apparently)
The stock would need to jump 86% to reach $15. Ambitious. But the median price target from the 10 analysts covering it is $14.50. And eight of them rate it as a buy. Which is…reassuring. Though analysts are often wrong. Very wrong. I once followed an analyst’s recommendation and lost a significant amount of money on a cryptocurrency. I don’t talk about it much.
They’re anticipating 38% revenue growth this year, followed by 20% next year. But SoundHound is guiding for stronger growth in 2026. And Data Intelo predicts the voice AI market could grow from $8 billion in 2024 to almost $61 billion in 2033. That’s…significant. It’s like discovering a hidden stash of chocolate. Suddenly, everything seems a little brighter.
So, maybe it’s worth buying while it’s beaten down. If they achieve that robust growth, that $15 price target might actually be realistic. It’s a risk, of course. All investing is a risk. But sometimes, you have to take a leap of faith. Or, at least, a small, carefully calculated step. Units of Cryptocurrency Lost: 12. Hours Spent Watching Charts: 9. Number of Panicked Texts to Friends: 24. But hey, at least I’m trying.
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2026-03-11 20:03