SoundHound AI (SOUN) Shares Jump 5.4% on Strong Q4 Earnings Performance

Key Highlights

• Shares of SoundHound AI climbed 5.4% following a Q4 CY2025 earnings performance that exceeded Wall Street projections for both top and bottom lines.
• Quarterly revenue reached $55.06 million, marking a 59.4% increase compared to the same period last year and surpassing forecasts by 2.3%.
• The company reported a GAAP EPS loss of $0.03, significantly better than the anticipated -$0.10 loss, representing a 69.1% beat.
• SoundHound introduced a voice-activated Sales Assist agent and established a fresh engineering facility in Bengaluru.
• Wall Street maintains a Moderate Buy rating with a mean price target of $16.07, although elevated short interest and recent insider sales warrant attention.

On February 26, 2026, SoundHound AI delivered impressive Q4 CY2025 financial results, triggering a 5.4% surge in share price throughout Thursday’s trading session.

Shares peaked at $9.10 during the session and concluded trading at $8.98, up from the previous closing price of $8.52. The day’s trading volume reached 41.6 million shares, approximately 55% higher than typical daily activity.

The company generated $55.06 million in quarterly revenue, representing a 59.4% jump year-over-year. This performance exceeded analyst projections of $53.84 million by 2.3%.

SoundHound AI, Inc., SOUN

Regarding profitability, SOUN recorded a GAAP loss per share of $0.03. This result significantly outperformed the consensus estimate of a $0.10 loss, delivering a 69.1% earnings surprise.

The company’s adjusted EBITDA reached $72.28 million, translating to a 131% margin and reflecting 530% growth compared to last year’s quarter. Operating margin showed substantial improvement at 77.3%, a dramatic turnaround from the -744% figure recorded in the comparable period.

Free cash flow registered at -$24.43 million, showing progress from the prior quarter’s -$32.83 million.

Across the past four years, SoundHound AI has achieved revenue expansion at a 68% compound annual growth rate. The company’s two-year annualized growth of 91.9% indicates accelerating market demand.

Strategic Initiatives and Geographic Growth

Prior to the earnings announcement, SoundHound introduced its Sales Assist agent at MWC — a voice-activated solution designed for real-time retail applications. This offering represents a strategic move to diversify enterprise revenue streams beyond existing automotive and contact center segments.

Additionally, the company inaugurated an engineering and innovation facility in Bengaluru, designed to enhance R&D capabilities and expedite deployment of its agentic AI platform.

The stock currently trades below its 200-day moving average of $13.01, though it remains close to its 50-day moving average of $9.67. The company’s market capitalization stands at $3.77 billion, with a beta coefficient of 2.64.

Wall Street Perspective and Ownership Trends

Analyst sentiment currently reflects a Moderate Buy consensus, with a mean price target of $16.07. Ladenburg Thalmann elevated SOUN to Strong Buy in December. Piper Sandler reduced its target from $15.00 to $11.00 in January while maintaining a Neutral stance. DA Davidson established a $14.00 price objective earlier this year.

Institutional ownership has expanded notably. Vanguard increased its position by 16.4% during Q3. Morgan Stanley expanded its stake by 48.1% in Q4. UBS raised its holdings by 77.6% in the same quarter.

Regarding insider transactions, COO Michael Zagorsek divested 73,406 shares at $11.28 in December, reducing his position by 3.94%. CEO Keyvan Mohajer sold 144,326 shares at the identical price point. Collectively, insiders disposed of 460,922 shares valued at approximately $5.2 million during the past three months.

Short interest continues at elevated levels, introducing potential volatility if future results or guidance fall short of expectations.

After the earnings disclosure, shares stabilized around $9.02.

The post SoundHound AI (SOUN) Shares Jump 5.4% on Strong Q4 Earnings Performance appeared first on Blockonomi.

Source: https://blockonomi.com/soundhound-ai-soun-shares-jump-5-4-on-strong-q4-earnings-performance/