SoundHound AI Stock (NASDAQ:SOUN) Sharply Higher on Earnings Beat and Raise

SoundHound AI's stock (NASDAQ: SOUN) is a big pre-market mover today, up 22.95%, following the release of a stronger-than-expected earnings print. The voice AI company reported a narrower EPS loss and a significant revenue beat, prompting renewed investor interest and fueling discussions of a potential short squeeze.

Looking to the print, SoundHound reported Q2 revenue of $42.7 million, significantly exceeding the consensus estimate of $32.9 million. The EPS loss narrowed to $0.03 per share, better than the expected loss of $0.05 per share.

CEO and Co-Founder Keyvan Mohajer attributed the strong performance to the success of previous strategic moves, particularly the 2024 acquisitions of Amelia AI and Allset. He stated, “In SoundHound's strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit. We realized significant new wins as well as cross-sell deals, demonstrating the incredible opportunity we predicted with our 2024 acquisitions. We have demonstrated a repeatable success formula. Our financial results speak for themselves, and are testimony to our bold vision and ability to execute.”

SoundHound also raised its full-year 2025 revenue guidance to $160 million-$178 million, surpassing the prior guidance of $157 million-$177 million and the consensus estimate of $159.6 million.

This upward revision suggests increasing confidence in the company’s ability to maintain its growth trajectory. The company's recent acquisitions have played a crucial role in its expansion. The acquisition of Amelia AI in August 2024 for $85 million has enhanced SoundHound's capabilities in serving sectors such as financial services, insurance, healthcare, retail, and hospitality.

Similarly, the acquisition of Allset in June 2024 has expanded its footprint in the restaurant industry. These strategic moves have diversified SoundHound's offerings and customer base, contributing to its impressive revenue growth.

SoundHound’s performance is particularly noteworthy considering the competitive landscape. The company faces competition from tech giants like Alphabet's Google Assistant and Baidu's Ernie Bot. However, its focus on enterprise solutions and strategic partnerships has enabled it to carve out a position in the voice AI market.

Adding to the stock's volatility is the ongoing discussion of a potential short squeeze. SoundHound has a notably high short interest, with a significant move higher being seen as a catalyst that could force short sellers to cover their positions, driving the price even higher. The strong earnings report has amplified this potential, attracting attention from those looking to capitalize on the situation.

Despite the positive momentum, it is worth pointing out that SoundHound remains unprofitable, and while the stock is up 105% year-over-year, it looks set to remain firmly below where it began 2025 ($20.16), highlighting the inherent risks associated with investing in high growth-oriented momentum stocks. With a 52-week range of $4.32 to $24.98, volatility has most definitely come to be expected in SOUN.

Moving back to the current financials, and SoundHound boasts a strong position, with $230 million in cash and cash equivalents as of June 30, 2025, and no debt. The company's order backlog is near $1.2 billion, signaling robust future demand and partnerships, further underpinning the raised revenue guidance.

SoundHound’s move today reflects solid business growth, particularly in voice AI, driven by new wins and the synergistic benefits of its 2024 acquisitions; aswell as some expectations of shorts being squeezed out. Time will tell how this one plays out, but anyone who has followed the name for a while will know to expect volatility.