SoundHound AI has seen rapid growth in its business, but its stock hasn’t reflected that progress. For investors wondering if the stock might rebound, here’s a clear look at where things stand.

What SoundHound AI Does

SoundHound AI (NASDAQ: SOUN) develops conversational artificial intelligence (AI) tools that understand voice commands and respond naturally. Its software is attracting major companies in industries like hospitality, automotive, and healthcare, making it a notable player in the AI space.

While many of its products are still early in commercialization, the company’s revenue is growing fast. Yet, in 2025, its stock has fallen roughly 36%, as some investors question whether the company’s high valuation matches its current earnings.

Popular AI Products Driving Growth

SoundHound offers multiple AI solutions for businesses:

• Dynamic Drive-Thru: Automates fast-food orders at restaurants.
• Employee Assist: Helps staff prepare menu items and understand policies.
• Voice AI Platform: Lets automakers build branded in-car assistants for navigation, entertainment, and services like food ordering.
• Amelia Platform: Creates AI agents to support employees and customers.

Notable clients include Krispy Kreme, Panda Express, Hyundai, Stellantis, and Resorts World Las Vegas. For example, Resorts World Las Vegas’ digital concierge, RED, handled 223,000 guest interactions in 2024, accounting for 59% of total call volume, reducing the need for human operators and cutting costs.

Revenue Is Growing, But Losses Remain

SoundHound reported $42 million in revenue for Q3 2025, up 68% from the prior year. While still strong, this is slower than the 217% growth in Q2, reflecting that extreme growth rates are rarely sustainable long-term.

The company raised its 2025 revenue forecast to between $165 million and $180 million, up from $160 million–$178 million.

Much of the revenue surge comes from heavy investment in product development and customer acquisition. While promising for the future, this strategy has led to significant near-term losses. In Q3 2025, SoundHound posted a GAAP net loss of $109.2 million, though adjusted (non-GAAP) losses were just $13 million after removing one-time costs like acquisitions and stock-based compensation.

With $269 million in cash, careful spending is essential to avoid further dilution from raising capital.

Is SoundHound Stock Undervalued?

Even after its 36% drop, SoundHound trades at a price-to-sales (P/S) ratio of 31.8, higher than Nvidia’s P/S of 23.5. Nvidia has decades of profitability and a solid balance sheet, making SoundHound’s premium seem steep.

However, Wall Street forecasts $232.8 million in revenue for 2026, which would bring the forward P/S ratio down to 21.2. While this isn’t a bargain, it suggests the stock could be more reasonably priced if the company meets or beats projections.

Analysts note that if growth continues and bullish guidance emerges for 2027, SoundHound stock could see a notable rally by the end of 2026.

Key Takeaways

• SoundHound AI is growing quickly in voice AI and conversational AI software.
• Revenue is increasing, but losses remain significant due to heavy investment.
• The stock has fallen 36% in 2025, making it expensive on a P/S basis today, but potentially more attractive based on 2026 projections.
• Investors willing to hold long-term could see a rebound if growth meets expectations.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.