SoundHound AI, Inc. SOUN has been on a sharp upward trajectory since reporting its second-quarter 2025 results on Aug. 7. Shares have rallied 49% in the past week, far outpacing the Zacks Computers - IT Services industry and the broader Zacks Computer & Technology sector. The surge reflects renewed investor confidence in the company's positioning in voice and conversational AI.
Yet despite the rebound, SOUN remains about 36% below its 52-week high of $24.98, though it trades nearly 270% above its 52-week low of $4.32. That raises the question -- after such a quick run-up, does the stock still have room to grow?
SoundHound posted its strongest quarter ever, with revenue of $42.7 million, up 217% year over year and beating consensus estimates by nearly $10 million. Non-GAAP net loss per share was 3 cents, narrower than expectations and an improvement from a 4-cent loss in the year-ago quarter.
Growth was broad-based across its three strategic pillars -- Enterprise AI, Restaurants, and Automotive -- powered by advances in agentic AI and Voice Commerce initiatives. Monthly query volume surpassed 1 billion, and active restaurant locations using its voice AI solutions exceeded 14,000. Management also raised 2025 revenue guidance to $160-$178 million, with an aim for adjusted EBITDA profitability by year-end (read more: SoundHound Q2 Earnings Beat as AI Demand Fuels 217% Sales Growth).
Let's delve deeper into the company's prospects to determine whether SOUN stock is a prudent addition to your portfolio now.
In Enterprise AI, SoundHound launched Amelia 7, an integrated agentic AI platform incorporating its proprietary Polaris speech recognition model. Fifteen large enterprise customers are migrating to the platform, with adoption spanning financial services, healthcare, and retail.
The Restaurant segment delivered a "breakthrough" quarter, securing new logos such as Red Lobster, Peter Piper Pizza, and IHOP, alongside renewals and expansions with Chipotle, Firehouse Subs, and MOD Pizza. Cross-selling Amelia to existing restaurant clients created incremental revenue streams.
In Automotive, SoundHound achieved a significant win in China, integrating its voice assistant into a major OEM's global vehicle lineup, while expanding its footprint in India with KIA. Generative AI-powered Chat AI rolled out across three major North American brands.
Polaris, SoundHound's multimodal, multilingual speech model, remains a core differentiator -- claiming more than 35% higher accuracy and four times lower latency than large tech rivals. The company is also layering in Vision AI for real-time visual understanding, expanding the scope of conversational AI applications.
Voice Commerce is emerging as a pivotal growth driver. By enabling in-car or in-app transactions for food ordering, parking, and reservations, SoundHound is building a network effect between its Enterprise AI and Automotive customers. While large-scale revenue from Voice Commerce is expected in future periods, pilots with OEMs and global merchants are already influencing deal wins across other pillars.