SoundHound AI, Inc. (SOUN) is set to release its fourth-quarter 2025 results on Feb. 26, 2026. The company reported strong revenue growth in the last quarter, with a 68% increase to $42 million. SoundHound raised its 2025 revenue outlook to $165–$180 million, showcasing confidence in sustained growth.

SoundHound’s non-GAAP gross margin stood at 59.3%, with a narrower net loss of 3 cents per share. The company emphasized improving scale dynamics and ended the quarter with $269 million in cash and no debt. SoundHound has surpassed earnings estimates in three of the last four quarters.

Analysts expect SoundHound to report a loss of 2 cents per share in the fourth quarter with revenues of $54 million. For 2026, revenue is expected to reach $232.2 million, a 38.3% increase from the previous year.

SoundHound’s fourth-quarter performance is expected to benefit from enterprise AI traction and expansion across various sectors. The company’s Amelia platform and Agentic+ framework are positioned as enterprise-grade solutions for accelerated production deployments.

Despite posting a 53.4% gain in the past six months, SOUN shares have underperformed the Computers – IT Services industry, Computer & Technology sector, and the S&P 500 index. SoundHound faces competition from established players like Nuance Communications, Cerence Inc., and NICE Ltd.

SoundHound’s valuation is slightly overvalued, trading at a forward 12-month price-to-sales ratio of 13.73. The company continues to show strong revenue momentum, but caution is advised due to ongoing automotive softness, high investments, and premium valuation levels.

Investors may want to wait for clearer evidence of sustained profitability and competitive edge before considering SoundHound stock. The company’s performance in the fourth quarter will be crucial in demonstrating whether it is on track for continued high growth and a transition towards breakeven profitability.

Read more at Nasdaq: SoundHound to Post Q4 Earnings: Buy, Sell or Hold the Stock?