Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 24 Apr, 26 | SOUN | Buy | USD 7.82 | USD 8.25 | USD 8.65 | 7 days | Closed |
10.61%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; Employee Assist; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.
Revenue Growth: USD 168.9 Mn in FY25 vs USD 84.7 Mn in FY24
Expansion in GAAP Gross Profit: USD 71.6 Mn in FY25 vs USD 41.4 Mn in FY24
Decline in GAAP Gross Margin: 42.4% in FY25 vs 48.9% in FY24
Sustained Non-GAAP Net Loss: USD (53.9) Mn in FY25 vs USD (69.1) Mn in FY24
High dependence on continued enterprise adoption of AI solutions and the ability to achieve sustained profitability amid rising competition and elevated operating costs
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 7.82 | 7.0 | 8.25 | 8.65 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Record Revenue Growth Driven by Strong AI Adoption: SoundHound AI delivered a robust financial performance in FY25, with total revenue nearly doubling to USD 168.9 million from USD 84.7 million in FY24. This sharp growth was supported by rising enterprise adoption of voice and conversational AI solutions across multiple industries, reflecting strong demand for agentic AI capabilities and increasing reliance on automation technologies.
Q4 Momentum Highlights Accelerated Commercial Execution: The company reported a strong Q4FY25 performance, with revenue rising 59% YoY to USD 55.1 million. This growth was driven by record deal closures, including over 100 customer wins during the quarter, marking the highest quarterly deal activity in the company’s history. Broad-based demand across automotive, enterprise AI, and restaurant verticals further reinforced the company’s commercial execution strength.
Enterprise AI and Multi-Vertical Expansion Fuel Growth: Operationally, SoundHound expanded its footprint across diverse sectors including automotive, financial services, healthcare, retail, and telecommunications. The company secured multiple high-value partnerships with global enterprises, while also expanding its voice commerce ecosystem. Increasing adoption of AI-driven customer engagement solutions and automation tools enabled deeper penetration into enterprise workflows and supported sustained demand momentum.
Improvement in Profitability Metrics Despite Ongoing Investments: The company demonstrated improvement in key profitability metrics, with Q4 GAAP gross margin rising to 47.9% from 39.9% in the prior year. Additionally, adjusted EBITDA losses narrowed significantly, reflecting improved operating leverage and cost efficiencies. However, profitability remained under pressure at the full-year level due to continued investments in R&D, sales expansion, and acquisitions to support long-term growth.
Technology Leadership and Product Innovation Strengthen Competitive Position: SoundHound continued to invest in its proprietary AI stack, including agentic AI platforms, speech recognition models, and voice commerce capabilities. The company’s differentiated “agentic-plus” framework and ability to integrate multiple AI models positioned it competitively against both legacy software providers and emerging AI players. Continuous innovation supported enhanced automation rates, improved customer outcomes, and increased monetization opportunities.
Strong Balance Sheet and Path Toward Profitability: The company ended FY25 with a strong liquidity position, holding USD 248 million in cash and no debt. This provides financial flexibility to fund growth initiatives and strategic investments. Management also indicated a transition toward a breakeven phase, focusing on balancing high growth with improving profitability through operational efficiencies and scalable business models.
Positive Outlook Supported by Expanding AI Market Opportunity: Looking ahead, SoundHound expects FY26 revenue to be in the range of USD 225–260 million, indicating continued strong growth momentum. The outlook is supported by a growing pipeline of enterprise deals, increasing adoption of AI-driven automation, and expansion of recurring revenue streams. The company remains well-positioned to capitalize on the ongoing AI-driven transformation across industries.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given to SoundHound AI, Inc. (NASDAQ: SOUN) at the closing market price of USD 7.82, as on 23 April,2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SOUN SoundHound AI Inc |
0.09 1.43% | 6.40 | - | - | 74.94 | 17.04 | 73.58 | -25.4189 |
| SAPGF SAP SE |
0.002 0.0013% | 157.35 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-2.85 1.80% | 155.50 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| CRM Salesforce.com Inc |
-2.605 1.50% | 171.19 | 23.99 | 14.14 | 4.16 | 2.58 | 3.85 | 12.75 |
| INTU Intuit Inc |
0.18 0.06% | 294.00 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on April 24, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia