SoundHound AI has delivered a standout performance in its latest quarter, posting record results that signal robust momentum for the artificial intelligence technology provider. The company reported a remarkable 217% year-over-year revenue increase, reaching $42.7 million in the second quarter of 2025. This figure not only marks an all-time high for SoundHound AI but also surpassed analyst estimates by nearly $10 million, reflecting the company’s accelerated growth trajectory.

Much of this growth comes on the heels of strategic acquisitions and expansion across key sectors. SoundHound AI saw significant progress in automotive AI, enterprise-level customer service solutions, and AI-powered automation for restaurants. These diverse gains underscore the company’s vision of integrating voice AI technology across multiple industries.

Despite the record revenue, SoundHound AI’s gross margins did experience downward pressure, falling to 39% from last year’s 63%. This margin contraction was primarily attributed to the integration of recent acquisitions, which brought in lower-margin business lines. However, the company still managed to outperform expectations on earnings, reporting a non-GAAP loss per share of $0.03—substantially less than the anticipated loss.

CEO Keyvan Mohajer emphasized that the quarter’s blowout success is not a one-off event, but rather the beginning of a sustained growth period driven by a repeatable formula. On the back of these results, SoundHound AI raised its full-year 2025 revenue outlook to a new range of $160 to $178 million, further signaling confidence in its forward trajectory.

With strong customer wins from both new business and cross-sell deals, alongside ongoing operational improvements, SoundHound AI appears to be positioning itself for continued disruption and leadership within the voice AI space.