SoundHound AI Inc (NASDAQ: SOUN) reported blockbuster financial results for its fiscal second quarter, sending shares up more than 30% on Friday morning.
The artificial intelligence firm saw its revenue more than triple to roughly $43 million – crushing analysts’ forecast, and recorded a narrower-than-expected adjusted per-share loss as well, signaling improving operational efficiency.
While SOUN’s margins did compress in Q2, investors are discounting it as much of it was related to recent acquisitions – a necessary cost of accelerated growth.
However, now that SoundHound stock is up nearly 100% versus its year-to-date low in early April, it’s well within reason to question if there’s still time to hope into this voice AI innovator?
Should you buy SoundHound stock on post-earnings surge?
Here’s the good news: SOUN shares sure have experienced a meteoric run already, but it may still not be too late to invest in this artificial intelligence company– especially if you’re jumping in for the long run.
On Friday, the company based out of Santa Clara, California raised its revenue guidance to about $169 million this year – indicating confidence in continued growth in the back half of 2025.
More importantly, SoundHound reaffirmed its commitment to adjusted EBITDA profitability by year-end; a milestone that will likely eliminate a major overhang and improve the overall investor sentiment.
With no debt and a healthy $230 million cash balance, the AI company has ample room to invest in scaling operations and integrating acquisitions – all of which point to further upside in SOUN shares.
Therefore, for investors seeking exposure to conversational AI and agentic platforms, the Nasdaq-listed firm’s expanding footprint and improving financials suggest the rally could have legs.
Why valuation isn’t really a concern for SOUN shares
At a price-to-sales (P/S) multiple of about 51 at the time of writing, SoundHound shares sure look expensive– at least for conservative investors.
However, it’s worth mentioning that the aforementioned multiple is not unheard for high-growth AI names. For example, the likes of Palantir Technologies are going for a P/S ratio of nearly 150– and yet it’s not showing any signs of letting up.
And that’s when PLTR grew just 48% in its latest reported quarter while SOUN just recorded over 200%.
Put that together with Keyvan Mohajer’s (SoundHound chief executive) commitment to bringing his company’s voice AI technology to all enterprises eventually– and SOUN stock starts to appear rather attractive to own at current levels.
Continued rapid growth to drive SoundHound shares up further
SoundHound’s Q2 earnings release wasn’t just about numbers for believers – it actually showcased strategic wins and product evolution as well.
The company expanded its customer base across restaurants, automotive, healthcare, and finance, with notable renewals and new contracts from brands like Chipotle, Red Lobster, and Allina Health.
The launch of Amelia 7, SOUN’s next-generation agentic AI platform, marked a leap in intelligent automation, with 15 enterprise clients already testing or migrating.
Plus, its proprietary foundation model, Polaris, and multilingual capabilities reinforced its tech leadership in Q2.
Strategic partnerships with names like Acrelec and AVANT signal growing global reach.
These developments paint a picture of a company not just growing, but maturing into a category leader.
In short, it’s transforming from a promising voice AI business to a diversified enterprise solution provider– which warrants long-term investment in SoundHound stock.
The post Is it too late to buy SoundHound stock after Q2 earnings surge? appeared first on Invezz