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Cantor Fitzgerald kept its overweight rating on the stock, which is a way of saying they expect it to perform better than the broader market. Their $10 target is significantly higher than the current price of about $4.15 and sits above the $7 average across other Wall Street firms. This suggests the firm remains confident in the company's path toward profitability and its ability to integrate recent acquisitions. While price targets are just estimates, this call signals that one of the company's closer followers sees the business as being worth more than double its current market value.
Source: Cantor Fitzgerald
After SoundHound AI reported its November results, we updated our fair value and raised our 2027 revenue and profit projections. We have added the shift from licensing deals to more predictable monthly service revenue to what we track. We also added the company's plan to stop renewing unprofitable contracts to our assessment of its future earnings quality. We now include the $120 million in cost savings management identified after closing the LivePerson acquisition in our valuation.
SoundHound reported revenue of about 62 million dollars for the quarter, matching what analysts expected and growing nearly 50 percent from a year ago. The company also lost 5 cents per share, which was a smaller loss than the 12 cents Wall Street had predicted. This growth was helped by closing the acquisition of LivePerson, a firm that helps businesses use AI to talk to customers.
Management now expects to reach adjusted EBITDA profitability by the second half of 2027. This is a vital goal because it means the company would finally bring in more cash than it spends on its daily operations. While the stock fell about 6 percent today, the drop likely reflects a broad sell-off in tech and chip stocks rather than these specific results, which show the business is scaling quickly toward its targets.
See the full quarter, and how our tracked metrics did
Source: Company earnings report
SoundHound AI is scheduled to report its quarterly results today. Analysts are looking for revenue of about 60 million dollars as the company works to integrate its recent acquisitions and scale its voice AI software. For those who own the stock, the focus remains on whether the company is making progress toward its goal of becoming profitable by late 2026. We will be watching for updates on how well its new automated agent tools are being adopted by restaurant and car brands.
SoundHound AI is expanding its partnership with Ultraviolette, an electric vehicle maker, to put its voice assistant into more of the manufacturer's bikes and cars. The software allows riders to use voice commands to control their vehicles, which is part of SoundHound's strategy to move beyond simple voice search into "agentic AI" that can perform tasks.
This expansion is a good sign for the company's automotive business, which is a key part of its growth plan. While the financial details were not shared, winning more space in a global vehicle lineup helps prove that SoundHound's specialized AI can compete against generic assistants from larger tech rivals.
Source: GlobeNewsWire
Management has built a reliable pattern of clearing its own bars with four straight beats, showing they have a firm handle on the business even while integrating large acquisitions.
| Expectation | |
|---|---|
| EPS | $-0.13 |
| Revenue | $83M |
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