SoundHound (SOUN) stock has had a turbulent 2025 so far. Following a stellar rally in 2024, SOUN stock has plunged over 47% since the start of this year, wiping out much of its earlier gains.

The significant correction in SOUN stock reflects concerns over its stretched valuations. After soaring significantly, the stock became vulnerable to broader market headwinds, including fears of a slowing economy. These macroeconomic pressures have only intensified the selling pressure, contributing to the stock’s significant correction.

Despite the steep decline in share price, the company’s recent first-quarter financial results highlight robust demand for its voice AI offerings. Revenue growth remains strong and has been accelerating, signaling that SoundHound’s core offerings continue to witness solid demand even as its stock stumbles.

While the broader market is navigating uncertainties, which pose challenges, SoundHound’s underlying fundamentals remain compelling, with continued product adoption and business momentum. With SOUN stock trading at a much more attractive valuation than its recent highs, is this pullback an opportunity to buy shares of this voice artificial intelligence (AI) solutions provider? Let’s take a closer look.

SoundHound’s Revenue Growth Accelerates

SoundHound started 2025 with impressive momentum, reporting first-quarter (Q1) revenue of $29.1 million, up 151% year-over-year.  While it missed the Street’s projection, SoundHound’s revenue growth rate has been accelerating consistently, from 54% in Q2 2024 to 151% in Q1 2025, showcasing growing adoption of voice AI technology across sectors.

While SOUN’s top-line growth is accelerating, the company continues to diversify its revenue streams. Notably, no single customer contributed more than 10% of total revenue in Q1. This broadening customer base reduces concentration risk and reflects SoundHound’s expanding footprint across industries.

SoundHound’s market opportunity is growing rapidly, and the company is capitalizing on it with strategic acquisitions and technology upgrades. Over the past year, it has acquired SYNQ3, Allset, and Amelia. These acquisitions are paying off well. SYNQ3’s integration led to over 30% growth in locations, drove upsell opportunities, and upgraded most of its locations to its Polaris model. Polaris, a multimodal, multilingual AI platform, has become a competitive differentiator for SoundHound, enhancing services across the restaurant sector.

Allset’s addition bridges SoundHound’s voice AI expertise with the automotive sector. Meanwhile, Amelia’s integration has opened doors to new industries, accelerating upsell and cross-sell opportunities.

SoundHound’s generative AI, voice AI, and agentic platforms are gaining traction. Bookings continued to grow at a high double-digit rate year-over-year. Cloud users for SoundHound’s AI solutions grew over 50%, a strong indicator of robust underlying demand.

Despite global challenges, SoundHound is expanding in the automotive sector. Average selling prices in the auto industry have been increasing thanks to the higher product penetration and generative AI solutions. However, unit volumes faced temporary pressures due to geopolitical factors. Nevertheless, SoundHound has a solid pipeline of new OEMs, reflecting strong demand for its voice commerce solutions.

SOUN’s Operational Efficiencies and Outlook

Operationally, the company is benefiting from its acquisitions. While some acquired contracts come with low margins, SoundHound is working to improve or exit these deals. This optimization will play out over the next 18 to 24 months.

Marketing efforts also saw increased investments to boost sales effectiveness and customer retention. Early indicators suggest these initiatives are bearing fruit, with a growing sales pipeline and improved close rates.

Looking ahead, SoundHound reaffirmed its 2025 revenue guidance of $157 to $177 million. Despite macroeconomic headwinds, SoundHound’s AI-driven momentum and diversified customer base provide a solid foundation for continued growth. Moreover, management remains committed to achieving adjusted EBITDA profitability by the end of 2025. Sequential improvements are expected as revenue ramps up, supported by cost reduction actions and operational efficiencies.

Is SOUN Stock a Buy After the Correction?

Analysts maintain a “Moderate Buy” consensus on SOUN stock amid macroeconomic uncertainty. 

However, with accelerating growth, strategic acquisitions, and a strong market position in voice AI, SoundHound’s long-term prospects remain promising. This indicates that the significant correction in SoundHound stock is a buying opportunity.