SoundHound AI (SOUN) is poised for strong growth in 2025, driven by increasing demand and its ongoing efforts to diversify its AI-powered customer base, despite recent market volatility, Wedbush said in a note Thursday.

The company recently filed its Form 10-K after a brief delay due to complexities related to its acquisitions of Synq3 and Amelia, as well as its transition to PwC as its auditor following its designation as a large accelerated filer. Wedbush noted that despite concerns during the delay, SoundHound saw no material changes to revenue costs.

SoundHound continues expanding its target market, particularly in the restaurant sector, where it now partners with over 30% of the top 20 global quick-service chains, Wedbush analysts said. The company is also broadening into industries such as healthcare, financial services, and retail, supported by a new Agentic AI product slated for 2025.

The company's management reaffirmed its 2025 revenue guidance of $157 million to $177 million, representing year-over-year growth of about 85% to 110%.

The company also reiterated its expectation to achieve earnings before interest, taxes, depreciation and amortization profitability by the end of 2025 as it realizes cost synergies from acquisitions and operational efficiencies.

With roughly $200 million in cash and no debt, SoundHound remains well-positioned for further mergers and acquisition opportunities, according to the note.

Wedbush maintained its outperform rating and a $22 price target on the stock.

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