SoundHound Call Options Volume Triples After Revenue Blew Past Estimates: Options Chatter

The company also launched Vision AI, which unites voice and visual capabilities into one intelligent platform, allowing the technology to listen, see, and interpret the world around it. The system was designed to meet the needs of enterprise applications including AI-powered retail inventory intelligence, hands-free equipment troubleshooting and personalized drive-thru experiences."

"We are moving with speed to capture the explosion we’re seeing in the voice and conversational AI industry, where customers across sectors are realizing the tremendous value they can achieve by adopting our market-leading solutions," Chief Financial Officer Nitesh Sharan said in the company's press release late Thursday.

Shares gapped higher, jumping 28% to $13.70 and setting the stock on course for its biggest advance since early December. That climb pushed a number of call options in the money with just hours left before they expire, sending sellers of call options scrambling to buy back the contracts to prevent their shares from being called away by the option holders.

More than 494,000 SoundHound call options changed hands as of 2:24 p.m. in New York. That's more than triple the previous session's total volume and more than five times the 20-day average, according to data compiled by Bloomberg.

Zero-days-to-expiration (0DTE) call options that give their holder the right to buy the stock at $14 attracted the heaviest trading, with volume reaching 38,130 contracts, almost 8X the open interest.

Wedbush raised its price target on the stock to $16 from $15 and maintained the outperform rating on the stock, noting that the company remains an "under-appreciated pure-play" AI firm, MT Newswires quoted the analysts as saying in a note to clients Friday.

The company increased its full year 2025 revenue outlook to a range of $160 million to $178 million, up from its $157 million to $177 million forecast in May after what its CEO described was the company's "strongest quarter ever." The midpoint of the revised outlook is higher than the $165.9 million expected by analysts, according to the average of estimates compiled by Bloomberg.

For the three months ended June 30, revenue climbed 217% to $42.7 million, beating the average estimate by almost 30%. Adjusted gross margin reached 58.4%, better than the 53.93% expected by analysts.

The company said it won a contract to integrated its voice assistant to a major original equipment manufacturer in China with vehicles spanning worldwide, including the development of multiple new languages. It also cited its continued expansion with KIA in the Indian market, with increased momentum from India-based OEMs.

SoundHound’s large language model-enhanced Chat AI product also rolled out in the North American market across three major brands.

D.A. Davidson analyst Gil Luria raised his price target on SoundHound to to $15 from $10, citing the company's progress toward profitability and its ability to capture market share.

See more interesting information on SoundHound AI from Moomoo AI or ask any questions you might have on the stock or any securities, as you normally would with any AI.