Q3 2025 SoundHound AI Inc Earnings Call

November 6, 2025

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Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today, Scott Smith head of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining our third quarter 2025 conference call with me today is our CEO, Kevin <unk> and our CFO <unk> will begin with some short remarks before moving to Q&A.

I would also like to remind everyone that we will be making forward looking statements on this call actual results could differ materially from those suggested by our forward looking statements.

Please refer to our filings with the SEC for a detailed discussion of the risks and uncertainties that could affect our business and for discussion statements that qualify as forward looking statements and.

In addition, we may discuss certain non-GAAP measures. Please refer to today's press release for more detailed financial results and further details on the definitions limitations and uses of those measures and reconciliations from GAAP to non-GAAP.

Also note that the forward looking statements on this call are based on information available to US as of today's date, we undertake no obligation to update any forward looking statements, except as required by law.

Finally, this call is being audio webcast in its entirety on our Investor Relations website, an audio replay will be available following today's call.

With that I would like to turn the call over to our CEO Kevin Mosher. Please go ahead Kevin.

Thank you Scott and thank you to everyone for joining the call today.

Q3 marks another quarter of precise execution against that plan enterprise AI adoption is booming globally and Samsung is strengthening its leading position by anchoring its deployment in millions of endpoints aircraft highly diversified industries and customers with much more potential remaining in the near and long term horizon.

In just the first three quarters of the year, we have already achieved a record year in revenue of $114 million up 127% and we are raising our outlook once again.

This quarter, we also celebrated our 20th year at the company.

We started in a Stanford dorm room with the mission to voice enabled the world with conversational intelligence.

Our long term focus dedication and strategic execution has paid off as the opportunities before us are now advancing at an exponential rate.

Two decades of technical innovation has given us the speed and agility to truly capitalize on these opportunities.

Our deep understanding of AI has allowed us to achieve market readiness rapidly while many others are still experimenting.

Indeed, we are already in the market, achieving real success and creating measurable value for our customers with our technology as a driving force and.

And we have a track record of groundbreaking work and being highly responsive to new technological advancements.

We pioneered speech two meaning over 10 years ago, which combines speech recognition and language understanding in real time to deliver superior speed and accuracy.

Likewise, we pioneered deep meaning understanding over 10 years ago, and we're the first voice technology company to enable the processing of complex and compound conversations while others were still delivering simple limited commence.

Our work a decade ago pave the way to leading the world in the agent experience as we are seeing today.

We were the first to go into production with a voice enabled generative AI assistant in automotive within weeks of Llm's, becoming a proven architecture in language understanding and years ahead of Big Tech.

And this year you were one of the first in the world to introduce a fully agentic platform for enterprise businesses Amelia seven.

Importantly, thanks to our years of IP accumulation and our mature platform. We are able to combine deterministic flows with machine learning models, where the ladder still lack the reliability to go from proof of concept into production.

This advantage has enabled us to deploy faster and scale faster and also avoid the explosion in mato costs that other companies are battling today.

Now, let me give you an update on Polaris, our most retail groundbreaking work.

Fanhouse Multimodal multilingual Foundation model Polaris continues to prove its superiority in accuracy speed on cost as.

As we move more Amelia platform clients from third party legacy vendors to use Polaris.

To reduce the error rate by as much as three times.

Our customers are thrilled and transitioning them to Polaris will help us drive that engineering and hardware costs and achieve faster iteration cycles to improve our speech Foundation models.

We also continue to add support for new languages and have innovated new methods to provide speech model customization with a rapid turnaround time and minimal deployment overhead.

Innovative new training methodologies that reduce the cost of training and amounts of data required while significantly improving model accuracy.

Notably we were one of the very few companies that can support our customers in the environment of their choice whether it is in our cloud in their cloud on the edge or on Prem as well as a hybrid combination.

Polaris and our view is another significant disruption that widens the gap between us and the competition in our journey to realize <unk> vision.

And while the innovation is clearly a major source of strength and the foundation of our growth story. We've also demonstrated repeatable success with our acquisition strategy.

Within 12 to 18 months of our key acquisitions to date, we were able to convert their pre merger decline to post merger growth and turned them into leaders in their field as a fully integrated business unit within southbound.

While acquisition is not a requirement for our success. It provides a unique opportunity for <unk> to change the equation and accelerate our trajectory.

We've been able to find great businesses with amazing teams strong customer relationships and solutions highly aligned with our three pillars of business and arm them with what they needed to thrive, including Fanhouse strong IP, replacing their legacy Tech dependencies, which somehow in have models that are more accurate faster and.

Less coffee with 20 years of data on innovation behind them, improving their customer experiences, while reducing their costs strong financial backing for innovation and expansion and proven scale strong brand and credibility.

This quarter, we acquired interactions at pioneer in customer service and workflow orchestration and we are already moving fast to combine functions to create a comprehensive and dynamic contact center and customer service offering that incorporates a full spectrum of automation and human assisted capabilities.

We have now demonstrated our M&A playbook multiple times learning from each acquisition and getting faster and stronger every time.

Just as we lead with our past acquisitions, we are now integrating our strong IP and replacing their dependencies on third party models with more accurate faster and less costly Samsung build models.

And with a robust financial position, we can give them the resources they need for innovation and expansion.

With this latest combination we expect to achieve the results we achieved through previous acquisitions harvesting cost synergies by moving their stack into our own cloud and realizing revenue synergies with cross selling and Upselling.

With that let me now talk about some specific customer highlights in Q3.

In Iot in robotics, we had a significant win signing a deal with a large Chinese company that offers intelligence based interaction in hardware and software products.

We agreed to integrate San handset AI into double digit millions of AI enabled smart devices, which will initially be distributed in the Indian market, leveraging our strong language capabilities in Indian languages.

In automotive, we continue to see strong adoption and have begun to deepen our market penetration beyond global light vehicles.

We are excited to now be working with a major globally renounced sports car brand to develop a unique personality for in vehicle assistant.

Additionally, jeep vehicles rolled out our category, leading chat AI voice assistant in Europe.

And our work with existing customers, including lucid tug and others are seeing promising results.

<unk> has just recently expanded throughout the German market.

We've also signed multiple deals with prominent tubular companies based in the expansive Indian market as well as multinational commercial fleet vehicle company based out of Italy that manufacturers light medium and heavy vehicles, including trucks vans and buses.

In financial services, we continue to work with seven out of the top 10 global financial institutions with three buying additional services and Tucson and renewals.

We also signed a new enterprise technology deal with a prominent organization supporting credit unions throughout the United States.

In energy, we signed new contract with a large utility company that generates transmit distribute and sell electricity in the United States.

And it takes us based electricity provider serving millions of customers.

In retail and consumer goods, we had a net new upsell with a major multinational brand with an extensive product portfolio of food beverage and consumer goods.

And through our smart entering solution, we won deals with one of the fastest growing global health clubs in the United States and a U S. Based global franchise that offers state of the art training facilities for elite athletes.

In restaurants, one of our most established verticals, we are a market leader and continue to see strong adoption with our cutting edge solutions.

Notably, we signed a deal to deploy our AI ordering solutions with a nationally recognized full service restaurant chain and have franchise wins with firehouse subs five guys and Mcallister as daily.

And you are now fully rolled out in all my pizza habit Burger Red lobster and torches tacos locations. In addition to existing brands Chipotle and cases.

Peets coffee expanded further with employee assessed which will now be deployed in our company owned locations.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Scott Smith, Head of Investor Relations. Please go ahead.

Cost based electricity provider serving millions of customers.

Earlier this year, we introduced a new product called voice insights targeting brands that require a precursor to full automation for example, due to missing API and infrastructure.

In retail and consumer goods, we had a net new upsell with a major multinational brand with an extensive product portfolio of food beverage and consumer goods.

And through our smart <unk> solution, we won deals with one of the fastest growing global health clubs in the United States.

Voice insights is our AI powered solution that analyzes customer and employee interactions in real time in order to measure efficiency satisfaction and other metrics that can help restaurants improve their operations.

A U S based global franchise that offers state of the art training facilities for elite athletes.

In restaurants, one of our most established protocols, we are a market leader and continue to see strong adoption with our cutting edge solutions.

We are seeing strong interest from our customer brands and prospects with several brands already in process of rolling it out within just months are being introduced.

Scott Smith: Good afternoon, and thank you for joining our third quarter 2025 conference call. With me today is our CEO, Keyvan Mohajer, and our CFO, Nitesh Sharan. We'll begin with some short remarks before moving to Q&A. We'd also like to remind everyone that we will be making forward-looking statements on this call. Actual results could differ materially from those suggested by our forward-looking statements. Please refer to our filings with the SEC for a detailed discussion of the risks and uncertainties that could affect our business, and for discussion statements that qualify as forward-looking statements. In addition, we may discuss certain non-GAAP measures. Please refer to today's press release for more detailed financial results and further details on the definitions, limitations, and uses of those measures, and reconciliations from GAAP to non-GAAP.

Notably, we signed a deal to deploy our AI ordering solutions with a nationally recognized full service restaurant chain and has franchise wins with firehouse subs five guys and Mcallister as daily.

In healthcare, we launched with a large precision medicine provider to pioneer in inbound and outbound Agentic AI solution, which is the first of its kind in the healthcare space.

We also signed with a U S based regional hospital system to deployed amyloid platform and we renewed our relationship with one of the leading health care companies for wholesale and medical supplies.

And you are now fully rolled out in all Mod pizza habit, Burger Red lobster and torches tacos locations. In addition to existing brands Chipotle and cases.

Peets coffee expanded further with employee assessed which will now be deployed in all the company owned locations.

And insurance French insurer, a PVA Portage announced that it will deploy Amelia seven to bring Agentic ait's contact centers.

Earlier this year, we introduced a new product called voice insights targeting brands that require a precursor to full automation for example, due to missing API and infrastructure.

We also renewed with a global insurance company that provides services to multinational corporations and.

A highly regarded Mexico based insurance company specializing in auto insurance.

In telecommunications, we signed a large well known communications provider that offers fiber internet digital TV and other services to residential and business customers in over 20 U S States.

Scott Smith: Also note that the forward-looking statements on this call are based on information available to us as of today's date. We undertake no obligation to update any forward-looking statements except as required by law. Finally, this call is being audio-webcast in its entirety on our investor relations website, and audio replay will be available following today's call. With that, I would like to turn the call over to our CEO, Keyvan Mohajer. Please go ahead, Keyvan.

We are seeing strong interest from our customer brands and prospects with several brands already in process of rolling it out between just months up being introduced.

In it services, we renewed a multiyear contract and up sold to one of the largest internet domain registry and web hosting companies in the world.

In healthcare, we launched with a large precision medicine provider to pioneer in inbound and outbound Agentic AI solution, which is the first of its kind in the healthcare space.

We also won a deal with a leading provider of managed cyber security services.

<unk> and it infrastructure solutions based out of United States.

Keyvan Mohajer: Thank you, Scott, and thank you to everyone for joining the call today. Q3 marks another quarter of precise execution against our plan. Enterprise AI adoption is booming globally, and SoundHound AI is strengthening its leading position by anchoring its deployments in millions of endpoints across highly diversified industries and customers, with much more potential remaining in the near and long-term horizon. In just the first three quarters of the year, we have already achieved a record year in revenue of $114 million, up 127%, and we are raising our outlook once again. This quarter, we also celebrated our 20th year as a company. We started in a Stanford dorm room with the mission to voice-enable the world with conversational intelligence. Our long-term focus, dedication, and strategic execution have paid off, as the opportunities before us are now advancing at an exponential rate.

With channel partners, we entered into a strategic partnership with leading technology services distributors to allow us to bring Amelia seven and economics to their enterprise CX in Es landscape.

We also signed with a U S based regional hospital system to deploy to Amelia platform.

And we renewed our relationship with one of the leading health care companies for wholesale and medical supplies.

And insurance French insurer, a PVA Portage announced that it will deploy Amelia seven to bring Agentic ait's contact centers.

Additionally, we signed a multiyear deal with a long standing partner that specializes in CRM AI and workforce engagement management, we entered into a reseller agreement with box AI a company that offers purpose driven customer experience solutions.

We also renewed with a global insurance company that provides services to multinational corporations and a highly regarded Mexico based insurance company specializing in auto insurance.

<unk> entered into strategic partnerships with two of the leading software and service providers, a full suite studio, Jim Health and Wellness Club management.

In telecommunications, we signed a large well known communications provider that offers fiber internet digital television and other services to residential and business customers in over 20 U S States.

Many of these important deals and partnerships are a result of our success and growing leadership in enterprise AI IMAX.

In it services, we renewed a multiyear contract and up sold to one of the largest internet domain registry and web hosting companies in the world.

Im excited to talk more about this increasingly important focus area for sound Hound as be leaning on Agentic AI with our differentiating Agentic plus framework.

We also won a deal with a leading provider of managed cyber security services cloud and it infrastructure solutions based out of United States.

Keyvan Mohajer: Two decades of technical innovation have given us the speed and agility to truly capitalize on these opportunities. Our deep understanding of AI has allowed us to achieve market readiness rapidly, while many others are still experimenting. Indeed, we are already in the market, achieving real success and creating measurable value for our customers with our technology as the driving force. We have a track record of groundbreaking work and being highly responsive to new technological advancements. We pioneered speech-to-meaning over 10 years ago, which combined speech recognition and language understanding in real time to deliver superior speed and accuracy. Likewise, we pioneered deep meaning understanding over 10 years ago, and we're the first voice technology company to enable the processing of complex and compound conversations while others were still delivering simple, limited commands.

With our acquisition of interactions we've added a number of preeminent fortune 100 companies across various industries to our already strong portfolio of global brands. For example, we now offer our solutions to one of the largest footwear and apparel brands in the world to.

With channel partners, we entered into a strategic partnership with leading technology services distributor tariffs to bring Amelia seven and economics to their enterprise CX and E X landscape.

To a silicon valley based platform Giants and to some of the major names in automotive energy financial services insurance health care technology and telecommunications.

Not to mention that we've added hundreds of new patents that we can leverage to increase our innovation moats.

And entered into strategic partnerships with two of the leading software and service providers, a full suite studio, Jim Health and Wellness Club management.

We see enterprise AI is one of the biggest near term opportunities. So we are aggressively expanding our product suites and our customer engagements in that space.

On that note, we've just updated the Amelia seven platform to version seven three.

Many of these important deals and partnerships are a result of our success and growing leadership in enterprise AI.

Keyvan Mohajer: Our work a decade ago paved the way to leading the world in the agentic experiences we are seeing today. We were the first to go into production with a voice-enabled generative AI assistant in automotive, within weeks of LLMs becoming a proven architecture in language understanding and years ahead of big tech. This year, we were one of the first in the world to introduce a fully agentic platform for enterprise businesses, Amelia 7. Importantly, thanks to our years of IP accumulation and our mature platform, we are able to combine deterministic flows with machine learning models, where the latter still lacks the reliability to go from proof of concept into production. This advantage has enabled us to deploy faster, scale faster, and also avoid the explosion in model costs that other companies are battling today.

Introducing some capability upgrades that have already been borrowing customers and prospects, including major improvements to conversational latency and barging handling to deliver an even more natural and intuitive voice experience for our customers.

I'm excited to talk more about this increasingly important focus area for sound Hound as be leaning on Agentic AI with our differentiating Agentic plus framework.

With our acquisition of interactions we've added a number of preeminent fortune 100 companies across various industries to our already strong portfolio of global brands.

The Emilia seven platform, which offers enterprise grade <unk> AI is already making a real impact where it has been deployed and we are now expanding his availability globally and already seeing brand new logos in our pipeline.

For example, we now offer our solutions to one of the largest footwear and apparel brands in the world.

To a silicon valley based platform Giants and to some of the major names in automotive energy financial services insurance health care technology and telecommunications.

Much of this interest is driven by our unique approach to Agentic AI, what we call our agent plus framework.

It's in a gentex system designed for enterprises that balance is the power of multi agent orchestration and generative AI with essential business requirements and controls.

Not to mention that we've added hundreds of new patents that we can leverage to increase our innovation moats.

While many internal AI project style in pilot base, our approach consistently brings use cases to market within days or weeks rather than months.

We see enterprise AI as one of the biggest near term opportunities. So we are aggressively expanding our product suites and our customer engagements in that space.

Keyvan Mohajer: Now, let me give you an update on Polaris, our most recent groundbreaking work. SoundHound's multimodal multilingual foundation model, Polaris, continues to prove its superiority in accuracy, speed, and cost. As we move more Amelia platform clients from third-party legacy vendors to use Polaris, we are able to reduce the error rate by as much as three times. Our customers are thrilled, and transitioning them to Polaris will help us drive down engineering and hardware costs, and achieve faster iteration cycles to improve our speech foundation models. We also continue to add support for new languages, and have innovated new methods to provide speech model customization with a rapid turnaround time and minimal deployment overhead. We've innovated new training methodologies that reduce the cost of training and amounts of data required, while significantly improving model accuracy.

Within any given AI agent workflow there may be certain functions that are more appropriate to complete with predictable deterministic automation, especially when personal security is in question.

On that note, we've just updated the Amelia seven platform to version seven three.

And there are times, when human escalation is necessary or required by our customers.

The complexity and sensitivity of enterprise use cases, the amount of highly intelligent hybrid agentic system that delivers safe efficient end to end orchestration.

The Emilia seven platform, which offers enterprise grade Agentic AI is already making a real impact where it has been deployed and we are now expanding availability globally and already seeing brand new logos in our pipeline.

<unk> plus provides exactly that a practical scalable framework that brings forward looking AI use cases into real world operational today. This is where we see the true value unlock in enterprise AI transformation.

Much of this interest is driven by our unique approach to Agentic AI, what we call our agent plus framework.

As with all of our solutions. This admass technology has been built upon decades of R&D troves of data and an understanding of what motivates our customers. Our platform is LLM agnostic with relevant enterprise integrations and sound <unk> trademark agility means people adapt and upgrade ammonia selling at the pace of innovation.

It's in a gentex system designed for enterprises that balances the power of multi agent orchestration and generative AI with essential business requirements and controls.

Keyvan Mohajer: Notably, we are one of the very few companies that can support our customers in the environment of their choice, whether it is in our cloud, in their cloud, on the edge, or on-prem, as well as a hybrid combination. Polaris, in our view, is another significant disruption that widens the gap between us and the competition in our journey to realize SoundHound AI's vision. While innovation is clearly a major source of strength and the foundation of our growth story, we've also demonstrated repeatable success with our acquisition strategy. Within 12 to 18 months of our key acquisitions to date, we were able to convert their pre-merger decline to post-merger growth and turn them into leaders in their field as a fully integrated business unit within SoundHound AI.

While many internal AI project stall in pilot base, our approach consistently brings use cases to market within days or weeks rather than months.

We aim to always remain at the cutting edge for our customers.

Within any given AI agent workflow there may be certain functions that are more appropriate to complete with predictable deterministic automation, especially when personal security is in question.

That brings me onto voice Commerce voice.

Voice Commerce is our highly anticipated solution that seamlessly brings conveniences like food ordering and recent additions such as parking payments and restaurant reservations into the vehicle for the convenience of drivers as well as other Iot devices like Tvs.

And there are times, when human escalation is necessary or required by our customers.

The complexity and sensitivity of enterprise use cases, the amount of highly intelligent hybrid agentic system that delivers safe efficient end to end orchestration.

We've now taken <unk> to advance stages with a number of Oems and merchants and have already successfully placed live voice orders from cars and completed the transaction.

Agentic plus provides exactly that a practical scalable framework that brings forward looking AI use cases into real world operation. Today. This is where we see the true value unlock in enterprise AI transformation.

Keyvan Mohajer: While acquisition is not a requirement for our success, it provides a unique opportunity for SoundHound AI to change the equation and accelerate our trajectory. We've been able to find great businesses with amazing teams, strong customer relationships, and solutions highly aligned with our three pillars of business, and arm them with what they needed to thrive, including SoundHound AI's strong IP, replacing their legacy tech dependencies with SoundHound AI in-house models that are more accurate, faster, and less costly, with 20 years of data and innovation behind them, improving their customer experiences while reducing their costs, strong financial backing for innovation and expansion, and proven scale, strong brand, and credibility.

We're looking forward to seeing these go into full production in 2026.

We have four Oems showing strong interest in this groundbreaking technology with others following very closely.

As with all of our solutions. This admass technology has been built upon decades of R&D troves of data and an understanding of what motivates our customers. Our platform is LLM agnostic with relevant enterprise integrations and sound hounds trademark agility means people adapt and upgrade ammonia selling at the pace of innovation.

One of them in particular is poised to be the first to market together with a large <unk>.

We've also completed the integration with a larger paid parking service provider and a restaurant reservations company.

We are on track to have some exciting announcements early next year.

In addition, voice commerce is driving new conversations with smart TV manufacturers and in particular, we are in talks with two prominent global manufacturers to enable consumers to order food or other services, while Washington, PV simply by speaking to the device.

We aim to always remain at the cutting edge for our customers.

That brings me onto voice Commerce voice.

Voice Commerce is our highly anticipated solution that seamlessly brings conveniences like food ordering and the recent additions such as parking payments and restaurant reservations into the vehicle for the convenience of drivers as well as other Iot devices like Tvs.

Keyvan Mohajer: This quarter, we acquired Interactions, a pioneer in customer service and workflow orchestration, and we are already moving fast to combine functions to create a comprehensive and dynamic contact center and customer service offering that incorporates a full spectrum of automation and human-assisted capabilities. We have now demonstrated our M&A playbook multiple times, learning from each acquisition and getting faster and stronger every time. Just as we did with our past acquisitions, we are now integrating our strong IP and replacing their dependencies on third-party models with more accurate, faster, and less costly SoundHound-built models. With our robust financial position, we can give them the resources they need for innovation and expansion. With this latest combination, we expect to achieve the results we achieved through previous acquisitions, harvesting cost synergies by moving their stack into our own cloud and realizing revenue synergies with cross-selling and upselling.

More to come on that in the near future.

We are nearly fully integrated with two tech platform Giants in order to offer our voice ordering to their many millions of users.

We've now taken <unk> to advance stages with a number of Oems and merchants and have already successfully placed live voice orders from cars and completed the transaction with.

Going live to consumers is now imminent with more to come on this opportunity.

We believe this is a proof point that our decades of relentless innovation is delivering technology that is ready for mass adoption, even by big Tech.

We're looking forward to seeing these go into full production in 2026.

We have four Oems showing strong interest in this groundbreaking technology with others following very closely.

We will have a prominent presence at CES once again in January showcasing our solutions with participation from several partners.

One of them in particular is poised to be the first to market together with a large U S. A.

We look forward to seeing some of you there.

In closing we continue to deliver strong results some of the largest companies in the world are coming to us for solutions to address their AI goes.

We've also completed the integration with a larger paid parking service provider and a restaurant reservations company.

On track to have some exciting announcements early next year.

At the very beginning of addressing the massive market opportunity in front of us.

We are a pioneer in voice and conversational AI and the expertise we have gained over the past decades are becoming recognized more and more every day.

Keyvan Mohajer: With that, let me now talk about some specific customer highlights in Q3. In IoT and robotics, we had a significant win: signing a deal with a large Chinese company that offers intelligence-based interaction in hardware and software products. We agreed to integrate Chat AI into double-digit millions of AI-enabled smart devices, which will initially be distributed in the Indian market, leveraging our strong language capabilities in Indian languages. In automotive, we continue to see strong adoption and have begun to deepen our market penetration beyond global light vehicles. We are excited to now be working with a major globally renowned sports car brand to develop a unique personality for its in-vehicle assistant. Additionally, Jeep rolled out our category-leading Chat AI voice assistant in Europe, and our work with existing EV customers, including Lucid, Togg, and others, is seeing promising results.

We are delivering value driven agent air solutions to our customers and we are ready to offer a voice commerce solution no. Other company has been able to bring to market.

More to come on that in the near future.

We are nearly fully integrated with two tech platform Giants in order to offer our voice ordering to their many millions of users.

With that I'll now turn the call over 20, Tesh to talk about our financial performance and key growth drivers and business outlook.

Going live to consumers is now imminent with more to come on this opportunity.

Thank you gave on and good afternoon, everyone Q3 revenue was $42 million up 68% year over year.

We believe this is a proof point that our decades of relentless innovation is delivering technology that is ready for mass adoption, even by big Tech.

We continued to deliver strong growth led by product and technological differentiation and a rapidly expanding market.

We will have a prominent presence at CES once again in January showcasing our solutions with participation from several partners.

Reflecting on our performance so far this year, we have now successfully delivered the pillar two scaling that we had anticipated and communicated last year.

We look forward to seeing some of you there.

In closing, we continue to deliver strong results.

From financial services to healthcare to technology and retail.

Some of the largest companies in the world are coming to us for solutions to address their AI goals.

On top of our existing footprint in automotive in restaurants, we have embedded our leading edge voice in conversational AI suite deeply into a wide cross section of market leading services.

At the very beginning of addressing the massive market opportunity in front of us.

We are a pioneer in voice and conversational AI and the expertise we have gained over the past decades are becoming recognized more and more every day.

The disruptive innovation curve that extends from deep learning and transform our architectures to large language and reasoning modeled into Identic AI solutions for 10, societal and economic transformation for decades to come.

Keyvan Mohajer: Togg has just recently expanded throughout the German market. We've also signed multiple deals with prominent two-wheeler companies based in the expansive Indian market, as well as a multinational commercial fleet vehicle company based out of Italy that manufactures light, medium, and heavy vehicles, including trucks, vans, and buses. In financial services, we continue to work with seven out of the top 10 global financial institutions, with three buying additional services, and two signing renewals. We also signed a new enterprise technology deal with a prominent organization supporting credit unions throughout the United States. In energy, we signed new contracts with a large utilities company that generates, transmits, distributes, and sells electricity in the United States, and a Texas-based electricity provider serving millions of customers.

We are delivering value driven agent air solutions to our customers and we are ready to offer a voice commerce solution no. Other company has been able to bring to market.

That said the existing state of AI points vividly to call center and customer service disruption as a current epicentre of this transformation and our solutions are strategically positioned to capitalize.

With that I'll now turn the call over 20, Tesh to talk about our financial performance key growth drivers and business outlook.

Our organic and strategic investments have positioned us well to succeed here.

Thank you gave on and good afternoon, everyone Q3 revenue was $42 million up 68% year over year, we continued to deliver strong growth led by product and technological differentiation and a rapidly expanding market.

Full automation that outperforms humans to human assist capabilities that drive contact center agent efficiencies, we now run the gamut to support enterprises as they deliver best in class customer support or outbound lead generation.

Reflecting on our performance so far this year, we have now successfully delivered the pillar two scaling that we had anticipated and communicated last year.

We have an agenda first architecture, leveraging our own state of the art models alongside best of breed partners.

From financial services to healthcare to technology and retail on top of our existing footprint in automotive in restaurants, we have embedded our leading edge voice in conversational AI suite deeply into a wide cross section of market leading services.

With the acquisition of interactions we have now added workflow optimization capabilities to our enterprise <unk> solutions <unk>.

Keyvan Mohajer: In retail and consumer goods, we had a net new upsell with a major multinational brand with an extensive product portfolio of food, beverage, and consumer goods. Through our Smart Answering solution, we won deals with one of the fastest-growing global health clubs in the United States, and a US-based global franchise that offers state-of-the-art training facilities for elite athletes. In restaurants, one of our most established verticals, we are a market leader and continue to see strong adoption with our cutting-edge solutions. Notably, we signed a deal to deploy our AI ordering solutions with a nationally recognized full-service restaurant chain, and had franchise wins with Firehouse Subs, Five Guys, and McAlister's Deli. We are now fully rolled out in all Mod Pizza, The Habit Burger Grill, Red Lobster, and Torches Tacos locations, in addition to existing brands Chipotle and KC's.

The fabric needed to enable companies to effectively adopt AI and deliver productivity and returns.

And our deepening broad based partnerships are a testament that our offerings are resonating.

The disruptive innovation curve that extends from deep learning and transform architectures to large language and reasoning modeled into agenda, AI solutions, portend societal and economic transformation for decades to come.

We have said before this is the era, where natural language conversations will enable humans to more seamlessly interact with technology and voice AI is the killer app.

Our heritage of innovation is our right to win.

We continue to see that play out in Q3.

And pillar, one we extended our penetration into China with a large Iot win as we capitalize on that country's lead in the global robotics race.

Our organic and strategic investments have positioned us well to succeed here from full automation that outperforms humans to human assist capabilities that drive contact center agent efficiencies, we now run the gamut to support enterprises as they deliver best in class customer support our outbound lead generation.

And restaurant another quarter of adding 1000 locations, including most notably with our leading pizza provider and expansion beyond ordering with our employee assist in voice inside solutions provided both rapid unit and price expansion.

We have an agenda first architecture, leveraging our own state of the art models alongside best of breed partners.

Keyvan Mohajer: Peet's Coffee expanded further with Employee Assist, which will now be deployed in all company-owned locations. Earlier this year, we introduced a new product called Voice Insights, targeting brands that require a precursor to full automation, for example, due to missing APIs and infrastructure. Voice Insights is our AI-powered solution that analyzes customer and employee interactions in real time in order to measure efficiency, satisfaction, and other metrics that can help restaurants improve their operations. We are seeing strong interest from our customer brands and prospects, with several brands already in the process of rolling it out within just months of being introduced. In healthcare, we launched with a large precision medicine provider to pioneer an inbound and outbound agentic AI solution, which is the first of its kind in the healthcare space.

In enterprise, our steady retention and expansion rates were supported by significant improvements in customer outcomes. In fact relative to incumbent solutions are early adjourn take AI customers are seeing up to 10 fold improvement in containment rate, 25% higher end user net promoter score and 15% higher customer satisfaction.

With the acquisition of interactions we have now added workflow optimization capabilities to our enterprise <unk> solutions searching the fabric needed to enable companies to effectively adopt AI and deliver productivity and returns.

And our deepening broad based partnerships are a testament that our offerings are resonating.

And we are achieving these results even faster with up to 35% less effort to design and deploy Argentic AI service.

We have said before this is the era, where natural language conversations will enable humans to more seamlessly interact with technology and voice AI is the killer App our heritage of innovation is our right to win.

And we are now consistently eclipsing 1 billion queries, a month up nearly 10 X since we went public.

Before I move to the quarterly numbers I want to talk about our pace of investment.

We continue to see that play out in Q3 and.

The speed of innovation has been rapid the past several years.

In pillar, one we extended our penetration into China with a large Iot win as we capitalize on that country's lead in the global robotics race.

Now, it's about accelerating the adoption curve and customers realization of AI is massive benefits.

And restaurants, another quarter of adding 1000 locations, including most notably with our leading pizza provider and expansion beyond ordering with our employee assist in voice inside solutions provided both rapid unit and price expansion.

The winners will entrench themselves where value can be derived for many years to come and that's why we are aggressively investing to fortify and expand our moats, while deepening our customer relationships.

Keyvan Mohajer: We also signed with a US-based regional hospital system to deploy the Amelia platform, and we renewed our relationship with one of the leading healthcare companies for wholesale medical supplies. In insurance, French insurer Apivia Courtage announced that it will deploy Amelia 7 to bring agentic AI to its contact centers. We also renewed with a global insurance company that provides services to multinational corporations, and a highly regarded Mexico-based insurance company specializing in auto insurance. In telecommunications, we signed a large, well-known communications provider that offers fiber internet, digital television, and other services to residential and business customers in over 20 US states. In IT services, we renewed a multi-year contract and upsold to one of the largest internet domain registry and web hosting companies in the world.

This has been taking the form of go to market investments as well as product capability expansion and we expect to continue to keep the foot on the accelerator.

That said.

From a financial profile perspective, we are also moving from our past, where our investments we're building the future and foreshadowing scale to our present, where our growth and scale fully covers our costs.

And we are achieving these results even faster with up to 35% less effort to design and deploy our <unk> service.

More specifically as we exit 2025 and enter 2026 in part a result of executing on substantial acquisition synergies. We expect continued hyper growth to be coupled with a breakeven profitability profile I'll share more when we discuss the outlook.

And we are now consistently eclipsing 1 billion queries, a month up nearly 10 X since we went public.

Before I move to the quarterly numbers I want to talk about our pace of investment.

For now let me discuss the third quarter financial results in more detail.

The speed of innovation has been rapid the past several years now it's about accelerating the adoption curve and customers realization of AI is massive benefits the.

Keyvan Mohajer: We also won a deal with a leading provider of managed cybersecurity services, cloud, and IT infrastructure solutions based out of the United States. With channel partners, we entered into a strategic partnership with leading technology services distributor Telarus to bring Amelia 7 and Autonomics to their enterprise CX and EX landscape. Additionally, we signed a multi-year deal with a long-standing partner that specializes in CRM, AI, and workforce engagement management. We entered into a reseller agreement with Box, a company that offers purpose-driven customer experience solutions, and entered into strategic partnerships with two of the leading software and service providers of Full Suite Studio Gym, Health, and Wellness Club Management. Many of these important deals and partnerships are the result of our success and growing leadership in enterprise AI.

Q3 revenue was $42 million up 68% year over year.

All three pillars grew double digits and we saw strength in both direct sales and through channel partners. We.

We had a big Iot win for pillar, one and enterprise and restaurants helped drive outperformance in pillar two.

While there was continued pressure in the automotive business driven by global tariffs and the broader industry softness there are signs of improvement, especially when considering the momentum we are seeing around pillar three voice commerce.

This has been taking the form of go to market investments as well as product capability expansion and we expect to continue to keep the foot on the accelerator.

That said from a financial profile perspective, we are also moving from our past where our investments we're building the future and foreshadowing scale to our present, where our growth and scale fully covers our costs more.

And as we have substantially diversified our industry makes the past two years any individual sectors impact on our growth is much more muted now.

Across our business lines, we also expanded geographic reach and product coverage and we continue to see strong customer diversification where year to date, we don't have any customers contributing greater than 10% of our revenue.

In Q3, our GAAP and non-GAAP gross margins were both up from the prior quarter. Our GAAP gross margin was 43% and adjusted for noncash amortization of purchased intangibles and employee stock compensation, our non-GAAP gross margin was 59%.

Keyvan Mohajer: I'm excited to talk more about this increasingly important focus area for SoundHound AI as we lean in on agentic AI with our differentiating Agentic+ Framework. With our acquisition of Interactions, we've added a number of preeminent Fortune 100 companies across various industries to our already strong portfolio of global brands. For example, we now offer our solutions to one of the largest footwear and apparel brands in the world, to a Silicon Valley-based platform giant, and to some of the major names in automotive, energy, financial services, insurance, healthcare, technology, and telecommunications. Not to mention that we've added hundreds of new patents that we can leverage to increase our innovation moat. We see enterprise AI as one of the biggest near-term opportunities, so we are aggressively expanding our product suites and our customer engagement in that space.

For now let me discuss the third quarter financial results in more detail.

Q3 revenue was $42 million up 68% year over year.

We continued to drive efficiencies in cloud spend as we deepened our acquisition integrations and we continue to realize cost savings from shifting from third party solutions to our own homebuilder ones.

All three pillars grew double digits, we saw strength in both direct sales and through channel partners. We.

We had a big Iot win for pillar, one and enterprise and restaurants helped drive outperformance in pillar two.

R&D expenses were $22 8 million in Q3 up 17% year over year, largely due to acquisitions and related head count and data center costs.

We continue to invest in innovation to maintain our technological leadership, our speech Foundation model Polaris is delivering outstanding results and we are now deploying it broadly across our customer base. We're also advancing our <unk> AI capabilities and real time speech to speech models, leveraging our deep expertise in conversational architectures and machine learning to deliver industry leading.

And as we have substantially diversified our industry makes the past two years any individual sectors impact on our growth is much more muted now.

Speed and accuracy.

Sales and marketing expenses were $16 4 million in Q3, reflecting a 96% year over year increase primarily driven by acquisitions.

Keyvan Mohajer: On that note, we've just updated the Amelia 7 platform to version 7.3, introducing some capability upgrades that have already been wowing customers and prospects, including major improvements to conversational latency and barge handling to deliver an even more natural and intuitive voice experience for customers. The Amelia 7 platform, which offers enterprise-grade agentic AI, is already making a real impact where it has been deployed, and we are now expanding its availability globally, and already seeing brand new logos in our pipeline. Much of this interest is driven by our unique approach to agentic AI, what we call our Agentic+ framework. It's an agentic system designed for enterprises that balances the power of multi-agent orchestration and generative AI with essential business requirements and controls. While many internal AI projects stall in pilot phase, our approach consistently brings use cases to market within days or weeks rather than months.

As seen in our results. The last few quarters, we have invested heavily in the channel which is paying dividends. We have also continued to build up direct sales and are also driving demand and lead generation activities, while speeding the journey from pipeline to close.

G&A expenses were $24 3 million in Q3, reflecting a 43% year over year increase primarily driven by our acquisitions.

R&D expenses were $22 8 million in Q3 up 17% year over year, largely due to acquisitions and related head count and data center costs.

We had roughly $5 million in one time M&A related costs aside from that we continue to drive operational efficiencies throughout the organization and improve our control environment.

We continue to invest in innovation to maintain our technological leadership, our speech Foundation model Polaris is delivering outstanding results and we are now deploying it broadly across our customer base. We're also advancing our agenda AI capabilities in real time speech to speech models, leveraging our deep expertise in conversational architectures and machine learning to deliver industry leading.

We had noncash employee stock compensation of $19 7 million and depreciation and amortization, including the amortization of intangibles of $8 6 million in Q3, all of which are included in our GAAP results adjusted.

Adjusted EBITDA was a loss of $14 5 million.

<unk> was $7 1 million of income for the quarter GAAP net loss of $109 3 million and GAAP net loss per share of <unk> 27.

Speed and accuracy.

Sales and marketing expenses were $16 4 million in Q3, reflecting a 96% year over year increase primarily driven by acquisitions.

Keyvan Mohajer: Within any given AI agent workflow, there may be certain functions that are more appropriate to complete with predictable deterministic automation, especially when personal security is in question. There are times when human escalation is necessary or required by our customers. The complexity and sensitivity of enterprise use cases demand a highly intelligent hybrid agentic system that delivers safe, efficient, end-to-end orchestration. Agentic+ provides exactly that: a practical, scalable framework that brings forward-looking AI use cases into real-world operations today. This is where we see the true value unlock in enterprise AI transformation. As with all of our solutions, this advanced technology has been built upon decades of R&D, troves of data, and an understanding of what motivates our customers. Our platform is LLM-agnostic, with relevant enterprise integrations, and SoundHound's trademark agility means we will adapt and upgrade Amelia 7 at the pace of AI innovation.

Were negatively impacted by the change in fair value of contingent liabilities of approximately $66 million.

As seen in our results. The last few quarters, we have invested heavily in the channel which is paying dividends.

This relates to the acquisitions, we have completed and as a non operating and non cash expense and primarily reflects the quarter on quarter increase in our stock price.

<unk> also continued to build up direct sales and are also driving demand and lead generation activities, while speeding the journey from pipeline to close.

As such this item has been excluded in our non-GAAP results.

G&A expenses were $24 3 million in Q3, reflecting a 43% year over year increase primarily driven by our acquisitions.

non-GAAP net loss was $13 million and non-GAAP net loss per share was <unk> <unk> in the quarter.

We had roughly $5 million in one time M&A related costs aside from that we continue to drive operational efficiencies throughout the organization and improve our control environment.

<unk> adjusts for items, such as noncash depreciation and amortization M&A transaction costs and stock based compensation.

Our balance sheet remains strong with cash and equivalents at quarter end up $269 million and no debt.

With that let me discuss our financial outlook.

Our completed thought I started earlier about where we are in the longer term trajectory of this business.

Adjusted EBITDA was a loss of $14 5 million or <unk> was $7 1 million of income for the quarter GAAP net loss of $109 3 million and GAAP net loss per share of <unk> 27 were.

Kayvon started these prepared remarks by noting our recently celebrated 20th anniversary as a company.

Keyvan Mohajer: We aim to always remain at the cutting edge for our customers. That brings me on to Voice Commerce. Voice Commerce is our highly anticipated solution that seamlessly brings conveniences like food ordering, and recent additions such as parking payments and restaurant reservations, into the vehicle for the convenience of drivers, as well as other IoT devices like TVs. We've now taken POCs to advanced stages with a number of OEMs and merchants, and have already successfully placed live voice orders from cars and completed the transaction. We are looking forward to seeing these go into full production in 2026. We have four OEMs showing strong interest in this groundbreaking technology, with others following very closely. One of them in particular is poised to be the first to market together with a large QSR.

He and our founding team started on a path of breakthrough science tackling the challenge of hard AI innovation that provides more seamless and natural access so humans can harness the power of technology for our collective benefit, notably through pioneering advances and voice AI.

Were negatively impacted by the change in fair value of contingent liabilities of approximately $66 million.

This relates to the acquisitions, we have completed and as a non operating and noncash expense and primarily reflects the quarter on quarter increase in our stock price.

Breakthrough science is challenging it takes time and requires tenacity and resilience to persist through the cycles of revolution setbacks and further evolution.

As such this item has been excluded in our non-GAAP results.

non-GAAP net loss was $13 million and non-GAAP net loss per share was <unk> <unk> in the quarter. This adjusts for items, such as noncash depreciation and amortization M&A transaction costs and stock based compensation.

That was our company's existence for the first 15 years and it manifested in financials that were heavy in R&D spend.

Last five years as a company have been about commercialization product deployment customer traction and scale.

Our balance sheet remains strong with cash and equivalents at quarter end of $269 million and no debt.

That set the stage for the acceleration into the high growth part of the S curve, where we are now.

Within this high growth stage, we are crossing the chasm to where we expect our inflows to exceed outflows.

With that let me discuss our financial outlook.

Keyvan Mohajer: We've also completed the integration with a larger paid parking service provider, and a restaurant reservations company. We are on track to have some exciting announcements early next year. In addition, Voice Commerce is driving new conversations with smart TV manufacturers, and, in particular, we are in talks with two prominent global manufacturers to enable consumers to order food or other services while watching TV simply by speaking to the device. More to come on that in the near future. We are nearly fully integrated with two tech platform giants in order to offer our voice ordering to their many millions of users. Going live to consumers is now imminent, with more to come on this opportunity. We believe this is a proof point that our decades of relentless innovation is delivering technology that is ready for mass adoption, even by big tech.

Our completed thought I started earlier about where we are in the longer term trajectory of this business.

That transition like all others arent linear our uniform, but there are progressive and ultimately compounding that's the setup of our business as we look towards 2026.

Kayvon started these prepared remarks by noting our recently celebrated 20th anniversary as a company.

He and our founding team started on a path of breakthrough science tackling the challenge of hard AI.

With that broad context for the full year 2025, we now expect revenue to be in the range of $165 million to $180 million.

Innovation that provides a more seamless and natural access so humans can harness the power of technology for our collective benefit, notably through pioneering advances and voice AI.

For Q4, we expect to be adjusted EBITDA profitable at the higher end of the revenue outlook and in the single digit millions of loss at the lower end.

Breakthrough science is challenging it takes time and requires tenacity and resilience to persist through the cycles of revolution setbacks and further evolution.

We see additional acquisition cost synergies of roughly $20 million on an annual run rate basis to be realized more fully in 2026, which will set us up well as we align our organization with the massive tailwind behind us.

That was our company's existence for the first 15 years and it manifested in financials that were heavy in R&D spend.

Accordingly, our early expectations for 2026 are to continue delivering high growth commensurate with levels, we have been compounding the past several years.

Last five years as a company have been about commercialization product deployment customer traction and scale.

Keyvan Mohajer: We will have a prominent presence at CES once again in January, showcasing our solutions with participation from several partners. We look forward to seeing some of you there. In closing, we continue to deliver strong results. Some of the largest companies in the world are coming to us for solutions to address their AI goals. We are at the very beginning of addressing the massive market opportunity in front of us. We are a pioneer in voice and conversational AI, and the expertise we've gained over the past decades is becoming recognized more and more every day. We are delivering value-driven agentic AI solutions to our customers, and we are ready to offer a Voice Commerce solution no other company has been able to bring to market. With that, I'll now turn the call over to Nitesh to talk about our financial performance, key growth drivers, and business outlook.

That set the stage for the acceleration into the high growth part of the S curve, where we are now.

And we expect to do so with near breakeven profitability levels, because we want to reinvest when we foresee outsized returns.

Within this high growth stage, we are crossing the chasm to where we expect our inflows to exceed outflows.

AI is fundamentally transformative we have the assets and capabilities to deliver this transformation for our customers.

That transition like all others arent linear our uniform, but they are progressive and ultimately compounding that's the setup of our business as we look towards 2026.

So we will stay aggressive in our approach because we believe the potential value capture merits, it where expected returns are well in excess of the risk adjusted cost of capital.

With that broad context for the full year 2025, we now expect revenue to be in the range of $165 million to $180 million.

With that we will now move to Q&A.

Thank you at this time, we will conduct a question and answer session.

For Q4, we expect to be adjusted EBITDA profitable at the higher end of the revenue outlook and in the single digit millions of loss at the lower end.

To ask a question you will need to press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, please standby, while we compile the Q&A roster.

Keyvan Mohajer: Thank you, Keyvan, and good afternoon, everyone. Q3 revenue was $42 million, up 68% year over year. We continue to deliver strong growth, led by product and technological differentiation in a rapidly expanding market. Reflecting on our performance so far this year, we have now successfully delivered the Pillar 2 scaling that we had anticipated and communicated last year. From financial services to healthcare to technology and retail, on top of our existing footprints in automotive and restaurants, we have embedded our leading-edge voice and conversational AI suite deeply into a wide cross-section of market-leading services. The disruptive innovation curve that extends from deep learning and transformer architectures to large language and reasoning models into agentic AI solutions portends societal and economic transformation for decades to come.

Yes.

Accordingly, our early expectations for 2026 are to continue delivering high growth commensurate with levels, we've been compounding the past several years and.

Our first question comes from the line of Gil Luria from D. A Davidson kill your line is now open.

And we expect to do so with near breakeven profitability levels, because we want to reinvest when we foresee outsized returns.

Thank you good afternoon.

First wanted to ask about the eight figure Chinese robotics deal.

AI is fundamentally transformative we have the assets and capabilities to deliver this transformation for our customers.

Is it too much for us to think of.

This is maybe a humanoid robotics it seems like that maybe a good application for.

We will stay aggressive in our approach because we believe the potential value capture merits, it where expected returns are well in excess of the risk adjusted cost of capital.

Low latency voice to meaning.

And therefore very interesting new development and then the other part of that question is.

With that we will now move to Q&A.

The double digit millions over what timeframe.

Thank you at this time, we will conduct a question and answer session.

Yes.

Keyvan Mohajer: That said, the existing state of AI points vividly to call center and customer service disruption as a current epicenter of this transformation, and our solutions are strategically positioned to capitalize. Our organic and strategic investments have positioned us well to succeed here. From full automation that outperforms humans to human-assist capabilities that drive contact center agent efficiencies, we now run the gamut to support enterprises as they deliver best-in-class customer support or outbound lead generation. We have an agentic-first architecture leveraging our own state-of-the-art models alongside best-of-breed partners. With the acquisition of Interactions, we have now added workflow optimization capabilities to our enterprise agentic solutions, stitching the fabric needed to enable companies to effectively adopt AI and deliver productivity and returns. Our deepening, broad-based partnerships are a testament that our offerings are resonating.

Is there a robotic company. This particular product is not a human robot but.

The deal does pave the way to two way that.

But you are imagining this one is more of a.

You might question Kerry.

Wearable, but not actually a wearable but in that category.

Yeah.

And.

Our first question comes from the line of Gil Luria from D. A Davidson Gil Your line is now open.

In the.

Double digit millions in the next.

Two to three years.

Got it hoped to be invited to demo.

Thank you good afternoon.

First wanted to ask about the eight figure Chinese robotics deal.

Lloyd.

Yes, yes, sorry.

It's actually here.

Commitment number from that is not our just our estimates.

Is it too much for us to think of the.

This is maybe a humanoid robotics it seems like that may be a good application for.

Got it and then the second one on the interactions acquisition, where do you specifically.

Low latency voice to meaning.

Vertical defeo, specifically have an impact and then what do you expect the financial impact to be for the balance of the year and into next year.

And therefore very interesting new development and then the other part of that question is.

Keyvan Mohajer: We have said before, this is the era where natural language conversations will enable humans to more seamlessly interact with technology, and Voice AI is the killer app. Our heritage of innovation is our right to win. We continue to see that play out in Q3. In Pillar 1, we extended our penetration into China with a large IoT win as we capitalized on that country's lead in the global robotics race. In restaurants, another quarter of adding 1,000 locations, including, most notably, with a leading pizza provider, and expansion beyond ordering with our Employee Assist and Voice Insights solutions provided both rapid unit and price expansion. In enterprise, our steady retention and expansion rates were supported by significant improvements in customer outcomes.

The double digit millions over what timeframe.

Yes, Hey, Gal.

So the first part there is nice adjacencies and.

Yes it.

It is a robotic company. This particular product is not a human robot but.

Sort of going deeper with our enterprise vertical so they have strength across.

If the deal does pave the way to do it.

Some of their customers overlap in our automotive and our.

That you are imagining this one is more of a.

Some of our tech services, they have a really deep retail footprint.

You might question Kerry.

We had a ball, but not actually a wearable but in that category.

And several of the.

The verticals that we're in and the application of the technology, particularly around the workflow orchestration or.

And.

In the <unk>.

Digit millions in the next.

Two to three years.

The answer it or intend to analysts that really complement and some of the more complicated enterprise use case. So you can take also financial services and health care. So there is really nice car.

Got it and hope to be invited to demo.

Lloyd.

Yes, yes, sorry.

Actually here.

Complement to the existing portfolio.

Commitment number from that is not our just our estimates.

Keyvan Mohajer: In fact, relative to incumbent solutions, our early agentic AI customers are seeing up to tenfold improvement in containment rates, 25% higher end-user net promoter score, and 15% higher customer satisfaction. We're achieving these results even faster with up to 35% less effort to design and deploy our agentic AI service. We are now consistently eclipsing 1 billion queries a month, up nearly 10x since we went public. Before I move to the quarterly numbers, I want to talk about our pace of investment. The speed of innovation has been rapid the past several years. Now it's about accelerating the adoption curve, and customers' realization of AI's massive benefits. The winners will entrench themselves where value can be derived for many years to come, and that's why we are aggressively investing to fortify and expand our moats, while deepening our customer relationships.

In terms of contribution I mean this is.

Got it and then the second one on the.

I think as sort of a pattern of our M&A that similar to what we've seen where we had brought companies that have amazing customer.

Interactions acquisition, where do you specifically.

Vertical do you see growth specifically have an impact and then.

Long term contracts customer relationships Trust and.

What do you expect the financial impact to be for the balance of the year and into next year.

But frankly in some cases legacy technology that we're able to partner and bring our own innovation on top of and recalibrate the growth curve. So.

Yes.

So the.

First part there is nice adjacencies and.

This is one that we're pretty excited about how we can re grow them together and.

Sort of going deeper with our enterprise vertical so they have strength across.

So they're all contemplated in our outlook I think you will notice.

Their customers overlap in our automotive and our.

Some of our tech services, they have a really deep retail footprint.

A little nudge up in our expectations, particularly with respect to next year.

And several of the.

It's an important acquisition I think it's one that we're excited about what we're going to do and most importantly to your first part.

The verticals that we're in and the application of the technology, particularly around the workflow orchestration or.

Really excited to complement that it brings both on a product platform as well as sort of industry overlap.

The answer it or intend to analysts that really complement and some of the more complicated enterprise use case. So you can take out of financial services and health care. So there is really nice car.

Keyvan Mohajer: This has been taking the form of go-to-market investments, as well as product capability expansion, and we expect to continue to keep the foot on the accelerator. That said, from a financial profile perspective, we are also moving from our past, where our investments were building the future and foreshadowing scale, to our present, where our growth and scale fully cover our costs. More specifically, as we exit 2025 and enter 2026, in part a result of executing on substantial acquisition synergies, we expect continued hyper-growth to be coupled with a break-even profitability profile. I'll share more when we discuss the outlook. For now, let me discuss the third-quarter financial results in more detail. Q3 revenue was $42 million, up 68% year over year. All three pillars grew double digits, and we saw strength in both direct sales and through channel partners.

Great. Thank you.

Thanks, Kevin.

Complement to the existing portfolio.

Thank you. Our next question comes from the line of.

In terms of contribution I mean this is a.

James Fish from Piper Sandler James Your line is now open.

I think as sort of a pattern of our M&A that similar to what we've seen where we had brought companies that have amazing customer.

Hi, This is Kate and answer.

I was just wondering could you provide a percentage what you are seeing come from term license.

Long term contracts customer relationships Trust and.

Just within Amelia at this point and then.

The callout for one final revenue this quarter.

But frankly in some cases legacy technology that we're able to partner and bring our own innovation on top of and recalibrate the growth curve. So.

Sure Hey, Kevin.

This is one that we're pretty excited about how we can re grow them together and.

What I can give you more of a general trending and we've continued to grow our recurring footprint with Amelia and we have noted in prior quarters. If there were sort of greater one time.

So they're all contemplated in our outlook I think you will notice.

A little nudge up in our expectations, particularly with respect to next year.

Type license.

License deals, we talked about that last time much smaller footprint this quarter.

It's an important acquisition I think it's one that we're excited about what we're going to do and most importantly to your first part.

Keyvan Mohajer: We had a big IoT win for Pillar 1, and enterprise and restaurants helped drive outperformance in Pillar 2. While there was continued pressure in the automotive business, driven by global tariffs and the broader industry softness, there are signs of improvement, especially when considering the momentum we are seeing around Pillar 3 Voice Commerce. As we have substantially diversified our industry mix the past two years, any individual sector's impact on our growth is much more muted now. Across our business lines, we also expanded geographic reach and product coverage, and we continue to see strong customer diversification, where year to date we do not have any customers contributing greater than 10% of our revenue. In Q3, our GAAP and non-GAAP gross margins were both up from the prior quarter.

So I think with respect to Amelia it continues to be more heavily penetrated towards the recurring but I think most importantly, as we look at the shift.

Really excited to complement that it brings both on a product platform as well as sort of industry overlap.

Great. Thank you.

<unk> and <unk>.

Just really what the technology is able to do now integrating.

Thanks, Kevin.

Thank you. Our next question comes from the line of James.

<unk> with our deterministic flows as the footprint as you embed you get a recurring basis, but it's more outcome based contracts and pricing. So as we can continue to deliver outcomes. For example in hospitality, we can book more reservations or.

James Fish from Piper Sandler James Your line is now open.

Hi, This is Kate and answer.

I was just wondering could you provide a percentage what youre seeing come from term license.

And maybe a health care setting book more appointments like the economic model is one that is advantageous that we can scale. So it'll be recurring plus outcome based degenerative our incremental revenue.

Within Amelia at this point and then.

The callout for one final revenue this quarter. Thanks.

Sure Hey, Kevin.

Keyvan Mohajer: Our GAAP gross margin was 43%, and adjusted for non-cash amortization of purchase intangibles and employee stock compensation, our non-GAAP gross margin was 59%. We continued to drive efficiencies in cloud spend as we deepened our acquisition integrations, and we continued to realize cost savings from shifting from third-party solutions to our own home-built ones. R&D expenses were $22.8 million in Q3, up 17% year over year, largely due to acquisitions and related headcount and data center costs. We continue to invest in innovation to maintain our technological leadership. Our speech foundation model, Polaris, is delivering outstanding results, and we're now deploying it broadly across our customer base. We're also advancing our agentic AI capabilities in real-time speech-to-speech models, leveraging our deep expertise in conversational architectures and machine learning to deliver industry-leading speed and accuracy.

That's sort of the model also with respect to how why we comment on restaurants and high order completion rates.

What I can give you more of a general trending and we've continued to grow our recurring footprint with Amelia and we have noted in prior quarters that there were sort of a greater onetime.

Some of our pricing is just fixed per location amounts and then more and more customers are seeing that there is.

Real sharing of economic upside if we can say, it's more based on real returns to the customer pricing will follow.

Type license.

License deals, we talked about that last time much smaller footprint this quarter.

Yes.

So I think with respect to Amelia it continues to be more heavily penetrated towards the recurring but I think most importantly, as we look at the shift.

That helps.

<unk> and <unk>.

Just really what the technology is able to do now integrating.

Thank you. Our next question comes from the line of Mike Latimore from Northland Capital markets. Mike. Your line is now open.

Along with our deterministic flows as the footprint as you embed you get a recurring basis, but it's more outcome based contracts and pricing. So as we can continue to deliver outcomes. For example in hospitality, we can book more reservations or.

Yeah, Hi, this is <unk> for.

Mike Latimore.

Well give me how many customers have committed to upgrading to our media seven right now I think the number was in last quarter.

And maybe a health care setting book more appointments like the economic model is one that is advantageous that we can scale. So it will be recurring plus outcome based degenerative our incremental revenue.

Keyvan Mohajer: Sales and marketing expenses were $16.4 million in Q3, reflecting a 96% year-over-year increase, primarily driven by acquisitions. As seen in our results the last few quarters, we have invested heavily in the channel, which is paying dividends. We have also continued to build up direct sales, and are also driving demand and lead generation activities, while speeding the journey from pipeline to close. G&A expenses were $24.3 million in Q3, reflecting a 43% year-over-year increase, primarily driven by our acquisitions. We had roughly $5 million in one-time M&A-related costs. Aside from that, we continue to drive operational efficiencies throughout the organization and improve our control environment. We had non-cash employee stock compensation of $19.7 million, and depreciation and amortization, including the amortization of intangibles, of $8.6 million in Q3, all of which are included in our GAAP results. Adjusted EBITDA was a loss of $14.5 million.

Yeah.

We're continuing to grow at that 15 was sort of a selected first set of customers and that has progressed really really well.

That's sort of the model also with respect to how why we comment on restaurants and high order completion rates.

That was an initial cohort and there were sort of our early adopter group that group that number just continues to grow we're migrating with others, we've expanded that set.

Some of our pricing is just fixed per location amounts and.

And then more and more customers are seeing that.

There is real sharing of economic upside if we can say, it's more based on real returns to the customer pricing will follow.

Quite significantly we're in active conversations with.

With the number of them ultimately our target here is that about 75% of our customers, we expect to be moving onto Amelia seven probably by mid next year. So we're sort of think of the trajectory of moving towards that and ultimately all of our new customers are going to get into that.

Yeah.

That helps.

Thank you. Our next question comes from the line of Mike Latimore from Northland Capital markets. Mike. Your line is now open.

Are going to be migrated under Amelia seven so.

We are.

We're trying to make sure there is a fair migration path for all our customers. Obviously every customer is different and we need to be thoughtful about their journeys in and be very sensitive to their own end customers. Ultimately, we're trying to orchestrate across all other platforms. So we make sure that there is interoperability with other agenda platforms.

Yeah, Hi, this is <unk> for.

Mike Latimore.

Well give me how many customers have committed to upgrading to our media seven right now I think the number was in last quarter.

Keyvan Mohajer: OI&E was $7.1 million of income for the quarter. GAAP net loss of $109.3 million and GAAP net loss per share of $0.27 were negatively impacted by the change in fair value of contingent liabilities of approximately $66 million. This relates to the acquisitions we have completed and is a non-operating and non-cash expense, and primarily reflects the quarter-on-quarter increase in our stock price. As such, this item has been excluded in our non-GAAP results. Non-GAAP net loss was $13 million, and non-GAAP net loss per share was $0.03 in the quarter. This adjusts for items such as non-cash depreciation and amortization, M&A transaction costs, and stock-based compensation. Our balance sheet remains strong, with cash and equivalents at quarter-end of $269 million and no debt. With that, let me discuss our financial outlook.

Yeah.

We were.

We are continuing to grow at that 15 was sort of a selected first set of customers and that has progressed really really well.

And we're really thoughtful about just onboarding and peso continuing to see great momentum.

It's a exciting conversations and.

That was an initial cohort and there were sort of our early adopter group and that group that number just continues to grow we're migrating with others, we've expanded that set.

Most importantly, I mentioned in my prepared remarks, just the outcomes or the the feedback we're getting whether it's in net promoter score or customer satisfaction or even just.

Quite significantly we're in active conversations.

The containment rate improvements like the real the real positive outcomes early days. So we're trying to be aggressive in how we migrate.

With a number of them ultimately our target here is that about 75% of our customers, we expect to be moving onto Amelia seven probably by mid next year. So we're sort of think of the trajectory of moving towards that and ultimately all of our new customers are going to get into that.

Well that's interesting.

Second one on what percent of your revenue is recurring.

The vast majority of our revenue is recurring and there is different.

Are going to be migrated under Amelia seven so.

I'll group it we talk about recurring and reoccurring.

We're we're trying to make sure there is a fair migration path for all our customers. Obviously every customer is different and we need to be thoughtful about their journeys in and be very sensitive to their own end customers. Ultimately, we're trying to orchestrate across all other platforms. So we make sure that there's interoperability with other agenda platforms.

I've mentioned I think couple of times around our automotive business, where we have license.

Keyvan Mohajer: I'll complete a thought I started earlier about where we are in the longer-term trajectory of this business. Keyvan started these prepared remarks by noting our recently celebrated 20th anniversary as a company. He and our founding team started on a path of breakthrough science, tackling the challenge of hard AI, innovation that provides more seamless and natural access so humans can harness the power of technology for our collective benefit, notably through pioneering advances in voice AI. Breakthrough science is challenging. It takes time and requires tenacity and resilience to persist through the cycles of revolution, setbacks, and further evolution. That was our company's existence for the first 15 years, and it manifested in financials that were heavy in R&D spend. The last five years as a company have been about commercialization, product deployment, customer traction, and scale.

Recognition as cars are shipped we get recognition for the voice capabilities and we get a royalty on that so maybe I'll count that reoccurring as long as these.

And we're really thoughtful about just onboarding and peso continuing to see great momentum.

Mega Oems keep shipping cars under the contract duration, we get revenue than we have and to the prior question from cadence around Amelia. It's recurring largely there are SaaS oftentimes they are fixed.

It's a exciting conversations and.

Most importantly, I mentioned in my prepared remarks, just the outcomes or the the feedback we're getting whether it's in net promoter score or customer satisfaction or even just.

Price up to certain levels of interactions and then.

The the containment rate improvements like the real the real positive outcomes early days, but we're trying to be aggressive in how we migrate.

Customer activity grows above interaction.

Level, then will it gets priced to the next level up.

And then we do from time to time have certain recognition when we deploy an edge solution, where our obligation to the customer as to.

Yeah.

Well that's interesting.

Second one on what percent of your revenue is what I call them.

To pass over that license then there is immediate revenue recognition. So the vast majority is recurring.

The vast majority of our revenue is recurring and there is different.

Keyvan Mohajer: That set the stage for the acceleration into the high-growth part of the S-curve, where we are now. Within this high-growth stage, we are crossing the chasm to where we expect our inflows to exceed outflows. That transition, like all others, is not linear or uniform, but they are progressive and ultimately compounding. That is the setup of our business as we look towards 2026. With that broad context, for the full year 2025, we now expect revenue to be in the range of $165 to 180 million. For Q4, we expect to be adjusted EBITDA profitable at the higher end of the revenue outlook, and in the single-digit millions of loss at the lower end.

I'll group it we've talked about recurring and reoccurring.

SaaS like and but there is a diversification in our product suite and as I mentioned.

I mentioned I think couple of times around our automotive business, where we have license recognition as cars are shipped.

And the other question you asked more and more we're finding the trends towards outcome based and again that the reason is the AI solutions work.

Recognition for the voice capabilities, and we get a royalty on that so maybe that reoccurring as long as these.

Can deliver more value they can align to the economic interest of the customer and so it makes sense for us to price accordingly.

Mega Oems keep shipping cars under the contract duration, we get revenue than we have in the prior question from cadent around Amelia it's recurring largely their SaaS oftentimes they are fixed.

Yeah.

Thank you very much.

Thank you.

Thank you. Our next question comes from the line of Scott Buck from H C. Wainwright and company Scott. Your line is now open.

Keyvan Mohajer: We see additional acquisition cost synergies of roughly $20 million on an annual run-rate basis to be realized more fully in 2026, which will set us up well as we align our organization with the massive tailwinds behind us. Accordingly, our early expectations for 2026 are to continue delivering high growth, commensurate with levels we have been compounding the past several years. We expect to do so with near break-even profitability levels because we want to reinvest when we foresee outsized returns. AI is fundamentally transformative. We have the assets and capabilities to deliver this transformation for our customers. We will stay aggressive in our approach because we believe the potential value capture merits it. Our expected returns are well in excess of the risk-adjusted cost of capital. With that, we will now move to Q&A. Thank you. At this time, we will conduct the question-and-answer session.

Up to certain levels of interactions and then.

Customer activity grows above interaction level, then will it gets priced to the next level up.

Hi, Good afternoon, guys. Thanks for taking my questions.

So you listed off kind of eight or nine industry verticals in the release and talk through them. I'm curious do you feel like you're you have enough capacity across each of those to continue to grow them or if not how are you kind of prioritizing where your attention goes near term.

And then we do from time to time have certain recognition when we deploy an edge solution, where our obligation to the customer as to.

To pass over that license then there is immediate revenue recognition. So the vast majority is recurring.

SaaS like.

But theres a diversification in our product suite and as I mentioned.

Sure I can start and Kevin can add I mean, I guess to think about it.

And the other question you asked more and more we're finding the trends towards outcome based and again that the reason is the AI solutions work they can deliver more value. They can align to the economic interest of the customer and so it makes sense for us to price accordingly.

I get this question to be reopened and we get this question a lot like are you doing too much or.

I kind of not trying to be flippant, but like if you start hearing us talk about investing in nuclear energy, maybe that's a fair place to stay we're extending a little too far.

Horizontal platform will start with the premise of.

Like the pioneering vision within voice AI, we believe thats the major shift that.

Yeah.

Thank you very much.

We are going to enable humans to interact with technology predominantly through natural conversations and voice the way, we're talking right now and we will be able to get many many things done.

Thank you.

Keyvan Mohajer: To ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Gil Luria from DA Davidson. Gil, your line is now open. Thank you. Good afternoon. First, I wanted to ask about the eight-figure Chinese robotics deal. Is it too much for us to think of this as maybe humanoid robotics? It seems like that may be a good application for low-latency voice-to-meaning, and therefore, a very interesting new development. The other part of that question is the double-digit millions over what timeframe? Yeah, it is a robotic company. This particular product is not a human robot, but the deal does pave the way to experiences that you are imagining.

Thank you. Our next question comes from the line of Scott Buck from H C. Wainwright and company Scott. Your line is now open.

And so we think first and foremost in terms of the ultimate vision.

Hi, Good afternoon, guys. Thanks for taking my questions.

We are.

That can provide across many many industries and again, we got traction in automotive restaurants, moving into health care financial services.

Lifted off eight or nine industry verticals in the release and talk through them I'm curious do you feel like you're you have enough capacity across each of those to continue to grow them or if not how are you kind of prioritizing where your attention goes near term.

And setting appointment booking reservations doing money transfer is all of that just on the horizontal platform. So when we are deploying our technology and we've mentioned previously whether it's Polaris or some of the other capabilities. We are best of breed or market, leading even again unlimited resource competitors.

Sure I can start and Kevin.

Can I add I mean, I guess to think about it.

Where we outperform on our speech recognition technology and how we bring real time speech speech.

I get this question to reopen and we get this question a lot like are you doing too much or.

I kind of not trying to be flippant, but like if you start hearing us talk about investing in nuclear energy, maybe thats. The fair places they were extending a little too far we're a horizontal platform will start with the premise of.

But for understanding and conversation.

So that I think when you think of us as a platform provider that.

That's sort of like the premise again, I'd say, that's where our focus is.

Like the pioneering vision within voice AI, we believe that's the major shift that we are going to enable humans to interact with technology predominantly through natural conversations and voice.

If we.

That's where we determined as long as we're playing in the game of conversational voice AI. That's the right focus now it is fair, yes, there are different applications, especially when you go into workflow integrations.

Talking right now and we will be able to get many many things done.

That different ecosystems have different.

And so we think first and foremost in terms of the ultimate vision.

Keyvan Mohajer: This one is more of a device that you can carry and like a wearable, but not actually a wearable, but in that category. In the double-digit million in the next two to three years. Got it. Hope to be invited to the demo that goes humanoid. Yeah, yeah. Sorry to add that. It's actually a commitment number from them. It's not just our estimates. Got it. The second one on the Interactions acquisition, where do you specifically—which vertical do you think it'll specifically have an impact? What do you expect the financial impact to be for the balance of the year and into next year? Yeah. Hey, Gil. The first part, there are nice adjacencies and sort of going deeper with our enterprise vertical. They have strength across—I mean, some of their customers overlap in our automotive and.

Appointment reservation systems or.

Or.

That can provide across many many industries and again, we got traction in automotive restaurants, moving into health care financial services.

Order, taking a point of sale systems in the restaurants and there are in many of these industries fragmentation. So we do have to be thoughtful about how deep we can go and who we partner with so we've talked in the past about our partnering strategy in restaurants for example, where some of the drive through opportunity requires hardware partnerships and we're excited that we work with the likes of Samsung and <unk>.

And setting appointment booking reservations doing money transfers all of that just on the horizontal platform. So when we are deploying our technology and we've mentioned previously whether it's Polaris or some of the other capabilities. We are best of breed, we're market, leading even against unlimited resource competitors.

And.

HMA in par and others.

Where we outperform on our speech recognition technology and how we bring real time speech speech.

We think that's a great complement we can go to market together with respect to the integration with the menu structures. We're excited that we partner with the likes of square toe solo Oracle Micros, <unk> and on and on.

Understanding and conversation.

So that I think when you think of us as a platform provider that.

So that's an example of where we kind of go here's where our software expense and here's where we want to use partners to go deeper and that same application and some of the announcements we made today with some of the channel partners did guide going deeper into health care. That's how we calibrate so I think theres a lot of room I would take the premise Scott to your point of like eight.

That's sort of like the premise again, I'd say, that's where our focus is.

That different ecosystems have different.

Sure.

We're hustling.

Keyvan Mohajer: Some of our tech services have a really deep retail footprint, and several of the verticals that we're in. The application of the technology, particularly around the workflow orchestration, or they have sort of intent analysts that really complement some of the more complicated enterprise use cases. You could think also of financial services and healthcare. There's a really nice complement to the existing portfolio. In terms of contribution, I mean, this is, I think, sort of a pattern of our M&A that's similar to what we've seen, where we had brought companies that have amazing customer long-term contracts, customer relationships, trust, and, but frankly, in some cases, legacy technology that we're able to partner and bring our own innovation on top of and recalibrate the growth curve. This is one that we're pretty excited about, how we can regrow them together.

Appointment reservation systems or.

Relative to the certainly the big Tech smaller scale company, we have to be very judicious with our limited resources I actually think that that's a strength of ours because it does force.

Amortization and it forces us to focus on that where our main strengths are but that's definitely something we're constantly calibrating around.

Great I appreciate the added color there.

I was just curious on the.

And.

Voice command voice Commerce.

HMA in par and others. So we think that's a great complement we can go to market together with respect to the integration with the menu structures. We're excited that we partner with the likes of square toe solo Oracle, Microsoft <unk> and on and on.

Launching in 2006 <unk> laid out in the release is that something that.

You're sharing marketing responsibilities for does that fall on the Oems I guess, what is that rollout look like.

Well, we talked about voice commerce for a number of years, we showcased at CES.

January of this year and 2025.

And to add and it was very well received immediately after that we had multiple Oems.

There's a lot of room I would take the premise Scott to your point of like eight whereas.

Keyvan Mohajer: They're all contemplated in our outlook. I think you'll notice a little nudge-up in our expectations, particularly with respect to next year. It's an important acquisition. I think it's one that we're excited about, what we're going to do, and most importantly, to your first part, just really excited to complement that it brings both on a tech product platform as well as sort of industry overlaps. Great. Thank you. Thanks, Gil. Thank you. Our next question comes from the line of James Fish from Piper Sandler. James, your line is now open. Hi. This is Keyvan on for Fish. I was just wondering, could you provide a percentage of what you're seeing come from term license versus SaaS within Amelia at this point? Anything to call out for a one-time revenue this quarter? Thanks. Sure. Hey, Keyvan.

Got it.

Running pilots and Poc's and several brands merchant brands like National and global brands.

Hustling.

Relative to the certainly the big Tech smaller scale company, we have to be very judicious with our limited resources I actually think that that's a strength of ours because it does force.

Dissipating.

And those are all going really well, it's moving forward and getting we're getting more traction.

Amortization and it forces us to focus on that where our main strengths are but that's definitely something we're constantly calibrating around.

But there are some that are actually eager to go live some want to be the first to go live. So we feel very confident that is going to happen.

Great I appreciate the added the added color there.

Not everything is in our control because the Oems to do something but a lot of that work is being done by us actually the whole integration.

I'm just curious on the.

Voice command voice Commerce.

Launching in 'twenty six laid out in our release is that something that.

After the voice AI and the merchant experience.

It's done by us.

You're sharing marketing responsibilities for does that fall on the Oems I guess, what does that rollout look like.

<unk> have done an end to end, we are able to drive a car talk to accomplish in order to go pick it up from the store all of that is done.

Well, we talked about voice commerce for a number of years, we showcased at CES.

We will have.

More to show at CES, and hopefully more to share about the timing of an actual core logging production around that time.

January of this year and 2025.

And to add and it was very well received immediately after that we had multiple Oems.

Okay perfect. That's all I had guys I appreciate the time thank you.

Keyvan Mohajer: I can give you more of the general trending. We've continued to grow our recurring footprint with Amelia. We have noted in prior quarters that there were sort of greater one-time type license deals. We talked about that last time. Much smaller footprint this quarter. I think with respect to Amelia, it continues to be more heavily penetrated towards the recurring. I think most importantly, as we look at the shift to agentic and just really what the technology is able to do now, integrating LLMs with our deterministic flows, the footprint is you embed, you get a recurring basis, but it's more outcome-based contracts and pricing. As we can continue to deliver outcomes, for example, in hospitality, we can book more reservations, or in maybe a healthcare setting, book more appointments. The economic model is one that is advantageous that we can scale.

Thank you.

Got it.

Running pilots and Poc's and several brands merchant brands like National and global brands.

Thank you. Our final question comes from the line of Leo Carpio from Joseph Gunnar Lido.

Dissipating.

Your line is now open.

And those are all going really well, it's moving forward and again, we're getting more traction.

Good afternoon, gentlemen, a couple of quick questions first on the competitive environment can.

But there are some that are actually eager to go alive. Some want to be the first to go live. So we feel very confident that is going to happen.

Can you give us an update on the competitive environment are you still facing off against the vendors that we talked about in the past and how are the large Oems competing space in that they started to encroach.

Not everything is in our control because the OEM has to do something but a lot of work has been done by us actually the whole integration.

But ultimately how deep is your competitive moat and then turning secondly onto the contracts that you've won have you been seeing any pricing pressure at all or it's pretty much youre getting the pricing that you asked for at this stage of the adoption curve. Thanks.

After the voice AI and.

And the merchant experience.

Is done by us.

Have done an end to end, we are able to drive a car talk you to calculate in order to go pick it up from this sort all of that is done.

We will have.

More to show at CES, and hopefully more to share about the timing of an actual collagen production around that time.

Yes R R.

Keyvan Mohajer: It'll be recurring plus outcome-based generative or incremental revenue. That's sort of the model, also with respect to why we comment on restaurants and high order completion rates. Some of our pricing is just fixed per location amounts. More and more customers are seeing that there's real sharing of economic upside. If we can say it's more based on real returns to the customer, the pricing will follow. That helps. Thank you. Our next question comes from the line of Mike Lattimore from Northland Capital Markets. Mike, your line is now open. Yeah. Hi. This is Vijay Devar from Mike Lattimore. We're getting how many customers have committed to upgrading to Amelia 7 right now? I think the number was around 15 last quarter. Yeah. We're continuing to grow at the 15 with sort of a selected first set of customers.

I'll talk about the competition.

Of all of that.

Base is extremely attractive and you hear more and more names and that more of a validation.

Okay perfect. That's all I had guys I appreciate the time thank you.

Thank you.

And we've had competitors in our whole life of 20 years and bigger competitors in the past.

Thank you. Our final question comes from the line of Leo Carpio from Joseph Gunnar Leo.

The.

The particular space Youre going after enterprise AI customer service.

Your line is now open.

Good afternoon, gentlemen, a couple of quick questions first on the competitive environment can.

We.

<unk> the leader because after 20 years of innovation, we have our own technology. Most of the new players don't have their own technology. So they are using API then models from third party and they have to kind of.

Can you give us an update on the competitive environment are you still facing off against the vendors that we talked about in the past and how are the large Oems companion space I mean that they started to encroach.

Stick it together and make it work and allow these models make it really good.

But ultimately how deep is your competitive moat and then turning secondly onto the contracts that you've won have you been seeing any pricing pressure at all or it's pretty much you are getting the pricing that you asked for at this stage of the adoption curve. Thanks.

<unk> on good demos, but when you go to production.

They have issues, but we are able to actually go.

From demo to destroy many production faster with a higher quality and thats. Thanks to our 20 years of experience, having our own models lower cost higher accuracy better latency more.

Yes R R.

I'll talk about the competition.

First of all that.

Space is extremely attractive and you hear more and more names and that more of a validation and we've had competitors.

Keyvan Mohajer: That has progressed really, really well. That was an initial cohort, and they were sort of our early adopter group. That number just continues to grow. We're migrating with others. We've expanded that set quite significantly, and we're in active conversations with a number of them. Ultimately, our target here is that about 75% of our customers we expect to be moving on to Amelia 7 probably by mid-next year. We're sort of thinking of the trajectory of moving towards that. Ultimately, all of our new customers are going to get into that, are going to be migrated onto Amelia 7. We're trying to make sure there's a fair migration path for all our customers. Obviously, every customer is different, and we need to be thoughtful about their journeys and be very sensitive to their own end customers.

Integrations that we've accumulated over the years and some through the acquisition. So we feel very confident.

About the space.

And some of the names that you may hear in the market could end up being our customers because they need a model from companies like <unk> and as they go through.

Our our life of 20 years and bigger competitors in the past.

The.

The particular space Youre going after enterprise AI customer service.

<unk>.

There are choices they will learn that model like Polaris outperformed the competition right. We beat the big Tech and some of the industry Giants by as much as 35, 40% accuracy several times and latency.

We.

<unk> the leader because after 20 years of innovation, we have our own technology. Most of the new players don't have their own technology. So they are using Apis and models from third party and they have to kind of.

A lower cost.

Stick it together and make it work and allow these models, making really good.

And I think to your second question was around pricing.

POC and good demos, but when you go to production.

I'm going to make the general point and Kevin can certainly add color I think in a lot of these sort of areas, where we're shifting from old tech to new Tech.

They have issues.

But we are able to actually go.

From demo to destroy many production faster with a higher quality and thats. Thanks to our 20 years of experience, having our own models lower costs higher accuracy better latency more.

Keyvan Mohajer: Ultimately, we're trying to orchestrate across all other platforms so we make sure that there's interoperability with other agentic platforms. We're really thoughtful about just onboarding and pace. Continuing to see great momentum, lots of exciting conversations. Most importantly, I mentioned in my prepared remarks just the outcomes or the feedback we're getting, whether it's in net promoter score, customer satisfaction, or even just the containment rate improvements. They're real positive outcomes early day. We're trying to be aggressive in how we migrate. Well, that's pretty interesting. Second one, what percent of your revenue is recurring presently? The vast majority of our revenue is recurring. There's a different—well, I guess I'll group it. We talk about recurring and reoccurring. I've mentioned, I think, a couple of times around our automotive business where we have license recognition as cars are shipped.

People are really sort of.

There is pressure on if you provide legacy technology too.

Drop prices and it becomes a little bit of a price battle and so the key is we're demonstrating our innovation is where you can show case price value and alignment and Thats, where you can protect on pricing and we've shown that and said that I think in prepared remarks today and previously around where we are seeing pricing expansion a lot of that is because we are bringing.

Yeah.

Integrations that we've accumulated over the years and some through the acquisition.

We feel very confident about.

About the space.

And some of the names that you may hear in the market could end up being our customers because they need our models from companies like <unk> and as they go through.

<unk>, we're layering on top generative AI intersection the first company to bring general AI into the vehicle slot. This early last year.

There are choices they will learn that model like Polaris.

The competition, we beat the big Tech and some of the industry Giants by as much as 35, 40% accuracy several times and latency.

We're seeing that with agenda capabilities like you need to be competitive in an ecosystem is kayvon noted that increasingly competitive.

But the use case opportunities and expansion there so tremendous so if youre a hospitality and you believe through a nice conversational engine that is delight the customer you can actually upsell a reservation or.

At a lower cost.

And I think your second question was around pricing.

I'm going to make the general point.

Ron can certainly add color I think.

In a lot of these sort of areas, where we're shifting from old tech to new Tech.

<unk> provide more services than you are willing to pay more and thats, a little bit the transition where and so I don't want to disparage and certain parts certainly because we're across the industry theres different stories for different sectors and different solutions and.

Keyvan Mohajer: We get recognition for the voice capabilities, and we get a royalty on that. Maybe I'll count that recurring as long as these mega OEMs keep shipping cars under the contract duration, we get revenue. We have—to the prior question from Keyvan around Amelia—it's recurring largely. They're SaaS. Oftentimes, they're fixed price up to certain levels of interactions, and if the customer activity grows above an interaction level, then it gets priced to the next level up. We do, from time to time, have certain recognition. When we deploy an edge solution where our obligation to the customer is to pass over that license, then there is immediate revenue recognition. The vast majority is recurring, SaaS-like, but there's a diversification in the product suite. As I mentioned in the other question you asked, more and more, we're finding the trends towards outcome-based.

People are really sort of.

There is pressure on if you provide legacy technology too.

Macroeconomic dynamics that play into it but I'd, just say largely there's a transition of pricing architectures I think ultimately for those who can provide real innovation and product quality there is ultimate.

Dropped prices and it becomes a little bit of a price battle and so the key is we're demonstrating our innovation is where you can showcase price value and alignment and Thats, where you can protect on pricing and we've shown that and said that I think in prepared remarks today and previously around where we are seeing pricing expansion a lot of that is because we are bringing.

ASP expansion available.

And so that there is a little bit of both sides of that equation from a pricing dynamic that we're navigating through right now.

And we're layering on top generative AI intersection the first company to bring general AI into the vehicle Slant is early last year.

Okay.

We're seeing that with the agenda capabilities like you need to be competitive in an ecosystem is kayvon noted that increasingly competitive.

Okay.

You very much.

Thank you.

This concludes the question and answer session. Thank you for your participation in today's conference. This does conclude the program and you may now disconnect.

Provide more services than you are willing to pay more and that's a little bit the transition. We're in so I don't want to disparage and certain parts certainly because we're across the industry theres different stories for different sectors and different solutions and there is macroeconomic dynamics that play into it but I'd just say largely there's a transition of pricing.

Keyvan Mohajer: Again, the reason is the AI solutions work. They can deliver more value, they can align to the economic interests of the customer, and it makes sense for us to price accordingly. Thank you very much. Thank you. Thank you. Thank you. Our next question comes from the line of Scott Buck from HC Wainwright & Company. Scott, your line is now open. All right. Good afternoon, guys. Thanks for taking my questions. You listed off kind of eight or nine industry verticals in the release and talked through them. I'm curious, do you feel like you have enough capacity across each of those to continue to grow them? If not, how are you kind of prioritizing where your attention goes near term? Sure. I can start, and Keyvan can add. I mean, I guess to think about it, I get this question to be open.

<unk> architectures I think ultimately for those who can provide real innovation and.

Product quality, there is ultimate ASP expansion available.

And so that there is a little bit of both sides of that equation from a pricing dynamic that we're navigating through right now.

Okay.

Yes very much.

Yeah.

Thank you.

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Keyvan Mohajer: We get this question a lot. Are you doing too much? I kind of—not trying to be flippant—but if you start hearing us talk about investing in nuclear energy, maybe that's the fair place to say we're extending a little too far. We're a horizontal platform. We start with the premise of. The pioneering vision was in voice AI. We believe that's the major shift that we are going to enable humans to interact with technology predominantly through natural conversations and voice, the way we're talking right now. We'll be able to get many, many things done. We think, first and foremost, in terms of the ultimate vision, that can pervade across many, many industries. We got traction in automotive, restaurants, moving into healthcare, financial services. Setting appointments, booking reservations, doing money transfers, all of that's just on the horizontal platform.

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Okay.

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Keyvan Mohajer: When we're deploying our technology—and we've mentioned it previously, whether it's Polaris or some of the other capabilities—we're best of breed. We're market-leading, even against unlimited resource competitors, where we outperform on our speech recognition technology, on how we bring real-time speech to speech for understanding and conversation. I think when you think of us as a platform provider, that's sort of like the premise. Again, I'd say that's where our focus is. That's where we determine. As long as we're playing in the game of conversational voice AI, that's the right focus. Now, it is fair. Yeah. There are different applications, especially when you go into workflow integrations. Different ecosystems have different appointment reservation systems or order-taking or point-of-sale systems in the restaurant. There are, in many of these industries, fragmentation.

Okay.

Keyvan Mohajer: We do have to be thoughtful about how deep we can go and who we partner with. We've talked in the past about our partnering strategy in restaurants, for example, where some of the drive-thru opportunity requires hardware partnerships. We're excited that we work with the likes of Samsung, HME, PAR, and others. We think that's a great complement. We can go to market together. With respect to the integration with the menu structures, we're excited that we partner with the likes of SquareToe, Solo, Oracle MicroSymphony, and on and on. That's an example of where we kind of go, here's where our software extends, and here's where we want to use partners to go deeper. That same application in some of the announcements we made today with some of the channel partners going deeper into healthcare, that's how we calibrate.

Keyvan Mohajer: I think there's a lot of room. I take the premise out of your point of like, hey, we're hustling. Relative to certainly the big tech, smaller-scale company, we have to be very judicious with our limited resources. I actually think that's a strength of ours because it does force prioritization, and it forces us to focus on where our main strengths are. That's definitely something we're constantly calibrating around. Great, I appreciate the added color there. Second, I'm just curious on the voice commerce launching in 2026, laid out in the release. Is that something that you're sharing marketing responsibilities for? Does that fall on the OEMs? I guess, what does that rollout look like? Well, we've talked about voice commerce for a number of years. We showcased it at the CES of January of this year, in 2025, end-to-end, and it was very well received.

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Keyvan Mohajer: Immediately after that, we had multiple OEMs that started running pilots and POCs, and several merchant brands like national and global brands were participating. Those are all going really well. It's moving forward, we're getting more traction. There are some that are actually eager to go live. Some want to be the first to go live. We feel very confident that it's going to happen. Not everything is in our control because the OEM has to do something, but a lot of the work is being done by us, actually. The whole integration of the voice AI and the merchant experience is done by us. We have done an end-to-end. We are able to drive a car, talk to the car place, and order and go pick it up from the store. All of that is done. We'll have.

Keyvan Mohajer: More to show at CES and hopefully more to share about the timing of an actual go-live in production around that time. Okay. Perfect. That's all I had, guys. I appreciate the time. Thank you. Thank you. Thank you. Our final question comes from the line of Leo Carpio from Joseph Gunnar. Leo, your line is now open. Good afternoon, gentlemen. A couple of quick questions. First, on the competitive environment. Can you give us an update on the competitive environment? Are you still facing off against the vendors that we've talked about in the past? How have the large LLMs competed in this space? I mean, they started to encroach. Ultimately, how deep is your competitive moat?

Keyvan Mohajer: Turning secondly onto the contracts that you've won, have you been seeing any pricing pressure at all, or it's pretty much you're getting the pricing that you asked for at this stage of the adoption curve? Thanks. Yeah. I'll talk about the competition. First of all, the space is extremely attractive, and you hear more names, and that's more of a validation. We've had competitors in our whole life of 20 years, and we've had bigger competitors in the past. The particular space we're going after, enterprise AI, customer service. We feel we are the leader because of the 20 years of innovation. We have our own technology. Most of the new players don't have their own technology, so they're using APIs and models from third-party, and they have to kind of stick it together and make it work.

Keyvan Mohajer: A lot of these models make really good POCs and good demos. When you go to production, they have issues. We are able to actually go from demo to deployment in production faster with higher quality. That's thanks to our 20 years of experience, having our own models, lower cost, higher accuracy, better latency, and more integrations that we've accumulated over the years, and some through the acquisition. We feel very confident about the space. Some of the names that you may hear in the market could end up being our customers because they need models from companies like SoundHound. As they go through their choices, they will learn that models like Polaris outperform the competition, right?

Keyvan Mohajer: We beat the big tech and some of the industry giants by as much as 35%, 40% in accuracy, several times in latency, and we can learn it at a lower cost. I think your second question was around pricing. I'm going to make the general point, and Keyvan can certainly add color. I think in a lot of these sort of eras where we're shifting from old tech to new tech, people are really sort of, there's pressure on if you provide legacy technology to drop prices, and it becomes a little bit of a price battle. The key is where we're demonstrating our innovation is where you can showcase price, value, and alignment, and that's where you can protect on pricing. We've shown that and said that, I think, in Prepared to Market today and previously around where we are seeing pricing expansion.

Keyvan Mohajer: A lot of that is because we're bringing innovation. We're layering on top generative AI intersection. The first company to bring generative AI into the vehicle, Stellantis, early last year. We're seeing that with the GenTech capabilities. You need to be competitive in an ecosystem, as Keyvan noted, that's increasingly competitive. The use case opportunities and expansions are so tremendous. If you're a hospitality and you believe through a nice conversational engine that delights the customer, you can actually upsell a reservation or provide more services, then you're willing to pay more. That's a little bit the transition we're in. I don't want to disparage in certain parts, certainly because we're across industry. There's different stories for different sectors and different solutions. There's macroeconomic dynamics that play into it. I'd just say largely, there's a transition of pricing architectures.

Keyvan Mohajer: I think ultimately, for those who can provide real innovation and product quality, there's ultimate ASP expansion available. There's a little bit of both sides of that equation from a pricing dynamic that we're navigating through right now. Thank you very much. Thank you. This concludes the question and answer session. Thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.

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