SOUN
SoundHound AIFDocument history
Earnings documents stored for SOUN.
Investor releaseQuarter not tagged2026-09-04Why Is SoundHound AI (SOUN) Down 4.8% Since Last Earnings Report?
Zacks
Why Is SoundHound AI (SOUN) Down 4.8% Since Last Earnings Report?
It has been about a month since the last earnings report for SoundHound AI, Inc. (SOUN). Shares have lost about 4.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SoundHound AI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. SoundHound AI, Inc. delivered a strong second-quarter 2026 performance, with earnings and revenues surpassing expectations. The quarter reflected accelerating enterprise demand for voice and agentic AI, major OASYS-driven deals and improving cost discipline. Profitability strengthened year over year, with higher GAAP gross margin and narrower adjusted EBITDA and net losses. In the second quarter, SoundHound reported record revenues of $61.9 million, up 45% year over year. The figure surpassed the Zacks Consensus Estimate of $52.49 million by 17.9%. Management attributed the top-line growth to major enterprise AI deals linked to OASYS, reflecting rising adoption of the company’s voice and agentic AI offerings across industries.The company posted an adjusted loss of 2 cents per share compared with the Zacks Consensus Estimate of a loss of 3 cents, representing a favorable surprise of 33.3%. The adjusted loss also narrowed from 3 cents per share in the prior-year quarter. On a year-over-year basis, SOUN’s profitability improved. GAAP gross profit rose 68% to $27.9 million from $16.7 million, while GAAP gross margin expanded to 45.1% from 39%, reflecting stronger growth in gross profit than revenues.Non-GAAP gross profit increased 45% to $36.2 million. Non-GAAP gross margin remained unchanged at 58.4%, indicating stable underlying profitability after excluding amortization, stock-based compensation and acquisition-related expenses. Adjusted EBITDA also improved year over year, with the loss narrowing to $9.6 million from $14.3 million. Non-GAAP net loss decreased 24% to $9 million, while GAAP operating loss narrowed to $43.3 million from $78.1 million. Management highlighted rising demand across health care, financial services, telecommunications, automotive, restaurants and consumer-facing applications. In health care, SoundHound signed a seven-figure agree…Read full documentShow less
It has been about a month since the last earnings report for SoundHound AI, Inc. (SOUN). Shares have lost about 4.8% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SoundHound AI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. SoundHound AI, Inc. delivered a strong second-quarter 2026 performance, with earnings and revenues surpassing expectations. The quarter reflected accelerating enterprise demand for voice and agentic AI, major OASYS-driven deals and improving cost discipline. Profitability strengthened year over year, with higher GAAP gross margin and narrower adjusted EBITDA and net losses. In the second quarter, SoundHound reported record revenues of $61.9 million, up 45% year over year. The figure surpassed the Zacks Consensus Estimate of $52.49 million by 17.9%. Management attributed the top-line growth to major enterprise AI deals linked to OASYS, reflecting rising adoption of the company’s voice and agentic AI offerings across industries.The company posted an adjusted loss of 2 cents per share compared with the Zacks Consensus Estimate of a loss of 3 cents, representing a favorable surprise of 33.3%. The adjusted loss also narrowed from 3 cents per share in the prior-year quarter. On a year-over-year basis, SOUN’s profitability improved. GAAP gross profit rose 68% to $27.9 million from $16.7 million, while GAAP gross margin expanded to 45.1% from 39%, reflecting stronger growth in gross profit than revenues.Non-GAAP gross profit increased 45% to $36.2 million. Non-GAAP gross margin remained unchanged at 58.4%, indicating stable underlying profitability after excluding amortization, stock-based compensation and acquisition-related expenses. Adjusted EBITDA also improved year over year, with the loss narrowing to $9.6 million from $14.3 million. Non-GAAP net loss decreased 24% to $9 million, while GAAP operating loss narrowed to $43.3 million from $78.1 million. Management highlighted rising demand across health care, financial services, telecommunications, automotive, restaurants and consumer-facing applications. In health care, SoundHound signed a seven-figure agreement with a nationally ranked system employing 30,000 people across hospitals, health parks and medical offices.The company also secured new and expanded business with health care technology, pharmacy care and electronic health record customers. Financial services renewals included a Japanese online brokerage serving more than 6 million accounts, a global asset manager, a major U.S. bank and a Canadian financial services organization. Automotive activity included a seven-figure deal with an infotainment software company in China. Stellantis increased overall unit adoption and added live generative AI capabilities, while Hyundai expanded its adoption of the technology. Restaurant wins and expansions included Ruby Tuesday, Five Guys, IHOP and Jersey Mike’s. OASYS remained central to SoundHound’s enterprise growth strategy. Management said major agreements attributed to the platform supported the quarter’s record revenues and demonstrated strong customer interest in deploying voice and agentic AI across business workflows. The company describes OASYS as a self-learning, orchestrated platform that allows organizations to build and deploy conversational agents across phones, chat, kiosks, smart devices, drive-thrus, televisions and vehicles. Its broader deployment model is intended to support transactions, tasks and customer-service workflows across digital and physical channels.SoundHound also expanded its distribution reach through a multi-year partnership in Latin America representing an initial eight-figure agreement. The arrangement covers a network spanning more than 20 countries. A partnership with a global IT services provider is expected to extend access to enterprise digital-transformation customers. As of June 30, 2026, SOUN ended the quarter with $203 million in cash and cash equivalents and no debt. The debt-free position preserves financial flexibility as the company continues investing in platform development and prepares for the pending LivePerson transaction. Operating cash flow weakened year over year during the first half. Net cash used in operating activities was $60 million compared with $43.7 million in the prior-year period. Net cash used in investing activities totaled $32.7 million, while financing activities provided $46.7 million.The quarter’s GAAP results included an approximately $4 million gain tied to the revaluation of contingent acquisition liabilities. This noncash item was excluded from the company’s non-GAAP performance measures. For 2026, SOUN raised its revenue outlook to $230 million to $260 million from the previous range of $225 million to $260 million. The revision followed the company’s strong second-quarter performance and reflected continued demand for OASYS and its broader voice and agentic AI portfolio. The outlook does not yet contemplate the pending acquisition of LivePerson. SoundHound expects the transaction to close before the end of 2026 and plans to update its guidance after the deal is completed. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted 7.89% due to these changes. At this time, SoundHound AI has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. SoundHound AI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. SoundHound AI belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, DXC Technology Company. (DXC), has gained 5.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. DXC Technology reported revenues of $3 billion in the last reported quarter, representing a year-over-year change of -5.1%. EPS of $0.40 for the same period compares with $0.68 a year ago. DXC Technology is expected to post earnings of $0.57 per share for the current quarter, representing a year-over-year change of -32.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for DXC Technology. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report DXC Technology Company. (DXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-145 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
StockStory
5 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
SoundHound AI’s second quarter results were marked by substantial year-on-year revenue growth and a reduction in non-GAAP losses, surpassing Wall Street’s expectations. Management attributed the strong performance to rapid adoption of the OASYS agentic AI platform, which has accelerated deal cycles and customer onboarding. CEO Keyvan Mohajer described OASYS as “the most intuitive and easiest to navigate” among competing solutions, highlighting that the technology’s ability to automate agent creation and deployment led to higher win rates and faster implementation, especially in complex enterprise settings. Is now the time to buy SOUN? Find out in our full research report (it’s free). Revenue: $61.9 million vs analyst estimates of $52.41 million (45% year-on-year growth, 18.1% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.05 (63% beat) Operating Margin: -70%, up from -183% in the same quarter last year Billings: $55.53 million at quarter end, up 45.7% year on year Market Capitalization: $3.29 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Thomas Blakey (Cantor Fitzgerald) asked about the integration of acquired technologies like Amelia and Interactions into OASYS and how this may translate to opportunities with LivePerson’s customer base. CEO Keyvan Mohajer explained that OASYS is designed to rapidly integrate and upgrade legacy customers, reducing time-to-value and lowering implementation costs. Blakey (Cantor Fitzgerald) followed up on the recurring nature and scale of large deals in the pipeline. Mohajer noted that while some large deals may not be strictly recurring, the company consistently secures sizable contracts each quarter, signaling a robust and growing pipeline. Gil Luria (D.A. Davidson) inquired about the composition of the recent eight-figure deal and whether it reflects a shift toward larger, multi-country channel partnerships. Mohajer confirmed the deal was a channel commitment involving rollout across 20 countries, with potential for further expansion. Luria (D.A. Davidson) also asked about guidance scenarios with and without the LivePerson acquisition. Mohajer clarified that curren…Read full documentShow less
SoundHound AI’s second quarter results were marked by substantial year-on-year revenue growth and a reduction in non-GAAP losses, surpassing Wall Street’s expectations. Management attributed the strong performance to rapid adoption of the OASYS agentic AI platform, which has accelerated deal cycles and customer onboarding. CEO Keyvan Mohajer described OASYS as “the most intuitive and easiest to navigate” among competing solutions, highlighting that the technology’s ability to automate agent creation and deployment led to higher win rates and faster implementation, especially in complex enterprise settings. Is now the time to buy SOUN? Find out in our full research report (it’s free). Revenue: $61.9 million vs analyst estimates of $52.41 million (45% year-on-year growth, 18.1% beat) Adjusted EPS: -$0.02 vs analyst estimates of -$0.05 (63% beat) Operating Margin: -70%, up from -183% in the same quarter last year Billings: $55.53 million at quarter end, up 45.7% year on year Market Capitalization: $3.29 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Thomas Blakey (Cantor Fitzgerald) asked about the integration of acquired technologies like Amelia and Interactions into OASYS and how this may translate to opportunities with LivePerson’s customer base. CEO Keyvan Mohajer explained that OASYS is designed to rapidly integrate and upgrade legacy customers, reducing time-to-value and lowering implementation costs. Blakey (Cantor Fitzgerald) followed up on the recurring nature and scale of large deals in the pipeline. Mohajer noted that while some large deals may not be strictly recurring, the company consistently secures sizable contracts each quarter, signaling a robust and growing pipeline. Gil Luria (D.A. Davidson) inquired about the composition of the recent eight-figure deal and whether it reflects a shift toward larger, multi-country channel partnerships. Mohajer confirmed the deal was a channel commitment involving rollout across 20 countries, with potential for further expansion. Luria (D.A. Davidson) also asked about guidance scenarios with and without the LivePerson acquisition. Mohajer clarified that current guidance excludes LivePerson until the deal closes, but reiterated the expectation for increased scale and revenue once integrated. Vijay Devar (Northland Capital Markets) questioned the main technology benefits and cross-sell opportunities from the LivePerson deal. Mohajer cited complementary product offerings, the potential for rapid upgrade of LivePerson customers to OASYS, and the ability to offer voice solutions where LivePerson previously focused on chat. Looking forward, the StockStory team will be watching (1) the pace and effectiveness of integrating LivePerson’s customer base onto the OASYS platform, (2) further expansion in healthcare and automotive verticals, particularly in Asia and among Fortune 100 brands, and (3) the rollout and monetization of new voice commerce capabilities in vehicles and home electronics. Sustained execution on proprietary model development and customer migration will also be key indicators for future performance. SoundHound AI currently trades at $7.44, up from $6.43 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
Investor releaseQuarter not tagged2026-08-14SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
24/7 Wall St.
SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
SOUN has fallen 55% over 12 months despite Q2 revenue beating consensus by 45%, as investors penalize cash burn and dilution risk. Peers CRNC and AI both declined sharply over 12 months but neither matches SOUN's 70% consensus upside or H.C. Wainwright's $20 Street-high target. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus. SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027. One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here. SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits. The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count. The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum. H.C. Wainwright's bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Chur…Read full documentShow less
SOUN has fallen 55% over 12 months despite Q2 revenue beating consensus by 45%, as investors penalize cash burn and dilution risk. Peers CRNC and AI both declined sharply over 12 months but neither matches SOUN's 70% consensus upside or H.C. Wainwright's $20 Street-high target. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus. SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027. One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here. SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits. The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count. The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum. H.C. Wainwright's bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Church's Texas Chicken, Torchy's Tacos, and White Castle, expansion into Vision AI and the Agentic+ platform, and cross-selling voice into the Amelia and LivePerson customer bases. Operational leverage is expected to push SoundHound toward adjusted EBITDA break-even by late 2026 or 2027, backed by a debt-free balance sheet. CEO Keyvan Mohajer told investors that "our pipeline has never been this big, and our win rate has never been this good," citing an eight-figure commitment signed in less than 90 days from demo to contract. With Gartner projecting agentic AI software spending near $1 trillion by 2030, the analyst view is that SoundHound is early in a category it helped define. Recent revisions have leaned reiteration and upgrade, not downgrade. The broader enterprise and voice AI cohort is soft, but SOUN's 12-month drop is the steepest of the closest comparables. Cerence (NASDAQ:CRNC), the closest voice-in-vehicle competitor, trades at $8.61 against a consensus target of $10.75, roughly 25% upside. It has fallen 36.32% over the past year. The rating slate skews Hold at one Buy and four Holds. C3.ai (NYSE:AI) sits at $10.18 with a consensus target of $8.82, meaning analysts collectively see downside from here. Shares are off 45.27% over 12 months, and the rating mix is bearish at one Buy, seven Holds, three Sells, and three Strong Sells following downgrades tied to restructuring under returning CEO Tom Siebel. BigBear.ai (NYSE:BBAI) trades at $3.34 with a consensus target of $4.00, about 20% upside. The stock is down 42.51% on the year, with one Buy and two Holds and no meaningful upgrade momentum. The largest analyst-implied upside across the group belongs to SoundHound at 69.92% on consensus, and 167% on the Street-high case. SOUN trades at $7.48 with an average analyst target of $12.71, implying 69.92% upside. Coverage is concentrated among eight analysts, with six Buy ratings and two Hold, and no Sells. Year to date, SOUN is off 24.97%, while the S&P 500 is up 14.07%. Recent trading has been firmer, with the stock up 11.81% over the past month following the Q2 report. Reddit sentiment around the earnings release ran very bullish at 82, and insider activity is net buying with 17 recent transactions. The bull case strengthens if the LivePerson deal closes cleanly and combined 2027 revenue arrives at the $350 million to $400 million range with gross margin marching back toward the 70% level the CFO explicitly targets. The path to consensus $12.71 runs through EBITDA break-even, continued 40%-plus revenue growth, and OASIS wins that convert eight-figure demos into signed contracts. Scott Buck's $20 target stops looking like a stretch if that happens. The bear case takes hold if cash burn chews through the $202.8 million war chest faster than losses narrow, if $21.5 million quarterly stock comp turns growth into permanent dilution, or if LivePerson integration surfaces execution risk. A high beta of 2.83 means the round trip could hurt. The peer group offers less upside on worse fundamentals, the consensus gap is real, and the operating trajectory is trending the right way. This is a high-volatility bet on execution rather than a safe compounder, and position sizing matters more than conviction here. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.
Investor releaseQuarter not tagged2026-08-13SoundHound's Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
Zacks
SoundHound's Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
SoundHound AI, Inc. SOUN has given Wall Street fresh reasons to become more positive after a record second quarter, highlighted by faster revenue growth, improving margins and strong adoption of its OASYS platform. The better-than-expected performance has led to upward estimate revisions, strengthening the investment case even as the stock remains sharply down in 2026. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss has narrowed to 14 cents per share from 15 cents, while the estimated 2027 loss has narrowed to 15 cents from 17 cents. The consensus estimate calls for 2026 revenues to rise 41% from the 2025 level, followed by another 14.6% increase in 2027. However, the expected 2026 loss remains wider than the loss of 13 cents per share reported in the previous year. SOUN Estimate Revision Image Source: Zacks Investment Research The bullish brokerage view is also notable. Of the eight recommendations making up the current Average Brokerage Recommendation, five are Strong Buy, accounting for 62.5% of the total. The average Wall Street price target implies 62.2% upside from the latest closing price. Image Source: Zacks Investment Research SoundHound delivered second-quarter revenues of $61.9 million, up 45% year over year and 40% sequentially. The quarter marked the company's highest revenue to date. Non-GAAP loss was 2 cents per share compared with 3 cents a year earlier. GAAP gross margin expanded to 45.1% from 39%, while adjusted EBITDA loss improved 33% to $9.6 million from $14.3 million.The quarter's strength was broad-based rather than dependent on one market. Management said growth came from healthcare, financial services, technology and automotive, while enterprise AI remained the largest contributor to revenues. SoundHound also continued to expand its automotive presence in Asia.Strong second-quarter execution prompted management to raise its 2026 revenue outlook to $230-$260 million. The guidance does not yet incorporate the planned LivePerson acquisition, and SoundHound intends to update its outlook when that transaction closes. OASYS is becoming central to SoundHound's growth story. Management attributed a significant part of the second quarter's stronger-than-expected performance to the self-learning agentic AI platform, which was launched in May. The company said it is seeing strong results across demos, RFPs, pilots…Read full documentShow less
SoundHound AI, Inc. SOUN has given Wall Street fresh reasons to become more positive after a record second quarter, highlighted by faster revenue growth, improving margins and strong adoption of its OASYS platform. The better-than-expected performance has led to upward estimate revisions, strengthening the investment case even as the stock remains sharply down in 2026. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss has narrowed to 14 cents per share from 15 cents, while the estimated 2027 loss has narrowed to 15 cents from 17 cents. The consensus estimate calls for 2026 revenues to rise 41% from the 2025 level, followed by another 14.6% increase in 2027. However, the expected 2026 loss remains wider than the loss of 13 cents per share reported in the previous year. SOUN Estimate Revision Image Source: Zacks Investment Research The bullish brokerage view is also notable. Of the eight recommendations making up the current Average Brokerage Recommendation, five are Strong Buy, accounting for 62.5% of the total. The average Wall Street price target implies 62.2% upside from the latest closing price. Image Source: Zacks Investment Research SoundHound delivered second-quarter revenues of $61.9 million, up 45% year over year and 40% sequentially. The quarter marked the company's highest revenue to date. Non-GAAP loss was 2 cents per share compared with 3 cents a year earlier. GAAP gross margin expanded to 45.1% from 39%, while adjusted EBITDA loss improved 33% to $9.6 million from $14.3 million.The quarter's strength was broad-based rather than dependent on one market. Management said growth came from healthcare, financial services, technology and automotive, while enterprise AI remained the largest contributor to revenues. SoundHound also continued to expand its automotive presence in Asia.Strong second-quarter execution prompted management to raise its 2026 revenue outlook to $230-$260 million. The guidance does not yet incorporate the planned LivePerson acquisition, and SoundHound intends to update its outlook when that transaction closes. OASYS is becoming central to SoundHound's growth story. Management attributed a significant part of the second quarter's stronger-than-expected performance to the self-learning agentic AI platform, which was launched in May. The company said it is seeing strong results across demos, RFPs, pilots and production deployments. One eight-figure commitment moved from initial demonstration to contract signing in less than 90 days, highlighting the potential for OASYS to shorten sales cycles.The platform also gives SoundHound a way to expand within existing customers. OASYS allows businesses to deploy AI agents across phones, vehicles, restaurants, retail locations and other channels rather than building separate solutions for each channel. A top-20 healthcare provider quadrupled its spending with SoundHound during the second quarter, while the company expanded or renewed relationships with several other healthcare and financial-services customers.SoundHound's proprietary technology could support margins over time as well. The company is investing in its Polaris speech foundation model, specialized LLMs and speech synthesis. Its smaller-business customers are already operating entirely on SoundHound's own stack, and management believes greater use of proprietary models can reduce costs while improving accuracy, latency and control. SoundHound is increasingly diversified beyond its traditional automotive business. During the second quarter, it added and expanded customers across healthcare, financial services, restaurants, automotive and consumer devices. Restaurant adoption was particularly encouraging, with technology expanding across Five Guys, IHOP and Jersey Mike's, while a major pizza brand had SoundHound deployed in more than 75% of its locations. The company also signed an initial eight-figure multiyear partnership covering more than 20 countries in Latin America.Voice Commerce offers another potential growth channel. SoundHound plans to pilot direct in-vehicle transactions and is working to bring agentic transactions to connected devices. If these initiatives scale, the company could move beyond software fees and participate more directly in transaction-based opportunities.The planned LivePerson acquisition could further expand SoundHound's enterprise footprint. Management expects the transaction to add relationships with 25 Fortune 100 companies and believes OASYS can provide a common platform for integrating acquired technologies. Despite the operating progress, SoundHound has not yet reached profitability. Second-quarter GAAP net loss was $42.8 million, while the non-GAAP net loss totaled $9 million. For the first six months of 2026, operating activities used nearly $60 million of cash, up from $43.7 million in the year-ago period. The company nevertheless ended June with about $203 million in cash and no debt, providing financial flexibility while it continues investing in growth.The acquisition strategy adds another layer of execution risk. Integrating LivePerson while continuing to migrate customers from previously acquired businesses onto OASYS will require careful execution. Management acknowledged that legacy customers will move to OASYS at different speeds rather than through a rapid forced migration.Valuation also leaves little room for major execution setbacks. SOUN trades at 12.34X forward 12-month sales, slightly above the Zacks Computers - IT Services industry's 12.23X. Investors are therefore paying a premium for growth despite continued losses and cash use. SOUN’s P/S Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research SoundHound shares are down 25.6% year to date, underperforming the Zacks Computers - IT Services industry's 14.3% decline. The gap is much wider against the broader Zacks Computer and Technology sector, which has gained 16.9%, and the S&P 500's 12.5% advance. SOUN’s YTD Price Performance Image Source: Zacks Investment Research The weak share-price performance suggests that investors remain cautious about profitability, valuation and execution. However, the combination of stronger second-quarter results, raised revenue guidance and improving earnings estimates gives the stock a stronger fundamental base than its year-to-date performance implies. SoundHound faces different competitors across its expanding AI markets. Cerence CRNC competes directly in automotive voice AI, conversational assistants and in-car AI solutions, while Five9 FIVN competes in cloud contact centers, voice bots and customer engagement automation. NICE NICE also competes in enterprise conversational AI, contact center automation and AI-powered customer service.SoundHound's 25.6% year-to-date (YTD) plunge trails Cerence's 19.1% dip and NICE's 12.8% decline, while Five9 has surged 55.6%. Valuation makes the difference even sharper. SoundHound's 12.34X forward sales multiple is far above Cerence at 1.26X, Five9 at 1.78X and NICE at 1.71X.That premium means SoundHound must deliver much faster growth to justify its valuation. Cerence remains an important automotive benchmark, while Five9 and NICE bring established enterprise customer bases. SoundHound's advantage rests on OASYS, its proprietary voice technology and its ability to connect enterprise, automotive and physical AI experiences on one platform. SoundHound's investment case has strengthened following the second quarter. Record revenues, accelerating OASYS adoption, improving margins, a higher 2026 revenue outlook and favorable estimate revisions all point toward better operating momentum. The expansion across healthcare, financial services, restaurants, automotive and Voice Commerce also reduces reliance on any single end market.Risks remain meaningful. SoundHound is still losing money and burning cash, the LivePerson deal introduces integration risk, and its valuation carries a sizable premium to Cerence, Five9 and NICE. The stock's 25.6% YTD decline shows that investors continue to demand proof that rapid revenue growth can eventually translate into sustainable profits.Still, upward estimate revisions following a strong second quarter improve the risk-reward setup. With SoundHound currently carrying a Zacks Rank #2 (Buy), investors willing to accept higher volatility and execution risk can consider the stock for its long-term exposure to conversational and agentic AI growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report Nice (NICE) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report Cerence Inc. (CRNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-07SOUN Q2 Earnings Call Focuses on OASYS and Higher Outlook
Zacks
SOUN Q2 Earnings Call Focuses on OASYS and Higher Outlook
SoundHound AI, Inc. SOUN used its second-quarter 2026 call to emphasize accelerating enterprise adoption of OASYS, stronger deal conversion and a raised full-year revenue outlook. Management also highlighted improving profitability measures despite continued investment. The quarter produced $61.9 million in revenues, up 45% year over year, versus the Zacks Consensus Estimate of $52.49 million. Non-GAAP loss per share was 2 cents, compared with the consensus loss estimate of 3 cents. SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote Interim CFO and co-founder James Hom raised 2026 revenue expectations to $230 million to $260 million after the strong first half. The outlook excludes the pending LivePerson acquisition. Hom said SoundHound intends to remain aggressive in capturing market share through existing-customer expansion, new customer wins and targeted investments in channels and OASYS. CEO and co-founder Keyvan Mohajer said management expects to update guidance after LivePerson closes, which the company continues to expect before year-end. Mohajer described OASYS as a major contributor to second-quarter performance. He said SoundHound is moving prospects from demonstrations to signed contracts in months and converting pilots to larger deployments at a record pace. In response to a Cantor Fitzgerald analyst, Mohajer said the company’s pipeline and win rate have never been stronger. He pointed to wins in demonstrations, RFPs and pilots as evidence of OASYS traction. He also detailed OASYS’ “AI builds AI” capability, which can reduce complex agent-development work from months to minutes and support automated improvement after deployment. Hom said enterprise AI remained SoundHound’s largest revenue contributor, with growth spanning healthcare, financial services, technology and automotive. Healthcare generated seven deals, including one seven-figure agreement. Mohajer highlighted continued momentum in Asia, where SoundHound has signed major deals for five consecutive quarters. The company landed a seven-figure China automotive infotainment deal and expanded generative AI deployments with Stellantis and Hyundai. Restaurants also remained an expansion area. Mohajer said renewal rates reached 100% for key accounts, while Smart Answering more than doubled year over year and several major restaurant chains expanded location cover…Read full documentShow less
SoundHound AI, Inc. SOUN used its second-quarter 2026 call to emphasize accelerating enterprise adoption of OASYS, stronger deal conversion and a raised full-year revenue outlook. Management also highlighted improving profitability measures despite continued investment. The quarter produced $61.9 million in revenues, up 45% year over year, versus the Zacks Consensus Estimate of $52.49 million. Non-GAAP loss per share was 2 cents, compared with the consensus loss estimate of 3 cents. SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote Interim CFO and co-founder James Hom raised 2026 revenue expectations to $230 million to $260 million after the strong first half. The outlook excludes the pending LivePerson acquisition. Hom said SoundHound intends to remain aggressive in capturing market share through existing-customer expansion, new customer wins and targeted investments in channels and OASYS. CEO and co-founder Keyvan Mohajer said management expects to update guidance after LivePerson closes, which the company continues to expect before year-end. Mohajer described OASYS as a major contributor to second-quarter performance. He said SoundHound is moving prospects from demonstrations to signed contracts in months and converting pilots to larger deployments at a record pace. In response to a Cantor Fitzgerald analyst, Mohajer said the company’s pipeline and win rate have never been stronger. He pointed to wins in demonstrations, RFPs and pilots as evidence of OASYS traction. He also detailed OASYS’ “AI builds AI” capability, which can reduce complex agent-development work from months to minutes and support automated improvement after deployment. Hom said enterprise AI remained SoundHound’s largest revenue contributor, with growth spanning healthcare, financial services, technology and automotive. Healthcare generated seven deals, including one seven-figure agreement. Mohajer highlighted continued momentum in Asia, where SoundHound has signed major deals for five consecutive quarters. The company landed a seven-figure China automotive infotainment deal and expanded generative AI deployments with Stellantis and Hyundai. Restaurants also remained an expansion area. Mohajer said renewal rates reached 100% for key accounts, while Smart Answering more than doubled year over year and several major restaurant chains expanded location coverage. Hom said GAAP gross margin reached 45.1%, up 6.1 percentage points year over year, while non-GAAP gross margin was 58.4%. Adjusted EBITDA loss improved 33% to $9.6 million. Management attributed efficiencies to infrastructure modernization, cloud optimization, legacy-system consolidation and increased use of in-house technology. Hom said the company still expects gross margin to exceed 70% over time. Mohajer added that smaller customers now run entirely on SoundHound’s own stack, while one large healthcare customer is preparing to switch. He tied the model strategy to lower costs, higher quality and greater control. A D.A. Davidson analyst asked how guidance changes under a LivePerson closing scenario. Mohajer reiterated that current 2026 guidance excludes the acquisition and that timing uncertainty prevents a precise contribution estimate. A Northland Capital Markets analyst asked about 2027 expectations. Mohajer maintained the previously discussed $350 million to $400 million range, assuming the merger closes successfully in the second half of 2026. Mohajer also identified two key integration opportunities: upgrading LivePerson customers to OASYS and adding voice capabilities to LivePerson’s digital customer-service base. He said regulatory clearances have been secured. Management’s tone centered on expanding enterprise adoption while maintaining cost discipline. Hom said SoundHound plans to keep investing in technology and go-to-market capacity as it works toward profitable growth. Mohajer emphasized OASYS, proprietary models, channel partnerships and acquisitions as the company’s main scaling levers. He also pointed to upcoming Voice Commerce projects in vehicles and televisions as additional use cases. The call left management focused on converting a larger pipeline, broadening deployments within existing accounts and preparing for LivePerson integration without including the acquisition in current-year guidance. SOUN currently carries a Zacks Rank #3 (Hold). Its Value Score is F, Growth Score is D, Momentum Score is F and VGM Score is F, leaving the shares without the stronger A or B style characteristics emphasized in the Zacks framework. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Style Scores are designed to complement the Zacks Rank, with higher grades indicating more favorable characteristics. Investors should note that the Zacks Rank can change as earnings estimates are revised following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-06SoundHound AI Q2 Earnings Call Highlights
MarketBeat
SoundHound AI Q2 Earnings Call Highlights
Interested in SoundHound AI, Inc.? Here are five stocks we like better. Record revenue and raised outlook: SoundHound reported Q2 revenue of $61.9 million, up 45% year over year, while improving gross margins and reducing adjusted EBITDA losses. The company raised its full-year revenue forecast to $230 million–$260 million. OASYS is driving adoption: The agentic AI platform helped generate new demonstrations, pilots and production deployments, with particularly strong traction in healthcare, financial services, restaurants and automotive. SoundHound said some implementations can now be completed in minutes rather than months. Expansion plans remain significant: SoundHound expects its LivePerson acquisition to close before year-end, pending remaining steps, and maintained its 2026 revenue outlook of at least $350 million–$400 million assuming the deal closes. The company is also pursuing voice-commerce pilots and continued growth in automotive markets. 2 AI Stocks That Could Benefit as AI Moves Beyond the Data Center SoundHound AI (NASDAQ:SOUN) reported record second-quarter revenue of $61.9 million, up 45% from a year earlier and 40% sequentially, as the company cited demand for its conversational and agentic AI offerings across healthcare, financial services, automotive, restaurants and other industries. Chief Executive Officer and Co-Founder Keyvan Mohajer said the quarter was the company’s largest to date, with improvements in gross margin, adjusted EBITDA and earnings per share both year over year and sequentially. He attributed a significant portion of the performance to OASYS, the self-learning agentic AI platform SoundHound launched publicly in May. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Investors Abandoned These 3 AI Stocks Too Early, Says Jeff Clark “Our results were beyond our own expectations,” Mohajer said, adding that OASYS has helped the company win demonstrations, requests for proposals, pilots and production deployments. He said SoundHound recently signed an eight-figure commitment less than 90 days after an initial demonstration. Chief Financial Officer and Co-Founder James Hom said growth was broad-based, led by enterprise AI and supported by healthcare, financial services, technology and automotive. SoundHound’s enterprise AI business remained its largest revenue contributor, while its automotive…Read full documentShow less
Interested in SoundHound AI, Inc.? Here are five stocks we like better. Record revenue and raised outlook: SoundHound reported Q2 revenue of $61.9 million, up 45% year over year, while improving gross margins and reducing adjusted EBITDA losses. The company raised its full-year revenue forecast to $230 million–$260 million. OASYS is driving adoption: The agentic AI platform helped generate new demonstrations, pilots and production deployments, with particularly strong traction in healthcare, financial services, restaurants and automotive. SoundHound said some implementations can now be completed in minutes rather than months. Expansion plans remain significant: SoundHound expects its LivePerson acquisition to close before year-end, pending remaining steps, and maintained its 2026 revenue outlook of at least $350 million–$400 million assuming the deal closes. The company is also pursuing voice-commerce pilots and continued growth in automotive markets. 2 AI Stocks That Could Benefit as AI Moves Beyond the Data Center SoundHound AI (NASDAQ:SOUN) reported record second-quarter revenue of $61.9 million, up 45% from a year earlier and 40% sequentially, as the company cited demand for its conversational and agentic AI offerings across healthcare, financial services, automotive, restaurants and other industries. Chief Executive Officer and Co-Founder Keyvan Mohajer said the quarter was the company’s largest to date, with improvements in gross margin, adjusted EBITDA and earnings per share both year over year and sequentially. He attributed a significant portion of the performance to OASYS, the self-learning agentic AI platform SoundHound launched publicly in May. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Investors Abandoned These 3 AI Stocks Too Early, Says Jeff Clark “Our results were beyond our own expectations,” Mohajer said, adding that OASYS has helped the company win demonstrations, requests for proposals, pilots and production deployments. He said SoundHound recently signed an eight-figure commitment less than 90 days after an initial demonstration. Chief Financial Officer and Co-Founder James Hom said growth was broad-based, led by enterprise AI and supported by healthcare, financial services, technology and automotive. SoundHound’s enterprise AI business remained its largest revenue contributor, while its automotive operations in Asia posted substantial growth for a fifth consecutive quarter, according to Hom. Revenue totaled $61.9 million, up 45% year over year. GAAP gross margin was 45%, up six percentage points from the prior-year quarter. Non-GAAP gross margin was 58%, flat year over year and up eight percentage points sequentially. GAAP operating loss was $43.3 million, an improvement of 45% from a year earlier. Adjusted EBITDA loss was $9.6 million, improving 33% year over year. GAAP net loss was $42.8 million, or $0.10 per share. Non-GAAP net loss was $9 million, or $0.02 per share. Cash and equivalents totaled $203 million at quarter-end, with no debt. → 3 Drone Stocks That Should Soar After the Summer Slump SoundHound’s Bottom Is In—Inflection and 50% Upside Ahead? Hom said the company has been working to improve efficiency through infrastructure modernization, cloud-spending optimization, legacy-system consolidation, adoption of in-house technology and acquisition synergies. Acquisitions have temporarily weighed on gross margin, he said, but the company expects margins to exceed 70% in the future, similar to levels when it became public. SoundHound raised its full-year revenue outlook to a range of $230 million to $260 million, reflecting its first-half performance and continuing demand. The outlook does not include the planned acquisition of LivePerson because the timing of the transaction’s closing remains uncertain. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Mohajer said OASYS is designed to enable companies to build and deploy AI agents across channels rather than tying customer interactions to a specific platform or modality. The platform’s “AI Builds AI” feature can create and refine agentic workflows using documents, application programming interfaces and prior interaction data, he said. During the question-and-answer session, Mohajer said implementations that previously required months of work and large professional-services teams can now be completed in minutes in some cases. The system can also identify missing information or capabilities after deployment and propose enhancements for human approval, he said. The company cited healthcare as an area of particular traction. Mohajer said one top-20 healthcare provider quadrupled its spending during the quarter, while SoundHound added Champion Payer Solutions and either renewed or expanded relationships with five additional healthcare organizations. Hom said the company signed seven healthcare deals during the quarter, including one seven-figure agreement. In financial services, SoundHound said it renewed or expanded contracts with two of the world’s seven largest banking institutions and one large global insurer. The company also cited new and expanded business with organizations including Rakuten Securities, a global asset-management firm and a Canadian-headquartered financial-services company. In restaurants, the company said its Smart Answering offering for small and midsize businesses more than doubled year over year. It signed three major U.S. restaurant chains during the quarter and reported 100% renewal rates among key restaurant accounts. Mohajer said restaurant deployments are also creating cross-selling opportunities for IT help desk and guest-relations services through OASYS. SoundHound continued to expand in Asia, particularly in China’s automotive market. The company signed a seven-figure agreement with a large infotainment software company for agentic AI solutions and an IoT agreement with an automotive maintenance and diagnostics company. It also signed a six-figure unit expansion with Indian two-wheeler company Ultraviolette and reached an agreement with another OEM to deploy real-time generative AI features in vehicles in India. Elsewhere, SoundHound said Stellantis expanded unit adoption in Europe and added live generative AI capabilities, while Hyundai is adding generative AI enhancements in the U.S., Latin America and India. The company also outlined upcoming voice-commerce initiatives. In the third quarter, it plans to begin piloting direct in-vehicle transactions with an unnamed automotive brand through a recently signed contract. Later this year, it expects to launch with a global electronics manufacturer that will use its technology to enable retail and restaurant purchases through television screens in U.S. homes. Mohajer said SoundHound is investing in its proprietary Polaris speech foundation model, specialized large language models and speech-synthesis technology. Smaller customers are now operating entirely on SoundHound’s own technology stack, he said, and the company is preparing to deploy the stack with one of its largest healthcare customers after seeing improvements in accuracy and latency. SoundHound said it has received key regulatory clearances for its planned acquisition of LivePerson and continues to expect the deal to close before year-end. Mohajer said the transaction would broaden the company’s conversational AI footprint to include 25 Fortune 100 brands and expand its enterprise customer base. Management said its prior outlook of at least $350 million to $400 million in revenue next year remains unchanged, assuming the LivePerson transaction closes in the second half of 2026. The company did not provide a separate estimate for LivePerson’s contribution this year. Mohajer said LivePerson’s digital customer-service offerings would complement SoundHound’s voice capabilities. He described opportunities to upgrade LivePerson customers to OASYS and to offer voice services to customers that have historically used LivePerson primarily for web chat and digital interactions. “All the new customers we expect will utilize OASYS,” Mohajer said, while noting that existing customers will transition from legacy platforms at a pace with which they are comfortable. SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services. The company's core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SoundHound AI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.
Investor releaseQuarter not tagged2026-08-06SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
Zacks
SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
SoundHound AI, Inc. SOUN delivered a strong second-quarter 2026 performance, with earnings and revenues surpassing expectations. The quarter reflected accelerating enterprise demand for voice and agentic AI, major OASYS-driven deals and improving cost discipline. Profitability strengthened year over year, with higher GAAP gross margin and narrower adjusted EBITDA and net losses.Following the results, the company’s shares gained around 23.3% in the after-hours trading session yesterday. The increase was likely supported by the sizable revenue beat, better profitability metrics, strong enterprise deal momentum and the raised full-year revenue outlook. In the second quarter, SoundHound reported record revenues of $61.9 million, up 45% year over year. The figure surpassed the Zacks Consensus Estimate of $52.49 million by 17.9%. Management attributed the top-line growth to major enterprise AI deals linked to OASYS, reflecting rising adoption of the company’s voice and agentic AI offerings across industries. SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote The company posted an adjusted loss of 2 cents per share compared with the Zacks Consensus Estimate of a loss of 3 cents, representing a favorable surprise of 33.3%. The adjusted loss also narrowed from 3 cents per share in the prior-year quarter. On a year-over-year basis, SOUN’s profitability improved. GAAP gross profit rose 68% to $27.9 million from $16.7 million, while GAAP gross margin expanded to 45.1% from 39%, reflecting stronger growth in gross profit than revenues.Non-GAAP gross profit increased 45% to $36.2 million. Non-GAAP gross margin remained unchanged at 58.4%, indicating stable underlying profitability after excluding amortization, stock-based compensation and acquisition-related expenses.Adjusted EBITDA also improved year over year, with the loss narrowing to $9.6 million from $14.3 million. Non-GAAP net loss decreased 24% to $9 million, while GAAP operating loss narrowed to $43.3 million from $78.1 million. Management highlighted rising demand across health care, financial services, telecommunications, automotive, restaurants and consumer-facing applications. In health care, SoundHound signed a seven-figure agreement with a nationally ranked system employing 30,000 people across hospitals, health parks and medical offices.The company also secured new and expan…Read full documentShow less
SoundHound AI, Inc. SOUN delivered a strong second-quarter 2026 performance, with earnings and revenues surpassing expectations. The quarter reflected accelerating enterprise demand for voice and agentic AI, major OASYS-driven deals and improving cost discipline. Profitability strengthened year over year, with higher GAAP gross margin and narrower adjusted EBITDA and net losses.Following the results, the company’s shares gained around 23.3% in the after-hours trading session yesterday. The increase was likely supported by the sizable revenue beat, better profitability metrics, strong enterprise deal momentum and the raised full-year revenue outlook. In the second quarter, SoundHound reported record revenues of $61.9 million, up 45% year over year. The figure surpassed the Zacks Consensus Estimate of $52.49 million by 17.9%. Management attributed the top-line growth to major enterprise AI deals linked to OASYS, reflecting rising adoption of the company’s voice and agentic AI offerings across industries. SoundHound AI, Inc. price-consensus-eps-surprise-chart | SoundHound AI, Inc. Quote The company posted an adjusted loss of 2 cents per share compared with the Zacks Consensus Estimate of a loss of 3 cents, representing a favorable surprise of 33.3%. The adjusted loss also narrowed from 3 cents per share in the prior-year quarter. On a year-over-year basis, SOUN’s profitability improved. GAAP gross profit rose 68% to $27.9 million from $16.7 million, while GAAP gross margin expanded to 45.1% from 39%, reflecting stronger growth in gross profit than revenues.Non-GAAP gross profit increased 45% to $36.2 million. Non-GAAP gross margin remained unchanged at 58.4%, indicating stable underlying profitability after excluding amortization, stock-based compensation and acquisition-related expenses.Adjusted EBITDA also improved year over year, with the loss narrowing to $9.6 million from $14.3 million. Non-GAAP net loss decreased 24% to $9 million, while GAAP operating loss narrowed to $43.3 million from $78.1 million. Management highlighted rising demand across health care, financial services, telecommunications, automotive, restaurants and consumer-facing applications. In health care, SoundHound signed a seven-figure agreement with a nationally ranked system employing 30,000 people across hospitals, health parks and medical offices.The company also secured new and expanded business with health care technology, pharmacy care and electronic health record customers. Financial services renewals included a Japanese online brokerage serving more than 6 million accounts, a global asset manager, a major U.S. bank and a Canadian financial services organization.Automotive activity included a seven-figure deal with an infotainment software company in China. Stellantis increased overall unit adoption and added live generative AI capabilities, while Hyundai expanded its adoption of the technology. Restaurant wins and expansions included Ruby Tuesday, Five Guys, IHOP and Jersey Mike’s. OASYS remained central to SoundHound’s enterprise growth strategy. Management said major agreements attributed to the platform supported the quarter’s record revenues and demonstrated strong customer interest in deploying voice and agentic AI across business workflows.The company describes OASYS as a self-learning, orchestrated platform that allows organizations to build and deploy conversational agents across phones, chat, kiosks, smart devices, drive-thrus, televisions and vehicles. Its broader deployment model is intended to support transactions, tasks and customer-service workflows across digital and physical channels.SoundHound also expanded its distribution reach through a multi-year partnership in Latin America representing an initial eight-figure agreement. The arrangement covers a network spanning more than 20 countries. A partnership with a global IT services provider is expected to extend access to enterprise digital-transformation customers. As of June 30, 2026, SOUN ended the quarter with $203 million in cash and cash equivalents and no debt. The debt-free position preserves financial flexibility as the company continues investing in platform development and prepares for the pending LivePerson transaction.Operating cash flow weakened year over year during the first half. Net cash used in operating activities was $60 million compared with $43.7 million in the prior-year period. Net cash used in investing activities totaled $32.7 million, while financing activities provided $46.7 million.The quarter’s GAAP results included an approximately $4 million gain tied to the revaluation of contingent acquisition liabilities. This noncash item was excluded from the company’s non-GAAP performance measures. For 2026, SOUN raised its revenue outlook to $230 million to $260 million from the previous range of $225 million to $260 million. The revision followed the company’s strong second-quarter performance and reflected continued demand for OASYS and its broader voice and agentic AI portfolio.The outlook does not yet contemplate the pending acquisition of LivePerson. SoundHound expects the transaction to close before the end of 2026 and plans to update its guidance after the deal is completed. SoundHound currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Computer and Technology sector are NVIDIA Corporation NVDA, Broadcom Inc. AVGO and Dell Technologies Inc. DELLNVIDIA carries a Zacks Rank #2 (Buy) at present. It has a trailing four-quarter earnings surprise of 5.5% on average. Shares of NVDA have plunged 17.6% year to date ("YTD"). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 EPS indicates 90.6% growth on 106.9% revenue rise from the year-ago levels.Broadcom currently holds a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 2.2%, on average. Shares of AVGO have gained 20.9% YTD.The Zacks Consensus Estimate for Broadcom’s fiscal 2026 EPS implies a 72.1% rise on 66% revenue growth, from the year-ago levels.Dell currently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 18.7%, on average. Shares of DELL have gained 267.6% YTD.The Zacks Consensus Estimate for Dell’s fiscal 2027 sales and EPS indicates 82.5% and 67.6% growth, respectively, from the year-ago levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-06SoundHound AI Delivers Record Quarter, Sends Stock Soaring 20%
GuruFocus.com
SoundHound AI Delivers Record Quarter, Sends Stock Soaring 20%
This article first appeared on GuruFocus. SoundHound AI (NASDAQ:SOUN) shares jumped more than 20% on Thursday after the voice artificial intelligence company posted second-quarter results that exceeded Wall Street estimates and lifted the lower end of its full-year revenue outlook. SoundHound AI reported record second-quarter revenue of $61.9 million, up 45% from a year earlier and above analysts' expectations of about $52.5 million. The company posted a non-GAAP loss of $0.02 per share, compared with the consensus estimate for a loss of $0.13 per share. Management attributed the quarter's performance to rising demand for its OASYS platform, which helps businesses build AI-powered voice and chat assistants. Warning! GuruFocus has detected 4 Warning Signs with SOUN. Is SOUN fairly valued? Test your thesis with our free DCF calculator. Following the results, SoundHound AI increased the lower end of its 2026 revenue forecast to a range of $230 million to $260 million, compared with its prior outlook of $225 million to $260 million. The company said it expects to revisit its guidance after completing its planned acquisition of LivePerson (LPSN), which is anticipated before the end of 2026. SoundHound AI provides conversational AI software for industries including automotive and restaurants, where enterprises are expanding investments in customer-facing AI applications.
TranscriptFY2026 Q22026-08-05FY2026 Q2 earnings call transcript
Earnings source - 76 paragraphs
FY2026 Q2 earnings call transcript
Good day, and thank you for standing by. Welcome to SoundHound AI Q2 2026 earnings conference call. 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 one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one 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, Investor Relations.
Good afternoon, and thank you for joining our second quarter 2026 conference call. With me today is our CEO and co-founder, Keyvan Mohajer, and our CFO and co-founder, James Hom. We will begin with some short remarks before moving to Q&A. We'd also like to remind everyone that we'll 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 a discussion of the 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.
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'd like to turn the call over to our CEO, Keyvan Mohajer. Please go ahead, Keyvan.
Thank you, Scott, and thank you to everyone for joining the call today. I'm delighted to report an outstanding second quarter. Coming off an already strong Q1, the team executed flawlessly in Q2. This was not only a record Q2, but our largest all-time quarter with $62 million in revenue. Revenue was up 45% year-over-year, 40% sequentially, and 10 times higher than Q2 four years ago, which was our first quarter as a public company. We improved all key profitability metrics. Our gross margin improved, our Adjusted EBITDA improved, and our EPS improved both year-over-year and sequentially. Our results were beyond our own expectations, and a significant part of that is attributed to OASYS, SoundHound's self-learning agentic AI platform that we launched in May this year.
With OASYS, we are winning in demos, we are winning in RFPs, we are winning in pilots, and we are winning as we scale with our customers in production. OASYS demos are absolutely delighting new and existing customers, and it shows in our renewal rates and our exceptional win rates. Because of our standout technology, we are now moving quickly with our prospects from demo to contract, signing in a matter of months. We are also converting pilots to large implementations at a record pace. We recently signed an 8-figure commitment in less than 90 days from the initial demo to contract signature. This is all while enterprise market for conversational and agentic AI grows exponentially with every quarter that passes.
In a recent report, Gartner projected that agentic AI software spending will hit nearly $1 trillion by 2030, with a compound annual growth rate of over 60% between 2025 and 2030 as enterprises scale adoption. We have everything we need to seize a sizable portion of this. We continue to invest in growth and convert on the massive pipeline we built to start the year. Even with those key investments, we have maintained a disciplined approach to spending, achieving a 33% improvement in Adjusted EBITDA this quarter. We saw success across all key metrics and every part of our business. SoundHound's enterprise AI business is fundamentally changing the market, emerging as a clear leader in what was once a fragmented landscape.
SoundHound's excellence in conversational AI for enterprise also recently received heavyweight validation with SoundHound being named as a leader by analyst firm Gartner in their Magic Quadrant for conversational AI platforms. We expect this high-profile recognition to drive even greater momentum with enterprise buyers who rely on Gartner to validate market leaders with both a strong vision and proven ability to execute. Looking ahead, we are poised to increase our scale again with the acquisition of LivePerson, which is expected to close by the end of this year. When it does, we will accelerate our leadership position and extend our footprint in conversational AI with 25 of the Fortune 100 brands and a significant increase in the number of enterprise brands using our platform across a range of verticals. Our track record shows that our repeatable M&A formula is working.
We've been able to realize high potential turnaround opportunities with our technical innovation and financial discipline. We look forward to repeating our process with LivePerson. Our success in Q2 was driven in large part by our new OASYS platform, which we demoed extensively with existing customers and prospects before launching publicly in May. Early reactions confirmed what we already knew. This is a category-leading enterprise AI platform that addresses the critical pain points that large multinational businesses face when trying to deliver a quality AI-based customer experience consistently across billions of interactions. One large healthcare company leader told us they evaluated other options and found OASYS was the most intuitive and easiest to navigate. OASYS has a unique feature where AI Builds AI, and they were able to create agents using this feature in just a few minutes, which took much longer in other platforms.
Agentic AI is an important step change for our industry. Previously, technology stacks were vertically integrated, meaning that, for example, phone-based customer service was attached to telephony channels or product-based conversations were limited to the product platform itself. OASYS is built for a new era in which the AI conversational layer is no longer attached to a specific modality or channel. It lives independently with cross-channel orchestrated agents that are built for any and every touch point, including physical environments. This means that AI agents built on OASYS can power enterprises and businesses of all sizes in vehicle voice assistance, restaurant and retail voice AI transactions, and complex customer tasks across our multiple verticals. SoundHound AI is a company that puts its customers first, supported by products that deliver tangible value. That's why we are proud that our biggest Q2 deals are with customers that chose OASYS.
As we continue to onboard and upgrade customers, introducing them to features that enable AI to build and continually optimize agentic workflows on their behalf, we are expanding our capabilities to support our rapid growth across key verticals. One area we are seeing very strong traction is in healthcare, with one top 20 provider quadrupling their spend with us in Q2. We also added Champion Payer Solutions, a managed healthcare services organization based in California, and either expanded or renewed with five additional healthcare organizations. We continue to strengthen our presence in banking and financial services, renewing or expanding contracts with two of the top seven global banking institutions, as well as one of the largest global insurers. At the same time, we are seeing strong demand from regional banks and credit unions who look to leverage our platform to scale customer service efficiently and extend operating hours.
We recently partnered with a top-tier regional credit union and helped them introduce automated AI agents without compromising their famously high standard of customer service or sacrificing containment rates. In Q2, we announced that Quálitas, one of our insurance customers in Latin America, now uses SoundHound AI agents to handle over 100,000 calls per month, an increase of 150% over four years with our automated agents interacting with customers over issues like car assistance requests and broken glass claims, handling the complexities from the initial call to the claim resolution. These are very human moments of need, and the message is clear. End customers are not resistant to automation. They're only resistant to bad service. This momentum in highly regulated industries like healthcare and financial services underscores our enterprise readiness.
With built-in guardrails and rigorous agent evaluation, SoundHound AI's platform provides the security and traceability needed for mission-critical AI workflows. Because of this trusted foundation and our growing credentials, we are seeing our vertical-specific strength build across a number of other critical industries, including telecommunications and energy and utilities. A notable component of SoundHound AI's ongoing success is the excellent traction our solutions are getting in Asia.
In each of the last five consecutive quarters, we have signed major deals in the region, and we are seeing particular success with the automotive sector in China, a market that has been notoriously difficult for Silicon Valley companies to compete in. Time and time again, large Chinese OEMs are choosing SoundHound AI because of our mature, flexible, proprietary stack and due to the pure-play nature of our offering. The Chinese automotive industry is booming, and where the winners are, we will be there.
In Q2, we signed a seven-figure deal with a large infotainment software company to provide agentic AI solutions, and we also had an IoT win with an established automotive maintenance and diagnostic company that will use our AI agents to boost operational productivity on-site. Both customers will integrate with our OASYS platform, which expands their possibilities for taking any built-for-purpose agent and deploying it across multiple channels. Elsewhere in the region, we also signed a six-figure unit expansion with Indian two-wheeler company Ultraviolette, and we entered an agreement with another large OEM customer to roll out real-time generative AI features to vehicles in India, the first LLM-enabled voice technology the brand has rolled out in the country. Our ability to outpace our competitors in high-impact agent markets is not accidental.
These companies consistently partner with us based on the performance of our agentic technology, our broad vertical expertise, and our growing experience within the region. The same story holds for automotive globally. In Q2, we expanded with a number of our major OEM customers, including Stellantis in Europe, which saw overall higher unit adoption and added live generative AI capabilities, and Hyundai, one of our prominent automotive customers in the U.S., Latin America, and India, who is adding generative AI enhancements which allow end users to retrieve LLM-powered search results and ask multilayered questions on the go. We continue to innovate and see opportunity and growth across restaurants and retail.
Our agentic AI solution for SMBs, which we call Smart Answering, more than doubled year-over-year in Q2, largely driven by excellent platform performance and increasingly sophisticated capabilities that allow for outbound calls to help businesses with retention, new registration, and win-back campaigns. We also signed three major U.S. restaurant chains in the quarter. In Q2, restaurant renewal rates reached 100% for key accounts, while client location counts grew with major brands including Jersey Mike's, Five Guys, IHOP, and a prominent pizza brand with thousands of locations that are now live with more than 75% of their total locations. Last earnings, I talked about one well-known QSR customer that had conducted an analysis and reported that drive-thru locations deploying SoundHound's AI solutions are generating greater revenue than comparable locations that don't currently use it.
I'm delighted to say that those metrics continue to improve across locations, which is fueling the path to broader expansion. Our restaurant AI solutions get better and better, and customers and businesses alike have become even more confident of their capabilities and consistency. This is proving to be fertile territory for cross-selling, using our land and expand strategy with our OASYS platform, which allows us to also provide IT help desk and guest relation services to our existing restaurant base. By positioning SoundHound as a one-stop shop for AI, we aim to become central to the AI strategies of our top restaurant clients, thereby growing our total addressable market. Another part of our business that is experiencing rapid expansion is voice commerce.
In Q2, we saw strategic advancements engaging with some of the biggest global manufacturers across automotive and IoT, all of whom were excited about the prospect of this new monetization channel and what it can do for their business and the end-user experience. I'm delighted to reveal that our first commercial projects will launch soon. In Q3, we will begin to pilot direct in-vehicle transactions with a world-renowned automotive brand with a recently signed contract. We are integrating these vehicle native voice commerce capabilities seamlessly into the car's navigation system via the OASYS agentic AI platform with a broader public launch to follow.
Later this year, we will launch with a global electronic manufacturer who will initially utilize SoundHound AI technology to enable agentic transactions, including retail and restaurant purchases, right from the television screen in homes across the U.S. without the need for a phone, tablet, or even an app. With voice commerce, we are observing an accelerating interest within the automotive industry to implement agentic AI for a broader range of use cases, as well as monetizable transactional opportunities with OEMs adjusting their business models to accommodate it. It's amazing what we are doing. We are transforming the way OEMs can improve the user experience and monetize their product while delighting their customers. Our leadership position in the space is unprecedented, and we are leading the charge to a shift in the way OEMs are looking at the next-generation capabilities.
The breadth of our tech suite and the depth of our stack have made us hugely appealing to enterprise clients looking for consistency across all their channels and operations. OASYS delivers on this with a single pane of glass view alongside capabilities like AI Builds AI, which slashes build times from months to minutes and saves vital resources. We always say innovation is in our DNA. Those businesses already adopting OASYS can expect features to be added and existing capabilities to grow even more powerful. Last quarter, I gave an update on our investment in our R&D. OASYS will be powered by Polaris, SoundHound AI's own speech foundation model that consistently outperforms its competitors. We are also making the calculated investment to augment Polaris with our own specialized LLMs and speech synthesis built using our own rich interaction data.
We expect the result of this investment will be better quality and lower cost for our customers and more control, independence, higher profit margin, and differentiation for SoundHound AI. I'm proud to say that we have made incredible progress with this thanks to the strength of our engineering teams, which also bring together some of the best minds from the pioneer companies we've acquired over the last few years. Our SMB customers are now entirely on our own stack using our models, independent of frontier models, and we are about to go live with one of our largest healthcare customers after seeing significant improvements by making the switch. Once again, this is not just about cost saving, but also improvement in quality such as accuracy and latency.
As we lean deeper into our specific verticals, being able to tune and deploy models using our own data has huge advantages for cost, efficiency, accuracy, and AI safety. Turning to M&A and building on what we've said last quarter, we are excited that our previously announced agreement to acquire LivePerson is advancing. We recently secured all key regulatory clearances and continue to expect the deal to close before the end of the year. Bringing the two companies together will compound the winning strategy we have proven. We've now done this with SYNQ3, Allset, Amelia, and Interactions, and it has become a repeatable formula for us. With each, we get faster and more efficient at integrating the strengths of the businesses. Our first acquisition took about two years to fully turn around, and our most recent is demonstrating early signs of acceleration in just a few quarters.
What makes us confident that we can do this again and even faster with LivePerson is OASYS. OASYS is built specifically to unify the technology from every company we've acquired onto one platform, harvesting the years of innovation SoundHound AI has developed, coupled with the great innovation these companies created. Put simply, this is an amazing opportunity to bring true end-to-end omnichannel conversational AI to some of the most recognizable enterprise brands in the world and combining decades of customer relationships and data with the speed and innovation OASYS unlocks. We are proud of the strategy, energized by the team we are bringing on board, and confident this positions SoundHound AI for its next chapter of scale and leadership in agentic AI.
Let me list out a few more of the key deals we had across a diverse number of verticals, including financial services, insurance, telecommunications, healthcare, pharmaceutical, and restaurants. They included Rakuten Securities, one of Japan's largest online brokerages, serving over six million accounts. The company offers purchase, sales, and brokerage of securities throughout the world. A global asset management firm providing investment management and research services worldwide to investors. A major international financial services organization headquartered in Canada that offers life and health insurance, wealth solutions and asset management. An insurance company that offers individuals, professionals, and businesses casualty insurance products. An American healthcare customer that provides technology, pharmacy care, and direct healthcare services globally. A leading provider of practice management and electronic health record solutions customized for the eye care industry.
A leader in in-home nursing services, pediatrics therapy, enteral nutrition, and ABA therapy healthcare. A rehab facility offering nursing care for short-term rehab, respite care, and long-term care facilities. A global biopharmaceutical leader in one of the world's largest generic drug manufacturer. A British multinational telecommunications company operating networks in 15 countries. A large QSR specializing in seafood to adopt Dynamic Drive-Thru solution. A major QSR known for American-style Mexican food. A sushi restaurant known for its rock music and concert-themed menus. Also in restaurants, Ruby Tuesday, Habit Burger, Red Lobster, Torchy's Tacos, and Lazy Dog. We also continue to make progress with channel partners. We entered into a partner agreement with a large global IT services and consulting provider specializing in comprehensive enterprise digital transformations.
We also entered into a multi-year partnership with a Latin America-based company to deliver SoundHound technology to their vast network of customers spanning over 20 countries. In closing, we had an exceptional Q2, and our results demonstrate the incredible momentum SoundHound is building, achieving a strong revenue performance, disciplined cost management, and industry-leading platform validation. The demand for our solutions is at an all-time high. Enterprises, in particular, are looking for high ROI voice and agentic AI solutions, and our OASYS platform delivers just that. Our expanding IoT ecosystem and in-house model innovation position us to lead in this new era of enterprise automation. We are excited about the progress we are seeing with the planned acquisition of LivePerson, which we expect to be in the second half of this year.
With that, I'll now turn the call over to my Co-Founder, James, to talk about our financial performance, key growth drivers, and business outlook.
Thank you, Keyvan, and good afternoon, everyone. In Q2, we had $61.9 million in revenue, up 45% year-over-year. With sustained high demand for our AI solutions, it's become more evident each quarter that SoundHound is leading the charge as a pure play conversational AI vendor. The launch of OASYS, our self-building and self-optimizing agentic AI platform, has fueled excitement and accelerated deals. This high-performance platform, which draws upon the collective technical strengths of SoundHound and our acquired businesses, appeals to businesses looking to automate and scale reliable, consistent customer service resolutions while reducing costs. We are seeing traction across all industry verticals and in all pillars of our businesses building on this OASYS momentum.
As Keyvan mentioned, one of the verticals we are seeing SoundHound pull ahead of the competition is healthcare, where we provide automated patient services powered by AI agents that facilitate appointment making, care updates, prescription refills, and more. We had seven deals in healthcare alone, with one hitting seven figures. We continued to execute with manufacturers, bringing AI agents to vehicles and physical devices, particularly in Asia, where we had our largest deal of the quarter. The pieces are coming together. We continue to execute on the strong pipeline we built earlier this year, resulting in an exceptional first half of the year. With that, let me discuss the second quarter financial results in more detail. As I mentioned earlier, Q2 revenue was $61.9 million, up 45% year-over-year. The growth was driven across multiple verticals, such as healthcare, financial services, technology, and automotive.
Our broad-based expansion once again enabled us to realize strong customer diversification. Our enterprise AI business performed particularly well and continued to be the largest contributor to revenue. In automotive, we continued to accelerate our Asia business, growing substantially there five quarters in a row. In Q2, our GAAP gross margin was 45%, up six percentage points year-over-year. Our non-GAAP gross margin was 58%, which adjusts for non-cash amortization of purchased intangibles and employee stock compensation, was flat year-over-year, up eight percentage points sequentially. We continued to drive efficiencies by modernizing infrastructure, optimizing cloud spend, consolidating legacy systems, and improving the efficiency of our core platforms, including shifting from third-party solutions to our own in-house ones, as well as realizing synergies from acquisitions. We are being prudent on costs.
While acquisitions have temporarily impacted our gross margin, we continue to explore and harvest synergies and expect to see our gross margin exceeding 70% in the future, similar to when we went public. R&D expenses were $27.1 million in Q2, up 5% year-over-year, largely due to acquisitions and related headcount and development costs. Sales and marketing expenses were $16.6 million in Q2, reflecting a 5% year-over-year increase, primarily driven by acquisitions. Outside of that, the bulk of our investments here continue to be go-to-market efforts via direct and indirect sales, as well as customer success to increase retention. We continue to elevate our brand. Market presence continues to generate demand and convert more opportunities into pipeline.
G&A expenses were $26 million in Q2, reflecting a 43% year-over-year increase, primarily driven by various legal, advisory, and other costs related to our acquisitions, including increased headcount. We also continue to add additional resources to support necessary functions as we continue to grow. We had non-cash employee stock compensation of $21 million in depreciation and amortization, including the amortization of intangibles of $11 million in Q2, all of which are included in our GAAP results. Our GAAP operating loss for the quarter of $43.3 million improved by 45% compared to the same quarter in the previous year. Adjusted EBITDA was a loss of $9.6 million, an improvement of 33% year-over-year. GAAP net loss was $42.8 million. GAAP net loss per share of $0.10. Non-GAAP net loss was $9 million. Non-GAAP net loss per share was $0.02 in this 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 $203 million with no debt. Let me discuss our financial outlook. Q2 was clearly a strong quarter for us as the demand for our solutions accelerated. We are moving fast to capture the underlying market shifts, which continue to be in our favor. With the strong first half of the year, we are increasing our revenue expectations to be in the range of $230 million-$260 million. Overall, this outlook affirms our expectation of another year of very strong growth. We are pleased with the cost synergies we have realized from acquisitions and the targeted investments we have made in go-to-market, such as in the channel and in technology with OASYS.
We will continue to stay aggressive and capture market share by expanding within our existing customer base and attracting new customers with our rapid innovation. In closing, it's clear that our momentum is real. We are excited by the strong interest we are seeing with OASYS, which is a testament to the category-defining technology we continue to deliver to the market. We will continue to be disciplined on costs as we drive our business towards achieving profitable growth. We have a lot of opportunity in front of us, and we are operating in a way that reflects that optimism. With that, we will now move to Q&A.
Pardon me, please stand by. Pardon me, everyone, we are experiencing technical difficulties. Please stand by. Pardon me, please stand by. Okay, thank you. We'll continue and take Thomas Blakey with Cantor Fitzgerald. Your line is open.
Hey, great. Thanks for taking our questions, and congratulations on the record results here in Q2. I guess maybe to start off, the talk about OASYS and especially building your own models was very interesting, Keyvan. Could you maybe talk about what you're seeing in terms of Q2 trends with the Amelia and Interactions installed base and these new technologies? Try to parlay that into what you're seeing for potential successes with LivePerson's installed base as you see it and potential to grow that very large revenue base in the context of these new technologies and what you're seeing in terms of Q2 trends. Thank you.
Yeah, thank you for the great question. OASYS represents really decades of innovation from several companies that have come together by merging with SoundHound AI. One of the things that we were really mindful of when we designed OASYS was to be able to integrate the innovation of these acquisitions very seamlessly. Every company that we have bought that has been pursuing AI for customer service for 20+ years has done innovations that are unique to them. We absolutely wanted to bring these under the same platform. We designed OASYS to be able to capture the innovations very seamlessly. OASYS has a lot of strengths and promises. One is just absolute high-quality conversational AI and agentic AI for businesses. Low latency, high accuracy, naturalness, flexibility, and kind of a better-than-human experience that our customers have been waiting for for a long time and is finally here.
One more thing that is very prominent in the design of OASYS is time to value. It has a feature called AI Builds AI, and then self-improvements after it goes live. We used to sign up a customer, for example, a healthcare provider with complex use cases, hundreds of APIs, and you would allocate a team to them to work with them for months before they could go live. Now, what used to take us months with a large team is now taking us minutes, by just telling the AI what to build. We upload the documents, we give it all the APIs, and we describe the use cases.
Sometimes we are even able to upload previous calls with humans, the transcription, it just goes and builds itself, and it shows you on the screen what it's doing, and you can follow it, and in a matter of minutes, you have something that, again, used to take us months. Once it goes live, it learns how to improve itself. For example, if it's missing an API, if it's missing a document, if callers are asking about certain things that are not in the original design of the use cases. It even programs the enhancements, and then it allows a human moderator to review those enhancements and approve them with one click. The time value goes down. We don't need months and months of expensive professional services for our customers, it makes it easier for them to choose us, and faster to go live.
You asked a lot of questions. I'm going to answer them one by one. The next one is building our own models. SoundHound is very unique in the sense that we have our own foundation models. We were a pioneer in voice AI. We started working on voice in a dorm room at Stanford University a long time before even a lot of the big tech players were even thinking about voice. A lot of the innovations in the space were invented by SoundHound, concepts like Speech-to-Meaning that combines speech recognition and language understanding together. That gives us the advantage of owning the core technology compared to some of the new players that are putting the pieces of the Lego together by signing up for different APIs. We have our own models that gives us flexibility, ability to enhance things, respond to complex use cases.
It also, our Polaris foundation model for speech, outperforms the other providers by a large margin in both speed and accuracy and cost. We also, in OASYS, we integrate with the frontier models, because we want to promise our customers that they get the best experience no matter where it comes from. In most cases, it will come from SoundHound, but if one frontier model does an innovation that is very unique, and if delivers a better experience for their callers, we don't hesitate to bring that in. That actually makes it more interesting for them to choose SoundHound versus going directly with a frontier model. If a customer goes directly with a frontier model, they are making a very risky bet that that frontier model provider is going to be always the best, and that doesn't necessarily hold. We've seen some beats others.
Every quarter, they publish results that beat each other. By choosing SoundHound, they're actually reducing or removing that risk by being able to tap into multiple frontier models. We are investing in our own specialized LLMs and text-to-speech. We'll have a lot more to say about that in the near future. Our smaller customers are now running entirely on SoundHound Stack. There's no use of frontier models for our smaller customers, and we are starting to now convert the bigger customers. One is about to go live very soon because they're getting much better results with our own models. Over time, we expect that the majority of all of our customer service interactions will be powered by OASYS, and will be powered by our own models, which also reduce our costs at a higher quality to our users.
Your last question, if my memory serves, is what happens to the customers of the various companies you're acquiring, for example, LivePerson, hopefully coming soon-
Yes
in the second half of this year, and the companies that we have purchased in the past, like Interactions and Amelia. All the new customers we expect will utilize OASYS. There's no reason for them not to. The legacy customers, we are converting them at a pace that they are comfortable with, right? Because some of these customers have been on a legacy platform for many years, and they are very loyal to it. They are very happy with the results.
The last thing we want to do is to disturb that. Some of them are very eager to switch, and some of them will take a little bit more time. It's really going to be at the pace that they are comfortable with, but OASYS is ready to take them on now, especially with the AI Builds AI and the self-improvement. We have a lot of reasons for them to be convinced to make a switch.
Very insightful, Keyvan. It certainly sounds like your install base and even potential LivePerson customers will have a lot to look at and upgrade to. Just as a quick follow-up, it's very impressive to see you continuing to execute and signing large deals intra-quarter. I'd love to get an update there in terms of the pipeline, if you wanted to double-click there on any kind of the recurring components of these large deals, I think would help investors kind of from an outlook perspective. Thanks again.
Yeah. Our pipeline has never been this big. Our win rate has never been this good. We are very bullish and excited about our prospects. We are not the only one that thinks this way. Gartner just published a report on the total addressable market for agentic AI is going to approach $1 trillion by 2030. That's just a few years away. Every quarter is going up exponentially at 60% compounding. SoundHound has emerged as a leader in their Magic Quadrant, you can expect a lot of the big logos are relying on that to make a decision. We are very excited about our prospects. Our win rate has never been this good. We win in demos, we win in RFPs, we win in pilots because of OASYS. Really our results speak for themselves.
It was beyond our own expectation, the quarter. We think we can repeat that. You asked about large deals and repeatability. We've had large deals every quarter for the past few years. There are components of it that may not be recurring, but they have been absolutely repeatable. Just maybe the size of it is not as recurring as one might be able to build a model around it, but the fact that we've had them every quarter should show that our pipeline is strong and it's just getting better.
Thank you, Keyvan.
Thank you.
Thank you. As a reminder, to ask a question, please press star one one. Our next question will come from Gil from D.A. Davidson. Your line is open.
Thank you. Let me follow on that conversation and ask about the eight-figure deal. That's a pretty significant jump forward in terms of the types of deals that you're doing. If you wouldn't mind, without talking about who the specific customer is, talk about what the components are for that deal. What's the scope? What are the types of products you're selling into that customer to make it such a big deal?
Yeah. I'm hoping we can repeat those a lot more frequently going forward. We had also seven-figure deals in the quarter in different sectors. We had, for example, automotive deals that were very large in China and other parts of Asia. That particular one you asked for, I would think of them more as a channel customer. They're all important to us. Channels are important. Direct sales are important. M&A is important. I think last time we were talking, I used the analogy of in a land grab moment, you can go by foot, you can go by sea, and you can go by air, and going by foot is direct sales, going by sea is channel partners, going by air is M&A. Not everyone can do all three, but we can. We will absolutely do all three. Channel partners are very important.
This particular customer, it is a commitment. It is an 8-figure commitment to use our platform for their customers. Their customers, they have customers in 20 countries. They will be utilizing the OASYS platform to provide AI automation for the customers they already have. We hope that we can expand beyond the figures that they've committed to.
Got it. Thank you. If you wouldn't mind taking this chance while we're on the public call and the protection of Regulation FD and reviewing the guidance that we have as of today for the two scenarios. One is before we close the LivePerson deal and then with the possibility of closing it in the second half of the year. What would guidance look like under both of those scenarios?
The guidance we provided does not include the acquisition. Because of the uncertainty in the timing of the closing, we are not able to provide clear guidance on what it would look like. We did say in our press release that once it closes, we are going to have another update to include the results into ours. We felt confident enough in the closing this year that when we talked about what next year might look like and we talked about that last time was at minimum the range would be $350 million-$400 million next year. Again, we hope to do better than that as we gain more visibility and confidence in the integration of the two companies.
Thank you.
Thank you.
Thank you. As a reminder, to ask a question, please press star 11. Our next question will come from Mike Latimore from Northland Capital Markets. Your line is open.
Hi, this is Vijay Devar for Mike Latimore. About LivePerson, is there any change to what you expect LivePerson to add to the business this year or next? I think it says $350 million-$400 million, any changes or in terms of your confidence levels in obtaining that level of revenue?
We haven't talked about their contribution this year, mostly because of the uncertainty in the closing date. With next year, what we said last time remains the same. Again, the $350 million-$400 million next year, assuming the merger is successful in the second half of this year, hasn't changed. In terms of confidence in closing, that has gone up because there was a whole bunch of regulatory approvals that we needed to get, and we had a filing that disclosed that we got all of those regulatory approvals are already in place.
Understood. Secondly, what's the main tech platform benefit from the LivePerson acquisition and main cross-sell opportunity you see?
Well, there are a few things I want to say about that. One is there is a very high potential turnaround opportunity via this acquisition because LivePerson is an amazing company. They invented, in my opinion, as far as I know, they invented the web chat. When you go to a business website at the bottom right there's a chat. They were at least a pioneer in that and the chances are that you have used it at some point in your life if you visited a company website and used that feature. They have a lot of customers. They have a product called Digital CCaaS that is very complementary to what we have. The reason they have lost some customers over the years were reasons that the merger fixes overnight. One was financial stability, one was platform stability, and one was innovation.
SoundHound is a leading innovator in this space. By merging together the customers now can tap into SoundHound's innovation and the financial stability gets fixed overnight. All the debt goes away. The combined company will have a strong balance sheet and no debt. All of this was announced in the deal terms. It's a huge turnaround opportunity for SoundHound and it's something that we've done successfully in the past and we're getting better at it every time. The first acquisition took us about two years to turn around. The last one, Interactions, is showing signs of turnaround even a lot faster than we expected. Beyond the turnaround opportunity there is, as you mentioned, cross-sell and up-sell. The up-sell is upgrading to OASYS. These customers are already using the digital chat from LivePerson.
The Digital CCaaS will stay, but the AI that powers it can upgrade to OASYS. Because of the very short time to value of OASYS where AI can build AI and AI can build its feature by even looking at the logs of the prior AI we think we have a very good value proposition for the customers. That's the up-sell opportunity. On the cross-sell, the number one most requested feature of LivePerson customers to LivePerson has been voice. Historically, LivePerson did not provide voice. It was mostly chat and digital. Their customers had to go to different vendors to power the voice channel versus the chats channel. Now with SoundHound, they can build a single agentic AI solutions for their customer service, and it can be multimodal and omni-channel.
It can power their phone, the call centers, it can power their websites, their mobile apps, their messaging. We can even bring those use cases into the devices that we power, like cars and TVs and other IoT devices. Both cross-sell and upsell opportunities are tremendous in our opinion.
Thank you.
Thank you. Our last question will come from Leo Carpio from Joseph Gunnar & Co. Your line is open.
Good afternoon, gentlemen. Congratulations on the quarter. I had a quick question regarding the competitive environment. Given your success winning the eight-figure deal, can you give us some sort of granularity and color on who are you facing off now at this stage in terms of the bake-offs? Who are your competitors? Are they existing competitors that we've known about? Are they a new level? Are large LLM companies even a force to competing for these deals? Thanks.
Yeah. As I mentioned, it's on track to be almost a trillion-dollar TAM. You can expect more competitors to enter the market, but SoundHound is used to having competitors. We have had very big and powerful competitors, and we've managed to do well. We beat them in technology quality, we beat them in business model and partnership mentality. Now we have some newcomers and smaller players of different sizes. Most of them, they don't have their own technology. They basically tap into other APIs, and they could actually become a customer of SoundHound. Again, the OASYS platform will be open eventually to those type of customers. Like some of the channel partners that I mentioned, they have a decision, do they compete with us or they become our customer, and they can move faster by choosing our platform. I personally think competition is good.
It's either they don't matter or they provide inspiration for us to leapfrog them and we've done well in that situation. You had a very important question about would the frontier models become competitors. We don't think so. Frontier models are after AGI, and that's the race that they're after. They need to stay focused on that. To really serve our customers, our customers don't want an API, they want a partner. We go sit with them, we listen to them, we learned about their pain points, we help them overcome their challenges, then we inspire them to think big and dream big and achieve those dreams, and that kind of a partnership mentality is something that they need and appreciate. It's unlikely for a big tech player or a frontier model player to want to go into that business.
Now their API is available, and sometimes you see a customer or a potential customer try to play with those APIs. As I mentioned earlier, that's a very risky bet because then you're really betting that this particular frontier model is going to be the best for years to come. Whereas if you use SoundHound, you get the best model no matter where it comes from, and you get it at a higher quality, and you get it at a lower cost because of SoundHound's own models. We have everything we need to win, and we are winning. Competition is there. It's not a question, it's a certainty, but we know how to navigate around it, and it's a trillion-dollar market TAM that we hope to capture a very big part of.
All right. Thank you.
Thank you.
Thank you. This does conclude today's presentation. Thank you for your participation, and you may now disconnect. Everyone, have a great day.
Investor releaseQuarter not tagged2026-08-04Earnings To Watch: SoundHound AI Inc (SOUN) Q2 2026 -- GF Value Sees 144% Upside
GuruFocus.com
Earnings To Watch: SoundHound AI Inc (SOUN) Q2 2026 -- GF Value Sees 144% Upside
This article first appeared on GuruFocus. SoundHound AI Inc (NASDAQ:SOUN) is set to release its Q2 2026 earnings on Aug 5, 2026. The consensus estimate for Q2 2026 revenue is 52.39 million, and the earnings are expected to come in at -0.13 per share. The full year 2026's revenue is expected to be $232.2 million and the earnings are expected to be $-0.44 per share. More detailed estimate data can be found on the Forecast page Warning! GuruFocus has detected 4 Warning Signs with SOUN. Is SOUN fairly valued? Test your thesis with our free DCF calculator. Over the past 90 days, revenue estimates for SoundHound AI Inc (NASDAQ:SOUN) have declined from $232.9 million to $232.2 million for the full year 2026, and from $278.57 million to $271.5 million for 2027. During the same period, earnings estimates have declined from $-0.36 per share to $-0.44 per share for the full year 2026, and from $-0.32 per share to $-0.48 per share for 2027. In the previous quarter of 2026-03-31, SoundHound AI Inc's (NASDAQ:SOUN) actual revenue was $44.2 million, which beat analysts' revenue expectations of $42.564 million by 3.83%. SoundHound AI Inc's (NASDAQ:SOUN) actual earnings were $-0.11 per share, which missed analysts' earnings expectations of $-0.1 per share by -10%. After releasing the results, SoundHound AI Inc (NASDAQ:SOUN) was down by -7.79% in one day. Based on the one-year price targets offered by 8 analysts, the average target price for SoundHound AI Inc (NASDAQ:SOUN) is $14 with a high estimate of $20 and a low estimate of $8. The average target implies an upside of 129.32% from the current price of $6.11. Based on GuruFocus estimates, the estimated GF Value for SoundHound AI Inc (NASDAQ:SOUN) in one year is $14.88, suggesting an upside of 143.73% from the current price of $6.105. Based on the consensus recommendation from 9 brokerage firms, SoundHound AI Inc's (NASDAQ:SOUN) average brokerage recommendation is currently 2.0, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Investor releaseQuarter not tagged2026-08-03SoundHound to Post Q2 Earnings: Should You Buy, Sell or Hold the Stock?
Zacks
SoundHound to Post Q2 Earnings: Should You Buy, Sell or Hold the Stock?
SoundHound AI, Inc. SOUN is scheduled to report its second-quarter 2026 results on Aug. 5, 2026, after market close.In the last reported quarter, SoundHound delivered a mixed performance, with earnings missing expectations by 20% even as revenue came in ahead of estimates by 3.5%. Yet, SoundHound reported record revenues of $44.2 million, up 52% year over year. The company posted a loss of 6 cents per share, the same as a year ago. The quarter reflected strong demand across enterprise and automotive use cases, continued customer diversification and steady deal momentum, while profitability was weighed down by higher operating costs tied to acquisitions and certain nonrecurring items, including vendor-related true-ups and other acquisition-linked expenses.This maker of artificial intelligence (AI) tools for computer interpretation of voice commands surpassed earnings estimates in two of the trailing four quarters, missed in one and met on the other occasion. You can see the historical figures in the chart below. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged at a loss of 3 cents per share over the past 60 days. The estimate figure is the same as the year-ago reported figure. The consensus mark for revenues is pegged at $52.5 million, suggesting a 23% year-over-year increase.For 2026, SOUN is expected to register a 38% increase from a year ago in revenues to $233.2 million. Its bottom line is expected to witness a wider loss of 15 cents per share compared with 13 cents reported in 2025. SOUN’s Earnings Estimate Image Source: Zacks Investment Research SOUN’s Revenue Estimate Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for SoundHound for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see below.Earnings ESP: SoundHound has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here. Revenue Growth to be Driven by Enterprise Expansion: Second-quarter revenues are expected to have…Read full documentShow less
SoundHound AI, Inc. SOUN is scheduled to report its second-quarter 2026 results on Aug. 5, 2026, after market close.In the last reported quarter, SoundHound delivered a mixed performance, with earnings missing expectations by 20% even as revenue came in ahead of estimates by 3.5%. Yet, SoundHound reported record revenues of $44.2 million, up 52% year over year. The company posted a loss of 6 cents per share, the same as a year ago. The quarter reflected strong demand across enterprise and automotive use cases, continued customer diversification and steady deal momentum, while profitability was weighed down by higher operating costs tied to acquisitions and certain nonrecurring items, including vendor-related true-ups and other acquisition-linked expenses.This maker of artificial intelligence (AI) tools for computer interpretation of voice commands surpassed earnings estimates in two of the trailing four quarters, missed in one and met on the other occasion. You can see the historical figures in the chart below. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged at a loss of 3 cents per share over the past 60 days. The estimate figure is the same as the year-ago reported figure. The consensus mark for revenues is pegged at $52.5 million, suggesting a 23% year-over-year increase.For 2026, SOUN is expected to register a 38% increase from a year ago in revenues to $233.2 million. Its bottom line is expected to witness a wider loss of 15 cents per share compared with 13 cents reported in 2025. SOUN’s Earnings Estimate Image Source: Zacks Investment Research SOUN’s Revenue Estimate Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for SoundHound for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for this to happen. This is not the case here, as you will see below.Earnings ESP: SoundHound has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here. Revenue Growth to be Driven by Enterprise Expansion: Second-quarter revenues are expected to have benefited from continued adoption of SoundHound's AI solutions across financial services, automotive, healthcare, restaurants, retail, telecommunications and other enterprise verticals. Management indicated that customer demand remains robust, supported by an expanding sales pipeline and broader deployment of AI solutions across existing accounts. Continued growth in automotive voice assistants, voice commerce and enterprise AI services should remain the primary drivers during the quarter. The company also reaffirmed its full-year 2026 revenue guidance of $225-$260 million, signaling confidence in sustained business momentum through the remainder of the year.Product Innovation and Customer Wins to Support Growth: SoundHound entered the quarter with several strategic growth catalysts. The launch of OASYS, its self-learning agentic AI platform, is expected to have accelerated enterprise adoption by enabling customers to deploy and continuously improve AI agents across voice, chat, kiosks, vehicles and other digital channels. Management also highlighted growing adoption of Voice Commerce, Voice Insights and enterprise AI solutions, alongside new customer wins and expansions across automotive, financial services, restaurants, healthcare, utilities and technology markets. The pending acquisition of LivePerson, expected to close in the second half of 2026, is not expected to materially contribute to second-quarter revenues but remains an important strategic initiative that should significantly expand SoundHound's enterprise customer base and omnichannel AI capabilities over time.Margin Outlook Reflects Continued AI Investment: Margins are likely to remain influenced by continued investments in proprietary AI models, OASYS development and platform expansion. Management has emphasized that these investments are intended to reduce long-term inference costs by increasing reliance on internally developed AI models rather than third-party frontier models. At the same time, ongoing integration efforts and operating leverage from higher enterprise usage are expected to gradually support profitability over the longer term. SOUN shares have lost 38.5% year to date (YTD), lagging the Zacks Computers - IT Services industry, the broader Zacks Computer & Technology sector and the S&P 500 Index, as shown below. SOUN Stock’s Performance (YTD) Image Source: Zacks Investment Research SoundHound competes with C3.ai AI, Five9 FIVN and NICE Ltd. NICE in the rapidly expanding enterprise conversational AI, customer experience automation and agentic AI markets. So far this year, Five9 has significantly outperformed the group with a 37.2% gain, reflecting investor confidence in accelerating AI adoption across cloud contact centers.In contrast, C3.ai has plunged 38.5% amid continued concerns over execution and valuation, while NICE has lost 12.6% despite maintaining a strong leadership position in AI-powered customer engagement software. SoundHound differentiates itself through its proprietary voice AI technology, growing automotive and enterprise customer base, expanding omnichannel capabilities and the planned acquisition of LivePerson, which is expected to strengthen its presence in digital messaging and customer service AI. As the company scales its OASYS agentic AI platform and broadens its enterprise footprint, its execution will increasingly be evaluated against these established AI software and customer experience leaders. SOUN shares are currently trading at a slight discount to the Zacks Computers - IT Services industry. Based on the forward 12-month price-to-sales (P/S) ratio, SoundHound trades at 10.41X, below the industry average of 11.18X, as shown below. Among its closest peers, C3.ai trades at 6.30X, while Five9 and NICE are valued at 1.58X and 1.72X, respectively. Although SoundHound commands a premium to these peers, its valuation reflects investor expectations for sustained growth in voice AI, enterprise adoption and agentic AI, while remaining modestly below the broader industry average. SOUN’s P/S Ratio (Forward 12-Month) vs. Industry Image Source: Zacks Investment Research Despite strong long-term growth opportunities in enterprise AI, expanding customer adoption and continued product innovation, SoundHound faces near-term uncertainty heading into its second-quarter results. The consensus estimate points to another quarterly loss, and continued investments in AI platforms may keep margins under pressure. While the stock's valuation remains reasonable relative to the industry, investors may be better served holding SOUN until greater clarity emerges on execution, profitability and the upcoming earnings report. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report C3.ai, Inc. (AI) : Free Stock Analysis Report Nice (NICE) : Free Stock Analysis Report Five9, Inc. (FIVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research
Investor releaseQuarter not tagged2026-08-02SoundHound AI's Next Earnings Report on Aug. 5 Could Send the Stock Soaring. Here's Why.
Motley Fool
SoundHound AI's Next Earnings Report on Aug. 5 Could Send the Stock Soaring. Here's Why.
SoundHound AI Inc (NASDAQ:SOUN) is scheduled to report second-quarter earnings on Aug. 5. The company is in dire need of a positive update. Since the start of 2026, SoundHound AI shares have lost more than 40% of their value. And yet Wall Street analysts remains remarkable bullish on the artificial intelligence stock. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Four analysts actively cover SoundHound AI, all of whom rate the stock a “buy.” Their average price target is $12.75, suggesting more than 100% upside over the next 12 months. The most bullish analyst is Thomas Blakely of Cantor Fitzgerald. He has a $15 price target — one he reaffirmed on May 8, when the stock hovered near $9 per share. SoundHound AI stock has lost around 30% since then, but Blakely apparently remains as bullish as ever. In the past, Blakely has been particularly excited about SoundHound AI’s ability to cross-sell its expand product portfolio to existing customers. "SoundHound AI has executed very well, in our view, cross-selling and upselling voice and conversational AI services to its installed base, as well as expanding fully automated voice volumes related to its acquisition of (enterprise AI company) Amelia in late summer 2024," he detailed in a recent note to investors. Indeed, SoundHound AI’s latest investor presentation heavily references the company’s ability to sell compatible solutions to customers across a wide range of verticals. But is SoundHound AI actually making progress on this front? There are two major numbers I’ll be monitoring during the upcoming earnings release to gauge the company’s success (or lack thereof). Wall Street remains bullish on SoundHound AI largely because analysts believe the company can accelerate the cross-selling of products to existing customers. This would not only accelerate sales growth beyond simply acquiring new customers but also boost margins, as selling to existing customers usually doesn’t involve the high costs of acquiring new customers. Given this, the two numbers I’ll be tracking closely are revenue growth and net margins. Image source: Getty Images For 2026, SoundHound AI is guiding for revenue of $225 m…Read full documentShow less
SoundHound AI Inc (NASDAQ:SOUN) is scheduled to report second-quarter earnings on Aug. 5. The company is in dire need of a positive update. Since the start of 2026, SoundHound AI shares have lost more than 40% of their value. And yet Wall Street analysts remains remarkable bullish on the artificial intelligence stock. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Four analysts actively cover SoundHound AI, all of whom rate the stock a “buy.” Their average price target is $12.75, suggesting more than 100% upside over the next 12 months. The most bullish analyst is Thomas Blakely of Cantor Fitzgerald. He has a $15 price target — one he reaffirmed on May 8, when the stock hovered near $9 per share. SoundHound AI stock has lost around 30% since then, but Blakely apparently remains as bullish as ever. In the past, Blakely has been particularly excited about SoundHound AI’s ability to cross-sell its expand product portfolio to existing customers. "SoundHound AI has executed very well, in our view, cross-selling and upselling voice and conversational AI services to its installed base, as well as expanding fully automated voice volumes related to its acquisition of (enterprise AI company) Amelia in late summer 2024," he detailed in a recent note to investors. Indeed, SoundHound AI’s latest investor presentation heavily references the company’s ability to sell compatible solutions to customers across a wide range of verticals. But is SoundHound AI actually making progress on this front? There are two major numbers I’ll be monitoring during the upcoming earnings release to gauge the company’s success (or lack thereof). Wall Street remains bullish on SoundHound AI largely because analysts believe the company can accelerate the cross-selling of products to existing customers. This would not only accelerate sales growth beyond simply acquiring new customers but also boost margins, as selling to existing customers usually doesn’t involve the high costs of acquiring new customers. Given this, the two numbers I’ll be tracking closely are revenue growth and net margins. Image source: Getty Images For 2026, SoundHound AI is guiding for revenue of $225 million to $260 million. If realized, that would imply a year-over-year growth rate between 33% to 54%. On average, analysts are predicting growth of just 37.4%. Next year, sales growth is expected to be just 16.9%. If the pace of cross-selling is successful, we could easily see SoundHound AI beat these estimates, likely resulting in upside to today’s stock price. Margins should prove just as critical as sales growth. Analysts expect a $0.13 loss per share this year. In 2027, a $0.18 per share loss is expected. SoundHound AI has ramped up its acquisition activity recently, including a $43 million deal to acquire LivePerson. That deal is expected to close by the end of the year. While these acquisitions enhance SoundHound AI’s cross-selling potential, they will also increase operational costs, adding more pressure on margins. SoundHound AI continues to grow sales at an impressive pace. But profitability remains elusive. While I don’t expect the company to reach profitability in 2026 or 2027, improved margins would go a long way in regaining the market’s confidence. A lower share price increases the dilutive pressure of future capital raises. As simple as it sounds, SoundHound AI’s quarterly earnings report will be headlined by top-line sales growth and the trajectory of its path towards profitability. Expect shares to react positively or negatively based on what’s revealed later this week. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 2, 2026. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy. SoundHound AI's Next Earnings Report on Aug. 5 Could Send the Stock Soaring. Here's Why. was originally published by The Motley Fool

