Key points
- SoundHound (SOUN) posted record revenue of $61.9M, up 45% and $9.5M past the $52.4M consensus.
- The non-GAAP loss was $0.02 a share. Analysts modeled $0.06.
- Guidance moved to $230M to $260M. The floor rose $5M, the ceiling did not move.
- SOUN traded at $7.29 after hours, up 13.6% from its $6.415 close.
SoundHound AI (SOUN) reported second quarter revenue of $61.9 million on Wednesday, August 5, an increase of 45.0% over the $42.7 million it recorded a year earlier. Analysts had modeled $52.4 million. It is the highest quarterly revenue the company has reported.
The non-GAAP loss was $0.02 a share, against a consensus of $0.06. The GAAP loss was $0.10 a share, against $0.19 a year earlier.
SOUN closed the regular session at $6.415, down 1.5% on the day. It traded at $7.29 at 4:31 p.m. Eastern, up 13.6% from that close. The call with analysts began at 5:00 p.m. Eastern.
The stock went into the report near its lows. It traded as low as $5.65 on July 29, its weakest price in a year, and Wednesday's close left it down 35.7% from the $9.97 where it ended 2025.
| Q2 2026 | Reported | Year ago |
|---|---|---|
| Revenue | $61.9M | $42.7M |
| GAAP gross margin | 45.1% | 39.0% |
| GAAP net loss | $(42.8)M | $(74.7)M |
| Adjusted EBITDA | $(9.6)M | $(14.3)M |
| Non-GAAP loss per share | $(0.02) | $(0.03) |
What happened to the gross margin
GAAP gross margin was 45.1%. It ran 31.1% in the first quarter and 39.0% in the second quarter of 2025. Non-GAAP gross margin was 58.4%, the same figure as a year earlier.
SoundHound's first quarter release attributed the 31.1% to true-up costs of third-party expenses from a vendor used in its digital-first business, and called the charges non-recurring. Interim chief financial officer and co-founder James Hom told analysts on May 7 that "These costs will not recur in future periods." Gross margin recovered 14 percentage points in the quarter that followed.
Guidance rose $5 million at the bottom
SoundHound raised its full-year 2026 revenue range to $230 million to $260 million, from $225 million to $260 million. The floor moved. The ceiling did not.
First half revenue was $106.1 million, against $71.8 million in the first half of 2025. Reaching the bottom of the new range needs $123.9 million in the second half, an increase of 27.6% over the $97.1 million SoundHound recorded in the second half of 2025. Reaching the top needs $153.9 million, an increase of 58.5%. Full year 2025 revenue was $168.9 million.
| Period | Revenue | vs. year ago |
|---|---|---|
| H1 2026 actual | $106.1M | +47.7% |
| H2 to reach $230M | $123.9M | +27.6% |
| H2 to reach $260M | $153.9M | +58.5% |
Cash and equivalents were $203 million at June 30, with no debt, against $216 million at March 31. Net cash used in operating activities was $60.0 million for the quarter, an increase of 37% over the $43.7 million a year earlier, while the GAAP net loss fell 43%.
The deals SoundHound named
The company credited its OASYS agentic platform for the quarter's enterprise wins. It disclosed a 7-figure deal with a nationally ranked health system employing 30,000 people, a 7-figure deal with an automotive infotainment software company in China, and an initial 8-figure multi-year channel partnership with a Latin American company whose network spans more than 20 countries.
Stellantis increased unit adoption and added SoundHound's live generative AI capabilities, and Hyundai expanded its own use of them. The company said an unnamed pizza brand now runs its technology in more than 75% of its locations. Renewals included Rakuten Securities, Habit Burger and Red Lobster.
Chief executive and co-founder Keyvan Mohajer put second quarter revenue at "10 times what it was when we debuted as a public company in Q2 2022." Hom said the growth came from "signing major enterprise AI deals attributed to OASYS."
LivePerson is still outside the numbers
None of the guidance includes LivePerson (LPSN), which SoundHound agreed to buy for $42,784,532.64 in stock. The release says the company "plans to update its guidance accordingly at that point in time, which is expected before the end of 2026." The May 7 release put the closing in the second half of 2026.
LivePerson stockholders vote August 20. The merger agreement prices SoundHound's shares at a floor of $7.00, and SOUN has been trading below it, so LivePerson holders receive shares valued as if SOUN were $7.00. LivePerson's own bankers put a de minimis value on its equity after setting $367.8 million of debt against $101.5 million of cash.
Hom said on the May 7 call that 2027 revenue would be "at minimum $350 million to $400 million, with at least $100 million of global contribution from LivePerson's long-tenured customers." Mohajer said the combined business "is expected to reach $500 million based on the existing customer base alone."
The last two reports were both followed by a lower close
SOUN finished at $8.98 on February 26, the day it reported fourth quarter results, and closed at $8.60 the next session, down 4.2%. After the May 7 report it fell from $9.63 to $8.88, down 7.8%. Two sessions later it was at $8.06.
Short sellers held 169.19 million shares as of August 2, or 43.03% of the float, according to StockAnalysis.com. Days to cover stands at 6.23. After-hours volume is thin, and Thursday is the first full session to price the results.
Five of the six AI models in our contest own it
We gave six AI models a paper $10,000 each in late July and required each to hold five AI-related stocks with a market cap under $10 billion. Five bought SoundHound in the first week. Claude was the one that didn't, and it still owns none. ChatGPT, Grok and DeepSeek carry it near 19% of their accounts. Gemini and Meta AI each cut it to exactly 10% on August 1, the smallest weight the rules permit.
Our preview of this report ran on August 2.
Related coverage
- What we were watching going into the print, and the guidance math
- The LivePerson deal terms, the $7.00 collar floor, and the August 20 vote
- We gave six AIs $10,000 each for AI small caps. Five of them bought SoundHound.
Sources
- SoundHound AI, Second quarter 2026 results, Form 8-K exhibit 99.1, August 5, 2026
- SoundHound AI, First quarter 2026 results, Form 8-K exhibit 99.1, May 7, 2026
- SoundHound AI, Fourth quarter and full year 2025 results, Form 8-K exhibit 99.1, February 26, 2026
- LivePerson, Definitive merger proxy statement (DEFM14A), July 9, 2026
- SoundHound AI short interest and valuation statistics, StockAnalysis.com
This is general market commentary and opinion, not investment advice. Markets can go down as well as up, and you can lose money. Always do your own research and consider speaking with a licensed financial professional before making any investment decision.
