SoundHound AI (NASDAQ:SOUN) Announces Earnings Results

SoundHound AI (NASDAQ:SOUN) released its earnings results on Wednesday. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11, Briefing.com reports. The firm had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 31.06%. The business’s revenue was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.19) EPS.

Here are the key takeaways from SoundHound AI’s conference call:

• Positive Sentiment: SoundHound reported a record quarter, with Q2 revenue of $61.9 million, up 45% year over year and 40% sequentially. Gross margin improved to 45% on a GAAP basis, while adjusted EBITDA loss narrowed 33% year over year.
• Positive Sentiment: The newly launched OASYS agentic AI platform is driving stronger demos, win rates, pilot conversions, and customer expansions, including an eight-figure commitment signed within 90 days. Management said OASYS can reduce implementation times from months to minutes through its “AI Builds AI” capabilities.
• Positive Sentiment: Management raised full-year 2026 revenue guidance to $230 million-$260 million, citing broad-based demand across healthcare, financial services, automotive, restaurants, and Asia. The company also highlighted a $203 million cash balance and no debt.
• Neutral Sentiment: The LivePerson acquisition has received key regulatory clearances and is still expected to close by year-end, but current guidance excludes its contribution and management did not provide specific 2026 revenue expectations for the deal. The company continues to target at least $350 million-$400 million of revenue in 2027 if the transaction closes.
• Negative Sentiment: Despite improving profitability metrics, SoundHound remains unprofitable, posting a $42.8 million GAAP net loss and a $9.6 million adjusted EBITDA loss in Q2. Management expects future margin expansion, but acquisitions and related costs continue to weigh on gross margin and expenses.

SoundHound AI Stock Performance

Shares of SOUN traded down $0.05 during trading hours on Tuesday, reaching $7.41. 5,441,465 shares of the company traded hands, compared to its average volume of 28,926,035. The stock’s fifty day moving average is $6.76 and its 200 day moving average is $7.56. The stock has a market cap of $3.21 billion, a P/E ratio of -19.51 and a beta of 2.64. SoundHound AI has a 1-year low of $5.65 and a 1-year high of $22.17.

Analyst Ratings Changes

A number of research firms have weighed in on SOUN. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson cut their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, Piper Sandler cut their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $13.60.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This represents a 3.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock valued at $1,999,444 in the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SOUN. Royal Bank of Canada raised its position in shares of SoundHound AI by 71.3% during the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after buying an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC raised its position in shares of SoundHound AI by 8.9% during the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after buying an additional 1,201 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of SoundHound AI by 12.9% during the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after buying an additional 4,692 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after acquiring an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock valued at $5,620,000 after acquiring an additional 63,398 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

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.