NEW YORK, August 6, 2026, 09:06 EDT
- SoundHound shares jumped 28.8% to $8.28 ahead of the Nasdaq opening.
- The lower end of guidance now implies about $62 million in quarterly revenue for the second half.
As of 09:06 EDT, the U.S. cash market remained closed. Shares of SoundHound AI, Inc. NASDAQ:SOUN changed hands at $8.28 in premarket activity, rising from a previous close of $6.43 on Wednesday.
The surge came after second-quarter revenue hit a record $61.9 million, marking a 45% increase. Sales surpassed the consensus target of $52.39 million by 18.1%.
The main focus for investors is the updated guidance obstacle. Revenue for the first half amounted to $106.1 million, following $44.2 million posted in the opening quarter.
This reduces execution risk. Achieving $230 million now only needs revenues to remain nearly unchanged quarter-on-quarter from the second quarter.
The period additionally reflected improved loss absorption. Company data are still provisional pending SoundHound’s Form 10-Q filing.
| Q2 measure | 2026 | Q2 2025 | Change or comparison |
|---|---|---|---|
| Revenue | $61.9 million | $42.7 million | Up 45%; 18.1% above consensus |
| GAAP gross margin | 45.1% | 39.0% | Increase of 6.1 percentage points |
| Adjusted EBITDA | $(9.6) million | $(14.3) million | Loss narrowed by 33% |
| Non-GAAP EPS | $(0.02) | $(0.03) | Loss decreased by $0.01 |
The company disclosed its results; analysts had expected revenue of $52.39 million.
Adjusted EBITDA margin rose to minus 15.5%, compared to minus 33.5%. Non-GAAP gross margin stayed the same at 58.4%.
CEO Keyvan Mohajer attributed the expansion to accelerating OASYS sales. SoundHound secured an eight-figure deal “in less than 90 days from the initial demo to contract signature.” Investing.com
| 2026 outcome | Full-year revenue | Revenue needed in H2 | Average per H2 quarter | Average versus Q2 |
|---|---|---|---|---|
| Guidance low | $230.0 million | $123.9 million | $62.0 million | +0.1% |
| Guidance midpoint | $245.0 million | $138.9 million | $69.5 million | +12.2% |
| Guidance high | $260.0 million | $153.9 million | $77.0 million | +24.3% |
Arithmetic midpoint shown; this is not an independent company projection. Reporter estimate based on disclosed Q1 and provisional Q2 revenue figures.
The lower limit increased by $5 million, while the upper range stayed steady at $260 million.
The midpoint of the guidance increased by just 1.0%. Executives noted that while sizeable deals happen repeatedly, accurately forecasting their magnitude is challenging.
The premarket surge significantly increased the valuation benchmark. It suggested an equity value close to $3.56 billion, based on Wednesday’s stated market capitalization.
| Preliminary valuation check | Wednesday close | Thursday premarket |
|---|---|---|
| Share price | $6.43 | $8.28 |
| Implied equity value | $2.76 billion | $3.56 billion |
| Market value/2026 revenue midpoint | 11.3 times | 14.5 times |
Initial reporter estimate. Wednesday’s market capitalization is adjusted by the premarket share-price change.
Between July 31 and Wednesday, the stock rose 4.9%. The premarket move lifted the total gain for that stretch to roughly 35%.
The rise also contrasted with the broader tech market. Nasdaq futures slipped 0.76% early Thursday.
Initial responses from analysts were varied. Cantor Fitzgerald maintained its Buy rating, whereas Piper Sandler Companies NYSE:PIPR continued with Hold.
| Analyst-recommendation source | Analysts | Consensus | Average target | Target range | Upside from $8.28 |
|---|---|---|---|---|---|
| MarketScreener | 7 | Buy | $12.86 | $8-$17 | 55% |
| MarketBeat | 10 | Moderate Buy | $14.93 | $9-$20 | 80% |
| TipRanks | 4 | Strong Buy | $12.75 | $12-$15 | 54% |
Coverage sets and rating windows are not the same. The implied upside is calculated with the $8.28 premarket quote.
The table reflects direction, rather than a coordinated post-earnings perspective. Analysts may update target figures as they revise models for the second half.
SoundHound has not planned any investor events for the coming week. Market participants are expected to focus on the upcoming 10-Q filing, possible changes to analyst ratings, and the market’s response to Thursday’s cash session.
The upcoming transaction milestone for LivePerson, Inc. NASDAQ:LPSN is the shareholder vote scheduled for August 20. SoundHound’s present outlook does not factor in the acquisition that is still awaiting completion.
Risks: SoundHound’s operating cash outflow reached $60.0 million in the first half. Basic weighted-average shares increased by 7.6%, with the company continuing to report losses. The LivePerson deal carries risks related to completion and integration.
The lower end of the revenue target now appears easier to achieve. Still, with the market valuing shares at 14.5 times midpoint sales, expectations remain above the minimum outcome.
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