NEW YORK, August 7, 2026, 04:37 (EDT) — Premarket trading on Nasdaq remained busy ahead of the regular session’s 09:30 EDT opening.
- Revenue for the second quarter increased by 45% to reach $61.9 million, surpassing the consensus estimate of $52.39 million by 18.1%.
- Despite a significant beat for the quarter, the midpoint of guidance rose only 1.0%.
- Shares finished up 10.1% at $7.08, following an open that was 25.2% above the previous day’s close.
SoundHound AI, Inc. NASDAQ:SOUN held onto a 10.1% increase after its earnings report on Thursday. Shares rose a further 0.7% to reach $7.13 during early premarket trading on Friday.
The update to guidance was notably limited. Management increased the lower bound by $5 million, while the upper limit remained steady at $260 million. The midpoint saw a marginal rise of 1.0% to reach $245 million.
This is the primary division among investors. SoundHound reported $106.1 million in revenue for the first half. The company must generate between $123.9 million and $153.9 million in the second half.
The implied quarterly threshold stands between $62.0 million and $77.0 million. The lower boundary aligns closely with the second quarter, while reaching the higher end would need a 24.3% rise.
Second-quarter results are still preliminary, the company stated, and will not be final until the quarterly report is submitted.
Initial comparison for the second quarter
| Metric | Q2 2026 | Q2 2025 | Consensus or change |
|---|---|---|---|
| Revenue | $61.9 million | $42.7 million | Rises 45%; 18.1% above consensus |
| GAAP gross margin | 45.1% | 39.0% | Improved by 6.1 points |
| Adjusted EBITDA | $(9.6) million | $(14.3) million | Loss reduced by 33% |
| GAAP net loss | $(42.8) million | $(74.7) million | Loss cut by 43% |
| Non-GAAP EPS | $(0.02) | $(0.03) | Beats consensus by three cents |
The consensus estimate for revenue stood at $52.39 million. Analysts expected a non-GAAP loss per share of five cents.
Profitability saw gains, but cash conversion stayed soft. Operating cash outflow increased by 37% to $60.0 million. The company finished with $203 million in cash and reported no debt.
Outlook and the implied challenge for the second half
| Measure | Value | Investor read-through |
|---|---|---|
| Previous 2026 guidance | $225 million-$260 million | Initial interval |
| New 2026 guidance | $230 million-$260 million | Minimum increased; maximum unchanged |
| Guidance midpoint | $242.5 million → $245 million | Higher by 1.0% |
| First-half revenue | $106.1 million | As reported |
| Required second-half revenue | $123.9 million-$153.9 million | 16.8%-45.1% over H1 figures |
| Required average per quarter | $62.0 million-$77.0 million | 0.1%-24.3% above Q2 level |
| Annualized Q2 run rate | $247.6 million | Near midpoint of outlook |
Company calculations are based on unrounded figures. The previous guidance was restated in May.
Chief Executive Keyvan Mohajer said the results demonstrated the “momentum SoundHound is building.” Interim finance chief James Hom attributed the gains to significant OASYS enterprise agreements. SoundHound AI
A new channel agreement included an initial eight-figure commitment spanning over 20 countries. Mohajer also noted that certain elements of major deals may not return at the same magnitude.
The forecast does not factor in the upcoming purchase of LivePerson, Inc. NASDAQ:LPSN. The company’s leadership intends to revise its guidance following the deal’s completion, which is anticipated by year-end. The $350 million-$400 million goal for 2027 is based on the assumption that the transaction concludes in the second half.
Market response to SoundHound shares
| Trading stage | Price | Change | Reference point |
|---|---|---|---|
| August 5 closing | $6.43 | — | Baseline |
| August 6 opening | $8.05 | +25.2% | August 5 closing |
| August 6 session high | $8.19 | +27.4% | August 5 closing |
| August 6 closing | $7.08 | +10.1% | August 5 closing |
| August 7 premarket, 04:29 EDT | $7.13 | +0.7% | August 6 closing |
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Investors largely dismissed the initial move. SoundHound gave up nearly 60% of its opening dollar advance prior to Thursday’s market close.
With an equity value of $3.09 billion on Thursday, shares were valued at about 12.6 times the updated guidance midpoint. This puts greater emphasis on hitting the upper end of the forecast.
D.A. Davidson’s Gil Luria pointed to “revenue upside driven by OASYS demand,” though trimmed his price target. Piper Sandler NYSE:PIPR analyst James Fish maintained a Neutral rating, noting execution “go-gets” are still present. TipRanks
Analyst ratings after the results
| Firm | Analyst | Recommendation | Price target | Action on August 6 | Upside/downside from $7.08 |
|---|---|---|---|---|---|
| Northland Securities | Michael Latimore | Buy | $12 | Unchanged | +69.5% |
| D.A. Davidson | Gil Luria | Buy | $10 | Lowered from $12 | +41.2% |
| Cantor Fitzgerald | Thomas Blakey | Buy | $15 | Reaffirmed | +111.9% |
| Piper Sandler | James Fish | Neutral/Hold | $7 | Reduced from $8 | -1.1% |
The overall consensus stays upbeat. Six analysts rate the stock as Strong Buy, while one rates it a Hold. The mean price target stands at $12.86, suggesting potential gains of 81.6% from Thursday’s closing price.
Risks: Major enterprise contracts may lead to fluctuations in quarterly revenue. Stock-based compensation and associated payroll taxes represented approximately 35% of sales in Q2. The weighted-average number of basic shares climbed 7.6% from a year earlier. There is still uncertainty around LivePerson’s closing timeline and integration process.
Upcoming milestones include the quarterly filing, third-quarter revenue trends, and the completion of the acquisition. At present, the earnings beat has lifted the lower boundary for SoundHound. The upper boundary remains to be demonstrated.
Related articles: NASDAQ:SOUN
