NEW YORK, August 8, 2026, 11:06 EDT
- SoundHound finished Friday up 13.3% at $8.02, gaining 30.8% since July 31. Shares ended after-hours trading at $7.93.
- Second-quarter revenue came in at $61.9 million, surpassing the consensus estimate of $52.39 million by 18.1%.
- The midpoint of the guidance increased by just 1.0%. Achieving this figure would mean second-half quarterly revenue must average $69.5 million.
U.S. markets did not open over the weekend. SoundHound shares posted back-to-back double-digit increases following Wednesday’s earnings. Volume on Friday was more than double the stock’s typical trading activity.
The rally reflects a strong quarterly outperformance. However, the outlook increased only modestly, putting the focus on converting large deals as the main challenge for the second half.
Revenue came in 18.1% above consensus forecasts. The midpoint for yearly guidance rose by only 1.0% from the previous range.
| Metric | Q2 2026 | Q2 2025 | Change | Market consensus |
|---|---|---|---|---|
| Revenue | $61.9 million | $42.7 million | up 45% | $52.39 million |
| GAAP gross margin | 45.1% | 39.0% | increase of 6.1 percentage points | — |
| Adjusted EBITDA | -$9.6 million | -$14.3 million | 33% smaller loss | — |
| Non-GAAP EPS | -$0.02 | -$0.03 | $0.01 improvement | -$0.05 |
SoundHound’s results are provisional and will not be final until the Form 10-Q is submitted.
GAAP gross margin saw an increase as acquisition-driven impacts lessened. Non-GAAP gross margin held steady at 58.4%.
SoundHound raised the bottom end of its 2026 revenue forecast, now projecting $230 million to $260 million. The previous range had been $225 million to $260 million. The upper end of the guidance remains the same.
Revenue for the first half came to approximately $106.1 million. Achieving the midpoint now calls for $138.9 million in the second half.
| 2026 projection | Total annual revenue | Second-half revenue needed | Second-half quarterly average | Difference from Q2 |
|---|---|---|---|---|
| Low range | $230.0 million | $123.9 million | $62.0 million | +0.1% |
| Mid range | $245.0 million | $138.9 million | $69.5 million | +12.2% |
| High range | $260.0 million | $153.9 million | $77.0 million | +24.3% |
Figures are based on disclosed first-quarter revenue of $44.2 million and second-quarter revenue amounting to $61.9 million.
Chief Executive Keyvan Mohajer said “our pipeline has never been this big and our win rate has never been this good.” However, investors remain focused on seeing that pipeline translate into results. SoundHound Investors
Mohajer noted that certain elements of large deals may not be repeated, making it challenging to predict deal sizes from quarter to quarter.
The company reported cash holdings of $203 million and no outstanding debt. Operating cash outflows in the first half increased to $60.0 million, up from $43.7 million. Stock-based compensation and associated payroll taxes represented approximately 35% of revenue for the quarter. On Friday, the market capitalization reached $3.49 billion, or about 14.2 times the midpoint of guidance.
Most of the week’s repricing came after results, the price action shows.
| Date | Closing price | Daily move | Trading context |
|---|---|---|---|
| July 31 | $6.13 | -0.16% | Reference level for the week |
| August 3 | $6.10 | -0.49% | Prior to results |
| August 4 | $6.51 | +6.72% | Prior to results |
| August 5 | $6.43 | -1.23% | Results reported after close |
| August 6 | $7.08 | +10.11% | Initial trading after report |
| August 7 | $8.02 | +13.28% | Continuing rally |
On Friday, the turnover totaled 65.2 million shares, equating to 209% of the security’s 65-day average volume. The stock advanced 24.7% between Wednesday’s close and the end of trading on Friday.
Initial reaction on Wall Street was mixed, with both cited firms cutting their targets even though revenue surpassed expectations.
| Firm or consensus | Analyst | Recommendation | New target | Previous target | Implied return from $8.02 |
|---|---|---|---|---|---|
| D.A. Davidson | Gil Luria | Buy | $10.00 | $12.00 | +24.7% |
| Piper Sandler NYSE:PIPR | James Fish | Neutral | $7.00 | $8.00 | -12.7% |
| Average from eight analysts | — | Buy | $12.71 | — | +58.5% |
Implied returns are calculated from Friday’s closing value and do not account for investment risk or market timing.
Luria attributed the gains to strong OASYS demand and key customer acquisitions. Fish pointed to robust license deals, though he expressed reservations regarding new-business execution. The differing views underscore questions about the stability of revenue.
The merger process offers the next scheduled catalyst. LivePerson NASDAQ:LPSN announced that Glass Lewis supports the deal in advance of the shareholder vote set for August 20. SoundHound’s latest outlook does not factor in the acquisition. Over the coming week, the focus will be on adjustments to estimates and additional disclosures about the merger.
Risks: SoundHound recorded a GAAP quarterly loss of $42.8 million. Operating cash outflows increased 37% in the first half, with substantial stock-based compensation persisting. The pace of major deal completion and the result of the LivePerson vote may impact revenue for the second half.
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