NEW YORK, August 5, 2026, 18:08 EDT
Shares of SoundHound AI NASDAQ:SOUN surged 14.8% to $7.38 in after-hours trading on Wednesday. The stock finished the regular session down 1.2% at $6.43. Trading continued in Nasdaq’s post-market window after the close.
SoundHound reported preliminary second-quarter revenue of $61.9 million, marking a 45% increase from the prior year. The consensus estimate from StreetInsider was $52.4 million, which suggested growth of roughly 23%. SoundHound’s results therefore nearly doubled the anticipated growth rate.
The guidance range’s bottom was increased, while the top remained steady. Management upped the lower end by $5 million to $230 million, with the upper boundary holding at $260 million. The midpoint saw a modest rise of 1%, taking it to $245 million.
This means the company faces a challenging second half. First-half revenue stood at $106.1 million. Meeting the revised midpoint calls for $138.9 million in the latter half, representing a 30.9% increase from the first half.
The initial scorecard sets company results alongside consensus forecasts. Both surprise and margin numbers are derived from these metrics.
| Metric | Q2 2026 preliminary | StreetInsider consensus | Q2 2025 | Comparison |
|---|---|---|---|---|
| Revenue | $61.9 mln | $52.4 mln | $42.7 mln | Beat by 18.1%; up 45% |
| Adjusted EPS | -$0.02 | -$0.12 | -$0.03 | $0.10 above consensus |
| GAAP gross margin | 45.1% | — | 39.0% | Increase of 6.1 percentage points |
| Non-GAAP gross margin | 58.4% | — | 58.4% | No change |
| Adjusted EBITDA loss | $9.6 mln | — | $14.3 mln | Loss reduced by 33% |
Preliminary: SoundHound stated that the financial information is considered preliminary until the company submits its Form 10-Q. That submission could offer additional insights into the breakdown of revenue, costs, and details about acquisition accounting.
Based on reported revenue for the first half, the guidance bridge illustrates that the robust quarter led to only minor adjustments to management’s full-year upper limit.
| Measure | Before Q2 | After Q2 | Change |
|---|---|---|---|
| Full-year low end | $225.0 mln | $230.0 mln | +$5.0 mln |
| Full-year midpoint | $242.5 mln | $245.0 mln | +$2.5 mln |
| Full-year high end | $260.0 mln | $260.0 mln | No change |
| Implied H2 revenue at midpoint | $136.4 mln | $138.9 mln | +$2.5 mln |
| Average H2 quarter | $68.2 mln | $69.5 mln | +$1.3 mln |
| H2 growth versus H1 | 28.6% | 30.9% | +2.4 percentage points |
James Hom, serving as interim Chief Financial Officer, credited the increase to OASYS. “Our strong topline growth this quarter was driven by signing major enterprise AI deals attributed to OASYS,” he said. GlobeNewswire
The adjusted EBITDA margin saw a marked increase even as the non-GAAP gross margin remained steady, indicating greater operating leverage beneath gross profit. In contrast, cash conversion declined.
| Metric | 2026 period | Comparable 2025 period | Change |
|---|---|---|---|
| Q2 GAAP gross margin | 45.1% | 39.0% | Increase of 6.1 points |
| Q2 adjusted EBITDA margin | -15.5% | -33.5% | Up 18.0 points |
| Q2 non-GAAP net-loss margin | -14.5% | -27.8% | Improvement of 13.3 points |
| H1 operating cash used | $60.0 mln | $43.7 mln | Cash usage up 37.3% |
SoundHound reported holding $203 million in cash and having zero debt as of the end of June. However, operating cash outflows increased by over a third in the first half. The company also spent an additional $32.7 million on investing activities.
MUSC Health’s expansion signals user uptake. SoundHound reported its “Emily” agent has handled upwards of 2.2 million patient calls. The platform has now been deployed in retail and specialty pharmacy sectors. The announcement did not include details about contract revenue or per-call charges. SoundHound AI
The company intends to issue a further guidance update upon completion of its pending acquisition of LivePerson NASDAQ:LPSN. SoundHound anticipates this to occur before the end of 2026. As a result, the current outlook does not account for the future combined entity.
All named recommendations listed on Google Finance appeared before Wednesday’s results. The majority are bullish, though price targets vary considerably.
| Research firm | Named analyst | Recommendation | Price target | Date |
|---|---|---|---|---|
| D.A. Davidson | Gil Luria | Buy | $12 | May 8, 2026 |
| Northland Securities | Michael Latimore | Buy | $12 | May 8, 2026 |
| Cantor Fitzgerald | Thomas Blakey | Buy | $15 | May 8, 2026 |
| H.C. Wainwright | Scott Buck | Buy | $20 | March 2, 2026 |
| Piper Sandler NYSE:PIPR | James Fish | Hold | $9 | February 27, 2026 |
A review by Yahoo Finance ahead of the earnings release listed a fair value estimate of $13.14, compared to a closing price of $6.52. Google Finance reported an average price target of $12.75, based on inputs from four analysts. Both figures reflect past data and could be revised following the new report.
Risks: Cash usage in the first half rose even with stronger adjusted margins. Stock-based compensation and associated payroll taxes reached $21.5 million, roughly 35% of revenue for the quarter. Results are still preliminary, and the acquisition of LivePerson brings integration and projection risks.
The next assessment happens during regular trading on Thursday. Investors will monitor if analysts increase their forecasts or simply acknowledge the quarterly outperformance. More critically, SoundHound needs to achieve its elevated second-half run rate without further increasing its cash usage.
Related articles: NASDAQ:SOUN
