NEW YORK, July 22, 2026, 14:06 EDT — Nasdaq trading underway.
- SoundHound stock declined 1.8% to $6.44 during afternoon trade.
- Early Q2 consensus revenue stands at $52.47 million, representing an increase of roughly 23% from the previous year.
- The latest outlook points to an expected H2 quarterly revenue range of $64.2 million to $81.7 million.
Shares of SoundHound AI, Inc. NASDAQ:SOUN declined 1.8% on Wednesday. In a separate development, the company set August 5 for its second-quarter earnings report. The latest update did not include any financial figures.
SoundHound’s results will be released following the market close. The company is scheduled to begin its conference call at 5 p.m. EDT on the same day.
Analysts’ preliminary consensus projects quarterly revenue at $52.47 million, up 23% from $42.7 million a year ago. This would also indicate a sequential rise of 19%.
The most recent 2026 revenue forecast stands between $225 million and $260 million. Q2 projections suggest first-half sales will total about $96.7 million, leaving a need for $128.3 million to $163.3 million in the second half.
| Revenue measure | Amount | Required growth |
|---|---|---|
| Q1 2026 actual | $44.2 million | 52% from previous year |
| Q2 2026 preliminary consensus | $52.5 million | 23% from previous year; 19% over prior quarter |
| H2 quarterly average, low guidance | $64.2 million | 22% higher than Q2 projection |
| H2 quarterly average, high guidance | $81.7 million | 56% higher than Q2 projection |
The percentages are based on reported results, consensus figures, and guidance from the company.
The lower range also requires a significant increase in revenue. Greater gains are needed at the upper range. The timing of contracts will play a key role.
Shares are still trading close to the lower end of their annual range. The stock is currently up around 10% from its $5.83 low, while remaining approximately 71% under its $22.17 high.
On Wednesday, SoundHound’s market capitalization stood at approximately $2.77 billion, about 11.4 times the midpoint of its annual forecast. This figure does not factor in projected cash usage or the impact of acquisitions.
The expenses are still significant. In Q1, adjusted EBITDA showed a loss of $26.7 million, while revenue stood at $44.2 million. This resulted in an adjusted EBITDA margin close to minus 60%.
SoundHound posted operating cash outflows of $26.3 million, up from $19.2 million in the prior year. As of the end of March, the company reported $216 million in cash on hand and remained debt-free.
Margins declined as well. GAAP gross margin dropped by 5.4 percentage points, reaching 31.1%. The non-GAAP margin decreased by 1.1 points to 49.7%. The company attributed the change to non-recurring vendor true-up expenses.
“SoundHound began the year with solid momentum as our top-line increased by 52%,” CEO Keyvan Mohajer said in May. He noted that core automotive and IoT revenue was up 88% on an organic basis, excluding acquisitions. SEC
The upcoming acquisition of LivePerson, Inc. NASDAQ:LPSN marks a further execution challenge. SoundHound has committed to an equity valuation near $43 million and anticipates the deal will conclude in the second half.
SoundHound forecasts total revenue in 2027 will reach at least $350 million, potentially up to $400 million. Of that, no less than $100 million is expected from existing LivePerson clients. These amounts are management estimates.
Risks: The LivePerson transaction requires both shareholder and regulatory approvals. There is a possibility that integration may increase expenses or affect customer relations. Ongoing cash outflows and narrow margins might also weigh on the stock.
The August 5 report sets up a two-fold challenge. SoundHound needs to deliver on its promised revenue increase in the second half and demonstrate stronger margins alongside tighter cash management.
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