Record quarterly revenue, accelerating enterprise adoption of its OASYS platform and stronger commercial execution prompted SoundHound AI to increase its 2026 revenue guidance.
Key Investor Takeaways
- SoundHound AI (NASDAQ:SOUN) reported record second-quarter revenue of $61.9 million, up 45% year over year.
- The company raised its full-year 2026 revenue outlook to $230 million-$260 million following stronger-than-expected performance.
- Enterprise demand for the company’s OASYS voice and agentic AI platform continued to drive new customer wins across healthcare, automotive, retail and financial services.
- Gross margin improved to 45.1%, while adjusted EBITDA and non-GAAP net loss both improved year over year.
- SoundHound ended the quarter with $203 million in cash and no debt, providing financial flexibility as it continues to invest in growth.
Why SOUN Stock Is in Focus
SoundHound AI (NASDAQ:SOUN) reported record second-quarter revenue of $61.9 million, representing 45% year-over-year growth and marking the company’s highest quarterly revenue to date.
The strong performance was supported by expanding enterprise adoption of its OASYS voice and agentic AI platform, with new and expanded customer agreements across multiple industries. During the quarter, SoundHound secured several seven-figure contracts, including a major U.S. healthcare system and an automotive infotainment software provider in China. The company also expanded deployments with existing automotive customers, including Stellantis and Hyundai, while signing new restaurant, retail and voice commerce customers.
Financial performance also improved, with GAAP gross margin increasing to 45.1% from 39.0% a year earlier. Adjusted EBITDA loss narrowed to $9.6 million from $14.3 million, while non-GAAP net loss improved to $9.0 million from $11.9 million.
Following the quarter’s results, management raised its full-year 2026 revenue guidance to a range of $230 million to $260 million. The company noted that it expects to update guidance again following the anticipated closing of the LivePerson transaction later this year.
Why This Matters for Investors
The raised outlook suggests enterprise demand for SoundHound’s conversational and agentic AI platform continues to accelerate across a broad range of industries. The diversity of new customer wins also indicates that growth is becoming less dependent on any single vertical, with healthcare, automotive, financial services, telecommunications and restaurants all contributing to commercial momentum.
At the same time, improving margins and narrower operating losses suggest the company is making progress toward balancing rapid revenue growth with greater operating discipline. While SoundHound remains unprofitable on a GAAP basis, year-over-year improvements in adjusted EBITDA and non-GAAP earnings point to continued progress toward profitable growth.
The company’s cash position of $203 million and absence of debt also provide additional flexibility as it continues investing in product development and customer expansion.
What to Watch Next
Investors will be monitoring:
- Continued adoption of the OASYS platform across enterprise customers.
- Execution on the increased 2026 revenue guidance.
- Completion of the planned LivePerson transaction and any updated financial outlook.
- Additional large enterprise contracts and customer expansions.
- Continued improvements in profitability and operating margins.