SoundHound AI — 2026Q3 earnings
reported 2026-08-05
EPS -$0.02 vs -$0.05 est — beat
next session +10.1% (close 2026-08-05 → 2026-08-06)
Source
Press release ↗Summary
The release and the call tell the same story. Record revenue came from enterprise AI deals attributed to the OASYS platform, a large channel partnership was signed, and the outlook went up. Management put the next leg of growth on the LivePerson acquisition, which it still expects to close this year, and put margin improvement on acquisition synergies. The company is still loss-making.
Earnings call
Earnings call webcast ↗Review
From the report
SoundHound had a record quarter and raised its full-year outlook, crediting enterprise deals signed on OASYS, but it still lost money on both a GAAP and a non-GAAP basis.
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Q2 revenue was a record $61.9 million, up 45%, and the company raised its full-year outlook. show quote
“SoundHound AI Reports Record Q2 and All Time High Revenue of $61.9 million, Up 45%, Raises Full Year Outlook”
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Second-quarter GAAP gross margin was 45.1% and non-GAAP gross margin was 58.4%. show quote
“Second quarter GAAP gross margin was 45.1%; non-GAAP gross margin was 58.4%.”
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The quarter still ended in a loss: a GAAP net loss of $(42.8) million and a non-GAAP net loss of $(9.0) million. show quote
“Second quarter GAAP net loss was $(42.8) million; non-GAAP net loss was $(9.0) million.”
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The interim CFO said the revenue growth came from major enterprise AI deals attributed to OASYS, and that the bottom line improved significantly year over year. show quote
“Our strong topline growth this quarter was driven by signing major enterprise AI deals attributed to OASYS. We also significantly improved our bottom line year-over-year”
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SoundHound signed a multi-year partnership with a Latin American company, described as an initial 8-figure deal to reach that company's network across more than 20 countries. show quote
“Signed a new multi-year partnership with a company in Latin America, representing an initial 8-figure deal to deliver SoundHound technology to their vast network spanning over 20 countries”
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From the call
Management raised its revenue expectations, said the LivePerson deal had key regulatory clearances and still supports next year's revenue range, pointed to acquisition synergies as the path to higher gross margins, and said its SMB customers now run entirely on its own models.
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The interim CFO raised revenue expectations to $230 million to $260 million, citing a strong first half. show quote
“With the strong first half of the year, we are increasing our revenue expectations to be in the range of $230 million to $260 million.”
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The CEO said the LivePerson acquisition had secured all key regulatory clearances and was still expected to close before year-end. show quote
“We are excited that our previously announced agreement to acquire LivePerson is advancing. We recently secured all key regulatory clearances and continue to expect the deal to close before the end of the year.”
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The CEO repeated a revenue range of $350 million to $400 million for next year, on the assumption that the merger succeeds in the second half of this year. show quote
“So again, the $350 million to $400 million next year, assuming the merger is successful in the second-half of this year hasn't changed.”
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The interim CFO said acquisitions have temporarily affected gross margin, and that the company expects it to exceed 70% in the future as synergies are captured. show quote
“While acquisitions have temporarily impacted our gross margin, we continue to explore and harvest synergies and expect to see our gross margin exceeding 70% in the future, similar to when we went public.”
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The CEO said SMB customers now run entirely on SoundHound's own stack and models, with no dependence on frontier models. show quote
“Our SMB customers are now entirely on our own stack using our models, independent of Frontier models.”
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as of 2026-09-23