TLDR
- SoundHound AI stock jumps 13.53% after hours following stronger Q2 results.
- Q2 revenue climbs 45% to $61.9 million as enterprise demand gains momentum.
- Healthcare, automotive, and restaurant deals strengthen growth across sectors.
- Adjusted EBITDA loss narrows 33% as SoundHound strengthens cost discipline.
- SoundHound raises 2026 revenue guidance to between $230 million and $260 million.
SoundHound AI (SOUN) shares surged 13.53% after hours to $7.30 following stronger second-quarter revenue and an improved annual outlook. The stock had closed 1.23% lower at $6.43 before reversing sharply after the earnings release. Enterprise deals across healthcare, automotive, restaurants, and telecommunications supported the company’s strongest operating update this year.
SoundHound AI Revenue Rises as Losses Narrow
SoundHound AI reported second-quarter revenue of $61.9 million, up 45% from $42.7 million one year earlier. GAAP gross profit increased 68% to $27.9 million, while gross margin improved to 45.1%. Non-GAAP gross profit reached $36.1 million, with margin holding steady at 58.4%.
The company posted a GAAP operating loss of $43.3 million, compared with $78.1 million last year. Its adjusted EBITDA loss narrowed 33% to $9.6 million during the quarter. Meanwhile, the non-GAAP net loss improved 24% to $9.0 million.
GAAP net loss fell to $42.8 million from $74.7 million in the prior-year quarter. GAAP loss per share improved to $0.10, while non-GAAP loss per share reached $0.02. The results reflected higher revenue, tighter cost control, and improved operating efficiency across the business.
Healthcare Auto and Restaurant Deals Drive Growth
SoundHound AI secured a seven-figure agreement with a nationally ranked healthcare system employing about 30,000 people. It also gained new healthcare business across managed care, pharmacy services, clinical software, nursing, and rehabilitation. Renewals included major biopharmaceutical, home nursing, therapy, and long-term care providers.
The automotive division signed a seven-figure deal with a large Chinese infotainment software company. Stellantis and Hyundai expanded adoption of SoundHound’s live generative voice services across additional vehicles. Another global automotive brand selected the company for direct in-car voice commerce transactions.
Restaurant demand also expanded through new agreements with Ruby Tuesday and several large quick-service chains. Five Guys, IHOP, Jersey Mike’s, and a major pizza brand increased deployment across their locations. Habit Burger, Red Lobster, Torchy’s Tacos, and Lazy Dog renewed or expanded existing services.
SoundHound Raises 2026 Revenue Outlook
SoundHound AI raised its full-year 2026 revenue outlook to between $230 million and $260 million. Management linked the increase to stronger second-quarter performance and growing demand for its OASYS enterprise platform. The company plans another guidance update after completing the expected LivePerson transaction.
SoundHound ended June with $203 million in cash and cash equivalents and carried no debt. However, operating activities used $60.0 million during the first six months of 2026. Investing activities used another $32.7 million, while financing activities provided $46.7 million.
The company also signed an eight-figure Latin American partnership covering a network across more than 20 countries. In addition, a global technology services provider joined its enterprise distribution network. These agreements broaden SoundHound’s sales reach while supporting its push toward profitable growth.
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