SoundHound AI, Inc. (NASDAQ: SOUN) rocketed 24% overnight heading into Thursday after posting its strongest quarter on record, topping Wall Street estimates across key metrics.
The voice-AI company reported second-quarter revenue of $61.9 million, a 45% year-over-year increase that handily beat the $52.39 million analyst consensus.
Adjusted loss per share came in at $0.02, significantly narrower than the $0.05 loss analysts had forecast, signaling meaningful progress toward profitability.
CEO Keyvan Mohajer described the result plainly on the earnings call, stating: “This was not only a record Q2, but our largest all-time quarter.”
SoundHound also tightened its full-year 2026 revenue guidance to a range of $230 million to $260 million, up from the prior floor of $225 million, with the $245 million midpoint exceeding the $232.8 million Wall Street consensus.
GAAP gross margin improved six percentage points to 45%, while the adjusted EBITDA loss narrowed 33% to $9.6 million, reflecting growing operating efficiency across the business.
The company closed the quarter with $203 million in cash and no debt, and management expects gross margin to eventually exceed 70% as the platform scales.
Much of the quarter’s outperformance was attributed to Oasys, SoundHound’s agentic AI platform launched in May, which Mohajer said is winning at every stage of the sales process.
“With OASYS, we are winning in demos, we are winning in RFPs, we are winning in pilots,” Mohajer said, adding that pipeline size and win rates have never been stronger.
One Oasys customer signed an eight-figure commitment within 90 days of its first product demonstration, with plans to deploy the platform across clients in 20 countries.
The platform’s “AI Builds AI” feature can construct agents using documents, APIs, and previous call transcripts, compressing development timelines that once took months into a matter of minutes.
SoundHound reported broad-based demand growth across healthcare, finance, automotive, and restaurants, with a top-20 healthcare provider quadrupling its spending during the quarter.
Quálitas, one of the company’s enterprise clients, now handles over 100,000 monthly calls through SoundHound’s AI agents, illustrating the scale of real-world deployment.
Mohajer pushed back on concerns about customer resistance to automation, saying: “End customers are not resistant to automation. They’re only resistant to bad service.”
The company extended its Asian automotive deal streak to five consecutive quarters, doubled its Smart Answering business, and achieved 100% restaurant renewals for key accounts.
SoundHound also secured all major regulatory approvals for its pending acquisition of LivePerson, with the deal expected to close before the end of 2026.
If the transaction closes in the second half of the year, management projects combined 2027 revenue of at least $350 million to $400 million, though Mohajer said: “We hope to do better than that.”
LivePerson would bring relationships with 25 Fortune 100 companies, whom SoundHound plans to migrate to Oasys and cross-sell voice capabilities, the feature LivePerson clients have requested most.
Retail sentiment on Stocktwits turned “extremely bullish” with “extremely high” message volume following the results, reflecting strong enthusiasm among individual investors.
Despite the overnight surge, SOUN stock has declined 42% over the past year, meaning the post-earnings rally still leaves long-term holders well underwater from earlier highs.
