SoundHound AI (SOUN) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 revenue of $61.9 million, up 45% year-over-year, marking the largest quarter in company history and driven by acquisitions, service subscriptions, and product royalties.

• Launched OASYS, a self-learning agentic AI platform, driving rapid enterprise adoption, high win rates, and major deals across healthcare, automotive, and retail.

• Improved all key profitability metrics, including gross margin and reduced net loss, with GAAP net loss narrowing to $42.8 million from $74.7 million year-over-year.

• Recognized as a leader in Gartner's Magic Quadrant for conversational AI platforms, boosting enterprise credibility and momentum.

• Announced the planned acquisition of LivePerson, expected to close by year-end, to further accelerate scale and leadership in conversational AI.

Financial highlights

• Q2 revenue reached $61.9 million, up 45% year-over-year and 40% sequentially; six-month revenue was $106.1 million, up 48% year-over-year.

• GAAP gross margin was 45% (up from 39% year-over-year); non-GAAP gross margin was 58% (flat year-over-year, up eight points sequentially).

• GAAP operating loss improved by 45% year-over-year to $43.3 million; Adjusted EBITDA loss improved to $9.6 million.

• GAAP net loss was $42.8 million ($0.10 per share); non-GAAP net loss was $9 million ($0.02 per share).

• Cash and equivalents at quarter end were $203 million with no debt.

Outlook and guidance

• Raised full-year revenue guidance to $230–$260 million, reflecting strong Q2 performance and robust pipeline.

• Guidance does not include LivePerson acquisition; post-close, an updated outlook will be provided.

• If LivePerson closes in H2, next year’s revenue is expected to be at least $350–$400 million.

• Management expects to fund operations for at least the next twelve months with current cash.

• Gross margins are expected to improve mid-term as integration of recent acquisitions progresses.