SoundHound říká, že OASYS zrychluje přechod od demo ukázek ke smlouvám; jedna smlouva měla hodnotu osmi číslic za méně než 90 dní. Tržby ve 2. čtvrtletí vzrostly meziročně o 45 % na 61,9 milionu USD.
Key Takeaways SoundHound's OASYS is moving enterprise AI from demos to signed contracts within months.One OASYS commitment reached eight figures in under 90 days, while pilots convert at a record pace.LivePerson expands SoundHound's reach to 25 Fortune 100 companies across voice and digital channels. SoundHound AI (SOUN - Free Report) is showing early signs that OASYS can shorten the path from enterprise AI experimentation to commercial deployment. Management said that prospects are moving from demos to signed contracts within months, while pilots are converting into large implementations at a record pace. One notable commitment reached eight figures less than 90 days after the initial demo, highlighting OASYS’ potential to accelerate enterprise sales cycles.
A key advantage is OASYS’ self-building and self-optimizing architecture. The platform allows enterprises to create AI agents quickly and deploy them across multiple channels rather than tying workflows to a single interface. Management noted that one healthcare customer was able to build agents within minutes. This flexibility could make OASYS attractive to large organizations seeking consistent automation across complex customer-service environments.
Commercial traction is supporting the thesis. SoundHound’s enterprise AI business remained its largest revenue contributor in the second quarter, while OASYS helped accelerate deals across healthcare, financial services, technology and automotive. Second-quarter 2026 revenues rose 45% year over year to $61.9 million, alongside improvement in adjusted EBITDA.
The recently completed LivePerson acquisition could significantly expand OASYS’ scaling opportunity. SoundHound now reaches a customer base including 25 Fortune 100 companies, while LivePerson’s digital messaging platform will be integrated into OASYS across voice, web, mobile, SMS and social channels.
Still, execution remains key. SoundHound must integrate LivePerson effectively and translate rapid pilot conversions into recurring, profitable deployments. If OASYS maintains its current conversion momentum while expanding across the enlarged customer base, enterprise AI could become an increasingly powerful growth engine.
How SoundHound Compares With Enterprise AI RivalsFive9 (FIVN - Free Report) is a key competitor in enterprise conversational AI, combining cloud contact-center software with AI-driven automation, virtual agents and workflow tools. Five9 benefits from an established enterprise customer base and deep contact-center integrations, giving Five9 a strong platform for scaling AI deployments. However, SoundHound’s OASYS differentiates itself through self-building, self-optimizing agents and faster movement from pilot programs to production-scale implementations.
NICE (NICE - Free Report) is another major rival, offering AI-powered customer-experience automation through its CXone platform. NICE has broad enterprise reach, mature contact-center capabilities and a large installed base that can support cross-selling of AI solutions. NICE also benefits from strong workflow orchestration and analytics capabilities. Still, SoundHound is positioning OASYS around rapid deployment, omnichannel orchestration and agentic automation. While Five9 and NICE have greater enterprise scale, SoundHound’s ability to shorten deployment cycles could help it win customers seeking faster AI adoption and measurable returns.
SOUN’s Price Performance, Valuation & EstimatesSoundHound’s shares have lost 32.4% year to date (YTD), underperforming the industry, as shown below.
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 11.43, slightly lower than the industry’s average.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 and 2027 loss per share has narrowed to 16 cents and 13 cents, respectively, as shown below. The expected loss for 2026 remains wider than the previous year’s loss of 13 cents per share.
Image Source: Zacks Investment Research
SOUN currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoundHound AI (SOUN +0.00%) was once a darling of the artificial intelligence trend, and its stock skyrocketed to nearly $25 per share at the end of 2024. But it has spent a lot of the time since then selling off, and now trades for less than $7 per share. However, that doesn't mean its business hasn't been performing impressively in the meantime.
The reality is that the stock got ahead of itself during its late 2024 run-up, but the company hasn't misstepped since then. It's delivering impressive results and growing at a solid pace. But has that primed the stock to double over the next year?
Image source: Getty Images.
SoundHound AI combines artificial intelligence with powerful speech recognition. This has countless applications, but the biggest area of adoption right now is in restaurant order automation, specifically in drive-thrus. This is a fairly low-stakes application, and with a limited menu, there aren't many things for an AI to recognize and understand.
Eventually, SoundHound AI aims to become a larger part of customer service, particularly in industries such as banking, healthcare, and insurance. Companies in these sectors spend significant sums to staff their customer service lines; if SoundHound AI's product could automate a significant number of their interactions with customers, it would be one of the most useful AI applications to date.
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SoundHound AI has several clients in these industries performing trials of its software and developing use cases for it. Investors will need to keep an eye on this: If the company's services prove to be a hit with large organizations, those types of contracts could take off and send the stock soaring.
Even with many trials underway, SoundHound AI's revenue rose 45% year over year to $62 million in Q2. The company is nowhere near profitable, but it has plenty of cash on the books to keep its operations going while it works its way toward that goal. There's a viable enough business model here that it should be able to raise capital to continue operations if it needs to, so investors shouldn't worry about SoundHound AI running out of funding.
The question is, how long will it be before SoundHound AI's software really takes off in the marketplace? That's the real unknown with the stock. Moreover, it could still lose out to another AI company's rival voice-interface offering. This makes SoundHound AI a high-risk, high-potential reward stock, but the stock is priced about right for that.
SOUN PS Ratio data by YCharts.
SoundHound AI trades for less than 15 times sales, which isn't a bad price to pay for a company growing this fast in a market that's potentially huge.
I'm not sure if SoundHound AI stock can double over the next year, but if sales of its software start to take off, I think it has a strong chance to soar. Otherwise, it may hang out in the sub-$10 range for the foreseeable future.
SoundHound AI dokončila akvizici LivePerson a jmenovala Johna Collinse finančním ředitelem. Spojená firma má bezdluhovou bilanci a více než 750 patentů.
SANTA CLARA, Calif., Sept. 04, 2026 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and agentic AI, today announced the successful completion of its acquisition of LivePerson, Inc., and the appointment of John Collins as the combined company’s Chief Financial Officer.
With the transaction officially closed, SoundHound AI immediately expands its market footprint, with a customer base that includes 25 of the Fortune 100, and a strengthened IP portfolio of over 750 patents. The combination brings together LivePerson's extensive enterprise digital messaging infrastructure with SoundHound's proprietary voice agentic AI. LivePerson’s platform will be integrated into OASYS, SoundHound’s self-learning Orchestrated Agent System, which is the result of decades of innovation from SoundHound and its recent acquisitions. The unified platform will deliver a world-leading fully integrated, end-to-end customer engagement solution that operates natively across voice, web, mobile, SMS, and social channels.
"This merger represents a defining moment for the new agentic AI era. Together, we are delivering the most complete AI platform to the most comprehensive enterprise customer base in the industry," said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. "Now global brands have a single, unified engine to power intelligent customer interactions — scaling SoundHound’s reach to serve every enterprise, on every channel, at an unprecedented level."
Highlights of the closed transaction include a strong and fully debt-free combined balance sheet, establishing a resilient financial foundation for accelerated commercial growth and continuous product innovation. With expanded global scale, an enriched customer base spanning key enterprise verticals, and enhanced cross-selling capabilities, the unified company is strategically positioned to target more than $500M in future revenue from the existing customer base alone. The acquisition accelerates the combined company’s ability to address the rapid rise of agentic AI, with Gartner® forecasting that enterprise spend on the software will reach $985 billion by 2030.
New Chief Financial Officer Appointed
Following an extensive executive search, SoundHound AI has selected John Collins to join the company as its Chief Financial Officer. As CFO, Collins will focus on accelerating SoundHound AI’s path to sustainable profitability, while maintaining its strong growth trajectory and disciplined approach to capital allocation.
Collins brings over 15 years of leadership experience at the intersection of enterprise software, data science, capital markets, corporate finance, and artificial intelligence. With a rare blend of operator expertise, financial stewardship, and entrepreneurial vision, he has previously been a founder, as well as Chief Financial Officer, Chief Operating Officer, and Interim Chief Executive Officer at LivePerson.
Throughout his career, Collins has consistently met the strategic and financial needs of the business, from supporting R&D innovation and high growth, to driving cost-optimization initiatives that yielded free cash flow and improved operational efficiency. Notably, Collins led a transformation from more than $100M of annual cash burn to positive free cash flow in a single year while supporting double-digit growth, executed cost-reduction programs in excess of $200M, and led multi-year debt restructurings that captured $227M of debt discount, improving liquidity and shifting enterprise value from debt holders to equity holders. This proven background in managing complex enterprise infrastructure equips Collins to drive the financial integration of SoundHound AI and LivePerson post-close, helping to create a world leader in AI for customer service.
The holder of both a JD and an MBA, Collins will oversee the combined company's financial strategy with a focus on accelerating margin expansion, enforcing tight cost discipline, and driving seamless operational synergies to capitalize on SoundHound AI’s expanded footprint and the rapidly growing agentic AI market.
"Joining SoundHound AI at this pivotal juncture is an extraordinary opportunity to help steer the company’s next phase of global growth at a time of rapid agentic AI adoption by large enterprises," said John Collins, incoming CFO of SoundHound AI. "Backed by a strong, debt-free balance sheet and market momentum, my focus will be on driving seamless operational integration, enforcing cost discipline, and accelerating our path to sustainable, high-margin profitability."
Day One Combination Value
With the closing following regulatory and shareholder approvals, integration is actively underway to deliver immediate value to customers and shareholders:
Unified Omnichannel Solutions: Enterprise customers can now deploy a single conversational AI platform capable of driving voice interactions, digital chat, and social messaging natively.Enhanced AI Capabilities for LivePerson Customers: SoundHound’s fully agentic platform, OASYS, and AI models will deliver improvements in performance, user experience, containment, and overall customer health across LivePerson’s enterprise customer base spanning digital and voice channels.Smarter, Faster AI Across Every Channel: By combining SoundHound’s deep voice capabilities with LivePerson’s proven digital engagement, enterprise deployments benefit from an even richer foundation of customer interaction insights. This means higher containment rates, faster resolution times, and smoother experiences.Strengthened Financial Footprint: As part of the close, SoundHound has retired LivePerson’s outstanding debt, establishing a strong, debt-free balance sheet positioned to drive efficient growth. "Our shared focus is clear: accelerate innovation and deliver immediate impact for our customers," said John Sabino, CEO of LivePerson. "Together, we offer an unparalleled value proposition for enterprises seeking to modernize their contact centers and digital touchpoints with a trusted, enterprise-grade AI partner."
With the transaction closed, LivePerson common stock will cease trading on the Nasdaq stock market. Functional integration is already underway, with combined product offerings and expanded capabilities set to roll out to global clients in the coming quarters.
About SoundHound AI
SoundHound AI (Nasdaq: SOUN) is a voice and agentic AI company that enables businesses to deliver natural, end-to-end conversational experiences across digital and physical channels, including phones, kiosks, chat, smart devices, drive-thrus, TVs, in-vehicle, and more. Its agentic platform, OASYS, is a self-learning, orchestrated AI system where organizations can build and deploy conversational AI agents to handle transactions, tasks, and workflows on behalf of customers and employees. Built on proprietary technology backed by 750+ patents and years of AI research, SoundHound serves leading brands across industries including automotive, financial services, healthcare, retail, telecommunications, and more. It powers millions of products and processes billions of interactions annually for enterprise customers worldwide. Learn more at: www.soundhound.com
Forward Looking Statements
This press release contains "forward looking statements" within the meaning of the U.S. federal securities laws about the expectations, beliefs, plans, intentions, prospects, financial results and strategies relating to SoundHound AI’s acquisition of LivePerson. Such forward looking statements include, among others, statements regarding future product capabilities and offerings, expected benefits to SoundHound AI and LivePerson and their customers arising from and in relation to the acquisition, SoundHound AI’s plans for future operations and anticipated product offerings, the parties’ expectations for value creation and strategic advantages, market and growth opportunities, SoundHound AI’s anticipated revenue growth and profitability, future financial condition and performance and expected financial impacts of the acquisition, and the parties’ expectations, intentions, strategies, assumptions or beliefs about future events, results of operations or performance or that do not solely relate to historical or current facts.
These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "potential," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Forward-looking statements are predictions, projections and other statements about future events or conditions that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. Factors that may cause actual results to differ materially from those in any forward looking statements include, without limitation, the effect of the acquisition on SoundHound AI’s or LivePerson’s business, operating results, and relationships with customers, suppliers, competitors and others; risks that the acquisition may disrupt SoundHound AI’s or LivePerson’s current plans and business operations; failure to realize the anticipated benefits of the acquisition; challenges or delays in assimilating or integrating LivePerson’s technology into SoundHound AI’s platform; challenges retaining employees of LivePerson; unanticipated obligations or liabilities related to LivePerson’s legacy business; potential adverse tax consequences and the potential effects on the accounting of the acquisition; changes in applicable laws or regulations and extensive and evolving government regulations that impact SoundHound AI’s or LivePerson’s operations and business; investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings, including with respect to AI technology; risks that SoundHound AI may not be able to manage strains associated with its growth; dependence on key personnel; stock price volatility; SoundHound AI’s and LivePerson’s ability to protect their intellectual property and related litigation risks; the risk that LivePerson’s usage patterns, customer renewals, customer outcomes and similar metrics differ from expectations; the risk of cybersecurity incidents or breaches impacting LivePerson’s business; risks related to the use and regulation of artificial intelligence and machine learning; changes in business, market, financial, political and regulatory conditions; and disruption to SoundHound AI’s business and diversion of our management’s attention and other resources. The foregoing list of risk factors is not exhaustive. Further information on factors that could affect our financial and other results is included in the filings that SoundHound AI and/or LivePerson filed, or that will be filed, with the U.S. Securities and Exchange Commission.
All forward-looking statements are based on information available to SoundHound AI as of the date hereof, and SoundHound AI assumes no obligation to update any forward-looking statements, except as may be required under applicable securities laws.
SoundHound AI ve 2. čtvrtletí zvýšila tržby o 45 % na 61,9 milionu USD a zvedla spodní hranici celoročního výhledu tržeb na 230 až 260 milionů USD. Akcie ale zůstávají vysoce spekulativní kvůli ztrátě a chystané akvizici LivePerson.
With about 40% short interest, SoundHound AI (SOUN -0.59%) is one of the most shorted stocks in the market. The company has been growing its revenue quickly, but a pending merger with troubled LivePerson (LPSN +0.00%) has investors betting against the stock. However, heavy short interest is a double-edged sword.
If a stock has high short interest, there is usually a bearish case to be made against it. In the case of SoundHound AI, its merger with LivePerson will bring considerable debt and a business currently in decline. There is also a good chance that SoundHound AI will seek a future equity raise to pay off the debt it is taking on as part of the deal, as it has stated it will work to quickly retire the debt through a combination of cash and stock.
The flip side is that heavily shorted stocks can see huge short squeezes if they can prove the skeptics wrong. With LivePerson, SoundHound AI is gaining access to a large, established, albeit declining, customer base, especially in call centers and the customer service space.
Its goal will be to retain these customers and switch them to its more comprehensive and higher-priced AI voice technology and agentic AI platform. If the company can stabilize churn and upsell customers, this deal could be a huge boon for this growth stock.
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SoundHound AI's core business, meanwhile, continues to perform well, and it's already shown it can integrate acquisitions well. Its earlier purchase of Amelia and its virtual agents helped it expand into new market verticals and provided key technology for its new voice-native agentic AI orchestration platform, OASYS.
The company has said that the launch of OASYS has increased excitement and accelerated deals, and that it is winning in demos, RFPs (requests for proposals), and pilots. The platform's ability to build AI agents and self-improve has been a big selling point, and it has been seeing pilots convert to large implementations at a record pace. Management noted that the platform has seen rapid adoption across verticals since its May launch, including a large eight-figure deal signed in less than 90 days after the initial demo.
Overall for Q2, SoundHound AI saw its revenue climb 45% to $61.9 million. However, the company does remain unprofitable, with an adjusted loss of $0.02 and negative adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $9.6 million. Its gross margin rose 610 basis points year over year to 45.1%, while its adjusted gross margins were flat year over year at 58.4%. It said acquisitions continued to have a temporary impact on its gross margins and that its goal is to still exceed 70% in the future.
Looking ahead, the company raised the low end of its full-year revenue guidance to $230 million to $260 million. That's up from a prior outlook of $225 million to $260 million. It is expecting its acquisition of LivePerson to close by the end of the year. If it does, it is projected to generate at least $350 million of revenue in 2027.
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SoundHound AI's stock has struggled over the past year, with its shares cut in half. However, the stock is still not cheap, trading at a forward price-to-sales (P/S) ratio of over 12 times current-year estimates. With the company not profitable and burning cash, that alone makes it a more speculative bet. The acquisition of LivePerson, meanwhile, adds some additional risk.
That said, the company has shown it can do a good job integrating acquisitions, and it has a huge opportunity with OASYS, both with existing customers and the ones it is acquiring from LivePerson.
Despite the huge short interest, I think investors can place a small speculative bet that SoundHound AI can pull this deal off, given the early momentum it has been seeing with OASYS.
SoundHound ve 2. čtvrtletí 2026 uzavřel sedmimístnou zdravotnickou zakázku s celostátně hodnoceným zdravotnickým systémem zaměstnávajícím 30 000 lidí a top-20 poskytovatel zvýšil své výdaje čtyřnásobně. Dalších pět zdravotnických organizací smlouvy rozšířilo nebo obnovilo.
Key Takeaways SOUN signed a seven-figure healthcare deal and secured multiple expansions and renewals.A top-20 healthcare provider quadrupled its spending with SoundHound in the second quarter of 2026.OASYS can cut complex healthcare deployment times from months to minutes, supporting broader adoption. SoundHound AI’s (SOUN - Free Report) healthcare business is emerging as a potentially important growth driver as enterprises increasingly adopt conversational and agentic AI for complex customer-service workflows. In the second quarter of 2026, SoundHound signed a seven-figure deal with a nationally ranked healthcare system employing 30,000 people. It also added Champion Payer Solutions, expanded business with healthcare and electronic-health-record customers and secured several renewals across nursing, rehabilitation and biopharmaceutical organizations.
The expansion appears to extend beyond new customer wins. Management said that a top-20 healthcare provider quadrupled its spending with SoundHound during the second quarter of 2026, while five additional healthcare organizations expanded or renewed contracts. This traction is particularly encouraging because healthcare requires strong security, traceability and reliability for mission-critical workflows, areas where SoundHound believes its OASYS platform has an advantage.
OASYS could further strengthen this opportunity by reducing deployment times for complex healthcare applications from months to minutes. SoundHound is also preparing to move one of its largest healthcare customers onto its proprietary models after seeing improvements in cost, accuracy and latency.
Still, healthcare revenues are not separately disclosed, making its financial contribution difficult to quantify. SoundHound remains loss-making despite second-quarter 2026 revenues rising 45% to $61.9 million. Nevertheless, accelerating customer spending, renewals and larger contracts suggest healthcare could become a meaningful new growth engine if adoption continues to scale.
How SoundHound Compares With Healthcare AI PeersNICE (NICE - Free Report) is a relevant competitor as healthcare organizations increasingly automate patient engagement, contact-center workflows and customer service. NICE offers AI-driven customer experience and workforce solutions that can help providers manage high call volumes, improve routing and automate routine interactions. NICE also benefits from an established enterprise customer base and broad contact-center capabilities. However, SoundHound’s OASYS platform emphasizes conversational and agentic AI, proprietary voice models and faster deployment, potentially giving it an edge in complex voice-first healthcare use cases.
Five9 (FIVN - Free Report) is another key rival, providing cloud contact-center software and AI-powered automation across industries, including healthcare. Five9 helps organizations deploy virtual agents, automate customer interactions and improve agent productivity. Five9’s mature cloud platform and integrations strengthen its competitive position. Still, SoundHound’s healthcare momentum, growing customer spending and ability to build self-optimizing AI agents could differentiate it as healthcare providers seek more advanced automation.
SOUN’s Price Performance, Valuation & EstimatesSoundHound’s shares have lost 28.7% year to date (YTD), underperforming the industry, as shown below.
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 12.65, slightly above the industry’s average.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 and 2027 loss per share has narrowed to 16 cents and 13 cents, respectively, as shown below. The expected loss for 2026 remains wider than the previous year’s loss of 13 cents per share.
Image Source: Zacks Investment Research
SOUN currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoundHound ve 2. čtvrtletí zvýšil tržby o 45 % na rekordních 61,9 milionu USD a zvedl celoroční výhled tržeb na 230–260 milionů USD. OASYS urychluje enterprise obchody napříč financemi, zdravotnictvím, telekomunikacemi a restauracemi.
Key Takeaways SOUN gets the edge on faster growth, improving estimates and broader agentic AI exposure.OASYS accelerates enterprise deals as SoundHound expands across finance, healthcare, telecom and restaurants.Cerence leads on valuation, profitability and free cash flow, but its 2027 revenue outlook is weaker. SoundHound AI, Inc. (SOUN - Free Report) and Cerence Inc. (CRNC - Free Report) are prominent players in conversational and voice artificial intelligence. SoundHound is building a diversified voice and agentic AI platform spanning enterprises, restaurants, automotive, healthcare and other industries, while Cerence remains deeply rooted in automotive AI and is expanding its next-generation technology into adjacent markets.
The comparison is increasingly relevant as both companies capitalize on growing demand for generative and agentic AI. SoundHound is pursuing faster growth and broader enterprise adoption, while Cerence is emphasizing profitable growth, recurring connected services and commercialization of its xUI platform.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for SoundHound StockSoundHound's growth trajectory remains compelling. Second-quarter 2026 revenues surged 45% year over year to a record $61.9 million, while non-GAAP gross margin was 58.4%. Adjusted EBITDA loss improved to $9.6 million from $14.3 million a year earlier, and non-GAAP loss narrowed to 2 cents per share.
The OASYS agentic AI platform is emerging as a major catalyst. Management said that OASYS has accelerated enterprise deals and helped SoundHound expand across financial services, healthcare, telecommunications and restaurants. The company's restaurant footprint continues to broaden, while Voice Commerce opens another opportunity through in-vehicle and connected-device transactions. Its proprietary Polaris speech foundation model and specialized AI models should also improve control, efficiency and potentially margins over time.
SoundHound's pending acquisition of LivePerson could substantially expand its enterprise footprint and strengthen its omnichannel conversational AI capabilities. The company expects the transaction to close before year-end after securing key regulatory clearances. SoundHound also raised its 2026 revenue outlook to $230-$260 million. Its balance sheet provides support, with $203 million of cash and no debt at June-end. However, operating cash outflow remains significant, and continued losses, acquisition integration and heavy investment create execution risks.
The Case for Cerence StockCerence offers a more mature financial profile. Fiscal third-quarter 2026 revenues rose 12% year over year to $69.6 million, while adjusted EBITDA increased 50% to $13.5 million. Free cash flow reached $19.6 million, demonstrating Cerence's stronger current cash-generation profile.
The company’s automotive position remains a key competitive advantage. Cerence technology is represented across roughly half of worldwide auto production on a trailing-12-month basis, providing a large installed base from which to expand connected and next-generation services. Cerence xUI is moving into commercialization, with a new multi-brand Stellantis award and programs involving several major global automakers. Management expects xUI to deliver higher revenue per vehicle and become a more meaningful contributor in fiscal 2027 and beyond.
Connected services are another bright spot, with revenues growing more than 20% in the latest quarter. Cerence is also pushing beyond automotive through agentic AI and its Mobile Work Agent, potentially reducing its dependence on vehicle production over time.
Yet that transition is still developing. Variable license revenues declined in the latest quarter, reflecting lower production volumes and OEM mix, while fixed-license revenue can make quarterly comparisons volatile. Cerence expects xUI and non-automotive initiatives to contribute more materially from fiscal 2027 onward. Encouragingly, management raised full-year free cash flow guidance to $76-$82 million and is balancing investment with debt reduction and a newly authorized share-repurchase program.
Recent Momentum Favors SoundHound StockBoth stocks have struggled in 2026. SoundHound and Cerence shares have plunged 29.8% and 29.1% year to date (YTD), respectively, compared with a 13.7% decline for the Zacks Computers – IT Services industry. Both have also substantially underperformed the broader Zacks Computer and Technology sector and S&P 500, as shown below.
SOUN vs CRNC Price Performance (YTD)
Image Source: Zacks Investment Research
Near-term momentum, however, favors SoundHound. SOUN has gained 9.2% over the past month, whereas CRNC has lost 8.7%. That divergence suggests investors have responded more positively to SoundHound's accelerating enterprise AI growth and improved outlook.
SOUN vs CRNC Price Performance (1-Month)
Image Source: Zacks Investment Research
Cerence Stock Holds the Clear Valuation AdvantageOn a forward 12-month price-to-sales basis, SoundHound trades at 11.93X versus just 1.16X for Cerence and 12.26X for the industry. SoundHound therefore trades slightly below the industry multiple but commands a massive premium to Cerence.
SOUN vs CRNC Valuation (P/S F12M)
Image Source: Zacks Investment Research
Cerence clearly wins on valuation. Its low sales multiple, positive cash generation and improving profitability offer a greater margin of safety. SoundHound's richer valuation requires sustained high revenue growth, successful execution of OASYS and continued progress toward profitability. Any growth disappointment could therefore create greater downside risk for SOUN.
Estimate Revisions Give SoundHound an EdgeSoundHound's estimate trend is encouraging. Over the past 30 days, the Zacks Consensus Estimate for its 2026 loss has narrowed to 16 cents per share from 18 cents. Revenues are projected to rise 41% in 2026. For 2027, SoundHound is expected to post a loss of 13 cents per share on revenues of $273 million, implying another 14.6% top-line increase.
SOUN EPS Estimate Revision Trend
Image Source: Zacks Investment Research
Cerence presents a mixed picture. Its 2026 EPS estimate has risen to 65 cents from 63 cents over the past 30 days, but the 2027 estimate has declined to $1.08 from $1.22. Revenues are expected to grow 24.5% in 2026 before declining 6.8% to $293 million in 2027, although EPS is projected to increase 65.4%. The downward 2027 estimate revision and weaker projected revenue trajectory temper Cerence's profitability advantage.
CRNC EPS Estimate Revision Trend
Image Source: Zacks Investment Research
SOUN Stock Looks Like the Better BuyCerence, currently carrying a Zacks Rank #3 (Hold), wins on valuation, current profitability and free cash flow. Its entrenched automotive position, expanding connected-services business and xUI commercialization provide meaningful long-term opportunities. Management's improved balance-sheet discipline and capital returns further strengthen the investment case.
SoundHound, however, offers the stronger growth profile. OASYS adoption, diversification across multiple industries, Voice Commerce, proprietary AI models and the pending LivePerson acquisition provide more avenues for expansion. This Zacks Rank #2 (Buy) company's improving loss estimates and strong recent share-price momentum add to the case. Despite its substantially higher valuation and continued losses, SoundHound's faster growth, improving earnings outlook and broader agentic AI opportunity give SOUN the edge over CRNC for investors seeking greater upside potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoundHound AI oznámila za 1. pololetí 2026 tržby ve výši 106 milionů USD, meziročně o 48 % více, ale zároveň ztrátu 68 milionů USD. Firma zůstává ve ztrátě a její akcie jsou více než 70 % pod historickým maximem.
SoundHound AI (SOUN +3.87%) just released its earnings for the second quarter of 2026. Although it reported considerable revenue growth and increased its revenue guidance, the stock is now close to 52-week lows. Consequently, it trades at more than 70% below its all-time high.
Moreover, profitability seems to remain out of reach, and although its valuation is at multi-year lows, it is still a relatively expensive stock. Knowing these facts, is SoundHound AI stock now a buy, or should investors continue to stay on the sidelines?
Image source: The Motley Fool.
SoundHound AI continues to prosper SoundHound AI continues to benefit from high demand for its conversational AI tools. Businesses as diverse as restaurants and automobile companies have applied its technology to make their operations more efficient.
Investors should also note its new platform called the Orchestrated Agent System (OASYS). The OASYS builds AI agents that can speak with customers, handle transactions, and resolve issues with service. Additionally, its AI can improve as it learns from customer interactions.
Thanks to this technology, SoundHound AI's systems now handle over 10 billion conversations annually. Furthermore, it now holds over 400 patents related to its technology, helping it compete with the largest tech enterprises in terms of speed and accuracy.
However, investors need to remember that its size is a tiny fraction of said big tech enterprises. For example, SoundHound has a market cap of around $3 billion, but that is less than one-one-thousandth of Google parent Alphabet's market cap.
Alphabet has pledged to spend between $195 billion and $205 billion on capital expenditures this year, raising some doubts about its finances. Nonetheless, that still leaves Alphabet in better financial shape than SoundHound, and that may leave investors wondering about SoundHound's long-term competitiveness.
SoundHound AI by the numbers Indeed, its financial condition gives investors reason for both optimism and worry. It posted massive growth in the first half of 2026, with its revenue of $106 million up 48% from the year-ago period. Unfortunately, SoundHound lost $68 million in that same timeframe, and its free cash flow of negative $61 million in the first six months of 2026 confirms its continued dependence on outside funding.
Since it holds about $203 million in liquidity, it can absorb losses for a few more quarters. Nonetheless, it has increased its share count by 122% since a SPAC took SoundHound AI public in April 2022. These actions dilute shareholder value, making it more difficult to profit from the tech stock.
Today's Change
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Investors are also down slightly since the SPAC purchase. Although the stock has risen significantly in the past, it seems to give back its gains fairly quickly.
Additionally, its valuation may not be low enough to entice investors. Amid ongoing losses, it does not have a P/E ratio, though its price-to-sales (P/S) ratio is 15. While that is far above the S&P 500 average of 3.8, its sales multiple is not unusually high for a fast-growing tech stock in a relatively new industry.
Still, considering its heavyweight competitors and ongoing losses, it is unclear whether investors will willingly pay that price in the long term.
Stay on the sidelines Given its current condition, investors may be best off staying on the sidelines.
Admittedly, SoundHound AI's offerings continue to gain traction with key customers, and its revenue grows rapidly as a result. However, if an industry heavyweight like Alphabet decides to compete more aggressively with SoundHound, one has to wonder whether SoundHound could respond given its financial condition. Moreover, with the continuing losses, SoundHound may further have to dilute its shares, making it more difficult for investors to earn positive returns.
Given those uncertainties, investors with the risk tolerance to buy this stock should probably hold out for a lower valuation before taking a chance on SoundHound.
LivePerson vyzývá akcionáře, aby dnes hlasovali pro navrhovanou transakci se SoundHound AI, Inc. Nehlasování má stejný účinek jako hlas proti fúzi. Hlasování končí ve středu 19. srpna 2026 ve 23:59 ET.
Voting Closes Tomorrow, Wednesday, August 19, 2026, at 11:59 p.m. ET
Failing to Vote Has the Exact Same Effect as Voting "AGAINST" the Merger
, /PRNewswire/ -- LivePerson (NASDAQ: LPSN) ("LivePerson" or "the Company"), a leading provider of predictable conversational AI, today reminds all stockholders to vote "FOR" the Company's proposed transaction with SoundHound AI, Inc. (NASDAQ: SOUN).
Please vote today by proxy card, online or by phone. More information at VoteLivePerson.com
The Special Meeting of Stockholders will take place this Thursday, August 20, 2026, at 10:00 a.m. Eastern Time. However, to ensure your shares are represented, you must submit your proxy vote by 11:59 p.m. Eastern Time TOMORROW, Wednesday, August 19, 2026. (TASE stockholders: Completed proxy cards and ownership certificates must be delivered to Israeli counsel by 7:00 p.m. Israel time tomorrow, Wednesday, August 19).
Why You Must Act Immediately:
A Share Not Voted is a Vote "AGAINST": Because transaction approval requires the affirmative vote of a majority of all outstanding shares (not just those cast), if you do not vote, it has the exact same effect as voting "AGAINST" the transaction. Inaction will block the merger and put your investment at risk. ISS and Glass Lewis Unanimously Recommend "FOR" vote: Both leading independent proxy advisory firms have strongly endorsed this transaction as a viable path to maximize stockholder value and avoid standalone insolvency risks. Critical Standalone Risks: If the transaction fails, stockholders are exposed to the risks of continued slowing or degradation of LivePerson's business given commercial headwinds from the Company's standalone financial profile, a potential delisting from the Nasdaq, and potential inability to service or repay LivePerson's substantial debt and/or comply with debt-related financial covenants, which could eventually lead to reorganization, in which stockholders would in all likelihood receive no value for their shares. Noteholder Concessions Deliver Premium Value: LivePerson's outstanding debt currently exceeds the total value of the transaction. As part of the transaction, our secured noteholders have agreed to exchange their notes at a value reflecting a substantial discount to the notes' approximately $350 million par value. As a result of these concessions, most LivePerson stockholders will receive shares of SoundHound stock valued at approximately $3.33 per share as of the April 21, 2026, announcement, representing an attractive 22% premium over our 30-day volume-weighted average trading price before such announcement. Stockholders holding shares on the Tel Aviv Stock Exchange will receive a substantially equivalent value in cash. VOTE TODAY
Vote today by proxy card, online or by phone. For more information and additional materials visit VoteLivePerson.com, or contact LivePerson's proxy solicitor, MacKenzie Partners, Inc., toll-free at (800) 322-2885 or by e-mail at [email protected].
LivePerson stockholders who hold shares listed on the Tel Aviv Stock Exchange (TASE) and intend to vote their shares must deliver to LivePerson's Israeli counsel, Arnon, Tadmor-Levy, c/o Moshe Pasker, Azrieli Center (Square Tower), Tel Aviv, Israel, 6702101 (email: [email protected]), an ownership certificate confirming their ownership on July 6, 2026. The form of proxy card for stockholders who hold shares listed on the TASE can be found here: https://mayafiles.tase.co.il/rpdf/1759001-1760000/P1759388-00.pdf.
About LivePerson
LivePerson (NASDAQ: LPSN) is an enterprise leader in predictable conversational AI. The world's leading brands use our award-winning Conversational Cloud and Syntrix platforms to connect with millions of customers. We power nearly a billion messages every month, providing uniquely rich data analytics, agent training, and AI evaluation tools to unlock the power of conversational AI for better business outcomes. Learn more at liveperson.com.
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Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the U.S. federal securities laws about the expectations, beliefs, plans, intentions, prospects, financial results and strategies relating to SoundHound AI's proposed acquisition of LivePerson. Such forward-looking statements include, among others, statements regarding the timing of filing the definitive proxy/prospectus and timing of LivePerson's special meeting, obtaining regulatory approvals, the timing of closing of the proposed acquisition, and the parties' expectations, intentions, strategies, assumptions or beliefs about future events, results of operations or performance or that do not solely relate to historical or current facts. Forward-looking statements are predictions, projections and other statements about future events or conditions that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including: (1) the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between LivePerson and SoundHound; (2) the possibility that the transaction does not close when expected or at all due to the failure to satisfy all of the conditions to closing on a timely basis or at all, including the failure to obtain the required shareholder approvals or to consummate the notes restructuring transactions contemplated by the Notes Restructuring Agreement; (3) the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which LivePerson and SoundHound operate; (4) any failure to promptly and effectively integrate the businesses of LivePerson and SoundHound; (5) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (6) reputational risk and potential adverse reactions of LivePerson's or SoundHound's customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the transaction; (7) the diversion of management's attention and time to the transaction from ongoing business operations and opportunities; and (8) the outcome of any legal proceedings that may be instituted against LivePerson or SoundHound or in connection with the transaction. Further information on factors that could affect the forward-looking statements and expectations above are contained in the filings that LivePerson and/or SoundHound AI have filed, or that will be filed, with the U.S. Securities and Exchange Commission (the "SEC"), including as set forth in the Form S-4 and the proxy statement/prospectus contained therein, as well as the documents incorporated by reference therein.
All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and LivePerson does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law.
No Offer or Solicitation
This communication is not intended to be, and shall not constitute, an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
Additional Information and Where to Find It
In connection with the proposed transaction, SoundHound AI has filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (the "Form S-4") that includes a definitive proxy statement of LivePerson and that constitutes a prospectus of SoundHound AI with respect to the shares of the SoundHound AI common stock to be issued in the proposed transaction, dated July 9, 2026 (the "proxy statement/prospectus"). The proxy statement/prospectus was filed with the SEC on July 9, 2026 by LivePerson, and the mailing of the proxy statement/prospectus began to LivePerson's stockholders on or about the same date. Each of SoundHound AI and LivePerson may also file other relevant documents with the SEC regarding the proposed transaction.
This communication is not a substitute for the Form S-4, the proxy statement/prospectus or any other document that SoundHound AI or LivePerson has filed, or may file, with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOUNDHOUND AI AND LIVEPERSON ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of these documents (if and when available), as well as other filings containing information about SoundHound AI and LivePerson, free of charge on the SEC's website at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by the Company will be available free of charge on SoundHound AI's website at https://investors.soundhound.com/financial-information/sec-filings. Copies of the documents filed with, or furnished to, the SEC by LivePerson will be available free of charge on LivePerson's website at https://ir.liveperson.com/financial-information/sec-filings. The information included on, or accessible through, SoundHound AI's or LivePerson's website is not incorporated by reference into this communication.
Participants in the Solicitation
SoundHound, LivePerson and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies with respect to the proposed transaction under the rules of the SEC. Information about the directors and executive officers of SoundHound, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in SoundHound's definitive proxy statement for its 2026 annual meeting of stockholders under the heading "Proposal 1 – Election of Directors", which was filed with the SEC on April 9, 2026 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001840856/000121390026041978/ea0285618-01.htm. Information about the directors and executive officers of LivePerson and their ownership of LivePerson equity interests can be found in the section entitled "Interests of LivePerson Directors and Executive Officers in the Mergers" and "Owners and Management of LivePerson" included in the proxy/prospectus, which was filed with the SEC on July 9, 2026 and is available at https://www.sec.gov/Archives/edgar/data/1102993/000121390026076759/ea0297465-01.htm. Further information about the directors and executive officers of LivePerson may be found in its amendment to its Annual Report on Form 10-K for the year ended December 31, 2025 under the headings "Directors, Executive Officers and Corporate Governance," "Executive Compensation," "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" and is available at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001102993/000110299326000020/lpsn-20251231.htm; in the Form 3 and Form 4 statements of beneficial ownership and statements of changes in beneficial ownership filed with the SEC by LivePerson's directors and executive officers; and is in other documents filed by LivePerson with the SEC. Additional information regarding the interests of the participants in the solicitation of proxies will be included in other relevant materials to be filed with the SEC if and when they become available. You should read the Form S-4 and the proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents using the sources indicated above.
SoundHound ve 2. čtvrtletí zvýšil tržby o 45 % na rekordních 61,9 mil. USD a zúžil non-GAAP čistou ztrátu na 9 mil. USD z 11,9 mil. USD. Zároveň zvedl výhled tržeb pro rok 2026 na 230–260 mil. USD.
Key Takeaways SoundHound posted record Q2 revenues of $61.9M, up 45%, while non-GAAP net loss narrowed 24%.OASYS sped pilot-to-deployment conversions, including an eight-figure commitment in under 90 days.SoundHound had $203M in cash, no debt and raised 2026 revenue guidance to $230M-$260M. SoundHound AI, Inc. (SOUN - Free Report) showed progress toward profitable growth in second-quarter 2026 as strong revenue gains were accompanied by improving margins and narrower losses. Revenues jumped 45% year over year to a record $61.9 million, while non-GAAP net loss narrowed 24% to $9 million from $11.9 million. Non-GAAP loss per share improved to 2 cents from 3 cents.
The improvement reflects both operating momentum and cost discipline. Adjusted EBITDA loss narrowed 33% year over year to $9.6 million. GAAP gross margin expanded 610 basis points to 45.1%, although non-GAAP gross margin remained unchanged at 58.4%.
OASYS is central to SoundHound’s path toward scale. The agentic AI platform is helping convert pilots into large implementations faster, including an eight-figure commitment signed less than 90 days after the initial demo. Management continued investing in growth while maintaining spending discipline.
SoundHound is also moving more workloads onto its proprietary technology. Its SMB customers are now entirely on the company’s own model stack. Management expects its Polaris speech model, specialized LLMs and speech synthesis technology to improve quality while lowering costs and supporting higher margins over time.
Still, profitability has not arrived. SoundHound used nearly $60 million in operating cash during the first half of 2026, up from $43.7 million a year earlier. Yet, with $203 million in cash, no debt and 2026 revenue guidance raised to $230-$260 million, stronger scale and cost efficiencies provide a clearer path toward profitable growth.
SoundHound Faces Profitable AI RivalsSoundHound competes with Five9 (FIVN - Free Report) and NICE (NICE - Free Report) in conversational AI, customer engagement and AI-powered contact-center automation. Both provide important profitability benchmarks as SoundHound works to turn rapid revenue growth into sustainable earnings.
Five9’s second-quarter 2026 revenues increased 10% year over year to $312.4 million, while adjusted EBITDA reached $70.1 million, representing a 22.4% margin. Five9 generated $42.1 million in operating cash flow and posted non-GAAP net income of $53.5 million. Subscription revenues grew 14%, while management noted that AI revenues accelerated even faster.
NICE generated second-quarter 2026 revenues of $782.3 million, up 7.6%, while cloud revenues advanced 12.6% to $609 million. NICE delivered non-GAAP operating income of $198 million, a 25.3% margin, and $122.7 million in operating cash flow. Its AI and self-service ARR surged 52% to $362 million.
Against these profitable rivals, SoundHound’s narrowing $9.6 million adjusted EBITDA loss shows progress, but Five9 and NICE demonstrate the profitability and cash generation SoundHound still needs to achieve as OASYS scales.
SOUN’s Price Performance, Valuation & EstimatesSoundHound’s shares have lost 25.4% year to date (YTD), underperforming the industry, as shown below.
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 12.7, slightly above the industry’s average.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 and 2027 loss per share has narrowed to 16 cents and 13 cents, respectively, as shown below. The expected loss for 2026 remains wider than the previous year’s loss of 13 cents per share.
Image Source: Zacks Investment Research
SOUN currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SoundHound AI za posledních 12 měsíců ztratila 54,67 %, přesto má průměrný cenový cíl analytiků 69,92 % nad současnou cenou. Nejvyšší odhad počítá s růstem o 167 %.
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SoundHound AI (NASDAQ:SOUN) currently trades at $7.48, while the average Wall Street price target sits at $12.71, an implied gap of 69.92% between current price and analyst consensus.
SoundHound builds independent voice and agentic AI software deployed across automotive, healthcare, restaurants, and financial services. Wall Street is watching because the top line compounds fast while losses narrow, and the pending LivePerson acquisition could reshape the revenue base heading into 2027.
One prominent analyst carries the Street-high target of $20, implying roughly 167% upside from here.
A Rerating That Erased Half The Stock In A Year
SoundHound has lost 54.67% over the past year. Shares traded as high as $22.17 in the last 52 weeks before drifting toward single digits.
The selloff came despite strong results. Q2 FY2026 revenue of $61.9 million came in 45.02% ahead of the prior year and beat the $52.4 million consensus. Investors punished the story for cash burn and dilution risk: cash slipped from $248.5M to $202.8M over six months, stock-based comp ran at $21.5M in the quarter, and contingent acquisition liabilities of $83.6M loom over the share count.
The pain was company-specific. The S&P 500 rose 20.62% over the same 12-month window while SOUN lost more than half its value.
Why The Sell-Side Still Sees A Path Back Above $12
Analysts have refused to blink because the operating story keeps beating models. Of the analysts tracked, six rate SOUN a Buy and two rate it Hold, with no Sell ratings. Full-year 2026 revenue guidance was raised to $230 million to $260 million, and combined 2027 revenue with LivePerson is projected at $350 million to $400 million minimum.
H.C. Wainwright’s bull case sits at the top of the range. The firm highlights rapid drive-thru monetization at Church’s Texas Chicken, Torchy’s Tacos, and White Castle, expansion into Vision AI and the Agentic+ platform, and cross-selling voice into the Amelia and LivePerson customer bases. Operational leverage is expected to push SoundHound toward adjusted EBITDA break-even by late 2026 or 2027, backed by a debt-free balance sheet.
CEO Keyvan Mohajer told investors that “our pipeline has never been this big, and our win rate has never been this good,” citing an eight-figure commitment signed in less than 90 days from demo to contract. With Gartner projecting agentic AI software spending near $1 trillion by 2030, the analyst view is that SoundHound is early in a category it helped define. Recent revisions have leaned reiteration and upgrade, not downgrade.
SoundHound Fell Alone Among Its Direct Peers
The broader enterprise and voice AI cohort is soft, but SOUN’s 12-month drop is the steepest of the closest comparables.
Cerence (NASDAQ:CRNC), the closest voice-in-vehicle competitor, trades at $8.61 against a consensus target of $10.75, roughly 25% upside. It has fallen 36.32% over the past year. The rating slate skews Hold at one Buy and four Holds.
C3.ai (NYSE:AI | AI Price Prediction) sits at $10.18 with a consensus target of $8.82, meaning analysts collectively see downside from here. Shares are off 45.27% over 12 months, and the rating mix is bearish at one Buy, seven Holds, three Sells, and three Strong Sells following downgrades tied to restructuring under returning CEO Tom Siebel.
BigBear.ai (NYSE:BBAI) trades at $3.34 with a consensus target of $4.00, about 20% upside. The stock is down 42.51% on the year, with one Buy and two Holds and no meaningful upgrade momentum.
The largest analyst-implied upside across the group belongs to SoundHound at 69.92% on consensus, and 167% on the Street-high case.
Consensus Says 70% Upside, The Street-High Says 167%
SOUN trades at $7.48 with an average analyst target of $12.71, implying 69.92% upside. Coverage is concentrated among eight analysts, with six Buy ratings and two Hold, and no Sells.
Year to date, SOUN is off 24.97%, while the S&P 500 is up 14.07%. Recent trading has been firmer, with the stock up 11.81% over the past month following the Q2 report. Reddit sentiment around the earnings release ran very bullish at 82, and insider activity is net buying with 17 recent transactions.
Opportunity Or Value Trap
The bull case strengthens if the LivePerson deal closes cleanly and combined 2027 revenue arrives at the $350 million to $400 million range with gross margin marching back toward the 70% level the CFO explicitly targets. The path to consensus $12.71 runs through EBITDA break-even, continued 40%-plus revenue growth, and OASIS wins that convert eight-figure demos into signed contracts. Scott Buck’s $20 target stops looking like a stretch if that happens.
The bear case takes hold if cash burn chews through the $202.8 million war chest faster than losses narrow, if $21.5 million quarterly stock comp turns growth into permanent dilution, or if LivePerson integration surfaces execution risk. A high beta of 2.83 means the round trip could hurt.
The peer group offers less upside on worse fundamentals, the consensus gap is real, and the operating trajectory is trending the right way. This is a high-volatility bet on execution rather than a safe compounder, and position sizing matters more than conviction here.
Contact [email protected] for any questions or corrections.
SoundHound ve 2. čtvrtletí zvýšil tržby na rekordních 61,9 mil. USD, meziročně o 45 %, a zlepšil marži i snížil ztrátu. Firma zároveň zvýšila výhled tržeb na rok 2026 na 230–260 mil. USD.
Key Takeaways SOUN posted record Q2 revenues of $61.9M, up 45%, while margins and adjusted EBITDA loss improved.OASYS drove strong Q2 results, with one eight-figure commitment signed less than 90 days after its demo.SOUN raised its 2026 revenue outlook to $230-$260M as growth broadened across multiple markets. SoundHound AI, Inc. (SOUN - Free Report) has given Wall Street fresh reasons to become more positive after a record second quarter, highlighted by faster revenue growth, improving margins and strong adoption of its OASYS platform. The better-than-expected performance has led to upward estimate revisions, strengthening the investment case even as the stock remains sharply down in 2026. Over the past 30 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss has narrowed to 14 cents per share from 15 cents, while the estimated 2027 loss has narrowed to 15 cents from 17 cents. The consensus estimate calls for 2026 revenues to rise 41% from the 2025 level, followed by another 14.6% increase in 2027. However, the expected 2026 loss remains wider than the loss of 13 cents per share reported in the previous year.
SOUN Estimate Revision
Image Source: Zacks Investment Research
The bullish brokerage view is also notable. Of the eight recommendations making up the current Average Brokerage Recommendation, five are Strong Buy, accounting for 62.5% of the total. The average Wall Street price target implies 62.2% upside from the latest closing price.
Image Source: Zacks Investment Research
Record Q2 Gives Analysts More ConfidenceSoundHound delivered second-quarter revenues of $61.9 million, up 45% year over year and 40% sequentially. The quarter marked the company's highest revenue to date. Non-GAAP loss was 2 cents per share compared with 3 cents a year earlier. GAAP gross margin expanded to 45.1% from 39%, while adjusted EBITDA loss improved 33% to $9.6 million from $14.3 million.
The quarter's strength was broad-based rather than dependent on one market. Management said growth came from healthcare, financial services, technology and automotive, while enterprise AI remained the largest contributor to revenues. SoundHound also continued to expand its automotive presence in Asia.
Strong second-quarter execution prompted management to raise its 2026 revenue outlook to $230-$260 million. The guidance does not yet incorporate the planned LivePerson acquisition, and SoundHound intends to update its outlook when that transaction closes.
OASYS Emerges as a Major Growth CatalystOASYS is becoming central to SoundHound's growth story. Management attributed a significant part of the second quarter's stronger-than-expected performance to the self-learning agentic AI platform, which was launched in May. The company said it is seeing strong results across demos, RFPs, pilots and production deployments. One eight-figure commitment moved from initial demonstration to contract signing in less than 90 days, highlighting the potential for OASYS to shorten sales cycles.
The platform also gives SoundHound a way to expand within existing customers. OASYS allows businesses to deploy AI agents across phones, vehicles, restaurants, retail locations and other channels rather than building separate solutions for each channel. A top-20 healthcare provider quadrupled its spending with SoundHound during the second quarter, while the company expanded or renewed relationships with several other healthcare and financial-services customers.
SoundHound's proprietary technology could support margins over time as well. The company is investing in its Polaris speech foundation model, specialized LLMs and speech synthesis. Its smaller-business customers are already operating entirely on SoundHound's own stack, and management believes greater use of proprietary models can reduce costs while improving accuracy, latency and control.
Expanding Markets Add to SOUN's TailwindsSoundHound is increasingly diversified beyond its traditional automotive business. During the second quarter, it added and expanded customers across healthcare, financial services, restaurants, automotive and consumer devices. Restaurant adoption was particularly encouraging, with technology expanding across Five Guys, IHOP and Jersey Mike's, while a major pizza brand had SoundHound deployed in more than 75% of its locations. The company also signed an initial eight-figure multiyear partnership covering more than 20 countries in Latin America.
Voice Commerce offers another potential growth channel. SoundHound plans to pilot direct in-vehicle transactions and is working to bring agentic transactions to connected devices. If these initiatives scale, the company could move beyond software fees and participate more directly in transaction-based opportunities.
The planned LivePerson acquisition could further expand SoundHound's enterprise footprint. Management expects the transaction to add relationships with 25 Fortune 100 companies and believes OASYS can provide a common platform for integrating acquired technologies.
Losses, Cash Burn and Valuation Remain Key RisksDespite the operating progress, SoundHound has not yet reached profitability. Second-quarter GAAP net loss was $42.8 million, while the non-GAAP net loss totaled $9 million. For the first six months of 2026, operating activities used nearly $60 million of cash, up from $43.7 million in the year-ago period. The company nevertheless ended June with about $203 million in cash and no debt, providing financial flexibility while it continues investing in growth.
The acquisition strategy adds another layer of execution risk. Integrating LivePerson while continuing to migrate customers from previously acquired businesses onto OASYS will require careful execution. Management acknowledged that legacy customers will move to OASYS at different speeds rather than through a rapid forced migration.
Valuation also leaves little room for major execution setbacks. SOUN trades at 12.34X forward 12-month sales, slightly above the Zacks Computers - IT Services industry's 12.23X. Investors are therefore paying a premium for growth despite continued losses and cash use.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
SOUN Still Trails the Market Despite Q2 MomentumSoundHound shares are down 25.6% year to date, underperforming the Zacks Computers - IT Services industry's 14.3% decline. The gap is much wider against the broader Zacks Computer and Technology sector, which has gained 16.9%, and the S&P 500's 12.5% advance.
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
The weak share-price performance suggests that investors remain cautious about profitability, valuation and execution. However, the combination of stronger second-quarter results, raised revenue guidance and improving earnings estimates gives the stock a stronger fundamental base than its year-to-date performance implies.
How SoundHound Measures Up Against Key AI RivalsSoundHound faces different competitors across its expanding AI markets. Cerence (CRNC - Free Report) competes directly in automotive voice AI, conversational assistants and in-car AI solutions, while Five9 (FIVN - Free Report) competes in cloud contact centers, voice bots and customer engagement automation. NICE (NICE - Free Report) also competes in enterprise conversational AI, contact center automation and AI-powered customer service.
SoundHound's 25.6% year-to-date (YTD) plunge trails Cerence's 19.1% dip and NICE's 12.8% decline, while Five9 has surged 55.6%. Valuation makes the difference even sharper. SoundHound's 12.34X forward sales multiple is far above Cerence at 1.26X, Five9 at 1.78X and NICE at 1.71X.
That premium means SoundHound must deliver much faster growth to justify its valuation. Cerence remains an important automotive benchmark, while Five9 and NICE bring established enterprise customer bases. SoundHound's advantage rests on OASYS, its proprietary voice technology and its ability to connect enterprise, automotive and physical AI experiences on one platform.
Is SOUN Stock a Buy Now?SoundHound's investment case has strengthened following the second quarter. Record revenues, accelerating OASYS adoption, improving margins, a higher 2026 revenue outlook and favorable estimate revisions all point toward better operating momentum. The expansion across healthcare, financial services, restaurants, automotive and Voice Commerce also reduces reliance on any single end market.
Risks remain meaningful. SoundHound is still losing money and burning cash, the LivePerson deal introduces integration risk, and its valuation carries a sizable premium to Cerence, Five9 and NICE. The stock's 25.6% YTD decline shows that investors continue to demand proof that rapid revenue growth can eventually translate into sustainable profits.
Still, upward estimate revisions following a strong second quarter improve the risk-reward setup. With SoundHound currently carrying a Zacks Rank #2 (Buy), investors willing to accept higher volatility and execution risk can consider the stock for its long-term exposure to conversational and agentic AI growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The artificial intelligence (AI) boom has created a tremendous amount of value for investors over the last few years, but not every stock in this space has been a winner. SoundHound AI (SOUN -0.67%) stock, for example, soared to an all-time closing high of $24.23 in late 2024 but has since plummeted 67% to close at just $8 last Friday, Aug. 7.
The company is a leading developer of conversational AI software, with a growing list of customers that includes some of the biggest names in hospitality, automotive manufacturing, financial services, and more. SoundHound stock is still trading at an elevated valuation despite its sharp decline, but that could change after the company completes a major strategic acquisition later this year, which will provide a substantial boost to its revenue.
Should investors buy the stock today, or is there more downside ahead?
Image source: The Motley Fool.
Conversational AI is transformative for businesses Over the last few years, SoundHound's out-of-the-box products have helped businesses deploy voice-activated AI systems into their daily operations. Restaurant chains like White Castle and Panda Express use them to accept orders autonomously in-store, over the phone, and at the drive-thru, while car companies like Hyundai and Stellantis use them to power intuitive voice assistants in their latest vehicles.
But in May, SoundHound launched an entirely new platform called the Orchestrated Agent System (OASYS), which enables its customers to build custom AI voice agents to handle customer inquiries, process transactions, and assist human employees in solving complex problems.
OASYS is built on SoundHound's proprietary foundational speech recognition model, unlike many other AI software products that simply use models from third parties such as OpenAI and Anthropic. Agents built on OASYS also continually learn and improve as they become more familiar with a particular enterprise. These features are appealing to businesses seeking to differentiate their AI products from those of competitors.
SoundHound just increased its 2026 revenue forecast SoundHound generated $61.9 million in revenue during the second quarter of 2026 (ended June 30), a 45% increase from the year-ago period. It was also 10 times the revenue the company generated in the same quarter four years ago, which was its first quarter as a public company. Simply put, it has come a long way.
The second-quarter result was so strong that SoundHound increased its full-year revenue guidance for 2026 to $245 million, up from $242.5 million in its previous forecast (at the midpoint of the respective ranges).
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But SoundHound's revenue could receive a significant boost once it completes its acquisition of another AI enterprise, LivePerson, which is expected to close before the end of this year. Management is targeting revenue of $350 million to $400 million in 2027 due to the deal, representing a 53% increase (at the midpoint) from the company's projected 2026 result.
SoundHound's main challenge is balancing growth and profitability, because scaling an AI software business isn't cheap. The company suffered a generally accepted accounting principles (GAAP) net loss of $42.8 million during the second quarter. While that was a strong improvement from its year-ago loss of $74.7 million, there is still a lot of work to do before the business trades in the black.
SoundHound even lost $9.6 million by its preferred measure of profitability, adjusted (non-GAAP) earnings before interest, tax, depreciation, and amortization (EBITDA), which excludes one-off and noncash expenses such as stock-based compensation. Fortunately, the company had $203 million in cash on hand and no debt at the end of the second quarter, allowing it to sustain these losses for the foreseeable future. But it will have to reach profitability in the next few years if it wants to avoid asking investors for more money.
SoundHound's stock is pricey, despite its decline SoundHound stock currently trades at a price-to-sales (P/S) ratio of 16.7, so despite its 67% decline, it's still notably more expensive than many other AI software stocks. Moreover, the Nasdaq-100 has a P/S ratio of just 6.3, so SoundHound is more than twice as expensive as a basket of America's top technology stocks.
SOUN PS Ratio data by YCharts
Even if we assume SoundHound will generate $400 million in revenue during 2027, its forward P/S ratio would still be 8.7. That makes it a tough investment right now, given the small risk that the LivePerson deal won't officially close due to regulatory issues. There is also execution risk, meaning we don't know if LivePerson's business will be as synergistic with SoundHound's existing operations as expected.
For those reasons, I think investors might be better off waiting on the sidelines for a better opportunity. If there is a correction in the broader market, SoundHound stock could decline even further, which might be a good opportunity to pounce.
SoundHound AI po výsledcích za 2. čtvrtletí zvýšila výhled, když tržby vzrostly o 45 % a ztráta na akcii byla o tři centy lepší, než čekal trh. Akcie po zprávě vyskočily o více než 30 %.
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52-Week Range$5.65▼
$22.17Price Target$14.00
SoundHound AI’s NASDAQ: SOUN market sent a clear signal following its Q2 earnings report, surging more than 30% on the news and closing the week at its highs. The move reveals solid support at long-term lows, a critical support target given the ultra-high short interest, and a high probability that this market will complete a reversal.
While short-sellers had ample reason to sell into this market, they’ve overdone it, pushing short interest to over 40%, and now short-covering is in play, driven by a strengthening fundamental story. Technically, SOUN is showing a Double Bottom reversal pattern and has only a single hurdle remaining, as of early- to mid-August - the pattern’s baseline, a resistance point that may be easily broken.
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Analysts Praise SoundHound Results: Some Caution RemainsAlthough analysts had mixed responses, with some citing valuation concerns, execution risks, and cash burn, the outlook remains optimistic. Cautious responses were offset by positives, including robust affirmations from Cantor Fitzgerald and Oppenheimer. They view SoundHound as a best-in-class voice AI play with deal activity driving solid results and momentum across segments. They focus on the fast top-line growth, underpinned by large enterprises, and the upcoming LivePerson acquisition as near-term catalysts, and are confident the company can reach its goals.
Current Price$7.49High Forecast$20.00Average Forecast$14.00Low Forecast$7.00SoundHound AI Stock Forecast Details
The takeaway for investors is that nine analysts provide a modest conviction in the Moderate Buy rating, there is a 55.5% Buy-side bias within the data, and about 85% of upside at the consensus target, which is well above the critical resistance point.
With support strengthening, as indicated by technical signals, and catalysts such as improving business momentum and acquisitions in play, the likely outcome is that SoundHound's price action completes its reversal by year’s end. The high short interest and analysts' caution point to some near-term turbulence as the market completes its reversal, but larger stock price advances are likely by year’s end and in early 2027 as results reveal strategic traction.
Technical signals suggesting market traction include the price action, trading volume, the MACD histogram, and the stochastic oscillator. Price action reveals buying, volume suggests the move is solid, and MACD reveals the bulls are regaining control. In this scenario, stochastic shows the market is incredibly oversold, ready to advance, and has ample room to run. The combined result is a firm support target at $5.90, which limits risk in Q3, support echoed by institutional activity, coupled with a robust upside.
SoundHound Raises Guidance as OASYS Gains TractionSoundHound’s stock price outlook centers in large part on the OASYS platform. It is a cloud-native, user-friendly platform for agentic AI development. The basic platform ingests company-specific materials and creates agentic processes to handle operations, including customer-facing ones. Among the benefits are ease of use; agents can be up and running in minutes, and self-learning capability. OASYS agents evaluate their own performance, offering patches and fixes for developers to approve. What it means for the business is a higher-margin revenue stream with potential to accelerate growth.
SoundHound’s Q2 results reveal end-market users find utility with the product. The company’s revenue grew by 45%, outpacing the consensus estimate by more than 1800 basis points. Strength was seen across industries and verticals, aided by new clients, new verticals, renewals, and production penetration.
Margin is another highlight, with operating and business losses narrowing sharply. The adjusted two-cent loss is three cents better than expected, playing into management's decision to raise guidance. Guidance is the operative factor, with full-year revenue expected at $230 million at the low end of the range, compared to the $232 consensus, and margin improvement on the table. As it stands, SoundHound may not need to raise additional capital, but it is dependent on margin improvement and the successful integration of LivePerson.
SoundHound: Execution Is Critical in the Back Half of 2026SoundHound’s catalysts are its expanding OASYS business and the LivePerson integration. While OASYS underpins organic growth and margin improvement, LivePerson will instantly increase the user base and cross-selling opportunities while expanding the addressable market. The company expects rapid uptake, as LivePerson’s clientele has been exiting in favor of services like SoundHound's. Management didn't provide any specifics, but the deal is expected to close by year’s end, potentially doubling SoundHound’s 2027 revenue outlook when it does.
SoundHound’s biggest risks are competition and execution. All major hyperscalers actively work and deploy agentic voice AI and could render SoundHound’s product moot. The difference is that SoundHound provides superior functionality, having focused on voice-to-meaning from the beginning rather than using voice-to-text as its starting point. Execution is the bigger risk, with cash burn already an issue. Missteps and delays, unexpected costs, and capital need will all be reflected in the stock price and may keep short-sellers in the market until more concrete evidence of business momentum and profitability exists.
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SoundHound ve 2. čtvrtletí zvýšil tržby o 45 % na rekordních 61,9 mil. USD díky silné poptávce po OASYS. Zároveň zvedl výhled tržeb na rok 2026 na 230–260 mil. USD.
Key Takeaways SoundHound's Q2 revenues jumped 45% to a record $61.9M as enterprise demand for OASYS strengthened.SOUN raised its 2026 revenue outlook to $230-$260M, lifting the lower end by $5M after first-half gains.OASYS cut development timelines, while GAAP gross margin rose 610 basis points to 45.1% in Q2. SoundHound AI, Inc. (SOUN - Free Report) delivered a record second quarter as enterprise demand for OASYS helped lift revenues and management raised the floor of its 2026 outlook. The result strengthens the case that the platform is becoming a more meaningful growth driver.
Investors now have a tougher test to watch. Faster deal conversion and improving margins need to persist while SoundHound absorbs acquisition risk and works toward better cash generation.
SoundHound's Record Q2 Shows OASYS MomentumSecond-quarter revenues rose 45% year over year to a record $61.9 million, topping the Zacks Consensus Estimate of $52.49 million by 17.9%. The adjusted loss narrowed to 2 cents per share from 3 cents a year earlier and beat the consensus estimate of 3 cents.
Management attributed the top-line growth to major enterprise AI deals linked to OASYS. The self-learning, orchestrated platform lets customers build and deploy conversational agents across phones, chat, kiosks, smart devices, drive-thrus, televisions and vehicles.
SOUN's Guidance Raise Extends the Growth StorySoundHound raised its 2026 revenue outlook to $230-$260 million from $225-$260 million, lifting the lower end by $5 million. The revision followed its first-half performance and continued demand for OASYS and the company's broader voice and agentic AI portfolio.
The Zacks Consensus Estimate for 2026 sales is $233 million, up 37.9% from 2025. That figure sits near the lower end of management's new range, while the unchanged $260 million ceiling leaves the raised floor as the principal guidance change.
OASYS Helps SoundHound Shorten Deal TimelinesManagement said work that previously took months can now be built in minutes using OASYS. One eight-figure commitment moved from demonstration to contract in less than 90 days. OASYS also helped SoundHound convert pilots and customer evaluations more quickly.
Cerence Inc. (CRNC - Free Report) , a listed Zacks industry peer, develops conversational AI for automotive use cases. Five9, Inc. (FIVN - Free Report) , another listed peer, offers agentic and voice AI for contact centers. Those businesses frame the competitive pressure SoundHound faces across automotive and enterprise customer-service deployments.
SOUN's Margin Improvement Adds Quality to the BeatGAAP gross margin expanded 610 basis points year over year to 45.1% from 39%, while GAAP gross profit rose 68% to $27.9 million. Adjusted EBITDA loss narrowed 33% to $9.6 million from $14.3 million.
Non-GAAP gross margin was unchanged at 58.4%, indicating stable underlying gross profitability after the company's adjustments. Losses remain material, however. GAAP net loss totaled $42.8 million and first-half operating cash outflow widened to $60 million from $43.7 million a year earlier.
SoundHound's Outlook Excludes LivePerson UpsideThe new 2026 outlook does not contemplate SoundHound's pending acquisition of LivePerson, Inc. (LPSN - Free Report) . SoundHound expects the transaction to close before the end of 2026 and plans to update guidance after completion.
That structure leaves any post-close contribution outside the current range, but the transaction also adds execution risk. SoundHound must integrate technologies, engineering teams and enterprise platforms while continuing to convert OASYS demand into scaled deployments.
SoundHound's Scores Temper the Post-Earnings SetupThe second-quarter report strengthens the operating case for OASYS, but the next phase depends on whether faster deployments can support durable margin improvement and better cash generation while acquisition risks remain in focus.
SOUN currently carries a Zacks Rank #3 (Hold), a VGM Score of F, Value Score of F, Growth Score of D and Momentum Score of F. The Zacks Rank reflects earnings-estimate revisions over a one- to three-month horizon, while the Style Scores assess value, growth and momentum characteristics. The weaker grades temper the setup despite the stronger quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways SoundHound's 2026 revenues are projected at $233 million, up 37.9% from 2025.OASYS can cut enterprise deployment times, with one eight-figure deal signed in under 90 days.SOUN faces premium valuation, ongoing losses, cash burn, dilution and LivePerson integration risk. SoundHound AI, Inc. (SOUN - Free Report) offers a high-growth enterprise AI story, but the stock still asks investors to accept a premium sales multiple, ongoing losses and substantial execution risk.
The case for buying SOUN therefore depends on whether faster adoption of its conversational and agentic AI platform can translate into durable revenue growth and better cash generation.
SoundHound's 37.9% Sales Growth Supports the Bull CaseThe Zacks Consensus Estimate calls for 2026 revenues of $233 million, up 37.9% from 2025. That growth rate supports the bull case as SoundHound expands beyond its historical automotive exposure.
Second-quarter wins and renewals spanned health care, banking, insurance, telecommunications, automotive, restaurants and retail. The wider customer mix gives SOUN more avenues for growth as enterprise AI demand broadens.
OASYS Gives SOUN a Faster Path to Enterprise ScaleOASYS is central to SoundHound's effort to shorten enterprise deployments and unify conversational and agentic AI across channels. Management said tasks that previously took months can now be built in minutes, while one eight-figure commitment moved from demonstration to contract in less than 90 days.
Salesforce, Inc. (CRM - Free Report) is an industry peer for SOUN. Microsoft Corporation (MSFT - Free Report) is another, reinforcing that SoundHound is scaling OASYS in a competitive enterprise technology market.
SOUN's Valuation Leaves Little Room for Execution SlipsSOUN's forward 12-month price-to-sales ratio is 12, compared with 11.84 for the Zacks sub-industry, 6.51 for the Zacks Computer and Technology sector and 5.03 for the S&P 500. The premium means growth expectations remain elevated.
The ratio is below SoundHound's five-year median of 14.2. The stock is therefore cheaper than its own historical norm, but it is not inexpensive relative to broader benchmarks.
SoundHound's Losses and Dilution Argue for CautionSoundHound posted a second-quarter GAAP net loss of $42.8 million and used $60 million of operating cash in the first half of 2026. Those figures show that rapid revenue expansion has not yet produced sustainable profitability or positive operating cash flow.
The company raised about $48.5 million through Class A share sales in the first half, while outstanding Class A shares rose to 403.3 million from 390.1 million at year-end 2025. Cash totaled $202.8 million at June 30, 2026, and the company had no debt, but further cash burn could keep dilution risk in focus.
SOUN's LivePerson Upside Comes With Integration RiskThe planned LivePerson acquisition would broaden SoundHound's enterprise reach and add customers that include 25 Fortune 100 brands. Assuming the deal closes successfully, management expects at least $350 million to $400 million in 2027 revenues.
The transaction also raises integration risk. Combining technologies, engineering teams, corporate cultures and enterprise platforms could strain execution, while the expected benefits depend on successful cross-selling, cost synergies and continued customer adoption.
SoundHound's Scores Favor a Wait-and-Watch StanceSoundHound's growth outlook is substantial, but its valuation, losses, cash burn and acquisition demands make the risk-reward balance less clear. That supports a wait-and-see stance until execution and cash generation improve.
SOUN currently carries a Zacks Rank #3 (Hold), with a VGM Score of F, Value Score of F, Growth Score of D and Momentum Score of F. The Style Scores complement the Zacks Rank, and A or B grades are more favorable than D or F. The Growth Score also considers financial-statement quality, not sales growth alone. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delivers strong growth with OASYS driving significant enterprise AI adoption; improves all key profitability metrics
SANTA CLARA, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and agentic AI, today reported its financial results for the second quarter 2026.
"Our exceptional Q2 results demonstrate the momentum SoundHound is building, achieving a strong revenue performance, disciplined cost management, and industry-leading platform validation,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. “With our Q2 revenue now 10 times what it was when we debuted as a public company in Q2 2022, and enterprise demand for high-ROI voice and agentic AI accelerating globally, our OASYS platform and in-house model innovations position us to lead in the new era of enterprise automation."
Financial Highlights
Second quarter reported revenue was $61.9 million, an increase of 45% year-over-yearSecond quarter GAAP gross margin was 45.1%; non-GAAP gross margin was 58.4%Second quarter adjusted EBITDA was a loss of ($9.6) millionSecond quarter GAAP net loss was ($42.8) million; non-GAAP net loss was ($9.0) millionSecond quarter GAAP earnings per share was a loss of ($0.10); non-GAAP earnings per share was a loss of ($0.02) “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," said James Hom, Interim CFO and Co-founder of SoundHound AI. "We are excited by the strong interest we are already seeing with OASYS which is a testament to the category-defining technology we continue to deliver to the market. Our investment in innovation, combined with our cost discipline, is key as we drive our business toward achieving profitable growth."
Business Highlights
Healthcare and Pharmaceuticals Signed a 7-figure deal with a nationally ranked healthcare system with 30,000 employees throughout its hospitals, health parks, and medical officesWon Champion Payer Solutions, a California based company that provides all aspects of managed care management services to client physician groupsWon new business with an existing U.S. healthcare customer that provides technology, pharmacy care, and direct healthcare services globallyWon new business with existing customer that provides practice management and electronic health record solutions, customized for the eye care industryRenewed with: A leading in-home nursing services, pediatric therapy, enteral nutrition, and ABA therapy healthcare companyA rehab facility offering nursing care for short-term rehab, respite care, and long-term care servicesA global biopharmaceutical leader and one of the world’s largest generic drug manufacturers Banking, Financial Services, and Insurance: Renewed with: Rakuen Securities, one of Japan’s largest online brokerages, serving over 6 million accountsA global asset-management firm providing investment-management and research services to investors worldwideOne of the largest American multinational banks offering financial services and investment bankingA major international financial services organization headquartered in Canada offering life and health insurance, wealth solutions, and asset managementAn insurance company that offers individuals, professionals and businesses casualty insurance products Telecommunications: Renewed with a British multinational telecommunications company operating in 15 countries Auto, Devices, and Voice Commerce: Signed a 7-figure deal with a major automotive infotainment software company in ChinaWon a new deal with a global developer of automotive diagnostic scan tools, ADAS calibration systems, and shop maintenance equipmentStellantis increased overall unit adoption and expanded to add SoundHound’s live generative AI capabilitiesHyundai expanded unit adoption of live generative AI capabilitiesMultinational electronics manufacturer agreed to deploy SoundHound’s technology to enable agentic transactions directly from their TVsSigned a new world-renowned automotive brand to rollout direct in-car Voice Commerce transactions Restaurants, Retail, and Consumer Goods: Signed new deals with: A large QSR specializing in seafood to adopt SoundHound’s drive-thru ordering solutionRuby Tuesday signed on to use both Smart Answering and Smart Ordering solutionsA major QSR known for American-style Mexican foodA sushi restaurant known for its music and concert-themed menus Continued expansion with key brands: Five Guys, IHOP, Jersey Mike’s, and a prominent pizza brand that now has SoundHound technology live in more than 75% of their total locations.Signed renewals with Habit Burger, Red Lobster, and Torchy’s Tacos. Lazy Dog also renewed and expanded to use both Smart Answering and Smart Ordering Channel Expansion: 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 countriesEntered into a partner agreement with a massive global IT services and consulting provider specializing in comprehensive enterprise digital transformations Second Quarter 2026 Financial Measures1
Three Months Ended
(thousands, unless otherwise noted)June 30, 2026 June 30, 2025 ChangeRevenues$61,897 $42,683 45%GAAP gross profit$27,930 $16,662 68%GAAP gross margin 45.1% 39.0% 6.1pp Non-GAAP gross profit$36,117 $24,921 45%Non-GAAP gross margin 58.4% 58.4% - GAAP operating loss2$(43,298) $(78,051) 45%Non-GAAP adjusted EBITDA$(9,607) $(14,300) 33%GAAP net loss2$(42,817) $(74,724) 43%Non-GAAP net loss$(8,987) $(11,863) 24%GAAP net loss per basic share2$(0.10) $(0.19) 0.09 Non-GAAP net loss per basic share$(0.02) $(0.03) 0.01 1) Please see tables below for a reconciliation from GAAP to non-GAAP.
2) GAAP-only operating loss includes an impact from the calculated fair value of contingent acquisition liabilities where future earn-out shares are marked-to-market on a quarterly basis, and with the fluctuation in stock price compared to the previous quarter there was a gain associated with this item of approximately $4 million in the second quarter 2026. Non-GAAP measures exclude this non-operating/non-cash impact.
Liquidity and Cash Flows
The company’s total cash and cash equivalents was $203 million at June 30, 2026, with no debt.
Condensed Cash Flow Statement
Six Months Ended
(thousands)June 30, 2026 June 30, 2025Cash flows: Net cash used in operating activities$(59,969) $(43,682)Net cash used in investing activities$(32,727) $(354)Net cash provided by financing activities$46,699 $76,606 Effects of exchange rate changes on cash$283 $(210)Net change in cash and cash equivalents$(45,714) $32,360 Business Outlook
Based on the company’s strong performance in the second quarter the company is raising its full year 2026 revenue outlook to now be a range of $230 - $260 million. Contemplating the close of LivePerson, SoundHound plans to update its guidance accordingly at that point in time, which is expected before the end of 2026.
Additional Information
For more information please see the company’s SEC filings which can be obtained on the company’s website at investors.soundhound.com. The financial statements for the fiscal quarter will be posted on the website, and will also be filed as an exhibit when the company files its 8-K including this press release. The financial data presented in this press release should be considered preliminary until the company files its 10-Q.
Conference Call and Webcast
SoundHound AI will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. A live webcast and replay will also be accessible at investors.soundhound.com.
About SoundHound AI
SoundHound AI is a voice and agentic AI company that enables businesses to deliver natural, end-to-end conversational experiences across digital and physical channels, including phones, kiosks, chat, smart devices, drive-thrus, TVs, in-vehicle, and more. Its agentic platform, OASYS, is a self-learning, orchestrated AI system where organizations can build and deploy conversational AI agents to handle transactions, tasks, and workflows on behalf of customers and employees. Built on proprietary technology backed by 400+ patents and years of AI research, SoundHound serves leading brands across industries including automotive, financial services, healthcare, retail, telecommunications, and more. It powers millions of products and processes billions of interactions annually for enterprise customers worldwide. Learn more at: www.soundhound.com
Forward Looking Statements
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, the anticipated closing of our pending acquisition of LivePerson, and guidance for financial results for 2026. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, our ability to successfully launch and commercialize new products and services and derive significant revenue, our market opportunity and our ability to acquire new customers and retain existing customers, our ability to close the acquisition of LivePerson in our expected timeframe or at all, unexpected costs, charges or expenses resulting from our recent acquisitions and our pending acquisition of LivePerson, the ability of our recent acquisitions and, upon closing, our acquisition of LivePerson, to be accretive on the company's financial results, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures of Financial Performance
To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.
The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.
As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance.
The company defines its non-GAAP measures by excluding certain items:
The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets), (ii) stock-based compensation and related payroll taxes, and (iii) acquisition-related expenses.
The company arrives at adjusted EBITDA by excluding (i) total other income/(expense), net, (ii) income taxes, (iii) depreciation and amortization expense (including acquired intangible assets), (iv) amortization of capitalized commissions, (v) stock-based compensation and related payroll taxes, (vi) change in fair value of contingent acquisition liabilities, and (vii) acquisition-related expenses.
The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) amortization of capitalized commissions, (iii) stock-based compensation and related payroll taxes, (iv) change in fair value of contingent acquisition liabilities, (v) change in fair value of derivative, (vi) acquisition-related expenses.
Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.
To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.
Second Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ended
(thousands, unless otherwise noted)June 30, 2026
June 30, 2025
GAAP gross profit1$27,930 $16,662 Adjustments: Amortization of intangibles 5,725 4,084 Stock-based compensation and related payroll taxes2 2,487 4,175 Acquisition-related expenses 35 - Non-GAAP gross profit$36,177 $24,921 GAAP gross margin 45.1% 39.0% Non-GAAP gross margin 58.4% 58.4% 1) GAAP gross profit is calculated by subtracting the cost of revenues from revenues.
2) Q2 2026 includes employer payroll taxes that result from stock-based compensation in the amount of $0.1 million.
Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
Three Months Ended (thousands)June 30, 2026 June 30, 2025GAAP net loss$(42,817)
$(74,724)Adjustments: Total other income, net1 (2,663) (4,583)Income taxes 2,182 1,256 Depreciation and amortization 11,105 7,774 Amortization of capitalized commissions 461 - Stock-based compensation and related payroll taxes2 21,495 23,810 Change in fair value of contingent acquisition liabilities (3,697) 31,359 Acquisition-related expenses3 4,327 808 Non-GAAP adjusted EBITDA$(9,607)
$(14,300) 1) Includes other income, net of $2.7 and $4.8 million for the three months ended June 30, 2026 and 2025, respectively.
2) Q2 2026 includes employer payroll taxes that result from stock-based compensation in the amount of $0.9 million.
3) Acquisition-related expenses in Q2'26 also include acquisition-related severance expenses and transition expenses resulting from the transition agreements under specific acquisition.
Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
Three Months Ended
(thousands, unless otherwise noted) June 30, 2026
June 30, 2025GAAP net loss attributable to SoundHound common shareholders$(42,817)
$(74,724)Adjustments: Depreciation and amortization 11,105 7,774 Amortization of capitalized commissions 461 - Stock-based compensation and related payroll taxes1 21,495 23,810 Change in fair value of contingent acquisition liabilities (3,697) 31,359 Change in fair value of derivatives 139 (890)Acquisition-related expenses2 4,327 808 Non-GAAP net loss$(8,987)
$(11,863)Basic: GAAP net loss per share3$(0.10)
$(0.19)Adjustments 0.08 0.16 Non-GAAP net loss per share3$(0.02)
$(0.03)Diluted: GAAP net loss per share4$(0.10)
$(0.19)Adjustments 0.08 0.16 Non-GAAP net loss per share4$(0.02)
$(0.03) 1) Q2 2026 includes employer payroll taxes that result from stock-based compensation in the amount of $0.9 million.
2) Acquisition-related expenses in Q2'26 also include acquisition-related severance expenses and transition expenses resulting from the transition agreements under specific acquisition.
3) GAAP EPS: Weighted average common shares outstanding (basic) for the three months ended June 30, 2026 and 2025, were 430,521,776 and 400,124,499, respectively. Weighted average common shares outstanding (diluted) for the three months ended June 30, 2026 and 2025, were 438,648,450 and 402,043,468, respectively. Diluted EPS excludes earnings impact from realized portion of contingently issuable shares related to prior acquisitions.
4) Non-GAAP EPS: Weighted average common shares outstanding (basic) for the three months ended June 30, 2026 and 2025, were 430,521,776 and 400,124,499, respectively. Weighted average common shares outstanding (diluted) for the three months ended June 30, 2026 and 2025, were 430,521,776 and 402,043,468, respectively. Diluted EPS excludes earnings impact from realized portion of contingently issuable shares related to prior acquisitions.
SoundHound AI Inc (SOUN -0.16%) is scheduled to report second-quarter earnings on Aug. 5. The company is in dire need of a positive update.
Since the start of 2026, SoundHound AI shares have lost more than 40% of their value. And yet Wall Street analysts remains remarkable bullish on the artificial intelligence stock.
Four analysts actively cover SoundHound AI, all of whom rate the stock a “buy.” Their average price target is $12.75, suggesting more than 100% upside over the next 12 months.
The most bullish analyst is Thomas Blakely of Cantor Fitzgerald. He has a $15 price target — one he reaffirmed on May 8, when the stock hovered near $9 per share. SoundHound AI stock has lost around 30% since then, but Blakely apparently remains as bullish as ever.
In the past, Blakely has been particularly excited about SoundHound AI’s ability to cross-sell its expand product portfolio to existing customers.
"SoundHound AI has executed very well, in our view, cross-selling and upselling voice and conversational AI services to its installed base, as well as expanding fully automated voice volumes related to its acquisition of (enterprise AI company) Amelia in late summer 2024," he detailed in a recent note to investors.
Indeed, SoundHound AI’s latest investor presentation heavily references the company’s ability to sell compatible solutions to customers across a wide range of verticals.
But is SoundHound AI actually making progress on this front? There are two major numbers I’ll be monitoring during the upcoming earnings release to gauge the company’s success (or lack thereof).
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Here’s what to watch for during SoundHound AI’s earnings callWall Street remains bullish on SoundHound AI largely because analysts believe the company can accelerate the cross-selling of products to existing customers. This would not only accelerate sales growth beyond simply acquiring new customers but also boost margins, as selling to existing customers usually doesn’t involve the high costs of acquiring new customers.
Given this, the two numbers I’ll be tracking closely are revenue growth and net margins.
Image source: Getty Images
For 2026, SoundHound AI is guiding for revenue of $225 million to $260 million. If realized, that would imply a year-over-year growth rate between 33% to 54%.
On average, analysts are predicting growth of just 37.4%. Next year, sales growth is expected to be just 16.9%. If the pace of cross-selling is successful, we could easily see SoundHound AI beat these estimates, likely resulting in upside to today’s stock price.
Margins should prove just as critical as sales growth. Analysts expect a $0.13 loss per share this year. In 2027, a $0.18 per share loss is expected. SoundHound AI has ramped up its acquisition activity recently, including a $43 million deal to acquire LivePerson.
That deal is expected to close by the end of the year. While these acquisitions enhance SoundHound AI’s cross-selling potential, they will also increase operational costs, adding more pressure on margins.
SoundHound AI continues to grow sales at an impressive pace. But profitability remains elusive. While I don’t expect the company to reach profitability in 2026 or 2027, improved margins would go a long way in regaining the market’s confidence. A lower share price increases the dilutive pressure of future capital raises.
As simple as it sounds, SoundHound AI’s quarterly earnings report will be headlined by top-line sales growth and the trajectory of its path towards profitability. Expect shares to react positively or negatively based on what’s revealed later this week.
LivePerson vyzývá akcionáře, aby dnes hlasovali pro plánovanou transakci se SoundHound AI. Společnost uvádí, že nabídka má hodnotu zhruba 3,33 USD na akcii, asi o 22 % nad 30denním průměrem před oznámením.
Announces Investor Town Hall on Wednesday, August 5, at 8:00 a.m. Eastern Time;
Stockholders Encouraged to Submit Questions to [email protected]
Mails Letter to Stockholders Detailing Transaction Value
, /PRNewswire/ -- LivePerson (NASDAQ: LPSN) ("LivePerson" or "the Company"), a leading provider of predictable conversational AI, today announced that it has mailed a letter to stockholders urging them to vote "FOR" the Company's previously announced transaction with SoundHound AI, Inc. (NASDAQ: SOUN).
LivePerson also announced that it will host an investor town hall and Q&A session on Wednesday, August 5, 2026, at 8:00 a.m. Eastern Time to discuss the benefits of the transaction. The town hall can be accessed by logging onto the investor relations section of the Company's website at ir.liveperson.com. LivePerson stockholders can submit questions about the transaction in advance at [email protected].
The letter, the full text of which is below, has been filed with the U.S. Securities and Exchange Commission and is available at www.VoteLivePerson.com with voting instructions and other information about the transaction.
July 28, 2026
ACTION REQUIRED: VOTE NOW
Fellow Stockholder,
With the special meeting only weeks away, we are writing to urge you to vote "FOR" the proposed acquisition of LivePerson by SoundHound AI today.
Your vote and participation, however many shares you own, are very important. A share that is not voted counts the same as a vote against the transaction. Your prompt response will help us secure stockholder approval before the meeting, reducing the risk of postponement.
The Transaction with SoundHound is the Surest Path to Preserving Value for Your Investment
Value and Upside For Nasdaq Stockholders: Based on the assumptions in the proxy statement/prospectus, most stockholders will receive SoundHound stock, which as of the announcement of the transaction, represented approximately $3.33 in value per LivePerson share, a premium of approximately 22% over LivePerson's 30-day average trading price before the transaction was announced. Because the final exchange ratio depends on a formula that uses SoundHound's stock price near closing, we encourage you to visit VoteLivePerson.com and use the interactive calculator tool to see an illustrative estimate of what the consideration per share could mean for your own holding.
Why Does a "FOR" Vote Matter So Much?
We want to be direct with our stockholders. LivePerson's outstanding debt currently exceeds the total value of this transaction. As we have disclosed, our secured noteholders have agreed to accept a substantial discount to the value of their notes so that stockholders can receive value. Without these concessions, no transaction delivering any value to stockholders would have been possible. Put plainly, if the transaction is not approved, there is a real risk that your shares will ultimately be worth little or nothing. After contacting 66 potential counterparties and receiving no alternative proposals, the Board's unanimous judgment is that the transaction with SoundHound is the best available path to realizing value for stockholders.
Take Two Minutes to Vote Today
Approval requires a majority of all outstanding shares, not just the shares that are voted. That means a share not voted has the same effect as a vote against. However many shares you own, your vote counts.
It is imperative that you take just two minutes to vote FOR the transaction today using one of the following methods. For more information and additional materials visit VoteLivePerson.com.
Online: www.proxyvote.com, or scan the QR code on your proxy card. Phone: Call 1-800-690-6903 with your proxy card, or 1-800-322-2885 to speak with a proxy specialist if you do not have your card. Mail: Mark, sign, and date your proxy card and return it in the postage-paid envelope. Votes must be received by 11:59 p.m. Eastern Time on August 19, 2026, or you may attend the meeting via the Internet and vote during the meeting at www.virtualshareholdermeeting.com/LPSN2026SM. If you hold your shares through a bank or broker, please follow the voting instructions they provide. If you hold shares through the Tel Aviv Stock Exchange, please follow the separate instructions in the proxy statement.
If you have any questions, please contact our proxy solicitor, MacKenzie Partners, Inc., toll-free at 1-800-322-2885 or by email at [email protected].
TASE Holders: Voting instructions for TASE holders differ from those above; please follow the separate instructions shown below, available in the proxy statement and at VoteLivePerson.com. TASE Stockholders are expected to receive consideration in cash rather than in SoundHound stock, in an amount designed to reflect approximately equivalent value based on the same terms described above (subject to the aggregate cash cap described in the proxy statement).
Thank you for your continued support of LivePerson.
Sincerely,
John Sabino
Chief Executive Officer, LivePerson, Inc.
VOTE TODAY
Your vote is very important. The Special Meeting is scheduled for August 20, 2026.
Approval of the merger proposal requires the affirmative vote of a majority of all outstanding shares of LivePerson common stock. Not voting has the same effect as voting against the transaction.
Vote today by proxy card, online at www.proxyvote.com, or by phone. For more information and additional materials visit LINK: VoteLivePerson.com, or contact LivePerson's proxy solicitor, MacKenzie Partners, Inc., toll-free at (800) 322-2885 or by e-mail at [email protected].
LivePerson stockholders who hold shares listed on the Tel Aviv Stock Exchange (TASE) and intend to vote their shares must deliver to LivePerson's Israeli counsel, Arnon, Tadmor-Levy, c/o Moshe Pasker, Azrieli Center (Square Tower), Tel Aviv, Israel, 6702101 (email: [email protected]), an ownership certificate confirming their ownership on July 6, 2026. The form of proxy card for stockholders who hold shares listed on the TASE can be found here: https://mayafiles.tase.co.il/rpdf/1759001-1760000/P1759388-00.pdf.
About LivePerson
LivePerson (NASDAQ: LPSN) is an enterprise leader in predictable conversational AI. The world's leading brands use our award-winning Conversational Cloud and Syntrix platforms to connect with millions of customers. We power nearly a billion messages every month, providing uniquely rich data analytics, agent training, and AI evaluation tools to unlock the power of conversational AI for better business outcomes. Learn more at liveperson.com.
Media Contact:
Riah Lawry
[email protected]
Or
Jim Golden / Dylan O'Keefe
Collected Strategies
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Investor Relations Contact:
[email protected]
Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the U.S. federal securities laws about the expectations, beliefs, plans, intentions, prospects, financial results and strategies relating to SoundHound AI's proposed acquisition of LivePerson. Such forward-looking statements include, among others, statements regarding the timing of filing the definitive proxy/prospectus and timing of LivePerson's special meeting, obtaining regulatory approvals, the timing of closing of the proposed acquisition, and the parties' expectations, intentions, strategies, assumptions or beliefs about future events, results of operations or performance or that do not solely relate to historical or current facts. Forward-looking statements are predictions, projections and other statements about future events or conditions that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including: (1) the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between LivePerson and SoundHound; (2) the possibility that the transaction does not close when expected or at all due to the failure to satisfy all of the conditions to closing on a timely basis or at all, including the failure to obtain the required shareholder approvals or to consummate the notes restructuring transactions contemplated by the Notes Restructuring Agreement; (3) the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which LivePerson and SoundHound operate; (4) any failure to promptly and effectively integrate the businesses of LivePerson and SoundHound; (5) the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (6) reputational risk and potential adverse reactions of LivePerson's or SoundHound's customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the transaction; (7) the diversion of management's attention and time to the transaction from ongoing business operations and opportunities; and (8) the outcome of any legal proceedings that may be instituted against LivePerson or SoundHound or in connection with the transaction. Further information on factors that could affect the forward-looking statements and expectations above are contained in the filings that LivePerson and/or SoundHound AI have filed, or that will be filed, with the U.S. Securities and Exchange Commission (the "SEC"), including as set forth in the Form S-4 and the proxy statement/prospectus contained therein, as well as the documents incorporated by reference therein.
All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made, and LivePerson does not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law.
No Offer or Solicitation
This communication is not intended to be, and shall not constitute, an offer to sell, buy or exchange or the solicitation of an offer to sell, buy or exchange any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act.
Additional Information and Where to Find It
In connection with the proposed transaction, SoundHound AI has filed with the U.S. Securities and Exchange Commission (the "SEC") a registration statement on Form S-4 (the "Form S-4") that includes a definitive proxy statement of LivePerson and that constitutes a prospectus of SoundHound AI with respect to the shares of the SoundHound AI common stock to be issued in the proposed transaction, dated July 9, 2026 (the "proxy statement/prospectus"). The proxy statement/prospectus was filed with the SEC on July 9, 2026 by LivePerson, and the mailing of the proxy statement/prospectus to LivePerson's stockholders began on or about the same date. Each of SoundHound AI and LivePerson may also file other relevant documents with the SEC regarding the proposed transaction.
This communication is not a substitute for the Form S-4, the proxy statement/prospectus or any other document that SoundHound AI or LivePerson has filed, or may file, with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF SOUNDHOUND AI AND LIVEPERSON ARE URGED TO READ THE FORM S-4, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain copies of these documents (if and when available), as well as other filings containing information about SoundHound AI and LivePerson, free of charge on the SEC's website at www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by the Company will be available free of charge on SoundHound AI's website at https://investors.soundhound.com/financial-information/sec-filings. Copies of the documents filed with, or furnished to, the SEC by LivePerson will be available free of charge on LivePerson's website at https://ir.liveperson.com/financial-information/sec-filings. The information included on, or accessible through, SoundHound AI's or LivePerson's website is not incorporated by reference into this communication.
Participants in the Solicitation
SoundHound, LivePerson and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies with respect to the proposed transaction under the rules of the SEC. Information about the directors and executive officers of SoundHound, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in SoundHound's definitive proxy statement for its 2026 annual meeting of stockholders under the heading "Proposal 1 – Election of Directors", which was filed with the SEC on April 9, 2026 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001840856/000121390026041978/ea0285618-01.htm. Information about the directors and executive officers of LivePerson and their ownership of LivePerson equity interests can be found in the section entitled "Interests of LivePerson Directors and Executive Officers in the Mergers" and "Owners and Management of LivePerson" included in the proxy/prospectus, which was filed with the SEC on July 9, 2026 and is available at https://www.sec.gov/Archives/edgar/data/1102993/000121390026076759/ea0297465-01.htm. Further information about the directors and executive officers of LivePerson may be found in its amendment to its Annual Report on Form 10-K for the year ended December 31, 2025 under the headings "Directors, Executive Officers and Corporate Governance," "Executive Compensation," "Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters" and is available at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001102993/000110299326000020/lpsn-20251231.htm; in the Form 3 and Form 4 statements of beneficial ownership and statements of changes in beneficial ownership filed with the SEC by LivePerson's directors and executive officers; and is in other documents filed by LivePerson with the SEC. Additional information regarding the interests of the participants in the solicitation of proxies will be included in other relevant materials to be filed with the SEC if and when they become available. You should read the Form S-4 and the proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of these documents using the sources indicated above.
Deliverect a SoundHound AI oznámily partnerství, které má plně automatizovat hlasové objednávky v restauracích od hovoru až po předání do kuchyně. Systém má fungovat ve více než 100 jazycích a napojit se na více než 550 POS integrací.
The integration creates a seamless, automated path from a customer's first voice interaction to kitchen fulfillment, across drive-thru, phone, kiosk, and in-car channels, in more than 100 languages.
, /PRNewswire/ -- Deliverect, the global restaurant technology platform serving more than 80,000 locations worldwide, today announced a partnership with SoundHound AI (Nasdaq: SOUN), a global leader in voice and agentic AI, to fully automate restaurant voice ordering from the moment a customer speaks to the moment the kitchen receives the order.
The integration connects SoundHound Smart Ordering directly to Deliverect's order and menu management platform. SoundHound's voice AI agents pull real-time menu and location data from Deliverect, capture orders flawlessly across every voice channel, and route them straight to kitchen fulfillment through Deliverect's certified POS integrations. Voice in, order out, with no manual re-entry, no handoff errors, and no added burden on restaurant teams.
Closing the gap between a customer's voice and the kitchen
Until now, the journey from a spoken order to the kitchen has involved staff, manual re-entry, and multiple points of failure. During peak hours, when teams are stretched thin, that fragility translates directly into lost revenue: missed or abandoned phone calls, order errors, and inconsistent experiences across drive-thru, phone, kiosk, and digital channels.
The partnership eliminates those failure points by turning the entire journey into a single automated loop. AI voice agents answer every call and capture every order, while menu accuracy is maintained in real time directly from Deliverect, with no manual updates needed across channels.
For operators, the outcomes are tangible: higher order capture rates with no missed calls, consistent upselling and limited-time-offer promotion across every ordering channel, faster throughput and reduced wait times, and staff freed up from answering phones to focus on cooking and taking care of guests in person.
Any market, any POS, no custom builds
Historically, one of the biggest obstacles to scaling voice ordering internationally has been the cost and complexity of building direct POS integrations market by market. Deliverect removes
that obstacle. With more than 550 POS integrations across over 50 countries, Smart Ordering can go live in any market, on virtually any POS, without custom development.
Combined with support for more than 100 languages, the partnership gives international restaurant groups a future-proof ordering infrastructure that scales across channels, markets, and languages, without rebuilding for every new touchpoint or region. As customer expectations shift toward voice-first and self-service experiences, operators running Deliverect and Smart Ordering are already there.
Mike Lauricella, VP of Channel Partnerships at SoundHound AI, said: "The future of restaurant hospitality relies on automation and convenience. Partnering with Deliverect allows us to deeply embed SoundHound's AI voice agents into the restaurant tech stack. By syncing critical menu and location data, our AI voice agents can handle order placement flawlessly, reducing front-of-house strain and delivering a seamless customer experience."
Don MacMillan, Head of Partnerships for the US and Canada at Deliverect, said: "Voice is the oldest ordering channel in the restaurant business, and until now it's been the least automated. This partnership changes that. By connecting SoundHound's AI voice agents directly to Deliverect, every spoken order, whether it comes through the drive-thru, a phone call, or a kiosk, flows straight into the kitchen with the same accuracy and speed as a digital order. For operators, that means no more missed calls, no more re-keying, and teams that can focus on hospitality instead of handsets. It's a major step toward the fully connected restaurant we're building with our partners."
About SoundHound AI
SoundHound AI (Nasdaq: SOUN) is a voice and agentic AI company that enables businesses to deliver natural, end-to-end conversational experiences across digital and physical channels, including phones, kiosks, chat, smart devices, drive-thrus, TVs, in-vehicle, and more. Its agentic platform, OASYS, is a self-learning, orchestrated AI system where organizations can build and deploy conversational AI agents to handle transactions, tasks, and workflows on behalf of customers and employees. Built on proprietary technology backed by 400+ patents and years of AI research, SoundHound serves leading brands across industries including automotive, financial services, healthcare, retail, telecommunications, and more. It powers millions of products and processes billions of interactions annually for enterprise customers worldwide. Learn more at: www.soundhound.com
About Deliverect
Deliverect is a global restaurant technology company that connects digital ordering channels directly to in-store operations, serving more than 80,000 restaurant locations worldwide. With an API-first platform and over 1,000 certified integrations, Deliverect streamlines digital ordering across carryout, delivery, catering, and in-store fulfillment. It is the only digital ordering platform to have earned DoorDash's Excellent integration rating. By leveraging AI-driven innovation, Deliverect empowers restaurants to anticipate demand, recover lost revenue, and grow smarter at scale. The company processes 30 million API calls daily, has powered 1.5+ billion orders to date, and is trusted by many of the world's largest and most innovative restaurant brands. To learn more, visit deliverect.com.
SoundHound rozšiřuje restaurační automatizaci prostřednictvím OASYS a tvrdí, že AI drive-thru u velkého zákazníka z oblasti QSR přinesly vyšší tržby než srovnatelné provozovny. Ve 1. čtvrtletí 2026 tržby meziročně vzrostly o 52 % a hotovost činila zhruba 216 milionů USD bez dluhu.
Key Takeaways SoundHound is expanding restaurant automation with OASYS across drive-thrus, kiosks, phones and chat.AI-enabled drive-thru locations generated higher revenues for a major QSR customer than comparable stores.First-quarter 2026 revenues rose 52%, while cash reached about $216 million with no debt. SoundHound AI (SOUN - Free Report) is strengthening its position as a leading provider of AI-powered restaurant automation, making 2026 an important year for the company. While SoundHound is still expanding beyond its automotive roots, its growing traction in restaurants, combined with new agentic AI capabilities, could make it one of the industry's key disruptors.
A major catalyst is SoundHound's newly launched OASYS platform, a self-learning agentic AI system that allows businesses to build, deploy and continuously improve AI agents across drive-thrus, kiosks, phones, web, chat and other customer touchpoints. This unified platform significantly reduces deployment time while enabling restaurants to automate ordering, customer service and workflow management with minimal manual intervention.
The company's restaurant momentum is also becoming increasingly tangible. Management noted that a major quick-service restaurant (QSR) customer found AI-enabled drive-thru locations generated higher revenues than comparable stores without SoundHound's technology. The company also reported rising cross-selling opportunities among restaurant customers and growing adoption of its Voice Insights analytics platform, suggesting that customers are expanding beyond initial deployments.
Another potential growth driver is the planned acquisition of LivePerson. Once completed, the transaction will combine SoundHound's voice AI with LivePerson's digital messaging capabilities, enabling restaurants to offer seamless customer interactions across voice, text and chat. The acquisition is also expected to expand cross-selling opportunities while broadening the company's enterprise customer base.
Financially, SoundHound appears well positioned to support these initiatives. First-quarter 2026 revenues rose 52% year over year to a record level, the company ended the quarter with approximately $216 million in cash and no debt, and management reaffirmed its full-year revenue outlook of $225-$260 million.
Although continued losses and execution risks around integrating LivePerson remain challenges, SoundHound's expanding restaurant footprint, differentiated voice AI technology and growing enterprise ecosystem position it well to become a meaningful force in restaurant automation during 2026.
Restaurant AI Competition Is IntensifyingNCR Voyix (VYX - Free Report) is one of SoundHound's strongest competitors in restaurant automation due to its extensive restaurant software ecosystem spanning point-of-sale, payment processing, self-service kiosks and digital ordering. NCR Voyix has deep relationships with leading restaurant chains and continues to enhance its AI-driven ordering and operational capabilities.
While NCR Voyix primarily focuses on restaurant commerce infrastructure, it is still expanding its conversational AI capabilities. This creates an opportunity for the company to compete directly with SoundHound as restaurants increasingly seek integrated voice-enabled ordering and customer engagement solutions.
Par Technology (PAR - Free Report) is another major rival, offering cloud-based restaurant management software, digital ordering, loyalty programs, back-office solutions and restaurant analytics. Through acquisitions and continued product development, Par Technology has built a comprehensive platform serving thousands of restaurant locations.
As restaurants increasingly adopt AI to improve order accuracy, labor productivity and customer experience, Par Technology is embedding more automation across its software suite. While Par Technology offers a broad restaurant operating platform, SoundHound differentiates itself with its proprietary voice AI, agentic AI platform and drive-thru automation capabilities, positioning the company to capture a larger share of AI-first restaurant deployments.
SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have lost 34.2% year to date (YTD), underperforming the industry, as shown below:
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 11.18, slightly above the industry’s average.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has remained unchanged at 18 cents, as shown below. The expected loss also remains wider than the previous year’s loss of 13 cents.
SoundHound AI je letos dole o 37 % a obchoduje se 68 % pod rekordem z roku 2024. Tržby v 1. čtvrtletí vzrostly o 52 % na rekordních 44,2 milionu USD, ale tempo růstu zpomaluje.
While many artificial intelligence (AI) stocks are outperforming the broader market right now, not every name in this space has been a winner. SoundHound AI (SOUN +3.08%) stock is down 37% this year, and it recenty was trading 68% below its 2024 record high.
SoundHound AI is a leading developer of conversational AI software, which is currently used by some of the world's biggest brands across industries such as automotive manufacturing, hospitality, healthcare, and more.
Investors have trimmed their exposure to its stock because of its sky-high valuation, but it's starting to look attractive after its recent losses. Is it time to buy the dip?
Image source: The Motley Fool.
SoundHound is rapidly expanding SoundHound developed a series of in-house conversational AI software products. They include Dynamic Drive-Thru and Dynamic Kiosk for quick-service restaurants, which autonomously take customer orders so employees can focus on other tasks. Then there is the Voice AI platform, which allows car brands to install highly intuitive voice-activated AI experiences into their vehicles.
But SoundHound also expanded over the last few years by acquiring other companies. It bought rival conversational AI company Amelia in 2024, and it recently launched the Amelia 7 platform, which businesses can use to build custom AI agents to serve customers or help employees streamline their workflows. Resorts World Las Vegas uses Amelia to autonomously handle more than half of its incoming customer calls, freeing up employees to provide guests with high-touch luxury experiences.
In April of this year, SoundHound announced plans to acquire LivePerson, which built an AI-powered digital engagement platform that processes message conversations on behalf of businesses and their customers. It powers more than 1 billion messages per month across websites, social media, and chat applications, saving valuable time that would otherwise be spent managing phone calls or email correspondence.
SoundHound's revenue growth is fast, but slowing SoundHound's revenue soared by 52% year over year during the first quarter of 2026, to come in at a record $44.2 million. While that sounds like a spectacular result, the company's revenue grew at a much faster pace of 151% during the same quarter of 2025. Some investors might be concerned about the apparent loss of momentum, which is one reason for the steep decline in SoundHound stock.
However, the recent acquisition of LivePerson is about to provide a temporary boost to SoundHound's financial results. Management estimates the company's annual revenue will come in somewhere between $225 million and $260 million in 2026, but that number could grow to $400 million in 2027 once LivePerson's revenue is included. Management says there could be as much as $100 million in potential upside, depending on operational performance.
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While that is great news, investors also have to keep an eye on SoundHound's mounting losses, because scaling an AI business isn't cheap. During the first quarter, the company suffered a generally accepted accounting principles (GAAP) net loss of $25 million and an adjusted net loss of $26.5 million. Both figures worsened from the same quarter last year.
SoundHound had $216 million in cash and cash equivalents on hand as of March 31, so it can afford to lose money at the current pace for at least the next year or so. But if it isn't profitable by then, it might have to raise more money, diluting existing shareholders and hurting their future potential returns.
SoundHound stock isn't cheap just yet, but it's getting there SoundHound had a price-to-sales (P/S) ratio of around 100 when its stock peaked in late 2024, which made it extremely expensive. For some context, the Nasdaq-100 technology index currently trades at a P/S ratio of just 6.4.
But the combination of SoundHound's revenue growth and the 68% decline in its stock has pushed its P/S ratio down to a more reasonable level of around 15.
SOUN PS Ratio data by YCharts
SoundHound isn't necessarily cheap just yet, but if we assume the company will generate $400 million in revenue next year, as management expects, then its forward P/S ratio is just 7.2. That is quite attractive given how fast SoundHound is expanding. Plus, AI software is likely to touch every industry in the future, so the company could have an enormous addressable market.
Nevertheless, SoundHound is still in the early stages of commercializing its product portfolio, so investors who buy its stock today should maintain a five-year time horizon to smooth out any potential volatility and maximize their chances of earning a positive return. It's also a good idea to keep a small position, just in case this opportunity doesn't work out.
SoundHound AI rozšiřuje hlasovou AI do platebních transakcí, takže může vydělávat i na samotných nákupech, ne jen na licencích softwaru. Zároveň roste napříč auty, restauracemi, maloobchodem i zákaznickou podporou.
Voice recognition technology has a long history of overpromising, so a little skepticism is healthy here. But SoundHound AI (SOUN 0.60%) has turned into one of the more interesting independent players in conversational artificial intelligence (AI). It's the software that lets you talk to a car, a drive-thru speaker, or a customer-service line and actually be understood.
The stock has been on a volatile ride, and it remains a speculative, small-company bet. Still, three developments in its business help explain why some investors think the climb isn't over.
Image source: Getty Images.
1. Agentic voice commerce opens a new way to make money The most important shift involves what the company's technology now does. For years, voice assistants mostly answered questions.
SoundHound is pushing into what the industry calls agentic AI -- software that doesn't just respond but takes action on your behalf. At the start of 2026, the company showed off voice agents built into vehicles and TVs that can order takeout, book a restaurant table through OpenTable, pay for parking, and buy tickets, all hands-free.
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Why does that matter for the stock? Because it changes how the company can earn revenue. Instead of only licensing software, sitting in the middle of a purchase lets it participate in the transaction itself. If even a fraction of the millions of cars and devices running its technology start completing everyday errands by voice, it taps a far larger opportunity than selling software licenses alone.
2. SoundHound is no longer a one-industry bet A common knock on smaller AI companies is that they lean on a single customer or single market. SoundHound has spent the past couple of years deliberately spreading out. Its voice technology now shows up on automotive dashboards, in restaurant drive-thrus and ordering kiosks, on the retail sales floor through a new store-associate assistant it unveiled this year, and across businesses' customer service.
That diversification is more than a talking point. When one industry slows -- say, automakers pull back on new features -- another can pick up the slack, which makes the overall business sturdier. To me, a company selling the same core capability into four or five very different industries is simply harder to knock off course than one riding a single wave.
3. Customers are expanding their usage, not just signing up The most encouraging signal for any young software company is when existing customers choose to do more business with it, not less. SoundHound got a clear vote of confidence this spring when Casey's General Stores, one of the largest convenience-store chains in the country, renewed and expanded its partnership, rolling the technology across more than 2,600 locations after its ordering agents had already handled tens of millions of guest interactions. That kind of land-and-expand behavior suggests the product is actually working in the field.
SoundHound has also moved to acquire enterprise conversational-AI company LivePerson, which would plug SoundHound's newer agentic platform into a large base of established corporate customers. Buying reach like that can shorten the path to winning big-ticket enterprise deals.
The risks worth keeping in view Now for the sober side, because it's substantial. SoundHound is still unprofitable and spends heavily to grow, and its stock trades at a rich valuation against a still-modest revenue base -- the kind of situation that can cause shares to fall hard on any disappointment.
A meaningful chunk of the company's ambitious targets leans on acquisitions like LivePerson going smoothly, which is never guaranteed. And SoundHound competes in the same arena as Amazon and Apple, giants with far deeper pockets. Any of those could pressure the story.
SoundHound AI is a classic high-risk, high-reward choice. The bull case rests on real business progress: a shift toward transaction-driven agentic AI, genuine diversification across industries, and customers expanding their commitments. The bear case rests on valuation, cash burn, and deep-pocketed competition.
SoundHound AI v roce 2025 zvýšila tržby o 99 % na 168,9 milionu USD, především díky předplatnému. Firma se zároveň posouvá od automobilového hlasového AI k podnikovým službám.
Key Takeaways SOUN is shifting beyond automotive voice AI into enterprise customer service and workflow use cases.Subscriptions drove SOUN's 2025 revenues, rising as part of a 99% total revenue jump to $168.9M.OASYS and the planned LivePerson deal may expand SOUN's enterprise reach and cross-selling potential. SoundHound AI, Inc. (SOUN - Free Report) is no longer just an automotive voice-assistant story. The company’s investor debate now centers on whether broader enterprise adoption can support durable revenue growth.
The opportunity is clear, but so are the risks. SoundHound is expanding across restaurants, healthcare, retail, financial services, telecom and other verticals while still operating at a loss.
SoundHound Pushes Beyond AutomotiveSoundHound positions itself as an independent conversational intelligence platform for enterprises. Its pitch is that businesses can build branded assistants and customer-facing AI experiences without relying fully on third-party ecosystems.
The product set now spans Smart Answering, Smart Ordering, Dynamic Interaction, Employee Assist and SoundHound Chat AI. That broader portfolio shifts the business identity away from a narrower automotive focus and toward enterprise customer service, ordering, workflow and digital interaction use cases.
SOUN Finds Growth in Service SubscriptionsThe revenue mix is central to the SOUN thesis. Total revenues in 2025 rose 99% to $168.9 million from $84.7 million in 2024.
Service subscriptions accounted for $133.5 million of 2025 revenues, compared with product royalties of $34.9 million and monetization revenues of $0.5 million. That mix highlights why investors are focused on recurring enterprise demand as the main growth engine.
SoundHound Builds a Wider AI PlatformSoundHound’s technology stack includes Speech-to-Meaning, Deep Meaning Understanding, Collective AI, Dynamic Interaction and hybrid Edge+Cloud deployment. These capabilities are designed to support faster natural-language understanding, low-latency performance and flexible deployment across customer environments.
The company reported more than 359 granted patents and more than 100 pending patents as of 2025. For enterprises, the strategic value is control: branded assistants can be customized around customer experience, data, workflow and monetization priorities.
SOUN Has Catalysts but Also Integration RiskOASYS is a major catalyst in SoundHound’s next phase. The platform is designed to help businesses build, orchestrate, evaluate and improve AI agents across voice, chat and digital channels.
The planned LivePerson acquisition adds another layer to the opportunity. SoundHound expects the deal to expand its enterprise footprint, create cross-selling opportunities and support a combined revenue opportunity of about $500 million.
Still, the story is not de-risked. Persistent operating losses, long enterprise sales cycles, acquisition integration demands, fierce AI competition and continued investment needs remain key concerns.
Microsoft Corporation (MSFT - Free Report) and Salesforce, Inc. (CRM - Free Report) also frame the competitive backdrop. Microsoft markets Microsoft 365 Copilot as an enterprise AI tool with access to agents and work-data integrations, while Salesforce markets Agentforce as a platform for building, deploying and managing AI agents at scale.
What SOUN Signals Say About the SetupThe bottom line is that SoundHound has a more interesting business narrative than it did when investors viewed it mainly through automotive voice AI. Enterprise AI adoption, subscription growth, OASYS and acquisition-driven cross-selling all support the long-term case.
The stock, however, currently carries a Zacks Rank #4 (Sell). It also has a Value Score of F, a Growth Score of F, a Momentum Score of C and a VGM Score of F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores are graded from A to F, with stronger scores generally indicating more favorable characteristics for the relevant style category. SOUN’s current mix suggests that, despite the attractive enterprise AI narrative, the near-term stock profile still reflects caution around execution, profitability and valuation.
SoundHound ve 1. čtvrtletí 2026 zvýšil tržby o 52 % na 44,2 mil. USD a potvrdil celoroční výhled 225–260 mil. USD. Zůstává ale ve ztrátě a má záporný provozní peněžní tok.
Key Takeaways SOUN posted 52% revenue growth in Q1 2026 and reaffirmed $225M-$260M full-year guidance.SoundHound's losses and negative operating cash flow cloud the case despite strong AI adoption.SOUN's debt-free balance sheet offers support, but valuation and stock signals limit near-term comfort. SoundHound AI, Inc. (SOUN - Free Report) offers one of the clearer growth-versus-risk debates in enterprise AI. Revenue growth, broader adoption of conversational AI and a debt-free balance sheet keep the bull case alive.
The hesitation is equally visible. Losses, negative operating cash flow and weak stock signals make SOUN difficult to call a straightforward buy, even with long-term AI demand still in focus.
SOUN Revenue Growth Keeps the Bull Case AliveFirst-quarter 2026 revenues reached $44.2 million, up 52% year over year. Management also reaffirmed full-year 2026 revenue guidance of $225 million to $260 million, suggesting the growth plan remains intact.
Underlying demand was not limited to acquired revenue. Excluding acquisitions, core automotive and IoT AI revenues rose 88% year over year, pointing to continued adoption in SoundHound’s original growth pillars.
NVIDIA Corporation (NVDA - Free Report) remains a relevant reference point for AI investors because its computing platforms sit closer to the infrastructure layer. C3.ai, Inc. (AI - Free Report) offers another comparison as an enterprise AI software name, but SoundHound’s case rests more directly on voice, agentic AI and customer-interaction use cases.
SoundHound Losses Cloud the Investment CaseRevenue growth has not translated into profitability. SoundHound posted a first-quarter 2026 GAAP net loss of $25 million and an adjusted EBITDA loss of $26.7 million.
Cash flow also moved in the wrong direction. Net cash used in operating activities was $26.3 million, compared with $19.2 million in the prior-year period. GAAP gross margin declined to 31.1% from 36.5%, as vendor-related true-ups and spending pressure weighed on the quarter.
That makes SOUN a classic growth-versus-profitability stock. Investors are being asked to underwrite future scale while current results still show heavy investment needs.
SOUN Valuation Looks Neither Cheap nor BrokenSOUN trades at 11.45X forward 12-month sales. That is roughly in line with the sub-industry average of 11.64X but above the broader sector and S&P 500 levels.
The stock also carries a $7 price target, modestly above the recent $6.68 stock price. That setup does not point to an obvious bargain, but it also does not suggest valuation has completely detached from its peer framework.
For investors seeking a clear value case, the multiple leaves little margin for disappointment. For growth investors, the valuation may be tolerable only if revenue expansion continues and losses narrow over time.
SoundHound Balance Sheet Offers Real SupportSoundHound’s balance sheet is the main offset to the loss profile. The company ended the first quarter of 2026 with $215.6 million in cash and cash equivalents and no debt.
That liquidity gives management room to fund product innovation, support acquisition integration and pursue commercialization without immediate balance-sheet strain. The company also had total current assets of $288.8 million and stockholders’ equity of $460.7 million.
This matters because the AI opportunity may take time to convert into durable earnings. A debt-free balance sheet does not solve profitability, but it gives SoundHound more time to try.
How SOUN Ratings Frame the Risk RewardThe bottom line is that SOUN looks mixed rather than clearly attractive. Revenue growth and cash resources support the long-term case, while losses, cash burn and valuation limit the near-term comfort level.
SOUN currently carries a Zacks Rank #4 (Sell). That rank points to weak near-term positioning and makes the stock less suitable for investors who rely on earnings estimate revision trends as a first screen.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores reinforce that caution. SoundHound has a Value Score of F, a Growth Score of F, a Momentum Score of C and a VGM Score of F. Since stronger scores are generally more favorable, those grades suggest SOUN does not currently screen well for value, growth-at-a-reasonable-price or broad style-based investors.
That does not erase the company’s AI opportunity. It does argue for patience until profitability, cash flow or stock signals show clearer improvement. For now, SOUN is more of a watchlist candidate than a decisive buy.
SoundHound rozšiřuje svou voice AI platformu OASYS na agentic AI pro voice, chat i digitální kanály. V 1. čtvrtletí 2026 tržby meziročně vzrostly o 52 % na 44,2 mil. USD, ale firma stále vykázala čistou ztrátu.
Key Takeaways SoundHound is shifting from voice recognition toward broader conversational and agentic AI platforms.OASYS is positioned to help businesses build and improve AI agents across voice, chat and digital channels.SOUN's losses, margin pressure, acquisition integration and competition remain key execution tests. SoundHound AI, Inc. (SOUN - Free Report) sits at the center of a shift from narrow voice tools to broader conversational and agentic artificial intelligence platforms. The investment case is no longer just about voice recognition. It is about whether SOUN can convert enterprise demand into scalable, recurring software revenue.
That trend gives SoundHound a clear growth narrative. It also raises a harder stock question: can the company turn platform expansion, acquisitions and new products into better margins and steadier execution?
SoundHound Rides Enterprise AI AdoptionEnterprises are adopting conversational and agentic artificial intelligence across voice, chat and digital channels. SoundHound has expanded beyond its historical automotive base into restaurants, retail, healthcare, financial services, telecommunications and energy.
That broader reach matters because it reduces dependence on a single end market. In the first quarter of 2026, revenues rose 52% year over year to $44.2 million, while core automotive and Internet of Things artificial intelligence revenues, excluding acquisitions, increased 88%.
Microsoft (MSFT - Free Report) is also relevant to this trend because its artificial intelligence strategy includes enterprise workflow, healthcare and productivity use cases. IBM (IBM - Free Report) provides another comparison point through its focus on artificial intelligence agents and workflow automation for enterprises.
SOUN Turns OASYS Into a Key Trend MarkerOASYS is becoming the clearest marker of SoundHound’s move toward agentic artificial intelligence. The platform is designed to help businesses build, orchestrate, evaluate and improve artificial intelligence agents across voice, chat and digital channels.
The strategic appeal is faster implementation. Management has positioned OASYS as a way for businesses to move from months-long builds to faster deployments, while also lowering operating costs and making agents better over time through usage.
That puts SOUN in a market where enterprises increasingly want unified platforms rather than isolated tools. NVIDIA (NVDA - Free Report) remains an important part of the broader enterprise artificial intelligence discussion because infrastructure and software platforms are central to scaling agentic workloads.
SoundHound Uses M&A to Broaden Its ReachAcquisitions are central to SoundHound’s platform-breadth strategy. SYNQ3 added restaurant-focused voice artificial intelligence capabilities, Amelia expanded the company into full-stack enterprise agentic artificial intelligence, and Interactions added customer-service and workflow-orchestration capabilities.
The planned LivePerson acquisition is another step in that direction. It is expected to expand SoundHound’s digital messaging and enterprise customer footprint, creating cross-selling opportunities across voice, messaging and agentic artificial intelligence.
This matters because platform breadth is becoming a competitive requirement. Enterprises want systems that can handle contact-center inquiries, ordering, transactions, workflow automation and customer engagement across multiple channels.
SOUN Still Faces Margin and Execution TestsThe opportunity remains balanced by clear operating risks. SoundHound posted a GAAP net loss of $25 million in the first quarter of 2026 and an adjusted EBITDA loss of $26.7 million.
Margins also showed pressure. GAAP gross margin fell to 31.1% from 36.5% a year earlier, while non-GAAP gross margin was 49.7%, compared with 50.8% in the prior-year period.
Competition is another concern. Large technology companies and specialized artificial intelligence vendors are investing aggressively, while long enterprise sales cycles can delay revenue conversion. SoundHound also needs continued research and development spending to keep pace with fast-moving voice, generative and agentic artificial intelligence markets.
Commercialization risk is still part of the story. OASYS, Dynamic Interaction and broader agentic offerings may become future growth drivers, but adoption, customer acceptance and recurring revenue generation are still developing.
Why SOUN Ratings Temper the Trend NarrativeThe bottom line is that SoundHound has meaningful exposure to conversational and agentic artificial intelligence, but the stock still needs execution to catch up with the trend. Revenue growth, product expansion and acquisition-driven scale are encouraging, yet losses, integration risk and competitive pressure remain material.
SOUN currently carries a Zacks Rank #4 (Sell). The stock also has a Value Score of F, a Growth Score of F and a Momentum Score of C. These scores suggest that, despite the company’s industry positioning, shares do not currently screen well on valuation or growth characteristics, while momentum is more neutral.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For investors, that creates a measured setup. SoundHound may remain a closely watched artificial intelligence name, but the Zacks Rank and Style Scores point to caution until operating leverage, platform monetization and acquisition integration show clearer progress.
SoundHound AI na začátku roku otevřel na 10,29 USD a na konci června uzavřel na 6,47 USD, což za první pololetí znamenalo pokles zhruba o 37 %, i přes růst tržeb o 99 % na 168,9 milionu USD v roce 2025. Investory dál trápí ztráta 25 milionů USD za první čtvrtletí a chystaná akvizice LivePerson za 43 milionů USD.
On Jan. 2, SoundHound AI (SOUN +6.26%) stock opened at $10.29. On June 30, it closed at $6.47. For the first six months of the year, that represents a loss of roughly 37%, a tough start for anyone who invested at the beginning of the year.
The decline was due to several factors. And while there is an opportunity for the stock to rebound in the second half, it's going to be an uphill battle.
Image source: Getty Images.
Purchasing $5,000 worth of SoundHound stock at $10.29 would have given an investor roughly 485 shares. By June 30, the end of the first half of the year, that stake would have been worth roughly $3,143.
There's been a lot weighing on the stock price during that time, including concerns over the company's continued unprofitability, worries about shareholder dilution, and fears about the impacts of a high-risk, but potentially high-reward, acquisition.
On the positive side, SoundHound AI keeps posting impressive revenue totals: In 2025, the top line increased 99% to $168.9 million, and first-quarter 2026 revenue increased 52% to $44.2 million.
The issue, however, is that more investors want to see artificial intelligence (AI) companies showing signs that they are headed toward profitability rather than continually burning through cash. For the first quarter, SoundHound reported a net loss of $25 million, according to generally accepted accounting principles.
In addition, with SoundHound AI in particular, there are concerns about shareholder dilution and a looming acquisition. It is trying to buy the conversational AI agent company LivePerson (LPSN 2.59%) for $43 million, and that deal -- an all-equity transaction, which is dilutive to shareholders -- is expected to close by the end of this year.
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What shows promise There are many risks involved in the acquisition. LivePerson is not a profitable company and has struggled heavily. Its stock price is down by more than 99% over the last five years. But if SoundHound can successfully integrate LivePerson's tech into its offerings, the deal could provide long-term value.
SoundHound AI expects its 2027 revenue to land between $350 million and $400 million, with $100 million of that coming from LivePerson. Given that SoundHound's revenue was just under $170 million in 2025, that would be a significant jump.
Why the rest of 2026 could still be bumpy SoundHound AI is likely to keep up its strong revenue growth, but dilution concerns and the pending LivePerson deal still hang heavily over the stock. If the stock price does rebound, it likely won't occur until after the LivePerson acquisition is finalized and investors have a few quarters to see whether it's actually benefiting the buyer.
SoundHound AI is a promising company that has landed many big-name clients, including Walmart, but for shareholders, the second half of the year could be just as rocky as the first.
Key Takeaways SOUN's auto and IoT AI business grew 88% organically in Q1, as total revenues rose 52% to $44.2M.SoundHound signed a seven-figure Japanese auto deal and expanded in South America with an OEM.SOUN is adding Voice AI to Walmart's ONN TV brand, broadening its connected-device footprint. SoundHound AI (SOUN - Free Report) reported strong first-quarter results in its automotive and IoT AI business, reflecting continued traction across automotive customers and connected-device integrations.
In the first quarter of 2026, SoundHound stated that its automotive and IoT AI business grew 88% year over year, excluding the impact of acquisitions. The figure is notable given the company’s active M&A backdrop, making organic growth an important indicator of core voice AI traction. Overall revenues increased 52% year over year to $44.2 million, with growth led by financial services and automotive.
Automotive growth was supported by new and expanded customer commitments. During the quarter, SoundHound signed a seven-figure commitment with a prominent Japanese auto manufacturer to deploy its voice assistant globally. The company also expanded into South America with a multinational OEM, indicating a broader geographic reach in the automotive market.
SoundHound’s IoT activity adds another device-based growth channel. The company signed an agreement to integrate its Voice AI into Walmart’s ONN TV brand and noted progress in voice commerce as multiple TV and well-known automotive brands integrate its solution. These agreements broaden the use cases for SOUN’s voice AI across connected-device platforms.
The monetization profile could also improve as automakers upgrade from pre-GenAI voice systems to GenAI and live GenAI capabilities. Higher-priced upgrades create an opportunity for SOUN to increase revenue per unit, while live GenAI adds a renewal component that could support a more recurring revenue profile over time.
SOUN’s organic growth is supported by expanding OEM relationships, higher-value GenAI upgrades, live GenAI renewal opportunities and a broader connected-device footprint. These drivers likely give the automotive and IoT business a stronger base to remain a meaningful contributor to organic growth in the upcoming periods.
SOUN’s Price Performance, Valuation & EstimatesSoundHound’s shares have lost 42.5% in the past year compared with the industry’s fall of 34.8%. At the same time frame, other industry players, including C3.ai, Inc. (AI - Free Report) and BigBear.ai Holdings, Inc. (BBAI - Free Report) , have declined 64.6% and 54.6%, respectively.
SOUN Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
SOUN stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-sales (P/S) multiple of 11.25, slightly below the industry average of 11.53. Then again, other industry players, such as C3.ai and BigBear.ai, have P/S ratios of 6.26 and 10.95, respectively.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened from 13 cents to 18 cents in the past 60 days.
EPS Trend of SOUN Stock
Image Source: Zacks Investment Research
The company is likely to report dismal earnings, with projections indicating a 38.5% year over year fall in 2026. Conversely, industry players like BigBear.ai are likely to witness growth of 69.5% year over year in 2026 earnings. C3.ai is likely to project a rise of 39.3% in 2027 earnings.
SoundHound rozšiřuje podnikání v telekomunikacích a energetice: získal obnovení smluv na dodávky elektřiny, utility i broadband. Tržby v 1. čtvrtletí vzrostly o 52 % na rekordních 44,2 milionu USD.
Key Takeaways SoundHound is gaining telecom and energy traction beyond its automotive and restaurant businesses.SOUN secured electricity, utility and broadband renewals, supporting recurring enterprise revenues.The LivePerson deal would add messaging and boost SOUN's reach across global telecom providers. SoundHound AI (SOUN - Free Report) is broadening its enterprise AI footprint beyond its traditional automotive and restaurant businesses by gaining traction in the telecommunications and energy markets. These industries offer attractive long-term opportunities as enterprises increasingly adopt conversational and agentic AI to automate customer service, improve operational efficiency and reduce costs. The company's first-quarter 2026 results highlighted that this diversification strategy is gaining momentum, helping reduce reliance on any single end market while supporting sustained revenue growth.
During the quarter, SoundHound secured a multi-year renewal with a Texas-based retail electricity provider serving residential and commercial customers while also expanding services with a major Kansas electric utility. In telecommunications, the company renewed and expanded its relationship with a large broadband and digital services provider operating across 25 states. These contract wins demonstrate growing customer confidence in SoundHound's AI platform and provide a stable base of recurring enterprise revenues.
Management also expects the planned acquisition of LivePerson to significantly strengthen its presence in telecom. The combined company will serve customers in more than 30 countries, including more than 10 leading global telecommunications providers, while adding digital messaging capabilities to SoundHound's voice and agentic AI platform. This creates a unified omnichannel solution spanning voice, chat, web and messaging, opening meaningful cross-selling opportunities across telecom, financial services, healthcare and energy customers.
The strategy is already contributing to solid financial performance. First-quarter revenues increased 52% year over year to a record $44.2 million, while management reaffirmed its 2026 revenue guidance of $225-$260 million. With a growing enterprise pipeline, a debt-free balance sheet and expanding vertical diversification, SoundHound appears well-positioned to capitalize on rising enterprise demand for AI-powered customer engagement across telecom and energy markets.
How Competitors Are Expanding Enterprise AI Across Telecom & EnergyNICE Ltd. (NICE - Free Report) is one of SoundHound's strongest competitors in enterprise conversational AI, particularly in customer experience automation. NICE has built a significant presence among telecom operators and utility companies through its CXone platform, which combines AI-powered virtual agents, workforce optimization and analytics. NICE continues to deepen relationships with large enterprises seeking to automate customer support while improving service quality and reducing operating costs, making it a formidable player in these verticals.
Five9 (FIVN - Free Report) is another key rival benefiting from growing enterprise demand for AI-driven contact center solutions. Five9 provides intelligent virtual agents, cloud contact center software and workflow automation for telecommunications, energy and utility providers. Five9 has been expanding its generative AI capabilities through strategic partnerships and platform enhancements, enabling enterprises to deliver seamless omnichannel customer engagement. While SoundHound differentiates itself with proprietary voice AI and agentic capabilities, both NICE and Five9 possess established enterprise customer bases that intensify competition as AI adoption accelerates across telecom and energy markets.
SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have lost 35.1% year to date (YTD), underperforming the industry, as shown below:
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 11.05, below the industry’s average of 11.28.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 18 cents, as shown below. The expected loss also remains wider than the previous year’s loss of 13 cents.
SoundHound v 1. čtvrtletí zvýšil tržby o 52 % na 44,2 milionu USD, ale upravená EBITDA zůstala záporná ve výši 26,7 milionu USD. Firma sází na akvizici LivePerson, úspory nákladů a platformu OASYS.
Key Takeaways SOUN's EBITDA improvement depends on scale as Q1 revenues rose 52% despite negative EBITDA.The LivePerson deal could expand SoundHound's enterprise reach and lift the 2027 revenue opportunity.OASYS, cloud optimization and restructuring actions are expected to support future EBITDA expansion. SoundHound AI's (SOUN - Free Report) path to EBITDA improvement increasingly depends on one factor — scale. The company delivered first-quarter 2026 revenues of $44.2 million, up 52% year over year, while reaffirming full-year revenue guidance of $225-$260 million. Although adjusted EBITDA remained negative at $26.7 million, management believes growing revenue, cost synergies and a more efficient AI platform can narrow losses over time.
A major catalyst is SoundHound's planned acquisition of LivePerson. The transaction is expected to significantly expand the company's enterprise footprint, adding hundreds of long-standing customers and strengthening its presence across banking, telecommunications, healthcare and retail. Management projects a 2027 revenue opportunity of at least $350-$400 million after the deal closes, while cross-selling voice AI and digital messaging solutions could eventually support a $500 million revenue opportunity from the combined customer base.
Operational efficiency is another key driver. SoundHound is consolidating infrastructure, optimizing cloud spending, replacing third-party technologies with proprietary models and extracting cost synergies from prior acquisitions. Management noted that several restructuring actions taken in the first quarter should begin delivering recurring cost benefits over the next two quarters. The newly launched OASYS platform, powered primarily by SoundHound's in-house AI models, is also expected to reduce inference costs as customer traffic scales, supporting future EBITDA expansion.
The company still faces near-term profitability challenges. Investments in proprietary foundation models and continued integration expenses will likely keep margins under pressure in 2026. However, with $216 million in cash, no debt and multiple cost-saving initiatives underway, SoundHound appears well-positioned to leverage higher revenues into improved EBITDA over the longer term, provided execution on acquisitions and platform integration remains strong.
How Do Nuance and NICE Compare With SoundHound?Two companies worth watching alongside SoundHound are Microsoft's (MSFT - Free Report) Nuance Communications and NICE Ltd. (NICE - Free Report) .
Nuance Communications has built a dominant position in enterprise conversational AI, particularly in healthcare and customer engagement, benefiting from Microsoft's cloud ecosystem and broad enterprise reach. Nuance Communications focuses on large-scale deployments, but its deep integration within Microsoft makes rapid independent innovation less visible than SoundHound's dedicated AI platform.
Meanwhile, NICE continues to strengthen its AI-powered customer experience platform through automation and analytics, helping enterprises improve contact center efficiency and reduce operating costs. NICE is increasingly embedding generative AI into its CX solutions to enhance productivity and customer service. While Nuance Communications and NICE possess greater enterprise scale today, SoundHound aims to close the gap by expanding through acquisitions, cross-selling opportunities and its proprietary OASYS platform, which management believes can lower AI inference costs and support stronger EBITDA improvement as revenue scales.
SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have lost 35.4% year to date (YTD), outperforming the industry, as shown below:
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 11.03, below the industry’s average of 11.23.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Over the past 60 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 18 cents, as shown below. The expected loss also remains wider than the previous year’s loss of 13 cents.
EPS Trend of SOUN Stock
Image Source: Zacks Investment Research
SOUN currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
