SoundHound AI (NASDAQ:SOUN) Announces Earnings Results

09 May 2026, 14:24 by Jessica Moore · The Cerbat Gem

SoundHound AI (NASDAQ:SOUN – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01), FiscalAI reports. The business had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The firm’s revenue was up 51.7% on a year-over-year basis. During the same quarter last year, the company posted ($0.06) EPS.

Here are the key takeaways from SoundHound AI’s conference call:

Q1 revenue was $44.2 million, up 52% year‑over‑year, with SoundHound’s automotive and IoT AI business up ~88% excluding acquisitions, driven by a growing enterprise pipeline.
SoundHound signed a definitive agreement to acquire LivePerson (expected H2 close), expanding enterprise reach across 30+ countries and positioning the combined business to target roughly $500 million from the existing customer base (with at least ~$100M attributable from LivePerson in 2027).
Introduced OASYS, an orchestrated agent system powered by SoundHound’s Polaris speech model that builds omni‑channel AI agents in minutes, aims to cut operational costs, enable faster migrations, and reduce runtime reliance on third‑party frontier models.
Profitability remains pressured: adjusted EBITDA loss was -$26.7M and GAAP net loss was $25M (including a ~$39M non‑cash contingent liability); S&M and G&A rose materially due to acquisitions though the company has $216M cash and expects cost synergies and time‑boxed model investments to improve margins.

SoundHound AI Trading Down 7.8%

NASDAQ SOUN traded down $0.75 during mid-day trading on Friday, hitting $8.88. The company’s stock had a trading volume of 49,054,322 shares, compared to its average volume of 33,216,310. The firm has a market capitalization of $3.75 billion, a price-to-earnings ratio of -18.89 and a beta of 2.58. The company’s 50 day simple moving average is $7.57 and its 200 day simple moving average is $10.18. SoundHound AI has a twelve month low of $5.83 and a twelve month high of $22.17.

Insider Buying and Selling

In other news, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the insider owned 772,364 shares in the company, valued at $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the senior vice president owned 501,826 shares in the company, valued at $3,407,398.54. The trade was a 5.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 over the last ninety days. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada raised its holdings in SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after acquiring an additional 66,714 shares during the period. Integrated Wealth Concepts LLC grew its position in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after purchasing an additional 1,201 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of SoundHound AI by 12.9% during the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after purchasing an additional 4,692 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of SoundHound AI by 69.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after purchasing an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in SoundHound AI by 10.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after purchasing an additional 63,398 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have commented on SOUN. HC Wainwright dropped their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Piper Sandler reiterated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $14.93.

Check Out Our Latest Analysis on SOUN

Key Stories Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound’s stock falls as acquisitions weigh on earnings results

SoundHound AI Company Profile

(Get Free Report)

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.