Voice AI technology company SoundHound AI (NASDAQ:SOUN) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 45% year on year to $61.9 million. Its non-GAAP loss of $0.02 per share was 63% above analysts’ consensus estimates.

Is now the time to buy SOUN? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

SoundHound AI’s second quarter results were marked by substantial year-on-year revenue growth and a reduction in non-GAAP losses, surpassing Wall Street’s expectations. Management attributed the strong performance to rapid adoption of the OASYS agentic AI platform, which has accelerated deal cycles and customer onboarding. CEO Keyvan Mohajer described OASYS as “the most intuitive and easiest to navigate” among competing solutions, highlighting that the technology’s ability to automate agent creation and deployment led to higher win rates and faster implementation, especially in complex enterprise settings.

Looking ahead, SoundHound is focused on scaling with its OASYS platform and preparing for the integration of LivePerson, an acquisition expected to increase its enterprise reach. Management believes that ongoing investments in proprietary AI models and the expansion of voice commerce capabilities will drive future growth. CFO James Hom emphasized the company’s intent to “capture market share by expanding within our existing customer base and attracting new customers with our rapid innovation,” while also maintaining cost discipline to achieve profitable growth.

Key Insights from Management’s Remarks

Management attributed the quarter’s success to strong customer demand for OASYS, high win rates in competitive deals, and momentum across healthcare, automotive, and financial services verticals.

• OASYS platform drives adoption: The OASYS platform, which allows for rapid automation and self-optimizing conversational AI agents, was central to new customer wins and contract renewals. Management highlighted that implementation times for complex use cases have dropped from months to minutes, boosting customer satisfaction and accelerating revenue recognition.

• Healthcare and financial traction: SoundHound reported significant expansion within the healthcare sector, including a top-20 provider quadrupling spend and several new or renewed contracts with additional health organizations. In financial services, the company renewed or expanded with major global banks and insurers, citing demand for secure, AI-driven customer service automation.

• Automotive and Asia market expansion: Strong momentum continued in Asia, particularly in the automotive sector, where SoundHound secured a seven-figure deal with a major infotainment software company in China and expanded relationships with global OEMs like Stellantis and Hyundai. These deals underscore SoundHound’s growing presence in difficult-to-enter markets and its ability to support multi-channel AI deployments.

• Restaurant and SMB solutions: The Smart Answering solution for restaurants and small businesses more than doubled year-on-year, with 100% renewal rates among key accounts. Major US restaurant chains like Jersey Mike’s and IHOP expanded their usage, and SoundHound’s AI was credited for driving increased revenue at drive-thru locations for quick-service restaurant clients.

• M&A and channel partner leverage: With the pending acquisition of LivePerson, SoundHound expects to broaden its enterprise footprint and cross-sell voice and agentic AI solutions to a larger installed base. The company also emphasized a repeatable strategy of integrating acquired businesses’ technologies into OASYS, driving efficiency and unlocking new cross-sell opportunities.

Drivers of Future Performance

SoundHound’s growth outlook is anchored by continued OASYS adoption, integration of new acquisitions, and expansion into enterprise verticals, with a focus on efficiency and innovation.

• LivePerson acquisition integration: The completion of the LivePerson acquisition is expected to add scale and increase SoundHound’s reach to more Fortune 100 brands. Management anticipates that integrating LivePerson’s digital channels with SoundHound’s voice and agentic AI capabilities will open significant cross-sell and upsell opportunities, especially as LivePerson customers have requested voice solutions.

• Proprietary model investments: Ongoing investment in proprietary AI models, including the Polaris speech foundation model and vertical-specific large language models, is targeted to improve quality, reduce costs, and enhance differentiation. Management expects these advancements to enable better customer outcomes and higher margins as more customer interactions shift to SoundHound’s in-house stack.

• Competitive and market risks: While SoundHound has demonstrated strong win rates, management acknowledges that competition is intensifying, with both existing players and new entrants leveraging third-party APIs. The company aims to mitigate these risks through continued innovation and a partnership-driven approach, but recognizes uncertainty in the rapidly evolving agentic AI market.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) the pace and effectiveness of integrating LivePerson’s customer base onto the OASYS platform, (2) further expansion in healthcare and automotive verticals, particularly in Asia and among Fortune 100 brands, and (3) the rollout and monetization of new voice commerce capabilities in vehicles and home electronics. Sustained execution on proprietary model development and customer migration will also be key indicators for future performance.

SoundHound AI currently trades at $7.25, up from $6.47 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.