SoundHound AISOUN

The company brought in about 62 million dollars in revenue last quarter, a 45 percent jump from a year ago. It also lost less money than analysts expected, reporting a loss of 2 cents per share compared to the 10 cents predicted. Management raised its outlook for the full year, signaling that demand for its voice-based automation software is growing faster than previously thought.

This is a significant step toward proving the business can scale. Non-GAAP gross margins, the profit left after the direct costs of providing the software, reached 58 percent, which is close to the company's long-term goal. As the business integrates recent acquisitions and moves toward becoming profitable, these results show it is successfully turning its technology into a high-growth enterprise platform.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Revenue outlook raised: Management raised its full year 2026 revenue guidance to a range of $230 million to $260 million, up from the prior forecast of $242 million. This move reflects confidence in the business before even accounting for the pending LivePerson acquisition, which is expected to close before the end of 2026.
• Gross margins holding steady: The company reported a non-GAAP gross margin, which measures profit after direct production costs, of 58.4%. This performance matches the 58.4% margin from the same quarter last year and stays well above the company's 50% target even as the business scales up.
• Enterprise adoption accelerating: Revenue grew 45% to $61.9 million, driven by new seven-figure deals in healthcare and automotive sectors for its OASYS platform. This growth is notable because it marks a tenfold increase from the $6.2 million in revenue the company reported when it first went public in 2022.
• Operational losses narrowing: The company reported an adjusted EBITDA loss of $9.6 million, meaning the money lost before interest and taxes. This is a 33% improvement compared to the $14.3 million loss from a year ago, showing the business is getting more efficient as it grows.
• Large channel deal signed: SoundHound signed a new multi-year partnership in Latin America worth an initial eight-figure amount to bring its technology to over 20 countries. This deal helps diversify the customer base beyond the United States and builds on existing momentum with brands like Five Guys and Hyundai.

Our take: This was a strong quarter that showed SoundHound can maintain its high growth while keeping its profit margins steady. Raising the full year revenue guidance to as high as $260 million is an encouraging sign of demand. The narrowing losses suggest the company is on a realistic path toward its profitability goals.