SoundHound AI Is Down 68% From Its High. Revenue Just Hit a Record for the Fourth Quarter in a Row.

Key Stats for SoundHound Stock

• 52-Week Range: $5.65 – $22.17
• Street Mean Target: ~$13
• Market Cap: ~$3.25B
• LTM Gross Margin: 42.3%
• Q2 2026 Revenue: $61.9M (up 45% YoY, 18% beat)
• Cash: ~$203M (no debt)
• Full-Year 2026 Revenue Guidance: $230M – $260M

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A Growing Business in a Falling Stock

SoundHound AI (SOUN) has spent 2026 delivering some of its best quarterly results ever, even as the stock has slid to levels well below where it started the year.

Revenue hit $61.9 million in Q2, up 45% year over year and roughly 18% above what analysts had modeled. Adjusted EPS came in at -$0.02, compared to a -$0.05 consensus.

Operating margin improved dramatically, from -183% a year ago to -70% in Q2. Management raised full-year 2026 revenue guidance to $230 million to $260 million. The stock fell 31% year-to-date and sits nearly 68% below its 52-week high.

SoundHound AI is a voice and agentic AI company whose core product, OASYS, allows businesses to deploy self-learning conversational agents across phones, kiosks, drive-throughs, vehicle dashboards, and digital channels. The platform serves clients across healthcare, automotive, financial services, restaurants, and telecommunications.

CEO Keyvan Mohajer noted on the Q2 call that the company’s revenue is now roughly 10 times what it was in Q2 2022, a genuine scale milestone for a company that started the decade with $31 million in annual revenue.

The revenue trajectory on the chart tells that story plainly. From $31.1 million in 2022, SoundHound climbed to $45.9 million in 2023, $84.7 million in 2024, and $168.9 million in 2025. Consensus estimates project full-year 2026 revenue near $237 million, with continued growth into 2027.

The company also announced that all required foreign investment approvals for its planned acquisition of LivePerson have been secured, with the shareholder vote scheduled for September 2. If the deal closes, management has guided combined 2027 revenue of at least $350 million to $400 million.

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The Stock’s Year in Charts

The drawdowns chart captures one of the more frustrating disconnects in the market this year. SOUN entered 2026 near its highs, then sold off sharply in January as sentiment toward unprofitable AI growth stocks broadly cooled.

The stock spent much of the year in a volatile range, posting partial recoveries in March, April, and May, only to give them back as investors rotated away from speculative names. The max drawdown hit 51.49% on July 29.

Then Q2 earnings arrived. SoundHound jumped roughly 23% the day results were published, recovering toward -30% from the high. The pop held only briefly, and the stock has since given some of those gains back to -37.70%.

The pattern has been consistent all year: good news creates bounces, then the stock drifts lower as the market waits for evidence that revenue growth will eventually translate into profitability.

With $203 million in cash and no debt, the company is not under liquidity pressure. Stock-based compensation ran $21 million in Q2 alone, though, and free cash flow remains deeply negative at around -$34 million for the quarter.

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What Wall Street Thinks About SOUN Stock

The Street Targets table reflects an unusually bullish analyst consensus for a stock that has been in a downtrend all year. The mean target as of August 21 sits at around $13, against a close of $7.32 on that date, implying roughly 74% upside.

Of the 7 analysts covering the company, 6 have Buy ratings and 1 has a Hold, with zero Sell ratings. The high target is $17; the low is $7, which is essentially where the stock trades today.

DA Davidson trimmed its price target from $12 to $10 after Q2 but maintained a Buy rating, citing OASYS demand and confidence in the 2027 revenue targets. Cantor Fitzgerald’s Thomas Blakely carries the highest target on the Street at $15.

The mean target has itself compressed from $17.19 at year-end 2025 to $12.71 today, as analysts have trimmed estimates even while maintaining their directional conviction.

Should You Buy SoundHound AI Stock?

SoundHound is one of the more interesting risk/reward setups in the small-cap AI space right now, and it requires a specific kind of investor. The bull case is straightforward: the company is growing revenue at 45% year over year, has a genuine market position in voice and agentic AI, serves 25 Fortune 100 companies, was named a Gartner Magic Quadrant leader for Conversational AI in 2026, and trades at a market cap representing less than 14 times projected 2026 revenue.

If the LivePerson deal closes and cross-selling accelerates as management expects, the revenue trajectory toward $400 million or more in 2027 would look compelling against the current stock price.

The risks are equally concrete. The company is deeply unprofitable, burning cash every quarter, and diluting shareholders through stock-based compensation at a rate that compounds over time. The path to GAAP profitability remains years away.

Gross margins at 42.3% are lower than those of most enterprise software peers. The stock’s beta of 2.82 means it swings dramatically with broader market sentiment, and any cooling in AI enthusiasm can knock it down fast. For investors who understand and accept those risks, the current price offers a meaningfully different entry point than $22. For everyone else, this is a speculative position in the truest sense of the word.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!