Key Stats for SoundHound AI Stock
- 52-Week Range: $5.83 – $22.17
- Current Price: $6.22
- Street Mean Target: $13.14
- Market Cap: ~$2.69B
- YTD Return: -41.3%
- Q1 2026 Revenue: $44.2M (+52% YoY)
- LTM Gross Margin: 40.6%
- Net Cash: $209M
SoundHound AI (SOUN) has a genuinely interesting product in a genuinely large market, and the stock has still lost 41% this year.
Revenue is growing fast, enterprise customers are signing on across automotive, restaurant, and financial services, and the company just launched an agentic AI platform it is calling a gold standard for voice commerce.
What is pulling the stock lower is a combination of widening losses, a gross margin profile that has deteriorated sharply as the business scales, and a valuation that remains elevated even after the drawdown.
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52% Revenue Growth and a Customer List That Spans Three Industries
SoundHound AI, Inc. is an independent voice AI and conversational intelligence company that builds the software powering voice assistants, customer service bots, and ambient AI experiences across physical and digital environments.
While most AI companies build large language models or infrastructure, SoundHound focuses on the application layer: deploying voice AI directly into cars, restaurant drive-throughs, call centers, and retail environments.
Customers include major automotive OEMs, quick-service restaurant chains, financial institutions, and telecommunications providers.
Revenue compounded from $31 million in 2022 to $169 million in 2025, and Q1 2026 came in at $44.2 million, up 52% year over year.
Consensus estimates project revenue reaching $232 million in 2026 and $271 million in 2027, though management has guided to a minimum of $350-400 million in 2027, suggesting analysts are not fully pricing in the company’s own growth expectations.
The pending acquisition of LivePerson, a customer engagement platform serving over 100 global financial institutions, would add substantial recurring revenue and accelerate the financial services vertical.
Recent wins include a new seven-figure commitment from a Japanese automotive manufacturer, an agreement to integrate SoundHound’s voice AI across Walmart’s ONN TV brand, and a multinational OEM expansion in South America.
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The Gross Margin Decline Is the Most Important Chart to Understand
The gross margin chart tells a more complicated story than the revenue growth would suggest.
Margins peaked at 75% in 2023, a level consistent with a pure software business, then fell sharply to 49% in 2024 and 42% in 2025, with the LTM figure sitting around 40% today.
The decline reflects a deliberate mix shift: as SoundHound has acquired companies and expanded into services and implementation revenue, the blended margin has compressed.
Management’s thesis is that as software-based recurring revenue scales as a percentage of the mix, margins should recover over time. Whether that recovery materializes depends entirely on execution, and the current trajectory offers no guarantee.
Adjusted EBITDA was negative $26.7 million in Q1 2026, wider than the negative $22.2 million a year earlier, meaning losses are expanding even as revenue grows.
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What Does Wall Street Think About SoundHound AI?
Seven analysts cover the stock, with 6 Buys and 1 Hold and no Sells. The mean target sits at around $13, implying roughly 111% upside from the current price near $6.22.
Analyst conviction appears intact on the surface, but targets have been declining steadily: the mean was $17.19 in December, $14.63 in March, and $13.14 today.
Analysts are maintaining Buy ratings while quietly lowering their price expectations, which is a pattern worth watching.
The high target of $17 and the low of $8 represent a relatively narrow range for a company with this level of uncertainty.
Should You Invest in SoundHound AI?
SoundHound has real technology, real customers, and real revenue growth. Being the leading independent voice AI platform gives it an advantage with enterprises that do not want to depend on Google or Amazon for this layer of their technology stack.
The honest counterweight is that margins are moving in the wrong direction, losses are widening rather than narrowing, and the stock at roughly 10x forward revenues is still pricing in significant execution that has not yet materialized.
At $6.22 with a mean analyst target around $13, the market is pricing in deep skepticism about the margin recovery and the LivePerson integration.
The revenue growth is real, but the path from here to profitability requires a gross margin inflection that the current data does not yet confirm.
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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 stocks mentioned. Thank you for reading, and happy investing!
