Key Stats for SoundHound Stock
- Current Price: $7.11
- Target Price (Mid): ~$70
- Street Target: ~$13
- Potential Total Return: ~880% (over ~5.3 years)
- Annualized IRR: ~54% / year
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What Happened?
SoundHound AI (SOUN) has its entire 2027 revenue story riding on a vote it does not get to cast. On September 2, LivePerson’s shareholders will decide whether to approve the acquisition that SoundHound has built its forward guidance around. The company already tried to close this vote on August 20 and could not, so the meeting was adjourned.
The stock sits at $7.11, near its 52-week low, even after a record quarter. That gap between a strong business and a weak price has a lot of causes this year, but the vote is the one with a date on it.
The Number That Depends on the Deal
CFO James Hom raised 2026 revenue guidance to $230 million to $260 million on the Q2 call, and that figure stands alone. The larger number is for next year. Management has guided to a 2027 floor of $350 million to $400 million, and that floor assumes LivePerson is inside the company. CEO Keyvan Mohajer said the range holds “assuming the merger is successful in the second half of this year.” Strip the deal out, and the analyst consensus for 2027 sits near $277 million, according to TIKR’s estimate data.
That is why a procedural vote has become the most important near-term event for the stock. LivePerson convened its special meeting on August 20 and adjourned it to September 2 because it had not reached the threshold to close. The obstacle was not opposition. More than 97% of votes cast supported the deal, on preliminary results. The obstacle was turnout. The merger needs a majority of all outstanding shares, not just those voted, and an unvoted share counts the same as a no. Management said it was a few percentage points short.
Both leading proxy advisers, ISS and Glass Lewis, recommended a “for” vote, and every foreign regulatory clearance was secured by late July. What is left is participation. As of this writing, the deal has cleared its regulators, but not yet its own shareholders, and the outcome is unresolved.
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Why the Business Can Plausibly Carry It
Revenue of $61.9 million beat the $52.4 million expected by roughly 18%, the adjusted loss of $0.02 per share came in ahead of the $0.05 the Street modeled, and the adjusted EBITDA loss narrowed to $9.6 million, a 33% improvement year-over-year. The company ended the quarter with $203 million in cash and no debt.
The growth was broad, spanning healthcare, financial services, automotive, and restaurants, and management credits its OASYS agentic platform for the pace. Mohajer said work that “used to take us months with a large team is now taking us minutes,” because the platform can build and refine agents on its own. For a company whose margin drag is partly a professional-services cost, compressing that timeline is the mechanism that matters. One honest note from the call: the quarter’s eight-figure win was a channel commitment, not recurring revenue, so the largest deals repeat without being predictable line items.
What the Street Is Paying For, and What It Is Not
SoundHound trades at about 11.5 times next-twelve-month enterprise value to revenue, according to TIKR data. Its closest pure-play peer, Cerence (NASDAQ: CRNC), trades at 1.6 times. That roughly seven-fold premium only holds while SoundHound’s growth stays far ahead, and last quarter it grew 45%. Any crack in that growth compresses the gap quickly.
The mean target sits near $13, and even the low end at $7 is essentially today’s price. D.A. Davidson’s Gil Luria trimmed his target to $10 from $12 in August while keeping a Buy, tying his confidence in the 2027 goal directly to the LivePerson deal. Coverage skews positive, with six Buys and two Holds, but the compressed targets are the caution.
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TIKR Advanced Model Analysis
- Current Price: $7.11
- Target Price (Mid): ~$70
- Potential Total Return: ~880%
- Annualized IRR: ~54% / year
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On mid-case assumptions realized at the end of 2031, the model targets around $70 per share, roughly 880% total return over about 5.3 years, or an IRR near 54% per year. The two revenue drivers are OASYS-led enterprise adoption in regulated verticals and the recurring base LivePerson brings. The margin driver is the migration to SoundHound’s in-house Polaris models, which management expects to lift gross margin back above 70% over time. The primary risk is execution on both the merger close and the integration behind it. Upside: a debt-free category leader compounding at scale as margins inflect. Downside: growth that keeps outrunning the cost structure while the multiple compresses toward its peers.
Conclusion
Watch September 2. Clear the majority threshold and the $350 million to $400 million floor for 2027 stays intact, keeping the story that justifies its growth premium on track. Fall short again, and consensus resets toward the standalone $277 million, leaving the premium far less to stand on. The vote is not the whole business, but it is the fastest test of whether management’s forward math survives contact with reality.
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Should You Invest in SoundHound?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up SoundHound, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track SoundHound alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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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!
