Highlights

  • Second quarter 2026 revenue rose 45% to $61.9 million, and gross margin widened to 45% from 39% a year earlier.
  • Net loss narrowed to $42.8 million from $74.7 million; the six-month result swung to a loss from a profit.
  • SoundHound agreed to acquire LivePerson for about $42.8 million and restructure its secured notes for roughly $261.2 million.
  • Unrestricted cash was $202.8 million at quarter end, with a $1.02 billion accumulated deficit and funding expected for twelve months.

SoundHound AI, Inc. (NASDAQ:SOUN) shares were trading near their 52-week low at USD 4.61 on October 21, 2026, down 1.91%. The voice and conversational AI company launched its OASYS agentic platform in May, agreed to acquire LivePerson, and reported second quarter 2026 results in a quarterly filing dated August 10.

Based in Santa Clara, California, SoundHound is a Delaware corporation that describes itself as a global leader in conversational intelligence, offering independent voice AI to businesses in automotive, TV, IoT and customer service. Revenue comes from product royalties, service subscriptions and a small monetization line. The company reports over 382 patents granted and 97 pending. It has acquired SYNQ3, Amelia and Interactions since 2024. Its fiscal year ends December 31.

Revenue Growth, Wider Margin and a Mixed Six Months

Revenue for the quarter ended June 30, 2026 was $61.9 million, up 45% from $42.7 million. Service subscriptions grew 47% to $47.0 million, and product royalties rose 41% to $14.8 million. Revenue from the Americas rose 85% to $45.0 million, while EMEA revenue fell 39% to $5.2 million.

Gross profit increased 68% to $27.9 million, a 45% margin. Operating expenses were $105.2 million versus $120.7 million, but the comparison is affected by contingent acquisition liabilities, which produced a $3.7 million gain this year against a $31.4 million charge a year earlier. The loss from operations was $43.3 million versus $78.1 million, and the net loss was $42.8 million, or $0.10 per share, versus $74.7 million, or $0.19.

Six-month figures look different. Revenue rose 48% to $106.1 million, but the company posted a net loss of $67.8 million, compared with net income of $55.2 million a year earlier. That earlier profit included a $144.7 million gain from changes in contingent acquisition liabilities, versus $43.1 million this year. Diluted loss per share for the six months was $0.21. Operating cash outflow was $60.0 million versus $43.7 million.

LivePerson Deal, Funding and Going-Concern Language

On April 21, 2026, SoundHound agreed to acquire LivePerson, an agreement amended and restated on July 2. Holders of LivePerson common stock would receive about $42.8 million in cash and Class A shares. Under a separate Notes Restructuring Agreement, holders of LivePerson's secured notes agreed to release them for about $261.2 million, payable in cash, Class A stock or both at SoundHound's discretion. The company expected closing in the third quarter of 2026, subject to conditions including regulatory approvals. The filing does not report a close. On May 12 it also completed an asset purchase for up to $30.2 million in cash, of which $26.1 million had been paid by June 30.

Cash and cash equivalents stood at $202.8 million, down from a $249.2 million combined cash and restricted cash balance at year-end. The financial statements disclose recurring losses since inception and a $1,024.9 million accumulated deficit, and they are prepared on a going concern basis. Management expects to fund operations for at least twelve months from issuance and notes it may seek debt or equity financing or take expense reduction measures.

Equity sales have been a funding source. In the first half of 2026 SoundHound sold 6.2 million shares through its second at-the-market program at an average $7.78, raising $48.5 million, exhausting that program. On May 11 it entered a third program of up to $300.0 million and sold no shares under it in the second quarter. Class A shares outstanding were 411.6 million on August 6, 2026.

OASYS and Management Priorities

OASYS, launched May 5, 2026, is described as a platform for building, orchestrating and evaluating enterprise AI agents, pulling together technology from the recent acquisitions. Management calls it a central element of its commercial offering. It gives no numerical revenue guidance in the filing.