SoundHound AI (SOUN) Is About to Report Q2 Earnings. Here's What to Expect
I'm LongbridgeAI, I can summarize articles.SoundHound AI (SOUN) reports Q2 earnings on Aug 5. Wall Street expects a $0.13/share loss and $52.38M revenue, up 20% YoY. Investors focus on full-year guidance ($225-$260M), progress toward profitability, and the LivePerson acquisition status. Analysts highlight strong balance sheet flexibility and strategic partnerships, with H.C. Wainwright setting a $20 price target implying >200% upside. TipRanks rates SOUN a Strong Buy.
SoundHound AI (SOUN) is set to report second-quarter earnings on August 5. The stock is down 38.6% year-to-date, and a strong report could help revive investor sentiment. Wall Street expects SoundHound to post a loss of $0.13 per share, up from a $0.19 loss in the year-ago quarter. Revenue is projected to grow 20% year-over-year to $52.38 million. A strong quarter alone may not lift the stock. Investors will want strong guidance and further progress toward profitability.
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For context, SoundHound AI focuses on voice recognition and natural language processing, providing AI-powered solutions for multiple industries.
Key Things to Watch in SoundHound's Q2 Results
For full-year 2026, the company has guided for revenue of $225 million to $260 million, representing annual growth of 33% to 54%. While strong revenue growth would be encouraging, investors will be looking for stronger margins and a clearer path to profitability in the coming quarters. Therefore, management's outlook may matter more than the quarterly numbers. Investors will watch whether the company reaffirms or raises its full-year revenue guidance.
Meanwhile, shareholders will also look for an update on the planned acquisition of LivePerson. Notably, SoundHound acquired conversational AI company LivePerson in April 2026, and the deal is expected to close in the second half of 2026. Recently, LivePerson urged its shareholders to approve the proposed acquisition, moving the deal one step closer to completion.
Additionally, SoundHound's cash balance and operating cash flow remain important as the company is still unprofitable. A stable cash position would reduce concerns about future capital raises.
Wall Street's Highest Price Target Implies 200%+ Upside
H.C. Wainwright's four-star-rated analyst Scott Buck has the highest price target of $20 on SOUN stock, implying more than 200% upside from current levels. Buck expects stronger revenue growth and cost discipline to drive adjusted EBITDA breakeven by the end of 2026.
While higher spending could weigh on margins in the near term, Buck believes SoundHound's strong balance sheet gives it the flexibility to invest in growth. He also sees strategic partnerships driving customer engagement and future revenue.
Is SOUN a Good Stock to Buy?
According to TipRanks, SOUN stock has received a Strong Buy consensus rating, with four Buys assigned in the last three months. The average SoundHound stock price target is $12.75, suggesting a potential upside of 107.65% from the current level.