"Revenue of $44.2 million grew 52% year over year (YoY), and SoundHound logged its sixth consecutive quarter of beating consensus EPS estimates. Yet, investors zeroed in on profitability and cash burn rather than the top line. That's a familiar 2026 reflex for high-growth names, and it has reshaped how SOUN stock stacks up against AI peers Palantir Technologies (NASDAQ:PLTR) and C3.ai (NYSE:AI)."
"SoundHound posted a Q1 2026 net loss of $25.03 million and operating cash flow of negative $26.26 million. GAAP gross margin fell 5 percentage points YoY to 31%, weighed down by vendor true-up costs. SoundHound's management reaffirmed (rather than raised) FY 2026 revenue guidance of $225 million to $260 million and laid out a FY 2027 floor of $350 million to $400 million tied to the planned acquisition of LivePerson, expected to close in the second half of 2026."
"CEO Keyvan Mohajer kept the focus on demand, stating: "SoundHound started the year strong with our top line growing 52%. Excluding the impact of all acquisitions, revenue was up 88% in our core automotive and IoT AI vertical, highlighting incredible demand across all pillars of our business." SoundHound also unveiled OASYS, a self-learning agentic AI platform, and a Richtech Robotics partnership set to debut at the National Restaurant Association Show."
SoundHound AI shares dropped about 13% to $8.41 after Q1 2026 results released May 7. Revenue reached $44.2 million, up 52% year over year, and the company recorded its sixth consecutive quarter beating consensus EPS. Investors focused on profitability and cash burn instead of growth. The company reported a net loss of $25.03 million and operating cash flow of negative $26.26 million. GAAP gross margin declined 5 percentage points year over year to 31%, influenced by vendor true-up costs. Management reaffirmed FY 2026 revenue guidance of $225 million to $260 million and set FY 2027 revenue expectations tied to a planned LivePerson acquisition expected to close in the second half of 2026.
Read at 24/7 Wall St.
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