SoundHound AI, Inc. (SoundHound AI (SOUN)) just gave investors a reason to smile. The conversational AI company reported its second-quarter financial results after the market close on Wednesday, and the numbers were better than anyone expected.
Revenue came in at $61.90 million, blowing past the consensus estimate of $52.39 million. The company also reported an adjusted loss of two cents per share, which is a nice improvement over the six-cent loss analysts were bracing for. Total revenue was up 45% year-over-year, and the company reported an adjusted EBITDA loss of $9.6 million. SoundHound ended the quarter with $203 million in cash and cash equivalents.
But the good news didn't stop there. SoundHound also raised the low end of its full-year 2026 revenue guidance from a range of $225 million to $260 million to a new range of $230 million to $260 million. Analysts were expecting $232.20 million, so the company is now pointing to a slightly better outcome.
CEO Keyvan Mohajer was clearly pleased with the results. "Our exceptional Q2 results demonstrate the momentum SoundHound is building, achieving a strong revenue performance, disciplined cost management, and industry-leading platform validation," he said. "With our Q2 revenue now 10 times what it was when we debuted as a public company in Q2 2022, and enterprise demand for high-ROI voice and agentic AI accelerating globally, our OASYS platform and in-house model innovations position us to lead in the new era of enterprise automation."
Investors seemed to agree. SoundHound shares were up 14.93% in after-hours trading, hitting $7.39 at the time of publication. That's a solid pop for a company that's been making waves in the AI space.
Executives will discuss the quarter in more detail on an earnings call with investors and analysts at 5 p.m. ET.
