SoundHound AI Q1 Results Show Record Revenue
SoundHound AI Q1 results show record revenue but margin pressure, as the OASYS rollout and LivePerson agreement prompted cautious trader positioning.
KEY TAKEAWAYS
- Reported Q1 revenue of $44.2 million, up 52% year-over-year.
- GAAP gross margin narrowed to 31.1% from 36.5%, citing vendor true-ups and amortization.
- Reaffirmed 2026 revenue guidance at $225 million to $260 million while pursuing OASYS and LivePerson deal.
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SoundHound AI’s Q1 results on May 7, 2026 showed record revenue alongside a decline in GAAP gross margin as the company launched a new agentic AI platform and reaffirmed its full-year revenue guidance.
Quarter Results and Strategic Developments
The company reported Q1 revenue of $44.2 million, up 52% year-over-year and exceeding consensus estimates, according to a May 7 press release and 8-K filing. Excluding acquisitions, revenue in its core automotive and Internet-of-Things (IoT) AI segment rose 88% year-over-year. Chief Executive Keyvan Mohajer said the company “started the year strong with our top line growing 52%.”
GAAP gross margin narrowed to 31.1% from 36.5% a year earlier, which the company attributed to non-recurring vendor true-ups and amortization. The filings showed a non-GAAP gross margin of 49.7%.
SoundHound posted a GAAP net loss of $25.0 million and a non-GAAP net loss of $26.6 million for the quarter. GAAP and non-GAAP diluted loss per share were both $0.06, beating a Street consensus loss per share of $0.10, according to an earnings-call summary.
The company reaffirmed full-year 2026 revenue guidance at $225 million to $260 million as it rolled out OASYS, a self-learning agentic AI platform. It also signed an agreement to acquire LivePerson, expecting the deal to close in the second half of 2026. The combined company targets $350 million to $400 million in 2027 revenue, with at least $100 million identified as growth from LivePerson’s customer base.
SoundHound ended the quarter with $216 million in cash and no debt, saying the strong balance sheet supports an accelerated path to profitability.
The results reflect strong demand and growth initiatives alongside margin compression and ongoing losses, highlighting the tension between investment in expansion and near-term profitability.
Outlook and Next Steps
The company expects to close the LivePerson acquisition in the second half of 2026. Management said integration will be key to achieving the combined 2027 revenue target.
