TLDR
- SOUN falls after hours despite 52% Q1 revenue growth and bold expansion plans
- SoundHound AI posts higher revenue, but wider losses pressure SOUN stock late
- LivePerson deal strengthens SoundHound’s enterprise AI growth outlook for 2027
- OASYS launch supports SoundHound’s wider push into agentic AI platforms this year
- SOUN erases regular-session gain as margin pressure weighs after Q1 earnings
SoundHound AI (SOUN) shares reported stronger first-quarter revenue, but SOUN stock lost ground after hours as losses remained wide. The stock closed at $9.63, up 2.77%, before dropping to $8.74 after the bell. The late move erased the regular-session gain and shifted focus to margins, expenses, and acquisition plans.
SoundHound AI, Inc., SOUN
The company posted first-quarter revenue of $44.2 million, up 52% from $29.1 million a year earlier. However, GAAP gross margin fell to 31.1% from 36.5%, while non-GAAP gross margin slipped to 49.7%. Management linked part of the margin pressure to non-recurring vendor true-up costs during the quarter.
SoundHound also reported a GAAP net loss of $25 million, compared with net income of $129.9 million last year. Moreover, adjusted EBITDA loss widened to $26.7 million from a $22.2 million loss. GAAP and non-GAAP loss per share both stood at $0.06 for the quarter.
LivePerson Deal Expands Enterprise AI Push
SoundHound said its planned acquisition of LivePerson will expand its position in conversational and agentic AI. The deal would combine SoundHound’s voice AI tools with LivePerson’s digital messaging services. The company expects the transaction to close in the second half of 2026, subject to approvals.
The combined business expects access to a $500 million revenue opportunity and a larger enterprise customer base. SoundHound said the merged company would serve 25 Fortune 100 companies. It also expects 2027 revenue to reach at least $350 million to $400 million.
The company also launched OASYS, a self-learning agentic AI platform built to create and improve AI agents. The platform manages agent creation, orchestration, testing, and improvement over time. SoundHound said OASYS could reduce development work that previously took months.
Automotive, Restaurants And Enterprise Deals Support Growth
SoundHound reported strong activity across automotive, restaurants, finance, healthcare, utilities, and technology services. Its automotive and IoT AI vertical grew 88%, excluding acquisition impact. Besides, the company signed a seven-figure commitment with a Japanese manufacturer for global vehicle voice assistant deployment.
The company also expanded with TV and auto manufacturers, including an agreement for Walmart’s ONN TV brand. In restaurants, SoundHound said drive-thru AI locations generated higher revenue than locations without the technology. It saw more cross-sell activity and higher adoption of its Voice Insights product.
Background demand continues to support SoundHound’s broader AI strategy across enterprise markets. The company ended the quarter with a strong balance sheet and no debt tied to the planned LivePerson combination. The after-hours decline showed that wider losses and weaker margins still weighed on SOUN stock.
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