SoundHound AI, Inc. research snapshot
SOUN AI stock analysis reads SoundHound AI as a high-growth conversational voice AI platform with strong revenue momentum but persistent operating losses and a rich revenue multiple. At the August 4, 2026 cutoff, the last close on August 3 was $6.10, market capitalization was about $2.66 billion, and the stock traded about 72% below its 52-week high of $22.17. The company reports Q2 earnings on August 5, 2026, a major near-term catalyst. The AI analysis carries a speculative rating because of negative GAAP earnings, gross margin pressure that slipped toward 31% in Q1 2026, and competition from Big Tech voice platforms, offset by expanding enterprise and automotive deployments, the OASYS agentic platform, and a pending LivePerson acquisition. This is informational research and not investment advice.
Current price
$6.10
Market cap
$2.66 billion
AI score
40 / 100
Rating
Speculative, high-growth, not yet profitable
Trend status
Downtrend at 52-week lows with a Q2 earnings catalyst on August 5, 2026
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | SoundHound sells voice AI platforms to automotive, restaurant, enterprise, and healthcare customers. Revenue grew 52% year over year in Q1 2026 to a record $44.2 million, but the company is deeply unprofitable with negative free cash flow. | Medium |
| Moat | The moat is moderate and rests on proprietary NLU technology, a multi-language knowledge graph, and embedded automotive and drive-thru deployments with customers such as Stellantis, Panda Express, IHOP, and Walmart ONN. Google, Amazon, Apple, and Microsoft still spend far more on voice AI. | Low |
| Management | Founder CEO Keyvan Mohajer has led the company since 2005 and retains significant control. Capital allocation has used acquisitions (Synq3, Amelia, and the pending LivePerson deal) to push into drive-thru, enterprise, and customer service AI, which broadens the business but also adds integration and legal risk, including a class-action case tied to Amelia. | Medium |
| Financial trend | TTM revenue is $183.99 million. Q1 2026 revenue grew 52% year over year, but gross margin fell to about 31.1% from 35.5% a year earlier and the adjusted loss widened to $26.6 million. TTM net income is about -$168 million. Cash is $215.64 million with minimal debt. | Medium-high |
| Valuation | At 13.79x TTM revenue and a negative P/E, the stock prices in substantial future growth. Forward 12-month P/S of about 10.4x sits below the software industry average of about 11.2x but far above peers like Five9 (1.58x) and NICE (1.72x). EV/EBITDA near 135x leaves little room for execution missteps. | Medium |
| Technical trend | The stock is in a persistent downtrend, trading near the $5.65 52-week low after a 38.8% YTD decline. Each rally has found sellers, and volume stays heavy on down sessions. | Medium |
| Risk level | Very high. Risks include ongoing cash burn, margin compression, dilution, Big Tech competition, a pending merger integration, an Amelia-related class-action lawsuit, customer concentration, and narrative-driven swings with beta of 2.83. | High |
| AI confidence | Medium. Financial figures are verifiable from SEC filings and company releases, but the forward outlook depends on unproven assumptions about voice AI adoption, gross margin recovery, and competitive positioning. | Medium |
| Investment certainty | Low. SOUN is a high-risk, high-reward speculation. The path to a sustainable business is visible but not assured, and the current valuation leaves a thin margin of safety for value investors. | Low |
SOUN AI stock forecast
SOUN price forecasts are speculative because the company is unprofitable. The scenarios below use revenue-based valuation and assume different growth, margin, and merger outcomes. Analyst consensus is Buy (4 of 4 analysts) with an average target near $12.75, and Yahoo Finance shows a 1-year target of about $13.14. Company guidance for 2026 revenue is $225-260 million, and management pitches a $500 million combined revenue opportunity with LivePerson serving 25 of the Fortune 100.
$12 - $15
Q2 earnings on August 5 beat expectations, LivePerson closes in H2 2026 and cross-sell expands, and OASYS drives enterprise adoption. Revenue reaches a $350-400 million floor by 2027 with gross margin recovering toward 50%. Analyst targets at the high end (Cantor Fitzgerald $15) are reached as multiple expansion rewards execution.
$8 - $12
Revenue keeps growing 30-40% annually toward the guided $225-260 million for 2026 while the company stays GAAP-unprofitable. Gross margin stabilizes near 35%, LivePerson closes but integrates slowly, and the stock trades at the analyst average target of $12.75 or modestly below it.
$3 - $6
Growth decelerates below 25%, gross margin stays near 31%, and cash burn forces dilutive financing. The Amelia class-action suit or LivePerson integration problems add cost, while Big Tech voice AI commoditizes the market. Multiple compression toward 6-8x revenue pushes the stock below the $5.65 52-week low.
SOUN AI technical analysis
Technical analysis is based on price data through August 3, 2026. SOUN is in a well-defined downtrend from its 52-week high, with each rally meeting sellers. The stock is testing its $5.65 52-week low and is down 38.8% year to date. A sustained breakdown below $5.65 would open the way toward $4.00-4.50, while a close back above $8.50 would be the first sign of stabilization.
| Level | Value | Why it matters |
|---|---|---|
| Major Support | $5.65 | 52-week low, set in late July 2026. A clean break below this level opens the door to the $4.00-4.50 range. |
| Immediate Resistance | $8.50 | Prior breakdown zone and a level the stock lost after Q1 earnings in May 2026. A weekly close above it would be the first sign of trend stabilization. |
| Major Resistance | $12.00 | The analyst base target region and a former support zone. A move above this would signal a potential trend reversal. |
| 52-Week High | $22.17 | Peak reached about a year ago. It marks the upper boundary of the long-term range and would require a major fundamental catalyst to retest. |
| Momentum (RSI 14) | 30-38 | RSI sits in the lower neutral to oversold zone near 52-week lows. Selling pressure is not yet exhausted, so bounces may remain shallow. |
| Volume Pattern | Distribution-heavy | Average daily volume is about 30 million shares. Recent down sessions show heavy volume, consistent with institutional distribution. |
| Volatility (Beta) | 2.83 | Highly sensitive to market and AI-sector sentiment. Expect roughly 2.8x the market move on both up and down days. |
SOUN AI trading strategy
SOUN trading strategies must account for extreme volatility (beta 2.83), heavy volume, and binary event risk from the August 5, 2026 earnings report. These are frameworks, not personalized advice. Use Pineify tools to backtest and customize.
The August 5 Q2 report is the dominant near-term driver. Before earnings, keep exposure small or flat because the stock has moved sharply on each report this year. If results beat and guidance holds, wait for a daily close above $6.50 with volume before considering a long. Target the $8.50 breakdown zone. If results miss, respect the $5.65 level as the key support.
Highest risk is event gap risk, which a stop cannot fully control overnight. Use small position size (2-4% of portfolio), no scaling in before the report, and define exit conditions before the print.
Wait for a daily close above $6.50 with volume above 1.5x average after a test of the $5.65-6.00 zone. Enter long, target $8.50, stop below $5.60. If the $5.65 support breaks, exit immediately and do not average down.
Medium-high risk: trend-following in a downtrend carries elevated failure rates. Use a hard stop, no scaling in, and size at 2-5% of portfolio given beta risk.
Look for a one-day drop of 8-12% with a volume spike near $5.65 support. Enter 25% at the close, add 25% on a gap down the next day, and target a bounce toward the 10-day moving average. This is a fast trade with a 1-3 day hold.
Medium risk: mean-reversion in a high-beta stock can work but requires strict profit-taking. Do not hold through the August 5 earnings event.
Investment research summary
SoundHound AI provides voice AI and conversational intelligence platforms to automotive OEMs, restaurants, enterprise, and healthcare clients. Customers pay for voice-enabled ordering, assistants, and agentic AI that improve customer experience and operational efficiency. Key products include the Houndify platform, OASYS agentic AI, Smart Ordering drive-thru AI, and the pending LivePerson customer service platform.
SoundHound differentiates through proprietary NLU technology, a multi-language knowledge graph, and deep integrations in automotive and drive-thru verticals, with customers such as Stellantis, Panda Express, IHOP, Walmart ONN, and BNP Paribas. Switching costs are moderate once embedded. However, Google, Amazon, Apple, and Microsoft invest orders of magnitude more in voice AI, creating long-term technological risk.
The most likely failure paths: growth stalls as Big Tech ships free voice AI that is good enough, gross margin stays near 31%, automotive programs are delayed, and cash burn forces dilutive financing. The LivePerson acquisition could fail to integrate, and the Amelia-related class-action lawsuit adds legal overhang. A second risk is that markets re-rate unprofitable AI names lower again.
Founder Keyvan Mohajer has led the company for two decades and keeps strategic control. The acquisition of Synq3, Amelia, and now LivePerson shows a coherent vertical-expansion strategy into drive-thru, enterprise, and customer service AI. Management has delivered strong revenue growth but has not yet demonstrated GAAP profitability, and gross margin has slipped this year.
Voice and agentic AI sit in the early-adoption phase of a long-term secular trend. SoundHound is well positioned in automotive, restaurants, enterprise, and healthcare, and recent wins such as MUSC Health (2.2 million patient calls) and Deliverect show momentum. The risk is that the market develops slower than expected or consolidates around platform giants.
At $6.10, SOUN trades at 13.79x TTM revenue with negative earnings and negative free cash flow. Forward 12-month P/S near 10.4x is below the software industry average but above customer-experience peers. Analyst targets average about $12.75, but the price implies aggressive future growth with no traditional margin of safety for value investors.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| Current Price | $6.10 | Yahoo Finance | August 3, 2026 |
| Market Capitalization | $2.66 billion | Google Finance | August 3, 2026 |
| Shares Outstanding | ~403 million | Google Finance | August 3, 2026 |
| TTM Revenue | $183.99 million | Yahoo Finance | August 3, 2026 |
| Q1 2026 Revenue Growth | +52% year over year to $44.2 million | Company report via Zacks | August 3, 2026 |
| Q1 2026 Gross Margin | ~31.1% (vs 35.5% year earlier) | Company report via The Motley Fool | August 3, 2026 |
| TTM Net Income | -$168.26 million | Yahoo Finance | August 3, 2026 |
| EPS (TTM) | -$0.70 | Yahoo Finance | August 3, 2026 |
| Cash & Equivalents | $215.64 million | Yahoo Finance | August 3, 2026 |
| Total Debt / Equity | 1.35% (negligible debt) | Yahoo Finance | August 3, 2026 |
| Levered Free Cash Flow | -$16.69 million | Yahoo Finance | August 3, 2026 |
| Price/Sales (TTM) | 13.79x | Yahoo Finance | August 3, 2026 |
| Forward Price/Sales (12-mo) | ~10.4x (industry avg ~11.2x) | Zacks Investment Research | August 3, 2026 |
| Price/Book (MRQ) | 5.81x | Yahoo Finance | August 3, 2026 |
| EV/Revenue (TTM) | 13.40x | Yahoo Finance | August 3, 2026 |
| EV/EBITDA (TTM) | ~135x | Yahoo Finance | August 3, 2026 |
| Beta (5Y Monthly) | 2.83 | Yahoo Finance | August 3, 2026 |
| 52-Week Range | $5.65 - $22.17 | Yahoo Finance | August 3, 2026 |
| 2026 Revenue Guidance | $225 - $260 million | Company guidance via Zacks | August 3, 2026 |
| Analyst Consensus | Buy (4 of 4 analysts) | Google Finance | August 3, 2026 |
| Analyst Avg Price Target | $12.75 (range $12 - $15) | Google Finance | August 3, 2026 |
This page is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. All investment research and AI analysis are based on publicly available data as of the data cutoff date and may contain errors or omissions. Forecast scenarios are hypothetical and not guarantees of future performance. Past performance is not indicative of future results. Trading stocks involves substantial risk of loss. Consult a qualified financial advisor before making investment decisions.
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