SoundHound AI reports 48% revenue surge despite ongoing losses

SoundHound AI reported its second-quarter 2026 earnings, highlighting a 48% increase in revenue compared to the same period last year. The company generated $106 million in revenue during the first half of 2026, driven by demand for conversational AI tools in the automotive and restaurant sectors. The company also introduced the Orchestrated Agent System (OASYS) to expand its market reach.

Despite the revenue surge, the company reported a $68 million loss for the first half of 2026 and negative free cash flow of $61 million. SoundHound AI currently holds approximately $203 million in liquidity. While the stock recently saw a 5% intraday increase, it remains more than 70% below its all-time high. Analysts maintain mixed outlooks, with a consensus price target of $13.60 and an average rating of ‘Moderate Buy’.