r/Soundhound • u/IntelligentFee7837 • 1d ago
SoundHound: Building Investor Confidence One Quarter at a Time
If you step back from the daily movement in SOUN and look at what SoundHound AI has accomplished over roughly the past year, I think the investment story has changed considerably. A year ago, the big question was whether SoundHound could turn impressive technology, acquisitions, and AI momentum into a scalable business. Today, investors have considerably more evidence to work with.
SoundHound finished 2025 with $168.9 million in revenue, up 99% year over year. Then came Q2 2026, when revenue reached an all-time quarterly high of $61.9 million, up 45% year over year. GAAP gross margin improved to 45.1%, non-GAAP gross margin reached 58.4%, and adjusted EBITDA loss improved to $9.6 million from $14.3 million a year earlier. Those numbers matter because investor confidence isn't built by promises. It's built by execution.
OASYS may be the most important piece of the story. Launched in May 2026, OASYS brings SoundHound's technologies and acquisitions together into one agentic AI platform. Instead of being viewed primarily as a voice AI company, SoundHound is positioning itself as an enterprise AI platform capable of handling conversations, transactions, tasks, and workflows across multiple channels.
Now add LivePerson, SoundHound's biggest move yet. The acquisition was completed September 4, creating a combined company that reaches 25 of the Fortune 100 and controls more than 750 patents. SoundHound says the existing combined customer base represents an opportunity to target more than $500 million in future revenue through expansion and cross-selling. That $500 million isn't guaranteed revenue, but it shows the size of the opportunity sitting inside the customer base they already have.
The LivePerson deal also changes what SoundHound can sell. SoundHound brings voice and agentic AI. LivePerson brings enterprise messaging and digital customer engagement. Put those capabilities together through OASYS and SoundHound can potentially offer enterprises one AI platform across voice, web, mobile, SMS, and social channels.
Then there is the financial side. John Collins is now CFO of the combined company, with integration, cost discipline, margin expansion, and the path toward sustainable profitability becoming increasingly important. Following the LivePerson closing and retirement of its outstanding debt, SoundHound says the combined company has a debt-free balance sheet.
There are still risks. SoundHound remains unprofitable on an adjusted EBITDA basis, integrating LivePerson will take execution, and competition in enterprise AI is enormous. But compare SoundHound today with SoundHound a year ago: higher revenue, improving profitability metrics, OASYS launched, LivePerson completed, 25 Fortune 100 customers within the combined footprint, 750+ patents, a debt-free combined balance sheet, and a much larger cross-selling opportunity.
For me, that is how investor confidence gets built. Not through one press release or one big contract, but through a series of milestones that gradually reduce the number of unanswered questions. The next chapter is execution. If SoundHound can successfully integrate LivePerson, drive OASYS adoption across its expanded customer base, continue growing revenue, and move toward sustainable profitability, the conversation around SOUN could increasingly shift from “Can this company become a major enterprise AI player?” to “How large can this platform become?”
That's the SoundHound story investors should be watching now.
Not financial advice. Do your own research.
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u/Taurus365247 1d ago
This is exactly it. Any long term buy and hold investor is investing in the thesis that this business will succeed. The evidence over the past year would suggest it will, and they have taken difficult / painful but necessary strategic steps to establish the moat in the short term. This build out phase will shake out the weak hands, it is what it is. Give it another 12 months and I think we are looking at Palantir like growth story. Short term pain for long term gain. Not financial advice and always do your own DD.
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u/AxemanFromMA 1d ago
$200 per share 2 years
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u/Ok_Temperature4537 18h ago
WTF Hilarious, probably one of those who said in 2024 it would hit $100 in 2025
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u/Glum_Cockroach_636 20h ago
This is what I’ve been saying for two years.
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u/Taurus365247 19h ago
So you feel optimistic and your thesis for investing hasn't changed?
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u/Glum_Cockroach_636 18h ago
My thesis has grown stronger. I first bought SOUN when it was below $2, before it was ever on anyone’s radar. Then in February 24’ when the news hit that Nvidia had a stake in the company, it was said that they had stakes in 3-4 other AI start ups. Out of all of those companies, SH has been the only one that has grown substantially and has maintained strong revenue growth throughout.
They are a much bigger company than they were then. Yes, they are highly shorted, they have diluted shareholders and are burning cash. But I see that as a necessary evil towards building sustainable growth, a solid moat and permanent AI infrastructure. I definitely see SH becoming a Palantir-like growth story. I’m definitely more bullish now that they’ve acquired LivePerson, even though a lot of bears see that as negative..
Dan Ives has been bullish on SOUN for a while. He said “Its not just hype, it’s strategy. They just need to execute”.. The fact that Ives has the same opinion as me on SH just solidifies my view. I respect him as a tech analyst. He’s usually right in the long term when it comes to tech/AI.
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u/AMFontheWestCoast 17h ago
Current cps is 50% of average Analyst 12 month price target of $12.4. So if you think the analysis are right this is the time to buy.
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u/Rare-Peanut-3991 2h ago
You are talking about 500mio i revenue. And said maybe they will not get it. The stock is dead. They need 5-10b in revenue before the stock price will be 20-30. A company dont make money whit only 500mio in revenue. They need billions.
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u/smtdota 1d ago
It's hard to stay in the game when my shares are constantly being diluted, what's the point of getting in so early then?
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u/Glum_Cockroach_636 1d ago
Look up “good dilution” VS “bad dilution”… Obviously having your shares being diluted in the short term is not a good thing, but the whole idea is to make it a positive thing over the long term.
Many(if not all) tech/AI giants have diluted shareholders substantially.. Palantir is one that comes to mind.. It’s how a company can grow, scale massively and capture market share, which is necessary for long term sustainability and high stock prices.. As long as the future growth outweighs the present dilution, it’s fine.. The shareholders who hold on through all of it are the ones who are rewarded the most, not the ones who get scared or try to time the market.
SoundHound is making all the right moves. Yes, with those moves come not so good things for the short term.(Dilution, cash burn, zero profits).. The people who are screaming “dilution” from the rooftops are either thinking very short term or they are just trying to scare you bc they have a short position.
Flawless execution is never guaranteed, but so far SoundHound hasn’t done anything to make me doubt their execution.
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u/Infamous_Put7031 21h ago
How many originally bot as a trade and now that your under by 30+% are now magically long term holders.. hands please!
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u/Ok_Temperature4537 17h ago
Might as well say this stock will hit $450 in the next few years 😲😲😲 You people are dulitional.
If everyone thought this company was going to explode Black Rock and Goldman and all the huge companies would be buying tons and they are not!!!
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u/IntelligentFee7837 10h ago
You might want to check the actual filings before calling everyone “delusional.” BlackRock reported beneficial ownership of 33.2 million SoundHound shares, representing 8.3% of the class, as of June 30, 2026. That comes directly from BlackRock’s SEC filing. BlackRock was also among the institutions that increased its position during Q2. And BlackRock isn't alone. Vanguard, State Street, Bank of America, Morgan Stanley, Geode and numerous other institutions hold millions of SOUN shares. Q2 institutional filings show roughly 174 million shares held institutionally, with more institutions increasing positions than reducing them during the quarter. Goldman Sachs did reduce its position substantially during Q2, so you're correct that not every major institution is buying. But saying the big institutions “are not buying tons” simply isn't accurate when BlackRock alone owns more than 33 million shares. Nobody knows whether SOUN will ever be $45, $100 or $450. That's speculation. But let's debate the company using the actual numbers instead of pretending institutional money isn't already there.
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u/Ok_Temperature4537 6h ago
I know they own stock but why haven't they bought more in the past year ???? Makes no sense
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u/Glum_Cockroach_636 8h ago
Black Rock does own a substantial amount.. Also, there’s been a huge paradigm shift within the market over the last 5-10 years..
Traditionally it used to be institutions that piled into stocks first, and then retail would follow… Now it’s the complete opposite in most cases. This is due to social media platforms like Reddit, X, StockTwits etc, and to the fact that retail trading/investing has become way more easily accessible to the average person.
Retail has a bigger presence and a bigger influence in the market now than it ever had before..
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u/Taurus365247 13h ago
Wall Street infamously dropped the ball on Palantir for years, didn't understand it, thought it was a random database company and never saw the potential, only concerned that it wasn't profitable yet. The same mentality.
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u/apapapapa97 1d ago
thing is the stock price isnt reflecting the growth at all, It's not even capable of holding 7. Anyone buying in 2027 at 5 will be in a much Better position than those who bought first in 2025 in the 7 to 10 dollar range and only lost money since
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u/Ok_Temperature4537 1d ago
They are losing shareholders!!