SoundHound AI (SOUN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 52% year-over-year to $44.2 million, driven by strong enterprise AI demand, acquisitions, and broad-based vertical expansion.

• Announced definitive agreement to acquire LivePerson for $42.8 million in stock, expected to close in H2 2026, expanding enterprise customer base and capabilities.

• Launched OASYS, a new agentic AI platform enabling rapid deployment and self-improving AI agents across omni-channel environments.

• Achieved significant customer wins and expanded agreements in automotive, IoT, retail, restaurants, financial services, utilities, healthcare, and technology sectors, including multiple Fortune 100 companies.

• Continued disciplined M&A strategy focused on acquiring distressed but high-potential businesses and driving post-merger growth.

Financial highlights

• Q1 revenue: $44.2 million, up 52% year-over-year.

• GAAP gross margin: 31%–31.1%; non-GAAP gross margin: 49.7%–50%, impacted by non-recurring vendor costs and acquisition-related amortization.

• R&D expenses: $26.2 million, up 6% year-over-year; Sales & Marketing: $19.2 million, up 60%; G&A: $25.7 million, up 39%.

• Adjusted EBITDA loss: $26.7 million; GAAP net loss: $25 million ($0.06/share), impacted by $39 million non-cash contingent liability adjustment.

• Cash and equivalents: $216 million at quarter-end, with no debt.

Outlook and guidance

• 2026 revenue guidance: $225–$260 million, with ramp expected through the year due to seasonality and deal timing.

• 2027 revenue target: $350–$400 million minimum, with at least $100 million contribution from LivePerson; combined business expected to reach $500 million based on current customer base.

• Management expects to fund operations for at least the next twelve months with existing cash.

• Continued focus on cost synergies, recurring revenue growth, and prudent investment in proprietary AI models.