- Q1 2026 earnings drop May 7; Street expects $42.5M–$42.8M revenue, ~46% YoY growth.
- SOUN trades ~$8.02, down 66% from its December 2024 peak of $22.17.
- Consensus price target is $14.00 (Strong Buy, 5 Buys / 1 Hold); P/S sits near 20x.
2025 Adj. Net Loss: $53.8M
SoundHound AI reports Q1 2026 results on May 7. Wall Street is modeling $42.5M to $42.8M in revenue — roughly 46% above Q1 2025. That would follow a Q4 2025 print of $55.1M, up 59% year-over-year. Full-year 2025 revenue came in at $168.9M, nearly doubling 2024’s $84.7M. Management’s 2026 guidance range of $225M to $260M implies the growth trajectory holds.
The stock has not followed the revenue curve. SOUN is down approximately 18% year-to-date and has shed 66% from its December 2024 high of $22.17. At roughly $8.02, the market is pricing in material execution risk, not the top-line story analysts are selling. The $248M cash balance and zero debt give the company runway. The path to positive earnings per share does not.
The LivePerson deal is the biggest acquisition in SoundHound’s history and the variable analysts are still sizing up. D.A. Davidson’s Gil Luria held his Buy rating and $14 target post-announcement, flagging integration execution as the primary risk. Wedbush kept its Buy with a $12 target, pointing to the combined entity’s tens of billions of annual customer interactions as a data moat worth owning.
The valuation math is where the bulls face friction. At current prices, SOUN trades at roughly 20x trailing sales — above most Magnificent Seven names, Nvidia excluded. Apply the midpoint of 2026 guidance on a forward basis and that multiple compresses to approximately 14.4x. For a company still posting adjusted net losses — $53.8M in 2025, improved from $69.1M in 2024 — and guiding to a $0.10 loss per share in Q1 alone, that multiple demands flawless execution. The product suite (Dynamic Drive-Thru, Amelia 7, automotive Voice AI) is real. The premium priced into the stock assumes it all converts to margin. That assumption has not been tested at scale.
Analyst sentiment on SOUN stock is constructive — five Buys, one Hold, $14 consensus target — but the stock’s 66% drawdown from peak reflects a market that has stopped giving AI-adjacent growth names the benefit of the doubt. Revenue growth is real and accelerating. Profitability is not. The LivePerson integration adds operational complexity at exactly the moment investors want proof of margin discipline, not expanded scope. A P/S near 20x on a money-losing business is a bet on forward execution, not current fundamentals.
Watch Item: May 7 Q1 2026 earnings call — specifically any revision to the $225M–$260M full-year revenue guide and management’s first concrete commentary on LivePerson integration costs and timeline.
Disclaimer: This post is for informational purposes only and does not constitute investment advice. All investment decisions and their outcomes are solely the responsibility of the reader.