SoundHound AI Posts 45% Revenue Growth and Targets $500M by 2028

SentiSense · Published Sep 6, 2026, 2:14 AM ET · Updated Sep 6, 2026, 9:48 PM ET

SoundHound AI's stock surged 16.8% in August after Q2 2026 earnings showed $61.9 million in revenue, a 45% year‑over‑year increase, and a narrowed loss profile. The company raised its 2026 revenue guidance to $230‑260 million and, after acquiring LivePerson, aims to reach $500 million in annual revenue by 2028, though sustained profitability may not arrive until 2029 or later. Analyst sentiment is mixed, with some price‑target cuts tempering the rally.

SoundHound AI rose 16.8% in August after second-quarter results beat expectations, with revenue of $61.9 million, up 45% year over year, and losses narrower than analysts had modeled. The company also raised full-year 2026 guidance to a range of $230 million to $260 million. That is a genuine acceleration in a voice-AI market where most claimed growth is pipeline rather than booked revenue.

The growth story now depends heavily on an acquisition. Management points to the LivePerson deal as the mechanism that gets SOUN to $500 million in annual revenue, a milestone projected for 2028. Acquired revenue and organic revenue are not the same thing for valuation purposes, so the integration is the item to track: the guidance raise is credible, the 2028 target is contingent on making an acquisition work.

Profitability is moving far more slowly than the top line. Adjusted EBITDA loss was $9.6 million in the quarter and net loss was $42.8 million, and the same analysis concludes sustained profitability is unlikely before 2029 at the earliest. Revenue compounding at 45% against losses that narrow at a fraction of that rate is the defining tension here, and it is why the stock trades on sentiment about AI adoption rather than on earnings.

The sell side is already splitting on it. The August rally came with price-target cuts from Piper Sandler and D.A. Davidson, and the stock gave back part of its gains in September. What to watch over the next two quarters is whether LivePerson revenue holds rather than churns post-acquisition, whether the adjusted EBITDA loss narrows sequentially, and whether the full-year print lands in the upper half of the $230 million to $260 million range, which is what the 2028 target implicitly requires.

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