SoundHound AI (NASDAQ: SOUN), a voice AI platform serving enterprise and automotive conversational markets, closed at $7.08, gaining 10.11% on the session.
The surge came after the company reported record quarterly revenue, a smaller-than-expected loss, and raised its full-year financial guidance.
Trading volume reached 88.0 million shares, approximately 187% above the stock’s three-month average of 30.7 million shares.
The broader market did not share in Thursday’s optimism, with the S&P 500 falling 0.16% to 7,711 and the Nasdaq Composite slipping 0.06% to 26,348.
Among voice technology peers, Cerence (NASDAQ: CRNC) closed at $9.02, down 2.17%, making SoundHound’s outperformance all the more notable on the day.
SoundHound reported Q2 sales growth of 45%, while its adjusted net income margin improved significantly from -28% to -15%, reflecting a steady improvement in its financial efficiency.
Management raised full-year sales guidance to $245 million at the midpoint for 2026, excluding any potential contribution from the pending LivePerson acquisition, which would expand its omnichannel messaging capabilities if completed.
The company continues to win new contracts across a wide range of verticals, including financial services, restaurants, healthcare, telecom, retail, and automotive sectors.
One persistent challenge for the company remains stock-based compensation, which still equals 45% of sales, a figure investors will want to see reduced meaningfully over time.
Trading at roughly 11 times forward sales, SoundHound is not considered outrageously priced if it can maintain the hyper-growth it has demonstrated over the last five years while continuing to improve margins.
SoundHound IPO’d in 2022 and has fallen 6% since going public, though Thursday’s strong earnings reaction signals renewed investor confidence in the company’s growth trajectory.
Analysts and investors will continue watching management commentary closely around revenue trends, margin progression, and the status of the LivePerson acquisition in the coming quarters.
