TenQ

The SoundHound AI story

SoundHound AI builds voice assistants and enterprise AI agents, with the central question whether OASYS and the acquired LivePerson messaging business can turn broader customer adoption into profitable operations.

SoundHound AI stock reportTenQ Score 7/36 · every chart and check from its filings
  • $4.72share price, last close
  • $2.1Bmarket value
  • 7/36TenQ Score checks passed

The story in brief

  • Enterprise adoption expands. Revenue reached $61.9 million in the quarter to June 2026, up 45% from a year earlier, driven by major enterprise AI deals attributed to OASYS.
  • LivePerson changes the scope. SoundHound completed its LivePerson acquisition in September 2026, adding enterprise digital messaging and bringing the combined customer base to include 25 of the Fortune 100.
  • Cash losses persist. SoundHound ended June 2026 with $203 million in cash and no debt, but free cash flow over the last twelve months was -$116 million.

What drives the business

  • SoundHound’s independent voice AI platform lets businesses customize assistants while retaining control of their brands and customer relationships, with most revenue coming from product royalties and service subscriptions.
  • The integration of Amelia in 2025 expanded its capabilities beyond voice responses into AI agents that execute customer service and IT tasks, while LivePerson adds digital messaging infrastructure that SoundHound plans to integrate into OASYS.
  • In the quarter to June 2026, Stellantis and Hyundai expanded adoption, Ruby Tuesday signed on for Smart Answering and Smart Ordering, and Rakuten Securities renewed its relationship.
  • A new multiyear Latin American partnership represented an initial 8-figure deal covering over 20 countries, alongside 7-figure deals with a healthcare system and an automotive infotainment software company in China.
  • Revenue over the last twelve months was $203 million, growing 54.6%, compared with annual revenue growth of 75.7% over the last three years.

What the price assumes

At $5.67 per share and a market value of $2.5 billion, the reverse DCF growth assumption is not measurable because free cash flow and operating earnings are both negative, leaving the price dependent on future profits.

The price represents 12.4x revenue despite an operating margin of -68.5%, so the delivered revenue growth has not yet established a profitable base.

SoundHound passes 1 of 6 TenQ Value checks because its sales multiple is below its own history, but it does not meet the sales multiple threshold of under 2.5x or the free cash flow yield threshold of above 3%.

What could change the story

  • LivePerson’s acquisition has closed, shifting attention from completion risk to integration, unexpected acquisition costs and whether the combined operations improve financial results.
  • The 45% improvement in GAAP operating loss in the quarter to June 2026 did not make SoundHound profitable, and operating cash use increased from a year earlier.
  • TenQ’s financial health check estimates 1.75 years of cash at the measured burn rate, showing that the June 2026 cash balance did not make the business self-funding.
  • Stock-based pay was $79 million over the last twelve months, while shares outstanding increased 160.3% over 3 years, making dilution another cost of expansion.
  • Revenue growth over the last twelve months lagged the three-year pace, and SoundHound passed 0 of 6 TenQ Quality checks.

What to watch next

  • SoundHound raised its full year 2026 revenue outlook to a range of $230 to $260 million and said it planned to update guidance after LivePerson closed, making the combined revenue outlook a key next disclosure.
  • The next releases can show how LivePerson’s messaging platform is being integrated into OASYS and whether the expanded customer base generates additional business.
  • GAAP gross margin of 45.1% in the quarter to June 2026, operating cash use and the post-acquisition cash balance provide benchmarks for whether revenue growth is translating into stronger finances.

Sources

Back to the SOUN report