SoundHound AI (SOUN), a voice artificial intelligence and conversational intelligence company, saw its shares jump 13.53% in after-hours trading to $7.30, reversing a 1.23% decline during the regular session that saw the stock close at $6.43. The sharp reversal came after the company reported stronger second-quarter revenue and raised its full-year outlook, buoyed by enterprise contract wins across healthcare, automotive, restaurants, and telecommunications. The results arrive amid intensifying competition in the voice AI and conversational commerce space, where major technology companies including Amazon, Google, and Microsoft-backed players are racing to embed generative AI capabilities into customer-facing applications.

Revenue Rises as Losses Narrow

SoundHound AI reported second-quarter revenue of $61.9 million, a 45% increase from $42.7 million in the same period a year earlier. GAAP gross profit climbed 68% to $27.9 million, lifting gross margin to 45.1%. On a non-GAAP basis, gross profit reached $36.1 million with a stable margin of 58.4%.

The company's GAAP operating loss narrowed significantly to $43.3 million from $78.1 million in the prior-year quarter. Adjusted EBITDA loss improved 33% to $9.6 million, while the non-GAAP net loss narrowed 24% to $9.0 million.

GAAP net loss fell to $42.8 million, down from $74.7 million a year earlier. GAAP loss per share improved to $0.10, and non-GAAP loss per share came in at $0.02. Management attributed the improvements to higher revenue, tighter cost discipline, and enhanced operating efficiency.

Healthcare, Automotive, and Restaurant Deals Drive Growth

SoundHound secured a seven-figure contract with a nationally ranked healthcare system that employs approximately 30,000 people. The company also expanded its healthcare footprint into managed care, pharmacy services, clinical software, nursing, and rehabilitation. Existing renewals covered major biopharmaceutical, home nursing, therapy, and long-term care providers.

In the automotive sector, SoundHound signed a seven-figure agreement with a large Chinese infotainment software company. Stellantis and Hyundai broadened their use of SoundHound's live generative voice services across additional vehicle models. Separately, another global automotive brand selected SoundHound to power direct in-car voice commerce transactions.

Restaurant demand also gained traction. New agreements were signed with Ruby Tuesday and several large quick-service restaurant chains. Existing brands including Five Guys, IHOP, Jersey Mike's, and a major pizza brand expanded deployment across their locations. Habit Burger, Red Lobster, Torchy's Tacos, and Lazy Dog either renewed or expanded their existing service agreements.

Raised 2026 Revenue Outlook and Strategic Expansion

SoundHound raised its full-year 2026 revenue guidance to a range of $230 million to $260 million. Management cited the stronger second-quarter performance and rising demand for its OASYS enterprise platform — the company's integrated voice AI suite for businesses — as key drivers. The company indicated it would issue another guidance update following the anticipated completion of its LivePerson transaction, a previously announced acquisition of the customer engagement and conversational commerce platform provider.

As of June 30, 2026, SoundHound held $203 million in cash and cash equivalents with no outstanding debt. Operating activities consumed $60.0 million during the first six months of the year, while investing activities used an additional $32.7 million. Financing activities provided $46.7 million over the same period.

The company also announced an eight-figure partnership spanning a Latin American network covering more than 20 countries, and a global technology services provider joined its enterprise distribution network. These agreements are expected to expand SoundHound's sales reach while supporting its trajectory toward profitable growth.