Revenue reached $44.2 million in 2026Q1, though gross margins have contracted significantly to 20.1% from historical peaks exceeding 70%.
| Sales/Revenue | 183.99M | 168.92M | 84.69M | 45.87M | 31.13M | 21.2M | 13.02M | 7.68M |
| Revenue Growth % | 79.98% | 99.45% | 84.62% | 47.36% | 46.86% | 62.84% | 69.56% | - |
| Cost of Goods Sold | 114.15M | 97.37M | 43.31M | 11.31M | 9.6M | 6.58M | 5.86M | 4.51M |
| COGS % of Revenue | - | 57.64% | 51.14% | 24.65% | 30.84% | 31.07% | 45.04% | 58.81% |
| Gross Profit | 69.84M | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M | 7.15M | 3.16M |
| Gross Margin % | 37.96% | 42.36% | 48.86% | 75.35% | 69.16% | 68.93% | 54.96% | 41.19% |
| Gross Profit Growth % | - | 72.9% | 19.72% | 60.55% | 47.34% | 104.25% | 126.25% | - |
| Operating Expenses | 283.12M | 94.82M | 382.74M | 103.17M | 127.2M | 79.94M | 73.16M | 67.74M |
| OpEx % of Revenue | - | 56.13% | 451.91% | 224.91% | 408.63% | 377.12% | 562.02% | 882.32% |
| Selling, General & Admin | 158.31M | 143.83M | 82.4M | 47.18M | 50.81M | 20.76M | 18.88M | 19.97M |
| SG&A % of Revenue | - | 85.15% | 97.29% | 102.84% | 163.22% | 97.94% | 145.03% | 260.09% |
| Research & Development | 99.69M | 98.25M | 70.56M | 51.44M | 76.39M | 59.18M | 54.28M | 47.77M |
| R&D % of Revenue | - | 58.16% | 83.31% | 112.13% | 245.4% | 279.18% | 416.99% | 622.24% |
| Other Operating Expenses | 731K | -147.25M | 229.79M | 4.56M | 0 | 0 | 0 | 0 |
| Operating Income | -213.29M | -23.27M | -341.35M | -68.61M | -105.67M | -65.33M | -66M | -64.57M |
| Operating Margin % | -115.93% | -13.78% | -403.05% | -149.56% | -339.46% | -308.19% | -507.06% | -841.14% |
| Operating Income Growth % | - | 93.18% | -397.54% | 35.07% | -61.76% | 1.03% | -2.21% | - |
| EBITDA | -136.25M | 10.86M | -322.69M | -62.95M | -98.45M | -56.24M | -59.97M | -59.9M |
| EBITDA Margin % | -74.06% | 6.43% | -381.01% | -137.22% | -316.25% | -265.32% | -460.68% | -780.29% |
| EBITDA Growth % | 14.77% | 103.36% | -412.62% | 36.06% | -75.05% | 6.22% | -0.11% | - |
| D&A (Non-Cash Add-back) | 77.04M | 34.13M | 18.67M | 5.66M | 7.23M | 9.09M | 6.04M | 4.67M |
| EBIT | -201.51M | -8.6M | -347.76M | -68.29M | -106.93M | -70.74M | -71.4M | -64.57M |
| Net Interest Income | 1.92M | -670K | -3.8M | -13.87M | -6.5M | -8.34M | -2.1M | 919K |
| Interest Income | 2.43M | 0 | 8.37M | 2.87M | 390K | 7K | 168K | 919K |
| Interest Expense | 506K | 670K | 12.17M | 16.73M | 6.89M | 8.34M | 2.27M | 0 |
| Other Income/Expense | 49.03M | 14M | -18.57M | -16.41M | -8.15M | -13.76M | -7.67M | 360K |
| Pretax Income | -164.25M | -9.27M | -359.93M | -85.02M | -113.82M | -79.08M | -73.67M | -64.21M |
| Pretax Margin % | -89.28% | -5.49% | -424.98% | -185.34% | -365.65% | -373.09% | -565.94% | -836.45% |
| Income Tax | 4.71M | 4.73M | -9.25M | 3.91M | 2.89M | 456K | 738K | 253K |
| Effective Tax Rate % | -2.87% | -51.02% | 2.57% | -4.6% | -2.54% | -0.58% | -1% | -0.39% |
| Net Income | -168.97M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M | -74.41M | -64.47M |
| Net Margin % | -91.84% | -8.29% | -414.06% | -193.88% | -374.93% | -375.24% | -571.61% | -839.74% |
| Net Income Growth % | 10% | 96.01% | -294.3% | 23.8% | -46.73% | -6.9% | -15.42% | - |
| Net Income (Continuing) | -168.97M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M | -74.41M | -64.47M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.50 | -0.03 | -1.04 | -0.40 | -0.74 | -0.40 | -4.44 | -5.56 |
| EPS Growth % | 23% | 96.67% | -160% | 45.95% | -85% | 90.99% | 20.14% | - |
| EPS (Basic) | - | -0.03 | -1.04 | -0.40 | -0.74 | -0.40 | -4.44 | -5.56 |
| Diluted Shares Outstanding | 338.46M | 405.42M | 338.46M | 229.26M | 157.32M | 200.03M | 17.46M | 11.6M |
| Basic Shares Outstanding | 338.46M | 405.42M | 338.46M | 229.26M | 157.32M | 200.03M | 17.46M | 11.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Persistent operating cash burn
According to the provided quarterly financial data, SoundHound AI has demonstrated significant top-line expansion, with revenue reaching $44.2 million in 2026Q1, representing a 51.7% year-over-year increase, though the growth rate remains inconsistent across the observed ten-quarter period due to the lumpy nature of project-based implementations.
The company's revenue trajectory suggests a successful transition toward a more scalable subscription model, yet the quarter-to-quarter fluctuations imply that professional services and custom integrations still constitute a meaningful portion of the mix. Investors should monitor whether the recent growth surge is driven by sustainable recurring contracts or if it remains susceptible to the timing of large-scale automotive deployments.
As reported in the income statement, the company's gross margin has experienced notable contraction, falling to 20.1% in 2026Q1 from historical peaks exceeding 70%, which indicates that the cost of revenue is scaling more rapidly than the company's ability to command premium pricing for its AI solutions.
This margin degradation suggests that the company is incurring higher cloud infrastructure and service delivery costs as it expands its client base. The inability to maintain higher gross margins may imply that the current competitive environment forces the company to absorb significant variable costs to secure and retain enterprise-level partnerships.
Based on the reported figures, SoundHound AI continues to struggle with operating leverage, as evidenced by the 2026Q1 operating loss of $61.9 million, which highlights that SG&A and R&D expenses are currently outpacing the company's ability to generate sufficient gross profit to cover its fixed overhead.
The persistent gap between revenue growth and operating profitability suggests that the company is in a heavy investment phase, prioritizing market share over immediate bottom-line efficiency. Without a clear path to reducing the intensity of R&D spending relative to revenue, the company may continue to face significant pressure on its operating margins.
Financial statements indicate that net income has been highly erratic, swinging from a $129.9 million profit in 2025Q1 to a $25.0 million loss in 2026Q1, a trend that warrants caution as it suggests that non-operating items and accounting adjustments significantly distort the underlying operational performance.
The presence of substantial stock-based compensation in prior periods, alongside these large swings in net income, suggests that reported EPS may not accurately reflect the company's cash-generating capabilities. Investors should look past the headline net income figures to focus on the core operational cash burn, which appears to be the more accurate indicator of the company's current financial health.
While the company reports strong revenue growth, the underlying financial data suggests that the business model may be fundamentally challenged by high customer acquisition costs and a lack of clear path to profitability, as indicated by the negative operating margins observed throughout the majority of the last ten quarters.
Short-term growth may be masking a deeper issue regarding the scalability of the company's proprietary AI engine, particularly if the cost of servicing new clients continues to erode gross margins. The reliance on external capital to fund these losses suggests that the current growth trajectory may be unsustainable without a significant improvement in operational efficiency or a shift in the competitive landscape.
Quick answers to the most common questions about buying SOUN stock.
For fiscal year 2025, SoundHound AI, Inc. (SOUN) reported total revenue of $168.9M. This represents a 2100.3% increase compared to $7.7M in 2019.
SoundHound AI, Inc. (SOUN) reported a net loss of $14.0M for the fiscal year ending 2025.
SoundHound AI, Inc. (SOUN) reported an operating income of $-23.3M, resulting in an operating profit margin of -13.8%. This margin reflects the operational efficiency of the business before interest and taxes.
SoundHound AI, Inc. (SOUN) generated $71.6M in gross profit for the year, representing a gross profit margin of 42.4%. This demonstrates the company's core pricing power and production efficiency.