Revenue growth accelerated to 99.4% year-over-year in Q2 2026, reaching $61.9M, but gross margin compressed to 36.8% from 63.0% two years prior, and operating margin remained deeply negative at -75.9%, reflecting cost pressures that outpace scale.
SoundHound AI, Inc. (SOUN) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 223.58M | 168.92M | 84.69M | 45.87M | 31.13M | 21.2M | 13.02M | 7.68M |
| Revenue Growth % | 50.65% | 99.45% | 84.62% | 47.36% | 46.86% | 62.84% | 69.56% | - |
| Cost of Goods Sold | 144.28M | 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 | 79.3M | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M | 7.15M | 3.16M |
| Gross Margin % | 35.47% | 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 | 192.13M | 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 | 180.31M | 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 | 109.04M | 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 | -2.27M | -147.25M | 229.79M | 4.56M | 0 | 0 | 0 | 0 |
| Operating Income | -112.84M | -23.27M | -341.35M | -68.61M | -105.67M | -65.33M | -66M | -64.57M |
| Operating Margin % | -50.47% | -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 | -67.64M | 10.86M | -322.69M | -66.3M | -98.45M | -56.24M | -59.97M | -59.9M |
| EBITDA Margin % | -30.25% | 6.43% | -381.01% | -144.52% | -316.25% | -265.32% | -460.68% | -780.29% |
| EBITDA Growth % | 76.58% | 103.36% | -386.74% | 32.66% | -75.05% | 6.22% | -0.11% | - |
| D&A (Non-Cash Add-back) | 45.2M | 34.13M | 18.67M | 2.31M | 7.23M | 9.09M | 6.04M | 4.67M |
| EBIT | -75.47M | -8.6M | -347.76M | -68.29M | -106.93M | -70.74M | -71.4M | -64.57M |
| Net Interest Income | 1.37M | -670K | -3.8M | -13.87M | -6.5M | -8.34M | -2.1M | 919K |
| Interest Income | 1.66M | 0 | 8.37M | 2.87M | 390K | 7K | 168K | 919K |
| Interest Expense | 289K | 670K | 12.17M | 16.73M | 6.89M | 8.34M | 2.27M | 0 |
| Other Income/Expense | 43.5M | 14M | -18.57M | -16.41M | -8.15M | -13.76M | -7.67M | 360K |
| Pretax Income | -69.34M | -9.27M | -359.93M | -85.02M | -113.82M | -79.08M | -73.67M | -64.21M |
| Pretax Margin % | -31.01% | -5.49% | -424.98% | -185.34% | -365.65% | -373.09% | -565.94% | -836.45% |
| Income Tax | 4.82M | 4.73M | -9.25M | 3.91M | 2.89M | 456K | 738K | 253K |
| Effective Tax Rate % | -6.95% | -51.02% | 2.57% | -4.6% | -2.54% | -0.58% | -1% | -0.39% |
| Net Income | -74.16M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M | -74.41M | -64.47M |
| Net Margin % | -33.17% | -8.29% | -414.06% | -193.88% | -374.93% | -375.24% | -571.61% | -839.74% |
| Net Income Growth % | 76.28% | 96.01% | -294.3% | 23.8% | -46.73% | -6.9% | -15.42% | - |
| Net Income (Continuing) | -74.16M | -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) | -0.16 | -0.03 | -1.04 | -0.40 | -0.74 | -0.40 | -4.44 | -5.56 |
| EPS Growth % | 80.54% | 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 | 454.51M | 405.42M | 338.46M | 229.26M | 157.32M | 200.03M | 17.46M | 11.6M |
| Basic Shares Outstanding | 454.51M | 405.42M | 338.46M | 229.26M | 157.32M | 200.03M | 17.46M | 11.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Dilution and negative margins
Metrics are mathematically derived from official filings.
Hyper-Growth Tempered by Volatility
Revenue surged 99.4% year-over-year in Q2 2026, reaching $61.9M, according to the latest quarterly report, but sequential growth of 45% suggests momentum is accelerating despite quarterly fluctuations.
The 99.4% YoY growth in Q2 2026 is a clear acceleration from the 2.2% growth seen in Q2 2025, indicating a significant inflection in commercial adoption. However, the sequential jump from Q1 2026's $44.2M to Q2's $61.9M is the largest in the series, suggesting that recent acquisitions and new partnerships are contributing meaningfully. This pace appears sustainable in the near term given the raised guidance, but the reliance on a few large contracts could introduce lumpiness.
Gross Margin Compression Signals Cost Pressures
Gross margin fell to 36.8% in Q2 2026 from 63.0% in Q2 2024, as reported in financial statements, indicating rising COGS from cloud infrastructure and professional services that may persist.
The gross margin decline from 63.0% in Q2 2024 to 36.8% in Q2 2026 is stark, reflecting a shift toward lower-margin service revenue and higher variable costs. This suggests that the company's product mix is becoming more cost-intensive, potentially due to increased custom deployments. Investors should monitor whether automation can restore margins, as the current level is well below typical SaaS benchmarks.
Operating Leverage Elusive Despite Scale
Operating margin improved to -75.9% in Q2 2026 from -163.3% in Q2 2024, based on reported figures, but remains deeply negative, indicating that revenue growth has not yet covered fixed costs.
While the operating margin has improved significantly, the absolute loss of $47.0M in Q2 2026 is still substantial, and SG&A expenses of $42.6M are nearly as large as gross profit of $22.8M. This suggests that overhead costs are scaling with revenue, limiting operating leverage. The company appears to be investing heavily in sales and marketing to drive growth, which may be necessary but delays profitability.
Earnings Distorted by One-Time Gains
Net income swung to a $42.8M loss in Q2 2026 from a $40.1M profit in Q4 2025, as per the income statement, with the profit driven by a $128.1M operating gain in Q1 2025.
The Q4 2025 net income of $40.1M and Q1 2025's $129.9M profit appear to be driven by non-operating items, likely gains from warrant revaluations or debt extinguishments, rather than core operations. Excluding these, the company's underlying losses are consistent with its negative operating margins. Stock-based compensation of $20.6M in Q2 2026 further dilutes shareholders, masking the true cash burn.
R&D and SG&A Outpace Revenue Growth
Combined R&D and SG&A expenses reached $69.7M in Q2 2026, exceeding gross profit by $46.9M, as reported in the quarterly data, indicating aggressive investment ahead of scale.
R&D spending has grown from $14.9M in Q2 2024 to $27.1M in Q2 2026, a 82% increase, while SG&A has grown from $14.7M to $42.6M, a 190% increase. This suggests that the company is prioritizing market expansion and product development over cost containment. The elevated SG&A may reflect increased sales headcount and marketing to capture the restaurant AI opportunity, but it also raises the break-even revenue threshold.
Q4 2025 Marks a Turning Point
Q4 2025 delivered a $42.6M operating profit and $40.1M net income, a stark reversal from prior losses, as per the income statement, but this appears driven by one-time gains.
The Q4 2025 quarter stands out as the only period with positive operating income, but the $42.6M operating profit is likely inflated by a non-recurring gain, given the surrounding quarters show losses. This inflection may reflect a one-time benefit from a contract settlement or asset sale, not a sustainable operational improvement. Investors should treat this quarter as an anomaly rather than a new trend, as Q1 2026 returned to a $61.9M operating loss.
Growth at Any Cost Raises Doubts
Despite 99% revenue growth, the company's cumulative losses over the last five quarters exceed $250M, as per the income statement, raising questions about the sustainability of its cash burn.
The aggressive spending on R&D and SG&A has not yet translated into profitability, and the reliance on equity issuance to fund operations is diluting existing shareholders. The gross margin compression suggests that the business model may not achieve the scalability of pure-play software, and the raised guidance could be overly optimistic if customer churn or contract delays occur. Short-sellers would argue that the company is buying growth with negative unit economics, and the $248.5M cash position provides only a limited runway at the current burn rate.