SoundHound AI’s Earnings Call Contradictions: Pipeline Optimism, LivePerson Guidance Clashes, and OASYS Migration Shifts

Date of Call: Aug 5, 2026

Financials Results

• Revenue: $61.9M, up 45% year-over-year, up 40% sequentially
• EPS: $0.10 GAAP net loss per share, $0.02 non-GAAP net loss per share
• Gross Margin: GAAP gross margin 45%, up 6 percentage points YOY; non-GAAP gross margin 58%, flat YOY but up 8 percentage points sequentially
• Operating Margin: GAAP operating loss $43.3M, improved 45% YOY; adjusted EBITDA loss $9.6M, improved 33% YOY

Guidance:

• Revenue expectations for the year increased to a range of $230 million to $260 million.
• Expecting another year of very strong growth.
• Expects gross margin to exceed 70% in the future.

Business Commentary:

Revenue Growth and OASIS Platform Impact:

• SoundHound AI reported record revenue of $62 million for Q2 2026, up 45% year-over-year and 40% sequentially.
• The growth was driven by the success of the OASIS platform, which is a self-learning agentic AI platform that has accelerated deals and improved conversion rates from demos to contracts.

Profitability Improvements:

• The company improved its gross margin, adjusted EBITDA, and APS (Assumed to be Adjusted Profit per Share) both year-over-year and sequentially.
• This was attributed to disciplined cost management, modernization of infrastructure, optimization of cloud spend, and consolidation of legacy systems.

Strong Performance Across Verticals:

• SoundHound saw significant traction in healthcare, financial services, and automotive sectors, with one top 20 healthcare provider quadrupling their span in Q2.
• The expansion in these verticals was due to the company's enterprise readiness, security features, and vertical-specific strengths, which are appealing to large multinational businesses.

Geographic and Market Expansion:

• The company continued its success in Asia, signing major deals in consecutive quarters, particularly in the automotive sector in China.
• This expansion is due to the performance of their agentic technology, broad vertical expertise, and growing regional experience, making them competitive in challenging markets like China.

Strategic Acquisition and Future Outlook:

• The acquisition of LivePerson is expected to close by the end of the year, which will expand SoundHound's footprint in conversational AI and add 25 Fortune 100 brands to its customer base.
• The acquisition is seen as a repeatable formula for growth and turnaround, leveraging SoundHound's technical innovation and financial discipline.

Sentiment Analysis:

Overall Tone: Positive

• CEO reported an 'outstanding second quarter' and 'largest all-time quarter' with revenue up 45% YOY. Stated results were 'beyond our own expectations' due to the OASIS platform. Expressed confidence in market leadership and momentum, with a 'very strong pipeline' and 'win rate has never been this good.'

Q&A:

• Question from Thomas Blakely (Cantor Fitzgerald): Could you talk about 2Q trends with the Amelia and Interactions installed base and new technologies, and potential successes with LivePerson installed base?
  Response: OASIS integrates acquisitions' innovations; features like 'AI builds AI' reduce time to value from months to minutes. Building own models provides flexibility and cost savings; customers are being converted to SoundHound's stack. LivePerson customers will be migrated to OASIS at their own pace.

• Question from Thomas Blakely (Cantor Fitzgerald): Can you provide an update on the pipeline and recurring components of large deals?
  Response: Pipeline is the largest and win rate is the best ever. Large deals are repeatable across verticals, though not all components may be recurring. Gartner projects a $1 trillion TAM for agentic AI by 2030.

• Question from Thomas Blakely (Cantor Fitzgerald): What are the components of the eight-figure deal?
  Response: It is a channel partnership with a customer having customers in 20 countries, committing to use the OASIS platform for AI automation, with potential for expansion beyond the committed figure.

• Question from Thomas Blakely (Cantor Fitzgerald): What would guidance look like with and without the LivePerson deal?
  Response: Current guidance does not include LivePerson due to closing uncertainty. Last quarter's outlook for next year was a minimum of $350 million to $400 million, assuming a successful second-half closing.

• Question from Vijay Devar for Mike Latimore: Any changes to expected LivePerson contribution this year or next? Main tech platform benefit and cross-sell opportunity?
  Response: Contribution this year is uncertain due to closing timing; next year's $350-400 million outlook unchanged. Confidence in closing has increased due to regulatory approvals. Benefits include a turnaround opportunity and cross-sell/up-sell via OASIS platform integration.

• Question from Thomas Blakely (Cantor Fitzgerald): Who are the competitors in the current competitive environment, and are large LLM companies competing?
  Response: Competitors include new entrants and some larger players; frontier models are not direct competitors as they pursue AGI, not enterprise partnership. SoundHound differentiates with superior technology quality and partnership mentality.

Contradiction Point 1

Deal Pipeline and Win Rate Trends

Contradiction on the stability and drivers of the sales pipeline.

Thomas Blakely (Cantor Fitzgerald) - Thomas Blakely (Cantor Fitzgerald)

2026Q2: Pipeline is the biggest ever, with win rates at an all-time high. - Kayvon Mahajer(CEO)

Could you provide an update on the pipeline, large deals, and recurring components? - Thomas Blakey (Cantor Fitzgerald)

2026Q2: The company has secured large deals every quarter for years, showing a repeatable pattern. - Keyvan Mohajer(CEO)

Contradiction Point 2

Guidance and Deal Closing Timing

Contradiction on the certainty and structure of financial guidance.

Gil (D.A. Davidson) - Gil (D.A. Davidson)

2026Q2: The current guidance of $230-$260 million for the year does not include LivePerson. Due to uncertainty around the closing timing, the company cannot provide clear guidance for the 'with LivePerson' scenario. - Keyvan Mohajer(CEO)

What is the financial guidance for this year under the pre- and post-closing scenarios of the LivePerson acquisition? - Vijay Dewar for Mike Latimore (Northland Capital Markets)

2026Q2: Previous guidance for next year remains a minimum of $350 million to $400 million. - Kayvon Mahajer(CEO)

Contradiction Point 3

Guidance for LivePerson Deal Contribution and Confidence in Revenue Target

Conflicting statements on projecting 2026 revenue from LivePerson and confidence level.

Vijay Devar for Mike Latimore - Vijay Devar for Mike Latimore

2026Q2: 2026 Contribution: Not discussed due to closing uncertainty. 2027 Revenue Target: **$350 million to $400 million** (unchanged). Confidence Level: Increased due to securing all necessary regulatory approvals. - Kayvon Mahajer(CEO)

Has LivePerson's expected contribution for 2026/2027 changed, and what is the confidence level in the revenue target? - Gil Luria (D.A. Davidson)

2026Q1: The goal with LivePerson is a transformational turnaround, leveraging synergies to drive growth. - Keyvan Mohajer(CEO)

Contradiction Point 4

Strategy for Customer Migration on the OASYS Platform

Inconsistency on specifying migration priority for existing vs. new customers.

Thomas Blakely (Cantor Fitzgerald) - Thomas Blakely (Cantor Fitzgerald)

2026Q2: Smaller customers are already on SoundHound's stack; larger customers are being converted, with one major healthcare customer soon to switch. - Kayvon Mahajer(CEO)

What trends are you seeing in the Amelia and Interactions installed base, and what is the potential for success with the LivePerson base in Q2? - Vijay Devar (Northland Capital Markets) for Mike Latimore

2026Q1: OASYS will be rolled out in waves. The first wave includes beta users like a large Fortune 100 insurance company... Existing large customers will migrate first, followed by new customers who will use OASYS from the start. - Keyvan Mohajer(CEO)

Contradiction Point 5

M&A Outlook

Contradiction on whether future M&A is included in growth guidance.

Vijay Devar for Mike Latimore - Vijay Devar for Mike Latimore

2026Q2: No specific guidance provided due to timing uncertainty, but an update will follow closing. Expressed confidence in closing in H2 2026. - Kayvon Mahajer(CEO)

Has there been any change to LivePerson's expected contribution for 2026/2027, and what is the confidence level in the revenue target? - Isabella Hu (UBS, on for Patrick Jank)

20260227-2025 Q4: The 2026 guidance does not contemplate further M&A. The outlook is based on the existing business, pipeline, and recurring/up-selling activity. - Nitesh Sharan(CFO)