SOUN Stock Tanks As LivePerson Acquisition Fails To Move Full-Year Guidance

• SOUN maintained its 2026 revenue guidance at $225 - $260 million. 
• Reported Q1 revenue of $44.2 million, up 52% year-on-year, but drops nearly 20% sequentially. 
• Net loss of $0.06 per share beat expectations of a loss of $0.1 per share.

SoundHound AI (SOUN) share price dropped 11% after-hours after an unchanged full-year revenue guidance disappointed investors, even as Q1 revenue rose past expectations. 

SOUN reported Q1 revenue of revenue of $44.2 million, representing 52% year-over-year revenue growth but a sharp sequential decline of nearly 20% from the prior quarter’s $55.1 million. However, it beat Q1 expectations of $42.6 million, as per data from Fiscal.ai. 

The voice recognition and AI company reported a net loss of $0.06 per share, lower than expectations of $0.1 per share, as per data from Fiscal.ai. 

SoundHound AI shares have been in the spotlight for its recent acquisitions and efforts around AI development. It acquired speech recognition firm LivePerson and launched Oasys, a self-learning agentic AI platform that helps businesses deploy AI agents across phone systems. 

“Excluding the impact of all acquisitions, revenue was up 88% in our core automotive and IoT AI vertical, highlighting incredible demand across all pillars of our business,” said Keyvan Mohajer, CEO and Co-founder of SoundHound AI. 

The LivePerson acquisition for $43 million is expected to drive annual revenue toward $350 million to $400 million by 2027. At least $100 million of the revenue will come from LivePerson’s existing customer relationships. 

SOUN Agentic AI Efforts 

SOUN CEO Keyvan Mohajer told Stocktwits on May 5, that the Oasys platform was specifically designed to avoid dependence on a single AI ecosystem from companies such as Microsoft, Google, or Amazon. 

“Customers who bet on going all in with a big tech model risk missing out on innovations that come from elsewhere,” Mohajer said. “In a space moving this quickly, that flexibility is critical.”

Mohajer also called Oasys “model-agnostic,” meaning it can switch between different AI models depending on which performs best for a given task or workflow.

SOUN Full-Year Guidance 

The company reaffirms its full-year 2026 revenue outlook and still expects it to be in a range of $225 - $260 million. 

SOUN Retail View 

Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘extremely high’ message volumes. 

Eight analysts rate the stock a Strong Buy, with a consensus price target of $14.63—implying potential 52% upside from the current $9.63 share price, as per Koyfin data. 

One user highlighted that  “good results weren’t enough.”

The stock has gained 5% over the past 12 months.

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