SoundHound AI shares jumped 13.5% in after-hours trading to $7.30 after the company posted Q2 revenue of $61.9 million, a 45% surge from the year-ago quarter. The stock had actually dipped 1.2% during regular hours before the earnings release flipped sentiment sharply.
The jump reflects real operating progress. GAAP gross profit jumped 68% to $27.9 million while adjusted EBITDA losses tightened 33% to just $9.6 million. SoundHound's non-GAAP net loss improved 24% to $9.0 million, meaning the company is burning through cash far more slowly than before. Operating loss fell to $43.3 million from $78.1 million a year earlier.
Enterprise deals across three major sectors
Healthcare landed the company's biggest win this quarter. SoundHound signed a seven-figure contract with a major healthcare system employing roughly 30,000 people, then added new business across managed care, pharmacy services, and clinical software. The automotive division scored another seven-figure agreement with a large Chinese infotainment software maker. Stellantis and Hyundai are expanding adoption of SoundHound's live generative voice services across more vehicle models, and another global automaker picked the company for direct in-car voice commerce.
Restaurant customers are ramping up orders too. New agreements expanded demand in that segment, though SoundHound didn't disclose deal sizes.
Margins expanding, guidance raised
Gross margin climbed to 45.1% on GAAP basis, with non-GAAP margin holding steady at 58.4%. That operational discipline shows in the bottom line. Loss per share came in at $0.10 on GAAP basis and $0.02 non-GAAP, a meaningful improvement from prior quarters.
The company raised its 2026 revenue guidance to between $230 million and $260 million, up from previous expectations. That's a signal management sees sustained demand from the enterprise customers it's already landed.
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