SoundHound AI shares jumped 26% in after-hours trading Wednesday after the company posted Q2 revenue of $61.9 million. Wall Street expected $52.4 million. The beat wasn't small, and the market noticed.
The real surprise came in the loss per share. Analysts had penciled in a $0.12 loss. SoundHound delivered just $0.02. That 10-cent gap between prediction and reality is what moved the stock. Investors weren't just happy the company beat, they were relieved it didn't bleed as much cash as feared.
Q2 revenue grew 45% year-over-year. The company ended the quarter sitting on $203 million in cash with zero debt. That matters because investors had been worried the balance sheet was tightening. It wasn't.
Growth story just shifted
Management raised its full-year guidance to $230 million to $260 million in revenue. The midpoint hits $245 million, beating the Street's $232.8 million estimate. CEO Keyvan Mohajer pointed out that Q2 revenue is now ten times what it was when the company went public in Q2 2022. He credited accelerating demand for voice and agentic AI as the driver.
Enterprise customers are the real story here. The quarter saw multiple seven-figure deals close in healthcare and automotive. The company also landed an eight-figure multi-year partnership spanning more than 20 countries across Latin America. That's the kind of geographic expansion that makes growth stories stick.
All four Wall Street analysts covering SoundHound carry Buy ratings. The average price target sits at $12.75, suggesting another 57% upside from Wednesday's close around $8.08. The stock had bounced from a 52-week low of $5.65 just months earlier.
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