SoundHound predicts over $500 million in revenue amid challenges

SoundHound AI has made significant strides in its financial growth, recently reporting a 45% year-over-year increase in second-quarter revenue, reaching a record $61.9 million. Following the approval of its acquisition of LivePerson by shareholders on September 2, the company is now set to combine its operations with LivePerson’s, which adds another $200 million in annual revenue. This deal closed on September 4 and is expected to accelerate SoundHound's growth trajectory.

The timing of this acquisition aligns with SoundHound's rising revenue forecasts. The company has raised its expectations for 2026, predicting revenue between $230 million and $260 million. This marks a significant increase from previous projections, reflecting the impact of the LivePerson acquisition and SoundHound's own robust performance. The company’s revenue nearly doubled in 2025, reaching $168.9 million, with the first quarter of 2026 showing a 52% year-over-year growth.

Despite the strong top-line growth, SoundHound still faces challenges in achieving profitability. The company reported an adjusted EBITDA loss of $9.6 million in the last quarter. Analysts predict that SoundHound may surpass $500 million in annual revenue before it sees consistent profits. The acquisition of LivePerson, while boosting revenue, introduces risks as LivePerson's revenue is shrinking, with expectations of a 15% to 20% decline in 2026. Revenue retention among its existing customers has also declined to 78%.

Moving forward, SoundHound will need to navigate the complexities of integrating LivePerson while maintaining its growth momentum. Management plans to update its revenue guidance following the deal's closure, which may provide clearer insights into the combined company’s future. The trajectory of both revenue growth and profitability will be closely watched by investors and analysts alike, as SoundHound attempts to establish itself as a leader in the voice AI market.