SoundHound AI reported second-quarter 2026 revenue of $61.9 million, a 45% year-over-year increase that represents the company's largest quarter to date. Executives attributed a significant portion of this performance to OASYS, the company's platform for building AI agents, which launched in May 2026. This result exceeded internal expectations, marking a notable shift as enterprise AI becomes SoundHound's largest business segment.
The OASYS platform enables the creation of AI agents through descriptive prompts rather than traditional development cycles. Management noted on the August 5, 2026 earnings call that processes previously requiring large teams and months of work can now be executed more rapidly. One channel customer with clients across 20 countries signed an eight-figure commitment less than 90 days after its initial demo. Following these results, SoundHound raised its full-year 2026 revenue forecast to a range of $230 million to $260 million, although the OASYS platform is only months old, meaning management's credit rests on a single quarter of data.
Despite the revenue growth, SoundHound faces significant profitability challenges. The company posted an operating loss over the last twelve months equal to 98.8% of its revenue, compared to an 18.5% operating margin for the S&P 500. A primary factor in this disparity is the cost of delivering each sale; SoundHound recorded a gross margin of 42% over the trailing twelve months, down from 75% three years ago. Executives expect that powering OASYS with SoundHound's own speech models will improve margins, noting that small-business customers have already migrated entirely to the company's proprietary models. Management projects gross margins will exceed 70% in the future, up from 45% in the second quarter.
Growth momentum has nonetheless decelerated over the past three quarters. Revenue growth fell from 67.6% to 45% in the second quarter, the period when OASYS launched. The current share price reflects assumptions of continued rapid expansion, with SoundHound trading at 11.7 times sales against a 3.0 multiple for the S&P 500. Additionally, the share count has increased by 95% over three years, diluting ownership per share.
Investors will receive further clarity when SoundHound reports its full-year 2026 results. Assessing standalone OASYS traction will be complex because the original $230 million baseline excluded LivePerson. SoundHound completed its acquisition of LivePerson on September 4, 2026, and LivePerson's post-September revenue will be consolidated into full-year results alongside other product lines. Executives view upgrading LivePerson's existing digital chat customers to OASYS as the next phase of sales, though this segment remains excluded from the current forecast.