Live: SoundHound AI’s Q1 Earnings – Could Strong Results Tonight Drive a Rebound?

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Expectations Are High for SoundHound's Q1 Earnings

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This Report Has to Earn the Rerating

The stock has already priced in good news this month. For the rally to hold, management will likely need to reaffirm or raise the $225 million to $260 million revenue range and show that the path to lower cash burn is real.

Anything softer, and the stock could see a sell-off like the one that followed Q4 results.

Investors are watching SoundHound AI (NASDAQ: SOUN) ahead of first-quarter results expected today, May 7, at about 4:05 PM EST. After a hot run into the earnings report, the results need to validate the enterprise AI deal flow story.

Hot Stock with Big Expectations

Shares are up 13.4% over the past week and 34.81% over the past month, closing at $9.14 on May 5. That run reverses an ugly stretch after Q4. The stock fell 20.12% in the 30 days following the February 26 release, even though SoundHound beat on both lines.

Q4 2025 set a high bar. Revenue hit $55.06 million, up 59.39% year over year, and EPS of -$0.02 beat the -$0.0983 estimate by 79.65%. Non-GAAP gross margin expanded to 60.5% from 52.1%. CEO Keyvan Mohajer said, “Our results speak for themselves. All key profit metrics were up, and in the last quarter, we closed a record number of customer deals.” Management guided full-year 2026 revenue to $225 million to $260 million.

Consensus Setup

Deal Flow, Margins, and Cash Burn

I will be watching three things. First, deal with momentum. Q4 closed wins with a Korean OEM, an Italian sports car brand, BNP Paribas, Panda Express, IHOP, and Jersey Mike’s.

Second, margins. The non-GAAP gross margin trajectory is the cleanest tell on whether scale is finally translating to leverage. The contrast with GAAP gross margin sliding to 42.4% from 48.9% in FY24 is the bear case in one line.

Third, cash. SoundHound burned about $98.2 million in operating cash flow last year and carries $248.49 million in cash. Investors will look at whether the burn is narrowing alongside the EBITDA loss, which improved to -$7.43 million from -$16.79 million.

Sentiment heading in is mixed but tilting positive. Polymarket traders price a 59% probability of a beat, and the sell side shows six buys, two holds, and a $14.62 price target. SoundHound has logged six consecutive beats, so a clean beat is the base case, not the upside.