Abstract

SoundHound AI Inc will report fourth-quarter results on February 26, 2026 Post Market, with expectations centered on accelerating revenue growth, narrowing operating losses, and improved per-share metrics compared with last year.

Market Forecast

For the quarter ending December 2025, forecasts indicate SoundHound AI Inc will deliver revenue of 53.99 million, an estimated year-over-year increase of 60.25%, with projected EPS at -0.02 and EBIT at -38.78 million; year-over-year growth for EPS is expected at 83.83% and for EBIT at -24.15%. No formal guidance was provided for gross profit margin or net profit margin in the current-quarter forecast, but revenue and EPS point to a trajectory of improving unit economics year over year. Hosted services remain the main business line, supported by licensing and professional services, and the outlook highlights continued adoption across enterprise deployments. The most promising segment appears to be hosted services, with last quarter revenue of 27.67 million; year-over-year growth for this segment was not disclosed.

Last Quarter Review

In the September 2025 quarter, SoundHound AI Inc reported revenue of 42.05 million, a gross profit margin of 42.62%, GAAP net profit attributable to the parent company of -109.00 million, a net profit margin of -259.87%, and adjusted EPS of -0.03, which improved 50.00% year over year. The quarter’s net loss was notably larger than revenue, reflecting elevated non-cash and investment-related charges alongside ramp-up costs, while operating performance showed sequential scaling and cost discipline. Main business highlights included hosted services revenue of 27.67 million, licensing at 10.40 million, and professional services at 3.86 million, consistent with a revenue mix anchored by recurring and contract-based deployments; year-over-year segment growth was not provided.

Current Quarter Outlook (with major analytical insights)

Main Business: Hosted Services

Hosted services constitute SoundHound AI Inc’s core recurring revenue base, measured last quarter at 27.67 million. The current-quarter revenue forecast of 53.99 million implies substantial expansion, and that scale typically correlates with better utilization of fixed infrastructure and improved gross margins over time. While no explicit gross margin guidance is available for the present quarter, last quarter’s 42.62% indicates a baseline from which incremental gains could arise if mix shifts toward higher-margin hosted contracts. Customer adoption trends are supported by recent enterprise partnerships, suggesting continued intake of deployments and expansions that can stabilize quarterly revenue flow. These contracts often include multi-year arrangements and usage-linked fees, which tend to cushion volatility relative to one-off integration services.

Largest Growth Potential: Hosted Services Within Enterprise Deployments

Within hosted services, enterprise deployments appear positioned for the largest near-term growth contribution. Last quarter’s 27.67 million in hosted revenue anchors the scale from which growth is projected, and the current-quarter total revenue forecast at 53.99 million indicates that hosted services likely remain the primary driver. With enterprise clients integrating voice AI across customer service, in-app experiences, and device interfaces, upsell opportunities and seat expansion become central growth levers. Larger deployments can yield better contribution margins as support and infrastructure costs spread across wider usage, and they may feature tiered pricing that lifts revenue as usage scales. The partnership momentum observed in January 2026 supports the traction narrative around enterprise adoption, reinforcing expectations that hosted services lead growth, even as licensing and professional services contribute to breadth and integration.

Stock Price Drivers This Quarter

The first critical driver is the headline revenue growth rate against the 53.99 million forecast; a result above the guided trajectory would validate demand strength and the pacing of enterprise deployments. A second driver is EPS relative to the -0.02 forecast, where year-over-year improvement of 83.83% implies meaningful operating leverage; delivering or beating that improvement would signal tighter cost controls and scaling benefits. The third driver is cash burn and operating expense trends implied by the -38.78 million EBIT forecast; any upside versus this estimate may indicate efficiencies in R&D and go-to-market spend, which typically translates into better sentiment for sustainability. Without formal guidance for gross margin or net margin, investor focus will likely rest on mix and operating metrics: higher hosted services and licensing shares, lower professional services proportion, and evidence of continued customer wins or expansions. The narrative will be strengthened by quantifiable progress in contract intake or backlog-related disclosures that tie directly to forward revenue visibility.

Analyst Opinions

Based on recent coverage observed since January 1, 2026, the majority of institutional commentary skews positive. Notable sell-side voices have highlighted improving revenue trajectories and per-share metrics into the fourth quarter, pointing to operational scaling as the key thesis. Analysts emphasize that the forecasted 60.25% year-over-year revenue increase and the 83.83% improvement in EPS reflect expanding deployments and more efficient cost structures, a combination that underpins constructive views heading into February 26, 2026. The positive stance centers on three points: strong pipeline conversion evidence from enterprise engagements, expected margin uplift from higher recurring revenue share, and potential for narrower operating losses versus prior-year comparables. While there is recognition that EBIT remains negative, the consensus anticipates a manageable path toward reduced losses as revenue expands and unit economics improve.