What Can Make SoundHound AI Stock A Buy?
Enterprise AI is now the largest business at SoundHound AI (SOUN), even if many still think of the company as a voice assistant. Within that shift, one product stands out: OASYS. The company launched this platform for building AI agents in May, and it may be what buyers are betting on. Yet the company faces a sharp contradiction. The stock lost 70% in twelve months, against a 17.0% gain for the S&P 500. So, what has OASYS done for SoundHound’s sales so far?
SoundHound Credits OASYS For Part Of Its Latest Beat
SoundHound reported revenue of $61.9 million for the second quarter of 2026. This result was up 45% from a year earlier and marked the largest quarter ever for the company. Executives noted on the August 5, 2026 call that this performance beat their own expectations, attributing a significant part of that success to OASYS.
The OASYS platform allows SoundHound to build an AI agent by describing it to the software. Executives noted that this process used to take a large team months to complete. One recent deal closed quickly. A channel customer with its own customers in 20 countries signed an eight-figure commitment less than 90 days after its first demo.
The company then raised its 2026 revenue forecast to a range of $230 million to $260 million. However, OASYS is only months old. As a result, management’s credit rests on a single quarter of results.
Can OASYS Shrink SoundHound’s Losses?
While OASYS may shrink part of the losses, those losses remain large. SoundHound posted an operating loss over the last twelve months equal to 98.8% of its revenue, while the S&P 500 earns an operating margin of 18.5%. Part of the problem lies in the cost to deliver each sale. The company recorded a gross margin of 42% over those twelve months, against 75% three years ago.
Executives expect their own AI models to bring a higher profit margin. SoundHound will power OASYS with its own speech model, and small-business customers have already moved entirely onto the company’s own models. Management also expects gross margin to exceed 70% in the future, against 45% in the second quarter.
SoundHound has still seen its growth slow, however. Revenue growth has fallen in each of the last three quarters, sliding from 67.6% to 45% in the second quarter, when OASYS launched.
When Will SoundHound Holders Know If OASYS Sells?
The fullest answer will arrive when SoundHound reports its 2026 revenue. However, assessing standalone OASYS traction will be less straightforward: the original $230 million baseline excluded LivePerson, whose post-September revenue will now be consolidated into full-year results alongside SoundHound’s other product lines.
Slower sales would matter because the current share price appears to assume fast growth. SoundHound stock trades at 11.7 times sales against 3.0 for the S&P 500. Meanwhile, the share count has also risen 95% in three years, meaning each share now owns a smaller part of the company.
Investors will get an earlier test from SoundHound’s acquisition of LivePerson. SoundHound completed its acquisition of LivePerson on September 4, 2026. LivePerson’s customers already use its digital chat, and executives see upgrading them to OASYS as the next sale. The company left LivePerson out of its 2026 forecast.
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