Should You Buy SoundHound AI Stock Before Aug. 5?

SoundHound AI (NASDAQ: SOUN) is having a tough year, as its shares are down 35% thus far in 2026. Despite achieving significant growth and having promising opportunities in the voice artificial intelligence (AI) market, investors have become increasingly bearish on the stock.

Next week, it posts its latest quarterly numbers. Could they provide the catalyst that SoundHound needs to get out of its free fall this year? And is buying the tech stock before they come out a good move for investors?

SoundHound's been growing, but its losses remain a big concern

Both times SoundHound reported earnings this year, the tech stock fell sharply afterward. Back in May, it posted an impressive 52% revenue growth for the first quarter. And yet, the stock would fall from a high of nearly $10 before the numbers came out to a low of less than $8 in the days afterward.

While SoundHound has been growing its business, uncovering its organic performance has become more challenging as acquisitions have expanded its operations. That has made the business broader, more diverse, while also boosting its top line and muddying its overall financials. Its adjusted loss last quarter totaled $26.6 million, compared with a $22.3 million loss in the prior-year period. Its gross margins also deteriorated from 35.5% a year ago to 31.1%.

Leaning on acquisitions can add risk and cost to a company's operations, and given that acquisitions are a key part of SoundHound's strategy, it may not be surprising that seemingly strong growth isn't enough to give the stock a boost after earnings.

The stock could still go lower

Although SoundHound's stock hasn't been doing well this year, it's still trading higher than its 52-week low of $5.83. And it could sink back to those levels if it can't convince growth investors that it's improving in earnings. Revenue growth alone hasn't been enough to lift the stock, and that may be a pattern that continues in future quarters.

Looking at SoundHound's financials, it's hard to make the case that it's become a better investment. It's growing through acquisitions, but whether it's actually setting itself up for success and has a path to profitability remains debatable.

SoundHound still has a lot to prove, which is why I wouldn't buy it before it reports earnings. There's plenty of risk with the stock, and there's no guarantee it hasn't bottomed out, either.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.