SoundHound adds 3 restaurant chains as Q2 sales grow 45%

SoundHound AI expanded its presence in quick-service restaurants during the second quarter of 2026, signing three major U.S. chains and achieving a 100% renewal rate among key restaurant accounts. A major pizza chain with thousands of stores now deploys the company's voice technology in more than 75% of its locations, while existing deployments expanded across brands including Jersey Mike's, Five Guys and IHOP.

The company also announced new contracts with Ruby Tuesday, a large seafood fast-food chain, an American-style Mexican chain and a sushi brand. Renewals included Habit Burger, Red Lobster and Torchy's Tacos, while Lazy Dog widened its rollout of Smart Answering and Smart Ordering. SoundHound management noted that a prominent client continues to see higher drive-thru sales at locations using its voice technology than at comparable sites without it. The company also identified cross-selling avenues via its OASYS suite, including IT support and guest-relations services.

During the second quarter of 2026, SoundHound increased its total revenue by 45% year over year to $61.9 million, while GAAP gross margin reached 45.1%. The business contends with competitors such as Toast, which offers Toast Drive-Thru alongside partner Incept AI, and PAR Technology, whose ordering technology is installed in more than 140,000 restaurant locations.

SoundHound shares have dropped 41.4% year to date, trading at a forward price-to-sales multiple of 9.26. Over the past 60 days, consensus estimates reported by Zacks narrowed expected losses per share to 19 cents for 2026 and 14 cents for 2027. The projected 2026 deficit remains wider than the 13 cents per share loss recorded in the prior year.