SoundHound AI Reports Record Q3 Revenue and Guides to Sustained Adjusted EBITDA Profitability within 2H 2027
Nine-month operating cash use increased to $96.0 million from $76.3 million, despite narrower quarterly GAAP losses.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
SoundHound AI (Nasdaq: SOUN) reported record third-quarter 2026 revenue of $62.4 million and forecast sustained adjusted EBITDA profitability within second-half 2027. Revenue rose 48% year over year. GAAP net loss narrowed to $46.4 million, or $0.10 per share, while gross margin fell to 34.1% from 42.6%. Adjusted EBITDA, an adjusted earnings measure, was a $20.7 million loss versus $14.5 million a year earlier.
The LivePerson acquisition closed September 4, with nearly all its debt retired. At September 30, cash was $207.6 million and short-term debt was $3.8 million. SoundHound expects revenue of $250 million–$260 million in 2026 and $350 million–$400 million in 2027. It identified $120 million in annualized cost synergies, with the full run-rate expected in 2027. New agreements included a seven-figure minimum guarantee from a Chinese automotive supplier and an LG commerce channel across approximately 20 million US smart TVs.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.$120 million annualized cost synergies identified; SoundHound expects the full run-rate in 2027.
- Major point. Forward-looking: it has not happened yet and may not happen.Sustained adjusted EBITDA profitability expected within second-half 2027, even at the lower end of revenue guidance.
- Moderate pointQ3 revenue of $62.425 million increased 48% year over year.
- Moderate pointQ3 GAAP net loss narrowed to $46.368 million from $109.271 million a year earlier.
- Moderate pointLivePerson acquisition closed September 4, with all but a negligible portion of its debt retired.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance is $250 million–$260 million; 2027 guidance is $350 million–$400 million.
19 minor points
- Minor pointQ3 GAAP gross profit of $21.282 million increased 19% year over year.
- Minor pointQ3 GAAP operating loss narrowed to $46.497 million from $115.891 million a year earlier.
- Minor pointQ3 GAAP loss per share improved to $0.10 from $0.27 a year earlier.
- Minor point. Forward-looking: it has not happened yet and may not happen.Over $80 million in cost actions are scheduled to take effect before January 1, 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.Negative-gross-margin contracts are being exited; SoundHound expects gross-margin and EBITDA improvement.
- Minor point. Forward-looking: it has not happened yet and may not happen.Hosted-service model prioritized; SoundHound expects more predictable revenue and long-term annual recurring revenue growth.
- Minor pointSeven-figure minimum-guarantee agreement signed with a tier-one Chinese automotive supplier for voice AI and edge capabilities.
- Minor pointLG agreement signed for a new commerce channel across approximately 20 million US smart TVs.
- Minor pointLivePerson renewals and upsells included a US healthcare benefits provider, European broadcaster/telecommunications provider and UK water utility.
- Minor pointAcademic health system selected SoundHound for hospital services and its health plan.
- Minor pointRandox selected SoundHound for customer care.
- Minor pointUS electric utility signed a contract for AI in back-office functions.
- Minor pointBritish multinational telecommunications customer added services.
- Minor pointGreaves Electric agreement signed for an embedded voice assistant.
- Minor pointDirect voice-commerce partnerships signed with a coffeehouse brand and a fast-casual restaurant chain.
- Minor pointMultinational food and beverage customer renewed its enterprise HR deployment.
- Minor pointResorts World Las Vegas expanded deployment to an external-facing autonomous booking agent.
- Minor pointPizza-chain customer expanded AI ordering to nearly 100 additional restaurants.
- Minor pointGlobal consumer products customer won through the Alta Resources partnership.
Negative
- Moderate pointQ3 GAAP gross margin fell to 34.1% from 42.6%, down 8.5 percentage points year over year.
- Moderate pointQ3 adjusted EBITDA loss widened to $20.665 million from $14.546 million a year earlier.
- Moderate pointNine-month operating cash use increased to $95.986 million from $76.336 million a year earlier.
- Moderate pointBasic weighted-average shares increased to 454,512,160 in Q3 2026 from 409,783,470 in Q3 2025.
- Minor pointCash and cash equivalents decreased $40.577 million over the first nine months of 2026.
4 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.$3.8 million short-term debt assumed from LivePerson remained at September 30; repayment is due in Q4.
- Minor pointQ3 acquisition-related expenses increased to $12.915 million from $5.326 million a year earlier.
- Minor pointQ3 stock compensation and related payroll taxes increased to $22.540 million from $21.217 million a year earlier.
- Minor pointFinancial data remain preliminary until SoundHound files its 10-Q.
News Explained
SoundHound says the financial data in this release are preliminary until it files its 10-Q; that unaudited quarterly report contains interim financial statements, making the filing the stated checkpoint for these figures.
Details
Market move: SOUN -10.33% vs previous close. Q3 2026 earnings report
On Nov 5, the day this news came out, the latest delayed price for SOUN is 10.33% below the previous close. Argus tracked a peak move of +3.8% during the session. Our momentum scanner has recorded 64 alerts for this stock so far that day. The latest delayed price is $3.82. Relative volume is above average at 1.9x what this stock usually trades by this time of day.
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Key Figures
- Q3 revenue
- $62.4 million
- Third quarter 2026
- GAAP gross margin
- 34.1%
- Third quarter 2026; 42.6% in Q3 2025
- Adjusted EBITDA
- Loss of $20.7 million
- Third quarter 2026
- Annualized cost synergies
- $120 million
- Full run-rate expected in 2027
- Synergy actions
- Over $80 million
- Scheduled to take effect before January 1, 2027
- 2026 revenue outlook
- $250 million–$260 million
- Company outlook for 2026
- 2027 revenue outlook
- $350 million–$400 million
- Company outlook for 2027
- Adjusted EBITDA profitability target
- Within the second half of 2027
- Company expects sustained adjusted EBITDA profitability
Key Terms
adjusted EBITDA financial
non-GAAP financial
ARR financial
LLM-powered technical
GAAP financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
SANTA CLARA, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice and agentic AI, today reported its financial results for the third quarter 2026.
"This is a milestone moment for SoundHound. We announced another record quarter, closed our acquisition of LivePerson, and guided that the company will be adjusted EBITDA profitable within the second half of 2027,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. “Our OASYS platform now leads its category and is positioned to become the operating system of the new agentic era, strengthened by technology from six pioneering businesses we have combined under SoundHound AI.”
Financial Highlights
- Third quarter reported revenue was
$62.4 million , an increase of48.5% year-over-year. - Third quarter GAAP gross margin was
34.1% ; non-GAAP gross margin was50.3% . - Third quarter GAAP net loss was
$(46.4) million ; non-GAAP net loss was$(21.2) million . - Third quarter adjusted EBITDA was a loss of
$(20.7) million . - Third quarter GAAP earnings per share was a loss of
$(0.10) ; non-GAAP earnings per share was a loss of$(0.05) .
"Since closing the LivePerson acquisition, we have moved swiftly and decisively to integrate the businesses and realize substantial cost and revenue synergies. At the same time, we are improving our quality of earnings by shifting upfront license deals to hosted structures and exiting non-core, dilutive business lines, making our revenue more stable and predictable,” said John Collins, CFO of SoundHound AI. “These business transformations provide the operating leverage necessary to reach sustainable, profitable growth within the second half of 2027."
Business Highlights
LivePerson Update
- Closed the acquisition of LivePerson on September 4th, retiring all but a negligible portion of the debt, which will be repaid at maturity in the fourth quarter.
- Coordinated outreach to LivePerson's top 90 enterprise accounts representing over
$100 million in ARR, receiving overwhelmingly positive feedback regarding financial stability and the addition of enterprise-grade voice and agentic AI capabilities. - Renewals and upsells included a major US healthcare benefits provider, a leading European broadcaster and telecommunications provider, and a leading UK water utility.
Enterprise and Customer Care
- A leading academic health system selected SoundHound across both its hospital services and its health plan.
- Randox, a health testing provider serving UK and global populations, selected SoundHound for customer care.
- A major US electric utility signed a new contract to bring AI to its back-office functions.
- A British multinational telecommunications company added additional services.
Auto, Devices, and Voice Commerce
- Signed a 7-figure minimum-guarantee agreement with a tier one Chinese automotive supplier for voice AI and edge capabilities.
- Signed a new deal with Greaves Electric, a leading electric two-wheeler maker, for an embedded voice assistant.
- Launched OASYS Edge, an on-device architecture bringing LLM-powered voice AI agents directly onto local device hardware in vehicles, TVs, and smart devices.
- Signed a deal with a global electronics manufacturer LG to debut a new commerce channel across approximately 20 million smart TVs in the US.
- Signed direct voice commerce partnerships with a large coffeehouse brand and a growing fast-casual restaurant chain.
Consumer Brands, Hospitality and Physical Operations
- A multinational food and beverage company renewed its enterprise HR deployment.
- Resorts World Las Vegas, a global resort operator, expanded from an on-property digital concierge to an external-facing autonomous booking agent.
- A household-name pizza chain added SoundHound AI ordering to nearly 100 additional restaurant locations.
- Won a major global consumer products company as a new end customer through our partnership with Alta Resources, a business process outsourcing and customer management partner.
Third Quarter 2026 Financial Measures1
| Three Months Ended (thousands, unless otherwise noted) | September 30, 2026 | September 30, 2025 | Change | ||||||||||
| Revenues | $ | 62,425 | $ | 42,049 | 48 | % | |||||||
| GAAP gross profit | $ | 21,282 | $ | 17,921 | 19 | % | |||||||
| GAAP gross margin | 34.1 | % | 42.6 | % | (8.5 | ) pp | |||||||
| Non-GAAP gross profit | $ | 31,394 | $ | 24,917 | 26 | % | |||||||
| Non-GAAP gross margin | 50.3 | % | 59.3 | % | (9.0 | ) pp | |||||||
| GAAP operating loss2 | $ | (46,497 | ) | $ | (115,891 | ) | 60 | % | |||||
| Non-GAAP adjusted EBITDA | $ | (20,665 | ) | $ | (14,546 | ) | (42 | )% | |||||
| GAAP net loss2 | $ | (46,368 | ) | $ | (109,271 | ) | 58 | % | |||||
| Non-GAAP net loss | $ | (21,215 | ) | $ | (13,022 | ) | (63 | )% | |||||
| GAAP net loss per share2 | $ | (0.10 | ) | $ | (0.27 | ) | $ | 0.17 | |||||
| Non-GAAP net loss per share | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
| 1) | Please see tables below for a reconciliation from GAAP to non-GAAP. | |
| 2) | GAAP operating loss includes an impact from the calculated fair value of contingent acquisition liabilities where future earn-out shares are marked-to-market on a quarterly basis, and with the fluctuation in stock price compared to the previous quarter there was a gain associated with this item of |
Liquidity and Cash Flows
The company’s total cash and cash equivalents was
Condensed Cash Flow Statement
| Nine Months Ended (thousands) | September 30, 2026 | September 30, 2025 | ||||||||
| Cash flows: | ||||||||||
| Net cash used in operating activities | $ | (95,986 | ) | $ | (76,336 | ) | ||||
| Net cash provided by (used in) investing activities | 9,803 | (56,965 | ) | |||||||
| Net cash provided by financing activities | 45,315 | 204,514 | ||||||||
| Effects of exchange rate changes on cash | 291 | (257 | ) | |||||||
| Net change in cash and cash equivalents | $ | (40,577 | ) | $ | 70,956 | |||||
Business Outlook
- SoundHound has identified significant annualized cost synergies of
$120 million , with over$80 million in actions scheduled to take effect before January 1, 2027, and the full$120 million run-rate expected in 2027. - The Company has been strategically non-renewing and exiting certain negative gross margin contracts inherited from prior acquisitions and expects to continue doing so, with a positive impact on both gross margin and EBITDA.
- SoundHound will use the self-learning feature of OASYS to prioritize a hosted-service model and reduce upfront licensing, which has historically resulted in fluctuating point-in-time revenue contributions in prior quarters. The expected impact is more predictable revenue and long-term, sustainable ARR growth.
- With the impact of the actions above, SoundHound expects the 2026 revenue to be in the range of
$250M -$260M , and 2027 revenue in the range of$350M -$400M . - SoundHound expects to reach sustained adjusted EBITDA positive within the second half of 2027, even at the lower-end of its revenue guidance.
Additional Information
For more information please see the company’s SEC filings which can be obtained on the company’s website at investors.soundhound.com. The financial statements for the fiscal quarter will be posted on the website, and will also be filed as an exhibit when the company files its 8-K including this press release. The financial data presented in this press release should be considered preliminary until the company files its 10-Q.
Conference Call and Webcast
SoundHound AI will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. A live webcast and replay will also be accessible at investors.soundhound.com.
About SoundHound AI
SoundHound AI is a voice and agentic AI company that enables businesses to deliver natural, end-to-end conversational experiences across digital and physical channels, including phones, kiosks, chat, smart devices, drive-thrus, TVs, in-vehicle, and more. Its agentic platform, OASYS, is a self-learning, orchestrated AI system where organizations can build and deploy conversational AI agents to handle transactions, tasks, and workflows on behalf of customers and employees. Built on proprietary technology backed by 800+ patents and years of AI research, SoundHound serves leading brands across industries including automotive, financial services, healthcare, retail, telecommunications, and more. It powers millions of products and processes billions of interactions annually for enterprise customers worldwide. For more information, visit: www.soundhound.com
Forward Looking Statements
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, including our ability to integrate the business and operations of LivePerson and our ability to realize the expected benefits of such acquisition, our ability to achieve and sustain positive adjusted EBITDA within the second half of 2027 and guidance for financial results for 2026 and 2027. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, our ability to successfully launch and commercialize new products and services and derive significant revenue, our market opportunity and our ability to acquire new customers and retain existing customers, unexpected costs, charges or expenses resulting from our recent acquisitions, the ability of our recent acquisitions to be accretive on the company's financial results, our ability to reduce our annualized cost structure and achieve expected cost synergies associated therewith and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures of Financial Performance
To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.
The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.
As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance.
The company defines its non-GAAP measures by excluding certain items:
The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets), (ii) stock-based compensation and related payroll taxes, and (iii) acquisition-related costs
The company arrives at adjusted EBITDA by excluding (i) total other income/(expense), net, (ii) income taxes, (iii) depreciation and amortization expense (including acquired intangible assets), (iv) amortization of capitalized commissions, (v) stock-based compensation and related payroll taxes, (vi) change in fair value of contingent acquisition liabilities, (vii) litigation settlement expenses and (viii) acquisition-related costs.
The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) amortization of capitalized commissions, (iii) stock-based compensation and related payroll taxes, (iv) change in fair value of contingent acquisition liabilities, (v) change in fair value of derivative, (vi) litigation settlement expenses, (vii) acquisition-related costs and (viii) income tax effects related to acquisitions.
Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.
To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.
Third Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin
| Three Months Ended (thousands, unless otherwise noted) | September 30, 2026 | September 30, 2025 | ||||||||
| GAAP gross profit1 | $ | 21,282 | $ | 17,921 | ||||||
| Adjustments: | ||||||||||
| Depreciation and amortization | 6,672 | 4,334 | ||||||||
| Stock-based compensation and related payroll taxes² | 3,129 | 2,662 | ||||||||
| Acquisition-related expenses | 311 | — | ||||||||
| Non-GAAP gross profit | $ | 31,394 | $ | 24,917 | ||||||
| GAAP gross margin | 34.1 | % | 42.6 | % | ||||||
| Non-GAAP gross margin | 50.3 | % | 59.3 | % | ||||||
| 1) | GAAP gross profit is calculated by subtracting the cost of revenues from revenues. | |
| 2) | Q3 2026 and Q3 2025 include employer payroll taxes that result from stock-based compensation in the amount of |
Third Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
| Three Months Ended (thousands) | September 30, 2026 | September 30, 2025 | ||||||||
| GAAP net loss | $ | (46,368 | ) | $ | (109,271 | ) | ||||
| Adjustments: | ||||||||||
| Total other expense (income), net1 | 233 | (7,077 | ) | |||||||
| Income taxes | (362 | ) | 457 | |||||||
| Depreciation and amortization | 13,320 | 8,557 | ||||||||
| Amortization of capitalized commissions | 65 | — | ||||||||
| Stock-based compensation and related payroll taxes2 | 22,540 | 21,217 | ||||||||
| Change in fair value of contingent acquisition liabilities | (23,428 | ) | 66,245 | |||||||
| Litigation settlement expenses | 420 | — | ||||||||
| Acquisition-related expenses3 | 12,915 | 5,326 | ||||||||
| Non-GAAP adjusted EBITDA | $ | (20,665 | ) | $ | (14,546 | ) | ||||
| 1) | Includes | |
| 2) | Q3 2026 and Q3 2025 include employer payroll taxes that result from stock-based compensation in the amount of | |
| 3) | Acquisition-related expenses in Q3 2026 also include acquisition-related severance expenses and transition expenses resulting from the transition agreements under specific acquisition. |
Third Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
| Three Months Ended (thousands, unless otherwise noted) | September 30, 2026 | September 30, 2025 | ||||||||
| GAAP net loss attributable to SoundHound common shareholders | $ | (46,368 | ) | $ | (109,271 | ) | ||||
| Adjustments: | ||||||||||
| Depreciation and amortization | 13,320 | 8,557 | ||||||||
| Amortization of capitalized commissions | 65 | — | ||||||||
| Stock-based compensation and related payroll taxes1 | 22,540 | 21,217 | ||||||||
| Change in fair value of contingent acquisition liabilities | (23,428 | ) | 66,245 | |||||||
| Change in fair value of derivative | 581 | (5,096 | ) | |||||||
| Litigation settlement expenses | 420 | — | ||||||||
| Acquisition-related expenses2 | 12,915 | 5,326 | ||||||||
| Income tax effects related to acquisitions | (1,260 | ) | — | |||||||
| Non-GAAP net loss | $ | (21,215 | ) | $ | (13,022 | ) | ||||
| Basic: | ||||||||||
| GAAP net loss per share3 | $ | (0.10 | ) | $ | (0.27 | ) | ||||
| Adjustments | 0.05 | 0.24 | ||||||||
| Non-GAAP net loss per share4 | $ | (0.05 | ) | $ | (0.03 | ) | ||||
| Diluted: | ||||||||||
| GAAP net loss per share3 | $ | (0.10 | ) | $ | (0.27 | ) | ||||
| Adjustments | 0.05 | 0.24 | ||||||||
| Non-GAAP net loss per share4 | $ | (0.05 | ) | $ | (0.03 | ) | ||||
| 1) | Q3 2026 includes employer payroll taxes that result from stock-based compensation in the amount of | |
| 2) | Acquisition-related expenses in Q3 2026 also include acquisition-related severance expenses and transition expenses resulting from the transition agreements under specific acquisition. | |
| 3) | GAAP EPS: Weighted average common shares outstanding (basic) for the three months ended September 30, 2026 and 2025, were 454,512,160 and 409,783,470, respectively. Weighted average common shares outstanding (diluted) for the three months ended September 30, 2026 and 2025, were 454,512,160 and 411,702,440, respectively. Diluted EPS excludes earnings impact from realized portion of contingently issuable shares related to prior acquisitions. | |
| 4) | Non-GAAP EPS: Weighted average common shares outstanding (basic) for the three months ended September 30, 2026 and 2025, were 454,512,160 and 409,783,470, respectively. Weighted average common shares outstanding (diluted) for the three months ended September 30, 2026 and 2025, were 454,512,160 and 411,702,440, respectively. Diluted EPS excludes earnings impact from realized portion of contingently issuable shares related to prior acquisitions. |
Investors:
Jon Perachio
203-788-8576
IR@SoundHound.com
Media:
Fiona McEvoy
415-610-6590
PR@SoundHound.com
A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/a8f2c718-f195-4561-a252-4bcc52988d4e
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were SoundHound AI's Q3 2026 revenue and earnings?
SoundHound reported $62.425 million in revenue and a GAAP net loss of $46.368 million, or $0.10 per share. Revenue increased 48% year over year, while the GAAP net loss narrowed from $109.271 million.
When does SoundHound AI expect sustained adjusted EBITDA profitability?
SoundHound expects sustained positive adjusted EBITDA within the second half of 2027, even at the lower end of its revenue guidance. Its 2027 revenue outlook is $350 million–$400 million.
Why is SoundHound AI reducing upfront licensing?
SoundHound expects a shift toward hosted services to make revenue more predictable and support long-term annual recurring revenue growth. Upfront licensing historically produced fluctuating revenue contributions at specific points in time. The planned shift uses the self-learning feature of its OASYS platform.
What affected SoundHound AI's Q3 2026 GAAP loss?
A $23.4 million noncash gain from changes in the calculated value of contingent acquisition liabilities affected Q3 GAAP results. Future acquisition earn-out shares are revalued quarterly as the stock price changes. Non-GAAP measures exclude this effect.