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# SoundHound AI Stock Sinks 6.57% After Wider Adjusted Losses — Erasing $126 Million
- URL: https://www.bullished.co/soundhound-ai-stock-sinks-6-57-after-wider-adjusted-losses-erasing-126-million-c889a426/
- Published: 2026-11-06T19:02:56.000Z
- Updated: 2026-11-06T19:02:56.000Z
- Description: The voice-software company plans to cut approximately 27% of its global workforce while moving away from upfront licensing revenue.
- Author: Matteo Parrino
- Tags: Markets, SOUN, Industry: Technology

[SoundHound AI](https://www.bullished.co/tag/soun/), which builds conversational voice artificial intelligence software, sank 6.57% to $3.98 in Friday trading, as of 2:00 p.m. ET, erasing $126 million in market value. The decline followed Thursday’s preliminary earnings release showing [wider adjusted losses](https://www.sec.gov/Archives/edgar/data/0001840856/000184085626000025/soun-20261105.htm?ref=bullished.co) and a plan to cut approximately 27% of its global workforce, according to the company’s SEC filing.

## Losses widen despite revenue growth

SoundHound’s third-quarter revenue rose roughly 49% year over year to $62.4 million; its adjusted net loss was $21.2 million. The preliminary results paired that growth with a restructuring whose estimated [pre-tax costs](https://www.sec.gov/Archives/edgar/data/0001840856/000184085626000025/soun-20261105.htm?ref=bullished.co) run from $18 million to $22 million.

Management said on Thursday’s earnings call that it is moving away from upfront licensing revenue and unprofitable contracts in pursuit of a more predictable business. The workforce reduction remains a plan.

## A slide that predates earnings

SoundHound shares were already down 57% for the year at Thursday’s close, compared with an 8% gain for the S&P 500\. The stock had also fallen 28% over the previous month.

Friday’s decline put SOUN shares on pace for their biggest one-day drop since October 14\. SoundHound’s total market value stood at $1.79 billion in Friday trading, as of 2:00 p.m. ET.

The company’s earlier quarterly report showed [revenue of $61.9 million](https://www.sec.gov/Archives/edgar/data/1840856/000184085626000022/soun-20260630.htm?ref=bullished.co), an increase of 45% from a year earlier, and a $42.8 million net loss.

## From device royalties to restaurant calls

SoundHound sells software that lets businesses put spoken interfaces into products and services. Its Houndify platform serves manufacturers of cars, televisions and other internet-connected devices; Smart Ordering and Smart Answering handle restaurant orders, phone calls and other customer-service tasks.

The business earns royalties from product manufacturers and subscription fees from service providers. A smaller revenue stream comes from leads and transactions, making upfront licensing only part of the company’s revenue model.

SoundHound expects sustained positive [adjusted earnings](https://finance.yahoo.com/markets/stocks/articles/soundhound-stock-slips-despite-beat-170915623.html?ref=bullished.co) before interest, taxes, depreciation and amortization in the second half of 2027.

### Sources

- [SoundHound AI Stock Dips: What's Going On?](https://www.benzinga.com/trading-ideas/movers/26/11/62989163/soundhound-ai-stock-dips-whats-going-on?ref=bullished.co) — benzinga.com
- [SoundHound AI stock drops post-Q3 earnings as net losses weigh | Seeking Alpha](https://seekingalpha.com/news/4667592-soundhound-ai-stock-drops-post-q3-earnings-as-net-losses-weigh?ref=bullished.co) — seekingalpha.com
- [SoundHound AI Shares Retreat Despite Layoff Plan, Upbeat Guidance](https://www.marketwatch.com/story/soundhound-ai-shares-retreat-despite-layoff-plan-upbeat-guidance-7599c679?ref=bullished.co) — MarketWatch
- [SoundHound Stock Slips Despite Beat as Adjusted Losses Widen](https://finance.yahoo.com/markets/stocks/articles/soundhound-stock-slips-despite-beat-170915623.html?ref=bullished.co) — Yahoo Finance
- [SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift](https://finance.yahoo.com/technology/ai/articles/soun-q3-loss-narrower-expected-134700465.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [The company's filing (SoundHound AI)](https://www.sec.gov/Archives/edgar/data/0001840856/000184085626000025/soun-20261105.htm?ref=bullished.co) — SEC filing
- [SOUN Q3 Earnings Call Highlights 2027 Profitability Target](https://www.zacks.com/stock/news/3025580/soun-q3-earnings-call-highlights-2027-profitability-target?cid=CS-ZC-FT-analyst%5Fblog%5Fplus|earnings%5Fcall%5Ftakeaways-3025580&ref=bullished.co) — Zacks Investment Research
- [SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift](https://www.zacks.com/stock/news/3025509/soun-q3-loss-narrower-than-expected-revenues-miss-on-licensing-shift?cid=CS-ZC-FT-analyst%5Fblog|earnings%5Farticle-3025509&ref=bullished.co) — Zacks Investment Research
- [SoundHound AI — Form 10-Q for the quarter ended 2026-06-30 (quarterly results)](https://www.sec.gov/Archives/edgar/data/1840856/000184085626000022/soun-20260630.htm?ref=bullished.co) — SEC EDGAR

### More on SoundHound AI

- [SoundHound AI Plans Approximately 27% Workforce Cut As Adjusted Losses Widen](https://www.bullished.co/soundhound-ai-plans-approximately-27-workforce-cut-as-adjusted-losses-widen-a477620d/)
- [SoundHound Gives Up $35 Million Of 2026 Revenue On Purpose, Swapping Upfront Licenses For Hosted Deals](https://www.bullished.co/soundhound-gives-up-35-million-of-2026-revenue-on-purpose-swapping-upfront-licenses-for-f7384ee3/)

[All SoundHound AI (SOUN) coverage →](https://www.bullished.co/tag/soun/)