SoundHound AI Stock Sinks 6.57% After Wider Adjusted Losses — Erasing $126 Million
The voice-software company plans to cut approximately 27% of its global workforce while moving away from upfront licensing revenue.
SoundHound AI, 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 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 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, 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 before interest, taxes, depreciation and amortization in the second half of 2027.
Sources
- SoundHound AI Stock Dips: What's Going On? — benzinga.com
- SoundHound AI stock drops post-Q3 earnings as net losses weigh | Seeking Alpha — seekingalpha.com
- SoundHound AI Shares Retreat Despite Layoff Plan, Upbeat Guidance — MarketWatch
- SoundHound Stock Slips Despite Beat as Adjusted Losses Widen — Yahoo Finance
- SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift — Yahoo Finance
- The company's filing (SoundHound AI) — SEC filing
- SOUN Q3 Earnings Call Highlights 2027 Profitability Target — Zacks Investment Research
- SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift — Zacks Investment Research
- SoundHound AI — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
