Shares of SoundHound AI have fallen nearly 71% from their intraday high of $22.17 reached in October 2025, based on the closing price on September 9. The voice and conversational AI developer has seen its stock decline far faster than its underlying business.
Revenue rose 45% year over year to $61.9 million in the second quarter. The company’s adjusted loss before interest, taxes, depreciation and amortization narrowed 33% year over year to $9.6 million. SoundHound exited the quarter with $203 million in cash and no debt.
Much of the growth was driven by acquisitions rather than organic gains. Service subscription revenue increased 47% year over year to $47 million, mainly on revenue from acquired businesses. The company used nearly $60 million of cash in operating activities during the first half of fiscal 2026.
On September 4, SoundHound completed its acquisition of LivePerson. The combined company now serves 25 of the Fortune 100.
LivePerson’s own revenue fell 12% year over year in the second quarter, partly due to customer cancellations and downsells. SoundHound must cross-sell its products into that base while improving cash flow.
Management expects fiscal 2026 revenue in the range of $230 million to $260 million. Management expects revenue of at least $350 million and up to $400 million in 2027, and sees an opportunity to reach $500 million in annual revenue by cross-selling into the enlarged customer base.