SoundHound Revenue Rises 48.5% to $62.4 Million in Third Quarter
Key Facts
SoundHound AI reported record revenue of $62.4 million for the third quarter on November 5, 2026, up 48.5% year over year, and said it is targeting sustainable adjusted EBITDA profitability in the second half of 2027. The results followed the completion of its acquisition of LivePerson on September 4, putting the integration of the businesses and cost reductions at the center of the company's execution test. Gross margin was 34.1% under GAAP and 50.3% on a non-GAAP basis. The company also posted an adjusted EBITDA loss of $20.7 million. Chief Executive Keyvan Mohajer said the company delivered a record quarter and completed the acquisition, linking its new guidance to achieving sustainable adjusted profitability in the second half of 2027.
The integration plan calls for incorporating LivePerson's platform into OASYS, SoundHound's self-learning, orchestrated agent platform. The company said the combination brings together LivePerson's digital messaging infrastructure and SoundHound's agentic voice AI technology, broadening the products it can offer enterprise customers. In announcing the deal, the companies said LivePerson serves hundreds of enterprise and mid-market brands, and that their combined database includes billions of voice interactions annually and one billion digital messages monthly. SoundHound announced the deal's completion on September 4, with John Collins appointed chief financial officer of the combined company. That makes platform integration and retaining LivePerson customers part of the deal's execution, alongside the financial and operational changes the company announced in its third-quarter results.
The CFO's plan includes integrating the businesses and delivering cost and revenue synergies, as well as changing how some services are delivered. Collins said the company is working to convert upfront paid licensing deals into hosted services and exit non-core, earnings-dilutive business lines. The adjusted EBITDA loss in the third quarter was $20.7 million, putting loss reduction and a shift toward a more hosted model among the features of the announced transition. Collins described these changes as providing the operating leverage needed to support profitable, sustainable growth in the second half of 2027.
On customers, SoundHound said it has engaged with LivePerson's largest 90 enterprise accounts, which represent more than $100 million in annual recurring revenue. The company said it received positive feedback on financial stability and the addition of voice and agentic AI capabilities to its services. In its deal announcement, SoundHound had forecast 2027 revenue of between $350 million and $400 million, with a scalable contribution of at least $100 million from LivePerson customers. These figures provide context for the growth outlook tied to the deal, while achieving it depends on integrating the platforms, retaining customers and expanding their contribution. The company's latest stated target remains sustainable adjusted EBITDA profitability in the second half of 2027.
Deal details showed that consideration for LivePerson shareholders was valued at about $42.8 million, while secured debt holders agreed to settle their debt for about $261.2 million, according to SoundHound's filing with the U.S. Securities and Exchange Commission. The deal announcement had cited an equity value of $43 million, a premium of about 22% to the volume-weighted average price over the thirty days before the announcement. After the third-quarter results were announced, SoundHound shares fell 7.02% in after-hours trading on November 5, to $3.96 at the time Benzinga published its report. The market reaction combines the reported revenue growth with the adjusted loss the company posted, as attention turns to execution of its savings and integration plans. The results materials specified no later date beyond the target of sustainable profitability in the second half of 2027.