SoundHound Revenue Reaches $62.4 Million, Sustainable Profitability Targeted in 2027

Key Facts

SoundHound AI posted record revenue of $62.4 million in the third quarter ended September 30, 2026, up 48.5% year over year, according to a company statement. Chief Executive Officer Keyvan Mohajer said the quarter marked a "pivotal moment" for the company, pointing to the completion of the LivePerson acquisition and management's guidance toward sustainable adjusted EBITDA profitability in the second half of 2027. That guidance puts the path to profitability at the center of the results, alongside sales growth. Current profitability indicators, however, showed continued pressure despite record revenue. The company said it expects to reach the target even at the low end of its future revenue range.

Revenue exceeded the consensus estimate of $61.71 million cited by Benzinga, reaching $62.43 million in its results coverage. Adjusted loss per share was also 5 cents, compared with forecasts for a loss of 6 cents. By contrast, the adjusted EBITDA loss was about $20.7 million, versus $14.546 million in the third quarter of 2025, meaning the loss widened year over year. The non-GAAP loss per share was 5 cents, compared with 3 cents a year earlier. The figures show that some results beat analyst estimates even as adjusted operating losses continued.

Gross margins declined from a year earlier, with the GAAP margin at 34.1%, compared with 42.6%, and the non-GAAP margin at 50.3%, compared with 59.3%. The company said it is working not to renew certain negative gross margin contracts inherited from previous acquisitions, and expects this to have a positive effect on gross margin and EBITDA. Management said the company is shifting from upfront paid licensing deals to hosted service models, while exiting noncore activities that dilute profitability. It said these changes are aimed at more predictable revenue and sustainable growth in annual recurring revenue. This path links a reshaping of the revenue model with the plan to improve margins and profitability.

SoundHound raised its revenue outlook to a range of $250 million to $260 million for fiscal 2026 and $350 million to $400 million in 2027. The company is targeting annual cost savings of $120 million, with actions worth more than $80 million scheduled to take effect before January 1, 2027. It said the full run rate of savings is expected in 2027. Executing these measures is part of management's plan to support its profitability target in the second half of that year. Revenue and savings forecasts remain key points to watch in assessing the company's progress toward that goal.

The company completed its acquisition of LivePerson on September 4 and said it had engaged with the acquired company's largest 90 enterprise accounts, which represent more than $100 million in annual recurring revenue. SoundHound said it received positive feedback from these accounts on financial stability and the addition of voice and agentic AI capabilities. It also announced renewals and sales increases with a U.S. healthcare benefits provider, a European broadcasting and telecommunications company, and a British water utility. On liquidity, cash and cash equivalents totaled $207.6 million on September 30, while the company recorded about $95.986 million in operating cash outflows during the first nine months of the year. Assumed short-term debt from LivePerson stood at $3.8 million at the end of September.

SOUN shares fell 7.02% in after-hours trading on November 5, to $3.96 at the time of Benzinga's report. The decline came despite revenue beating the consensus estimate and adjusted loss per share coming in better than analysts' forecasts. Open price data showed the stock closing at $4.32 on November 4, according to the price record. In its announcement, Mohajer said the company "delivered another record quarter, closed its acquisition of LivePerson, and guided to adjusted EBITDA profitability in the second half of 2027." The stock's performance after the results puts growth expectations and the cost-cutting plan to a market test, as management focuses on integrating the acquisition and shifting to more stable revenue.