From Yahoo Finance · · 1m 30s
SoundHound AI is down 71%, is that too far?
The stock got crushed while revenue grew 45%, and a fresh acquisition just changed the math again.
In brief
The stock got crushed while revenue grew 45%, and a fresh acquisition just changed the math again. SoundHound's headline growth is real but bought, so the LivePerson cross-sell and cash burn decide whether the 71% drop was an overreaction. Originally reported by Yahoo Finance.
A 71% haircut
SoundHound AI peaked at $22.17 intraday in October 2025. As of Sept. 9 it had given back nearly 71% of that, even as the underlying business kept growing.
“shares have tanked nearly 71% from their $22.17 intraday high from October 2025”
The business held up
Q2 revenue rose 45% year over year to $61.9 million, adjusted EBITDA loss narrowed 33% to $9.6 million, and the company ended the quarter with $203 million in cash and no debt.
Growth you can buy
Subscription revenue jumped 47% to $47 million, but mostly on the back of acquisitions rather than organic demand. The headline number flatters the real growth rate.
“SoundHound's revenue growth was not entirely organic”
Cash going out the door
SoundHound burned close to $60 million in operating cash in the first half of fiscal 2026. Management guides to $230 million to $260 million of revenue for the year.
LivePerson changes the reach
The deal closed Sept. 4 and puts SoundHound in front of 25 of the Fortune 100. Management sees $350 million to $400 million in 2027 revenue and a path to $500 million.
“The combined company now serves 25 of the Fortune 100 companies”
The catch in the deal
LivePerson's own Q2 revenue fell 12% on cancellations and downsells. SoundHound has to cross-sell into a shrinking base and cut its burn for the selloff to look overdone.
“the stock looks attractive but still speculative”
The key point
SoundHound's headline growth is real but bought, so the LivePerson cross-sell and cash burn decide whether the 71% drop was an overreaction.
