SoundHound AI reported first-quarter 2026 revenues of $44.2 million, marking a 52% year-over-year increase. The company anticipates full-year revenues between $225 million and $260 million. However, adjusted EBITDA remains negative at $26.7 million. SoundHound is aiming for EBITDA improvement primarily through operational scale and efficiency, aided by the planned acquisition of LivePerson, which is expected to enhance its enterprise reach, adding hundreds of customers and creating a projected revenue opportunity of $350 million to $400 million by 2027.
To improve operational efficiency, SoundHound is implementing cost-saving initiatives, including infrastructure consolidation and adopting proprietary models to reduce AI inference costs. The company currently holds $216 million in cash with no debt. Despite ongoing challenges in profitability due to investments in technology and integration expenses, management believes they are positioned for long-term growth.
As for shares, SoundHound has seen a 35.4% decline year-to-date, trading at a forward price-to-sales multiple of 11.03, slightly below the industry average of 11.23. The Zacks Consensus Estimate for the company suggests a loss of 18 cents per share for 2026, which is wider compared to a loss of 13 cents the previous year.
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