SoundHound Reports Record Q3 Revenue, Guides to Sustained Adjusted EBITDA Profitability Within the Second Half of 2027

The Tip Desk · November 11, 2026 · 3 min read

Third-quarter revenue reached a record $62.4 million as the company said it expects sustained adjusted EBITDA profit in the second half of 2027.

SoundHound AI, Inc. (SOUN), a voice and agentic AI company, reported third-quarter 2026 revenue of $62.4 million, up 48.5% from a year earlier, and said it expects to reach sustained adjusted EBITDA profitability within the second half of 2027.

The sequential increase from the second quarter’s $61.9 million was only 0.8%, while year-over-year growth accelerated from 45.0% in that prior quarter. Chief Executive Keyvan Mohajer called the period a milestone, citing the record quarter, the closing of the LivePerson acquisition, and the 2027 profitability guide.

The company closed the LivePerson deal on September 4, 2026, and said it retired all but a negligible portion of the related debt, which is to be repaid at maturity in the fourth quarter. Cash and cash equivalents were $207.6 million at September 30, 2026, with $3.8 million of short-term debt assumed from LivePerson.

GAAP gross margin compressed to 34.1% from 45.1% in the second quarter; non-GAAP gross margin fell to 50.3% from 58.4%. Adjusted EBITDA loss widened to $20.7 million from $9.6 million in the prior quarter. Non-GAAP net loss was $21.2 million.

GAAP net loss was $46.4 million, or $0.10 a share, including a $23.4 million non-cash gain on the fair value of contingent acquisition liabilities. GAAP operating loss was $46.5 million. Non-GAAP measures exclude that item. Acquisition-related expenses were $12.9 million in the quarter, including severance and transition costs tied to a specific acquisition.

Chief Financial Officer John Collins said the company is shifting upfront license deals to hosted structures and exiting non-core, dilutive business lines to make revenue more stable. SoundHound said it has been strategically non-renewing and exiting certain negative gross-margin contracts inherited from prior acquisitions and expects to continue doing so, with a positive impact on both gross margin and EBITDA.

The company identified $120 million of annualized cost synergies, with more than $80 million of actions scheduled to take effect before January 1, 2027, and the full $120 million run-rate expected in 2027. With those actions, SoundHound expects 2026 revenue of $250 million to $260 million and 2027 revenue of $350 million to $400 million. It said it expects to reach sustained adjusted EBITDA positive within the second half of 2027 even at the lower end of that revenue range.

Mohajer said the OASYS platform now leads its category and is positioned to become the operating system of the new agentic era, strengthened by technology from six businesses combined under SoundHound. Collins said the business transformations provide the operating leverage necessary to reach sustainable, profitable growth within the second half of 2027.

After closing, the company said it coordinated outreach to LivePerson’s top 90 enterprise accounts representing more than $100 million in annual recurring revenue. Renewals and upsells included a major U.S. healthcare benefits provider, a leading European broadcaster and telecommunications provider, and a leading U.K. water utility.

In auto, devices and voice commerce, SoundHound signed a seven-figure minimum-guarantee agreement with a tier-one Chinese automotive supplier, a new deal with Greaves Electric for an embedded voice assistant, and a partnership with LG to debut a commerce channel across approximately 20 million smart TVs in the U.S. It also launched OASYS Edge, an on-device architecture for LLM-powered voice agents in vehicles, TVs and smart devices.

The company said it will use OASYS’s self-learning feature to prioritize a hosted-service model and reduce upfront licensing, which it said has historically produced fluctuating point-in-time revenue. The expected impact, it said, is more predictable revenue and long-term, sustainable ARR growth.