UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________________________
FORM 8-K
_________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2025
_________________________________________
(Exact name of registrant as specified in its charter)
_________________________________________
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (408 ) 441-3200
(Former name or former address, if changed since last report)
_________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On August 7, 2025, SoundHound AI, Inc. (the “Company”) issued a press release announcing financial results and operational highlights for the second quarter ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this current report on Form 8-K. The Company is also furnishing as Exhibit 99.2 to this current report on Form 8-K the condensed consolidated balance sheets of the Company as of June 30, 2025, and the related condensed consolidated statements of operations and comprehensive loss and condensed consolidated statements of cash flows for the period ended June 30, 2025.
Item 9.01. Financial Statement and Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) | |||||||
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.
| August 7, 2025 | SoundHound AI, Inc. | ||||||||||
| By: | /s/ Keyvan Mohajer | ||||||||||
| Name: | Keyvan Mohajer | ||||||||||
| Title: | Chief Executive Officer | ||||||||||
3
SoundHound AI Reports Record Second Quarter, With All Time High $42.7 Million Revenue, Up 217%, Raises Full Year Outlook
The company delivers growth across all key businesses, including strong growth in AI for automotive, enterprise AI for customer service, and AI automation for restaurants
SANTA CLARA, Calif.--(BUSINESS WIRE)--SoundHound AI, Inc. (Nasdaq: SOUN), a global leader in voice artificial intelligence, today reported its financial results for the second quarter 2025.
"In SoundHound’s strongest ever quarter, many of our previous strategic moves delivered high-impact results with growth across every business unit. We realized significant new wins as well as cross-sell deals, demonstrating the incredible opportunity we predicted with our 2024 acquisitions,” said Keyvan Mohajer, CEO and Co-Founder of SoundHound AI. “We have demonstrated a repeatable success formula. Our financial results speak for themselves, and are testimony to our bold vision and ability to execute.”
Second Quarter Financial Highlights
•Reported revenue was $42.7 million, an increase of 217% year-over-year
•GAAP gross margin was 39.0%; non-GAAP gross margin was 58.4%
•GAAP net loss was $(74.7) million; non-GAAP net loss was $(11.9) million
•Adjusted EBITDA was a loss of $(14.3) million
•GAAP earnings per share was a loss of $(0.19); non-GAAP earnings per share was a loss of $(0.03)
•GAAP results include a loss from the calculated fair value of contingent acquisition liabilities where future earnout shares are marked-to-market on a quarterly basis based on the company’s stock price. Non-GAAP measures exclude this non-operating/non-cash impact
“Q2 was a strong quarter where our underlying momentum manifested in financial results, and our earlier investments began showing outsized returns,” said Nitesh Sharan, CFO of SoundHound AI. “We are moving with speed to capture the explosion we’re seeing in the voice and conversational AI industry, where customers across sectors are realizing the tremendous value they can achieve by adopting our market-leading solutions.”
Business Highlights
•Agentic AI: Unveiled Amelia 7, and now 15 large enterprise customers are migrating onto this complete AI agent platform, which integrates Polaris, SoundHound’s category leading speech foundation model.
•Voice Commerce: Advancing multiple voice commerce pilots with large automotive brands in Europe and the USA, both existing customers and new car brands, with participation from prominent national and global merchants for ordering food, coffee, parking, and more.
•Restaurants: Breakthrough quarter with numerous wins, renewals, expansions, and cross selling: Notable cross-selling of SoundHound's Amelia enterprise platform to one of SoundHound's marquee restaurant customers to provide customer service support; new wins with Red Lobster, Peter Piper Pizza, Applebee’s | IHOP; successful renewal with MOD Pizza; expansion with Chipotle, Firehouse Subs, Habit Burger, McAllister’s Deli, Beef O’Brady’s, and Casey’s. Upsold Smart Answering to Red Robin, an existing phone ordering customer.
•Automotive: Significant new win in China for our voice assistant to be integrated in a major OEM with vehicles spanning China and worldwide, including the development of multiple new languages. Continued expansion with KIA in the Indian market, with increased momentum from India-based OEMs. SoundHound’s LLM-enhanced Chat AI product rolled out in the North American market across three major brands.
•Healthcare: Added customers including Primary Health Solutions, and one of the world’s largest healthcare companies. We also deployed our solutions with healthcare system Allina Health.
•Retail: Signed two multi-hundred unit personal care companies, and a home services company with over 500 locations to deploy Smart Answering. The solution also continues to attract additional fitness chains and expand further into existing brands.
•Financial Services: With 7 of the top 10 global financial institutions as customers, the company either renewed or had upsells with 4 of them. This included: expanding into new lines of business, penetrating across dozens of business units and doubling automated conversation volume from the previous year. The company is also expanding its presence in the regional bank and credit union market, most recently partnering with a leading credit union with operations in multiple states.
•Channel Partners:
◦Expanded relationship with EXL to deliver Agentic and voice AI integrations across various verticals
◦Entered into a partnership with Par Technologies to extend SoundHound’s reach across Par’s extensive portfolio of restaurant chains and their franchisees globally
◦Launched a strategic partnership with global QSR technology leader Acrelec to accelerate AI adoption in restaurants globally
◦Added a sales partnership with AVANT Communications to accelerate the adoption of SoundHound AI agents across enterprise markets
◦Doubled the volume of interactions with a long standing partner that specializes in CRM, AI and workforce engagement management
Second Quarter 2025 Financial Measures1
Three Months Ended (thousands, unless otherwise noted) | June 30, 2025 | June 30, 2024 | Change | ||||||||||||||||||||||||||
| Revenues | $ | 42,683 | $ | 13,462 | 217 | % | |||||||||||||||||||||||
| GAAP gross profit | $ | 16,662 | $ | 8,482 | 96 | % | |||||||||||||||||||||||
| GAAP gross margin | 39.0% | 63.0% | (24.0) | pp | |||||||||||||||||||||||||
| Non-GAAP gross profit | $ | 24,921 | $ | 8,951 | 178 | % | |||||||||||||||||||||||
| Non-GAAP gross margin | 58.4% | 66.5% | (8.1) | pp | |||||||||||||||||||||||||
GAAP operating loss2 | $ | (78,051) | $ | (21,985) | (255) | % | |||||||||||||||||||||||
| Non-GAAP adjusted EBITDA | $ | (14,300) | $ | (13,848) | (3) | % | |||||||||||||||||||||||
GAAP net loss2 | $ | (74,724) | $ | (37,322) | (100) | % | |||||||||||||||||||||||
| Non-GAAP net loss | $ | (11,863) | $ | (14,894) | 20 | % | |||||||||||||||||||||||
GAAP net loss per share2 | $ | (0.19) | $ | (0.11) | $ | (0.08) | |||||||||||||||||||||||
| Non-GAAP net loss per share | $ | (0.03) | $ | (0.04) | $ | 0.01 | |||||||||||||||||||||||
1)Please see tables below for a reconciliation from GAAP to non-GAAP.
2)GAAP-only operating loss includes a significant impact from the calculated fair value of contingent acquisition liabilities where future earn-out shares are marked-to-market on a quarterly basis, and with the increase in stock price compared to the previous quarter the loss associated with this item was $31 million in the second quarter. Non-GAAP measures exclude this non-operating/non-cash impact.
Liquidity and Cash Flows
The company’s total cash and cash equivalents was $230 million at June 30, 2025, with no debt.
Condensed Cash Flow Statement
Six Months Ended (thousands) | June 30, 2025 | June 30, 2024 | ||||||||||||||||||
| Cash flows: | ||||||||||||||||||||
| Net cash used in operating activities | $ | (43,682) | $ | (40,440) | ||||||||||||||||
| Net cash used in investing activities | (354) | (4,788) | ||||||||||||||||||
| Net cash provided by financing activities | 76,606 | 137,030 | ||||||||||||||||||
| Effects of exchange rate changes on cash | (210) | 130 | ||||||||||||||||||
| Net change in cash and cash equivalents | $ | 32,360 | $ | 91,932 | ||||||||||||||||
Business Outlook
SoundHound is raising its full year 2025 revenue outlook and now expects it to be in a range of $160 - $178 million.
Additional Information
For more information please see the company’s SEC filings which can be obtained on the company’s website at investors.soundhound.com. The financial statements will be posted on the website, and will be included when the company files its 8-K. The financial data presented in this press release should be considered preliminary until the company files its 10-Q.
Conference Call and Webcast
Keyvan Mohajer, Co-Founder and CEO, and Nitesh Sharan, CFO will host a live audio conference call and webcast today at 2:00 p.m. Pacific Time/5:00 p.m. Eastern Time. A live webcast and replay will also be accessible at investors.soundhound.com.
About SoundHound AI
SoundHound (Nasdaq: SOUN), a global leader in voice and conversational intelligence, delivers AI solutions that allow businesses to offer superior experiences to their customers. Built on proprietary technology, SoundHound’s voice AI delivers best-in-class speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants. The company’s various groundbreaking AI-driven products include Smart Answering, Smart Ordering, Dynamic Drive-Thru, and the Amelia Platform, which powers AI Agents for enterprise. In addition, SoundHound Chat AI, a powerful voice assistant with integrated Generative AI, and Autonomics, a category-leading operations platform that automates IT processes, have allowed SoundHound to power millions of products and services, and processes billions of interactions each year for world class businesses. For more information, visit: www.soundhound.com
Forward Looking Statements
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements include, but are not limited to, statements concerning our expected financial performance, our ability to implement our business strategy and anticipated business and operations, and guidance for financial results for 2025. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Our actual results may differ materially from those expressed or implied by these forward-looking statements as a result of risks and uncertainties impacting SoundHound’s business including, our ability to successfully launch and commercialize new products and services and derive significant revenue, our market opportunity and our ability to acquire new customers and retain existing customers, unexpected costs, charges or expenses resulting from our 2024 acquisitions, the ability of our 2024 acquisitions to be accretive on the company's financial results, and those other factors described in our risk factors set forth in our filings with the Securities and Exchange Commission
from time to time, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures of Financial Performance
To supplement the company’s financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance are included in this release: non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, non-GAAP net loss and non-GAAP earnings per share.
The company believes that providing this non-GAAP information in addition to the GAAP financial information allows investors to view the financial results in the way the company views its operating results. The company also believes that providing this information allows investors to not only better understand the company's financial performance, but also, better evaluate the information used by management to evaluate and measure such performance.
As such, the company believes that disclosing non-GAAP financial measures to the readers of its financial statements provides the reader with useful supplemental information that allows for greater transparency in the review of the company’s financial and operational performance.
The company defines its non-GAAP measures by excluding certain items:
The company arrives at non-GAAP gross profit and non-GAAP gross margin by excluding (i) amortization of intangibles (including acquired intangible assets) and (ii) stock-based compensation.
The company arrives at adjusted EBITDA by excluding (i) total interest and other income/(expense), net, (ii) loss on early extinguishment of debt, (iii) income taxes, (iv) depreciation and amortization expense (including acquired intangible assets), (v) stock-based compensation, (vi) change in fair value of contingent acquisition liabilities, and (vii) acquisition-related costs.
The company arrives at non-GAAP net loss and non-GAAP net loss per share by excluding (i) depreciation and amortization expense (including acquired intangible assets), (ii) stock-based compensation, (iii) loss on early extinguishment of debt, (iv) change in fair value of contingent acquisition liabilities, (v) change in fair value of derivative, and (vi) acquisition-related costs.
Reconciliations of GAAP to these adjusted non-GAAP financial measures are included in the tables below. When analyzing the company's operating results, investors should not consider non-GAAP measures as substitutes for the comparable financial measures prepared in accordance with GAAP.
To the extent that the company presents any forward-looking non-GAAP financial measures, the company does not present a quantitative reconciliation of such measures to the most directly comparable GAAP financial measure (or otherwise present such forward-looking GAAP measures) because it is impractical to do so.
Second Quarter Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ended (thousands, unless otherwise noted) | June 30, 2025 | June 30, 2024 | ||||||||||||||||||
GAAP gross profit1 | $ | 16,662 | $ | 8,482 | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Amortization of Intangibles | 4,084 | 362 | ||||||||||||||||||
| Stock-based compensation | 4,175 | 107 | ||||||||||||||||||
| Non-GAAP gross profit | $ | 24,921 | $ | 8,951 | ||||||||||||||||
| GAAP gross margin | 39.0% | 63.0% | ||||||||||||||||||
| Non-GAAP gross margin | 58.4% | 66.5% | ||||||||||||||||||
1)GAAP gross profit is calculated by subtracting the cost of revenues from revenues.
Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA
Three Months Ended (thousands) | June 30, 2025 | June 30, 2024 | ||||||||||||||||||
| GAAP net loss | $ | (74,724) | $ | (37,322) | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||
Total other income (expense), net1 | (4,583) | (888) | ||||||||||||||||||
| Loss on early extinguishment of debt | — | 15,587 | ||||||||||||||||||
| Income taxes | 1,256 | 638 | ||||||||||||||||||
| Depreciation and amortization | 7,774 | 1,280 | ||||||||||||||||||
| Stock-based compensation² | 23,810 | 7,253 | ||||||||||||||||||
| Change in fair value of contingent acquisition liabilities | 31,359 | (1,082) | ||||||||||||||||||
| Acquisition-related expenses | 808 | 686 | ||||||||||||||||||
| Non-GAAP adjusted EBITDA | $ | (14,300) | $ | (13,848) | ||||||||||||||||
1)Includes other income, net of $4.8 and $5.0 million for the three months ended June 30, 2025 and 2024, respectively.
2)Included in stock-based compensation is a one-time impact of $3.8 million related to accelerated vesting of the Restricted Stock Agreement as part of our integration plan of SYNQ3.
Second Quarter Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per Share
Three Months Ended (thousands, unless otherwise noted) | June 30, 2025 | June 30, 2024 | ||||||||||||||||||
| GAAP net loss attributable to SoundHound common shareholders | $ | (74,724) | $ | (37,395) | ||||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation and amortization | 7,774 | 1,280 | ||||||||||||||||||
| Stock-based compensation¹ | 23,810 | 7,253 | ||||||||||||||||||
| Loss on early extinguishment of debt | — | 15,587 | ||||||||||||||||||
| Change in fair value of contingent acquisition liabilities | 31,359 | (1,082) | ||||||||||||||||||
| Change in fair value of derivative | (890) | — | ||||||||||||||||||
| Gain on bargain purchase | — | (1,223) | ||||||||||||||||||
| Acquisition-related expenses | 808 | 686 | ||||||||||||||||||
| Non-GAAP net loss | $ | (11,863) | $ | (14,894) | ||||||||||||||||
GAAP net loss per share2 | $ | (0.19) | $ | (0.11) | ||||||||||||||||
| Adjustments | 0.16 | 0.07 | ||||||||||||||||||
Non-GAAP net loss per share2 | $ | (0.03) | $ | (0.04) | ||||||||||||||||
1)Included in stock-based compensation is a one-time impact of $3.8 million related to accelerated vesting of the Restricted Stock Agreement as part of our integration plan of SYNQ3.
2)Weighted average common shares outstanding (basic) for the three months ended June 30, 2025 and 2024 were 400,124,499 and 331,830,608, respectively.
Investors:
Scott Smith
408-724-1498
IR@SoundHound.com
Media:
Fiona McEvoy
415-610-6590
PR@SoundHound.com
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| June 30, 2025 | December 31, 2024 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 230,340 | $ | 198,240 | |||||||
Accounts receivable, net of allowances of $2,458 and $726 as of June 30, 2025 and December 31, 2024, respectively | 19,661 | 23,159 | |||||||||
| Contract assets and unbilled receivable, net | 21,928 | 26,645 | |||||||||
| Other current assets | 10,093 | 7,476 | |||||||||
| Total current assets | 282,022 | 255,520 | |||||||||
| Restricted cash equivalents, non-current | 936 | 676 | |||||||||
| Right-of-use assets | 4,420 | 4,692 | |||||||||
| Property and equipment, net | 1,070 | 1,239 | |||||||||
| Goodwill | 101,210 | 101,704 | |||||||||
| Intangible assets, net | 159,880 | 174,943 | |||||||||
| Deferred tax asset | 4 | 4 | |||||||||
| Contract assets and unbilled receivable, non-current, net | 23,631 | 12,879 | |||||||||
| Other non-current assets | 6,321 | 2,296 | |||||||||
| Total assets | $ | 579,494 | $ | 553,953 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 10,151 | $ | 5,559 | |||||||
| Accrued liabilities | 18,993 | 26,291 | |||||||||
| Operating lease liabilities | 2,076 | 1,898 | |||||||||
| Finance lease liabilities | 38 | 49 | |||||||||
| Income tax liability | 2,966 | 2,750 | |||||||||
| Deferred revenue | 23,715 | 23,876 | |||||||||
| Other current liabilities | 351 | 7,319 | |||||||||
| Total current liabilities | 58,290 | 67,742 | |||||||||
| Operating lease liabilities, net of current portion | 2,274 | 2,403 | |||||||||
| Deferred revenue, net of current portion | 6,132 | 6,862 | |||||||||
| Contingent acquisition liabilities | 142,113 | 286,898 | |||||||||
| Income tax liability, net of current portion | 3,082 | 3,075 | |||||||||
| Other non-current liabilities | 7,844 | 4,320 | |||||||||
| Total liabilities | 219,735 | 371,300 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Series A Preferred Stock, $0.0001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding, aggregate liquidation preference of $0 and $0 as of June 30, 2025 and December 31, 2024, respectively | — | — | |||||||||
Class A Common Stock, $0.0001 par value; 755,000,000 and 455,000,000 shares authorized as of June 30, 2025 and December 31, 2024, respectively; 373,055,866 and 361,096,457 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 36 | 35 | |||||||||
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 and 32,535,408 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 3 | 3 | |||||||||
| Additional paid-in capital | 1,247,394 | 1,125,470 | |||||||||
| Accumulated deficit | (887,852) | (943,060) | |||||||||
| Accumulated other comprehensive income | 178 | 205 | |||||||||
| Total stockholders’ equity | 359,759 | 182,653 | |||||||||
| Total liabilities and stockholders’ equity | $ | 579,494 | $ | 553,953 | |||||||
1
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 42,683 | $ | 13,462 | $ | 71,812 | $ | 25,056 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Cost of revenues | 26,021 | 4,980 | 44,532 | 9,649 | |||||||||||||||||||
| Sales and marketing | 15,837 | 5,655 | 27,844 | 11,197 | |||||||||||||||||||
| Research and development | 25,805 | 15,738 | 50,561 | 30,616 | |||||||||||||||||||
| General and administrative | 18,230 | 9,535 | 36,637 | 19,802 | |||||||||||||||||||
| Change in fair value of contingent acquisition liabilities | 31,359 | (1,082) | (144,741) | 3,080 | |||||||||||||||||||
| Amortization of intangible assets | 3,482 | 621 | 6,933 | 1,226 | |||||||||||||||||||
| Total operating expenses | 120,734 | 35,447 | 21,766 | 75,570 | |||||||||||||||||||
| Income (loss) from operations | (78,051) | (21,985) | 50,046 | (50,514) | |||||||||||||||||||
| Other expense, net: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | — | (15,587) | — | (15,587) | |||||||||||||||||||
| Interest expense | (169) | (4,086) | (404) | (9,750) | |||||||||||||||||||
| Other income, net | 4,752 | 4,974 | 7,641 | 6,453 | |||||||||||||||||||
| Total other income (expense), net | 4,583 | (14,699) | 7,237 | (18,884) | |||||||||||||||||||
| Income (loss) before provision for income taxes | (73,468) | (36,684) | 57,283 | (69,398) | |||||||||||||||||||
| Provision for income taxes | 1,256 | 638 | 2,075 | 933 | |||||||||||||||||||
| Net income (loss) | $ | (74,724) | $ | (37,322) | $ | 55,208 | $ | (70,331) | |||||||||||||||
| Earnings attributable to participating Class A Common Shares | — | — | (297) | — | |||||||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | (73) | — | (416) | |||||||||||||||||||
| Net income (loss) attributable to SoundHound common shareholders | $ | (74,724) | $ | (37,395) | $ | 54,911 | $ | (70,747) | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Unrealized gains (losses) on investments | (33) | (30) | (27) | 6 | |||||||||||||||||||
| Comprehensive income (loss) | $ | (74,757) | $ | (37,425) | $ | 54,884 | $ | (70,741) | |||||||||||||||
| Net income (loss) per share: | |||||||||||||||||||||||
| Basic | $ | (0.19) | $ | (0.11) | $ | 0.14 | $ | (0.23) | |||||||||||||||
| Diluted | $ | (0.19) | $ | (0.11) | $ | 0.13 | $ | (0.23) | |||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 400,124,499 | 331,830,608 | 397,026,119 | 309,213,583 | |||||||||||||||||||
| Diluted | 402,043,468 | 331,830,608 | 414,145,877 | 309,213,583 | |||||||||||||||||||
2
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows used in operating activities: | |||||||||||
| Net income (loss) | $ | 55,208 | $ | (70,331) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 15,529 | 2,750 | |||||||||
| Stock-based compensation | 41,250 | 14,232 | |||||||||
| Amortization of debt issuance cost | — | 1,524 | |||||||||
| Loss on disposal of property and equipment | 42 | — | |||||||||
| Non-cash lease amortization | 1,388 | 1,445 | |||||||||
| Foreign currency gain/loss from remeasurement | (871) | (70) | |||||||||
| Change in fair value of contingent acquisition liabilities | (144,741) | 3,080 | |||||||||
| Change in fair value of derivative | (2,179) | — | |||||||||
| Loss on early extinguishment of debt | — | 15,587 | |||||||||
| Deferred income taxes | — | (368) | |||||||||
| Other, net | 1,997 | (891) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | 2,383 | 211 | |||||||||
| Other current assets | (2,696) | (1,426) | |||||||||
| Contract assets | (6,314) | (2,267) | |||||||||
| Other non-current assets | (1,846) | (842) | |||||||||
| Accounts payable | 4,567 | 1,941 | |||||||||
| Accrued liabilities | (6,210) | (625) | |||||||||
| Other current liabilities | (2,481) | — | |||||||||
| Operating lease liabilities | (1,359) | (1,720) | |||||||||
| Deferred revenue | (891) | (2,523) | |||||||||
| Other non-current liabilities | 3,542 | (147) | |||||||||
| Net cash used in operating activities | (43,682) | (40,440) | |||||||||
| Cash flows used in investing activities: | |||||||||||
| Purchases of property and equipment | (354) | (335) | |||||||||
| Payment related to acquisition, net of cash acquired | — | (4,453) | |||||||||
| Net cash used in investing activities | (354) | (4,788) | |||||||||
| Cash flows provided by financing activities: | |||||||||||
| Proceeds from sales of Class A common stock under the Sales Agreement, Equity Distribution Agreement, and Second Equity Distribution Agreement | 75,565 | 237,639 | |||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | 2,766 | 10,628 | |||||||||
| Proceeds from warrants exercised | 13 | — | |||||||||
Payment of financing costs associated with the Sales Agreement, Equity Distribution Agreement, and Second Equity Distribution Agreement | (1,511) | (5,639) | |||||||||
| Payment to settle contingent holdback liabilities from SYNQ3 acquisition | (198) | — | |||||||||
| Payments on notes payable | — | (105,540) | |||||||||
| Payments on finance leases | (29) | (58) | |||||||||
| Net cash provided by financing activities | 76,606 | 137,030 | |||||||||
| Effects of exchange rate changes on cash | (210) | 130 | |||||||||
| Net change in cash, cash equivalents, and restricted cash equivalents | 32,360 | 91,932 | |||||||||
| Cash, cash equivalents, and restricted cash equivalents, beginning of period | 198,916 | 109,035 | |||||||||
| Cash, cash equivalents, and restricted cash equivalents, end of period | $ | 231,276 | $ | 200,967 | |||||||
3
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – Continued
(In thousands)
(Unaudited)
| Reconciliation to amounts on the condensed consolidated balance sheets: | |||||||||||
| Cash and cash equivalents | $ | 230,340 | $ | 200,156 | |||||||
| Non-current portion of restricted cash equivalents | 936 | 811 | |||||||||
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows | $ | 231,276 | $ | 200,967 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid for interest | $ | 2 | $ | 3,541 | |||||||
| Cash paid for income taxes | $ | 1,905 | $ | 1,274 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Conversion of Series A Preferred Stock to Class A common stock | $ | — | $ | 14,187 | |||||||
| Issuance of Class A Common Stock to settle contingent holdback consideration of SYNQ3 acquisition | $ | 3,922 | $ | — | |||||||
| Deferred offering costs reclassified to additional paid-in capital | $ | 79 | $ | 147 | |||||||
| Unpaid financing costs in connection with the Equity Distribution Agreement | $ | — | $ | 522 | |||||||
| Property and equipment acquired under accrued liabilities | $ | — | $ | 92 | |||||||
| Fair value of Class A common stock and deferred equity consideration issued to acquire SYNQ3 | $ | — | $ | 9,687 | |||||||
| Fair value of contingent earnout consideration to acquire SYNQ3 | $ | — | $ | 1,676 | |||||||
| Fair value of contingent holdback consideration to acquire SYNQ3 | $ | — | $ | 427 | |||||||
| Fair value of deferred cash consideration under other acquisition | $ | — | $ | 195 | |||||||
4