Key Stats for SoundHound AI Stock
- Current Price: $5.39
- Street Target: ~$13
- Upside to Street Mean: ~133%
- NTM EV/Revenue: ~7x
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What Happened?
SoundHound AI (SOUN) closed at $5.39 on October 9, 2026, down 45.9% from $9.97 at the end of 2025. That’s below the $6 low Street target in TIKR’s September 30 snapshot. According to TIKR data, the company beat revenue consensus in each of the last five quarters and missed free cash flow consensus in each of the last four. In Q2, it sold new shares to help cover the gap. The latest results are in the company’s investor relations materials.
EBITDA Improved 33% While Cash Burn Grew 38%
In Q2 2026, SoundHound’s EBITDA loss narrowed to $9.61 million from $14.30 million a year earlier. Free cash flow moved the other way, to negative $34.07 million from negative $24.69 million, and missed the negative $23.76 million estimate. Across the four quarters through Q2 2026, free cash flow totaled negative $115.89 million, while the quarterly estimates summed to negative $60.33 million.
Acquisitions add cash costs. Co-founder James Hom, then CFO, said G&A rose 43% year over year to $26 million in Q2, driven by legal, advisory, and other acquisition costs, including added headcount. Large deals add uncertainty too. Asked by Cantor Fitzgerald’s Thomas Blakey about the recurring component of large deals, CEO Keyvan Mohajer said “there are components of it that may not be recurring, but they have been absolutely repeatable.”
Equity funded part of the burn. SoundHound sold 6,232,900 shares through its at-the-market program in Q2 for $47.5 million in net proceeds, according to its Q2 10-Q.
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LivePerson Added Shares, Shrinking Revenue, and a Higher 2027 Estimate
SoundHound completed the LivePerson acquisition on September 4, 2026. Its 8-K shows LivePerson stockholders received 0.4673 SoundHound shares per share. Noteholders received 36,894,839 Class A shares plus $5,848,000 in cash. The noteholder shares alone equal about 8% of the 444.11 million shares outstanding on August 6, so the deal adds to the share dilution.
LivePerson’s Q2 2026 revenue fell 11.9% to $52.5 million. Mohajer said LivePerson lost customers over “financial stability,” “platform stability,” and “innovation,” which he said the merger fixes. He added that legacy customers of acquired businesses move to SoundHound’s OASYS platform “at a pace that we are comfortable with.”
Consensus rose anyway. FY2027 revenue consensus climbed around 43% in the September quarter to around $390 million, as coverage dropped from five analysts to four. The completion release gave no formal guidance, only a target of more than $500 million in future revenue from the existing customer base.
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Consensus Still Shows Cash Burn Through 2028
- Street Target (Mean): ~$13 as of September 30, down from ~$17 at year-end 2025
- Street Target (Low): $6
- Analyst Ratings: 6 Buy, 2 Hold
- NTM EV/Revenue: ~7x, down from ~18x at year-end 2025
- FY2027 Free Cash Flow Consensus: ~($84) million
- FY2028 Free Cash Flow Consensus: ~($59) million
The mean target implies around 133% upside from $5.39, yet consensus shows negative free cash flow through 2028. The upside depends on growth arriving before more dilution. The ~7x multiple also rests on TIKR’s 444.11 million share count, which doesn’t include the shares issued in the LivePerson deal.
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Q3 Shows Whether the Burn Turns
As of October 11, SoundHound hadn’t scheduled its Q3 report, the first to include LivePerson. The quarter may bring the updated outlook management promised after the close. Free cash flow better than Q2’s negative $34.07 million, without new at-the-market sales, would challenge the selloff. A wider burn funded by more shares would confirm it.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
