SoundHound AI shares slump as losses mount and acquisition raises dilution concerns

SoundHound AI's stock has fallen sharply this year, dropping from $10.29 at the start of 2024 to $6.47 by June 30, a loss of roughly 37%. The decline continued with a 4.6% slide to $6.64 in the latest session, outpacing broader market indices.

The company reports strong revenue growth – 99% year‑over‑year in 2025 and a 52% increase in Q1 2026 – but remains unprofitable, posting a net loss of $25 million in the first quarter and projecting a quarterly earnings loss of $0.05 per share. Analysts expect quarterly revenue of about $52.5 million (up 23%) and full‑year revenue of $233.2 million (up 38%).

SoundHound AI is also pursuing an all‑equity acquisition of LivePerson for $43 million, a deal that could dilute existing shareholders and adds uncertainty about future performance. The stock carries a Zacks Rank of #4 (Sell) as investors await the upcoming earnings report.