SoundHound AI down 71% as revenue rises 45%

SoundHound AI develops voice and conversational AI technology for businesses, a category where growth often arrives through both new customers and purchased ones. The article's central tension is between a stock that has fallen nearly 71% from its $22.17 intraday high in October 2025 and a business whose Q2 revenue rose 45% year over year to $61.9 million, with adjusted EBITDA loss improving 33% to $9.6 million.

The recent story, however, leans heavily on acquisitions. Service subscription revenue rose 47% to $47 million mainly due to revenue from acquisitions, and the company used nearly $60 million of cash in operating activities in fiscal 2026's first half. The LivePerson acquisition, completed Sept. 4, expanded enterprise reach to 25 of the Fortune 100 companies, but LivePerson's own revenue fell 12% year over year in Q2 partly from customer cancellations and downsells.

The article's stated view is that the lower price looks attractive but still speculative. The outcome appears to hinge on whether SoundHound can cross-sell its AI products into the expanded customer base while curbing cash burn — stronger organic growth and lower cash burn are the conditions it names for the 71% decline to look excessive.