SoundHound AI IncStock down 37% in 2026 but valuation improves (P/S ratio dropped from ~100 to ~15); revenue growth slows but record revenue; net loss persists.
SoundHound AI stock has fallen 37% in 2026 and recently traded 68% below its 2024 record high, as investors reassess the conversational AI company's valuation. The company reported record first-quarter revenue of $44.2 million, up 52% year over year, though growth slowed from 151% in the same quarter of 2025. SoundHound expects annual revenue between $225 million and $260 million in 2026, potentially rising to $400 million in 2027 following its planned acquisition of LivePerson, which processes over 1 billion messages per month. The company posted a GAAP net loss of $25 million and an adjusted net loss of $26.5 million in the first quarter, with $216 million in cash on hand as of March 31. Its price-to-sales ratio has dropped from around 100 at its peak to about 15, and could fall to 7.2 on a forward basis based on management's 2027 revenue target.
SoundHound AI IncStock down 37% in 2026 but valuation improves (P/S ratio dropped from ~100 to ~15); revenue growth slows but record revenue; net loss persists.
LivePerson IncSoundHound's planned acquisition of LivePerson is mentioned as a growth catalyst, implying positive valuation for LivePerson.