SoundHound AI Slides 12% After $25 Million Q1 Loss Deepens Cash Burn
Updated
Updated · The Motley Fool · May 11
SoundHound AI Slides 12% After $25 Million Q1 Loss Deepens Cash Burn
3 articles · Updated · The Motley Fool · May 11
Summary
$44.2 million in Q1 revenue—up 52% year over year—failed to stop SoundHound AI shares from falling more than 12% after the earnings release.
$25 million in net loss, a drop in gross margin to 31.1% from 36.5%, and $26.3 million of operating cash burn sharpened investor concerns about the business's path to sustainability.
Multiple recent acquisitions, including the planned LivePerson deal, have also made it harder for investors to gauge how much of SoundHound's growth is organic.
More than 60% below its October peak above $22, the stock remains under pressure as SoundHound sticks with 2026 revenue guidance of $225 million to $260 million.