SoundHound AI Falls 11% After Announcing Workforce Cuts

The stock ended the regular session down 1.4% at $4.26, then fell to $3.81 in late trading. Through Thursday’s close, shares had dropped 57% this year.

SoundHound reported a third-quarter loss of $46.4 million, or 10 cents a share, compared with a loss of $109.3 million, or 27 cents, a year earlier. Excluding certain one-time items, its adjusted loss was 5 cents a share, matching analysts’ expectations, according to FactSet. Revenue rose 48% to $62.4 million, above analysts’ estimate of $61.7 million.

The company expects the restructuring to generate between $18 million and $22 million in pre-tax charges, largely in the fourth quarter. It also said it had identified $120 million in annualized cost synergies, with more than $80 million in actions expected before the new year. SoundHound said it exited or declined to renew some contracts with negative gross margins that it inherited through prior acquisitions.

SoundHound now expects this year’s revenue to reach $250 million to $260 million, raising the bottom of its previous range from $230 million. It forecast 2027 revenue of $350 million to $400 million. Analysts expect revenue of $238 million this year and $340.4 million in 2027.