SoundHound AI (SOUN) Q3 2026 earnings summary

Executive summary

• Record Q3 revenue of $62.425M, up 48.5% YoY; sustained adjusted EBITDA profitability targeted for H2 2027.

• Revenue mix shifted to ~90% over-time and 10% point-in-time, down from 33% point-in-time in Q2, as hosted services replace upfront licensing.

• LivePerson acquisition closed Sept. 4; full platform and organizational integration is targeted for early 2027.

Financial highlights

• Q3 revenue was $62.425M versus $42.049M in Q3 2025; reported YoY growth was 48.5%.

• GAAP gross profit was $21.282M and non-GAAP gross profit was $31.394M, versus $17.921M and $24.917M, respectively, in Q3 2025.

• GAAP net loss was $46.368M versus $109.271M in Q3 2025; non-GAAP net loss was $21.215M versus $13.022M.

• Q3 included nearly $14M of LivePerson revenue after the Sept. 4 close.

• GAAP operating loss was $46.497M versus $115.891M; Q3 2026 included a $23.4M gain from contingent acquisition liabilities.

Outlook and guidance

• FY2026 revenue guidance is $250M–$260M, raised from the prior $230M–$260M range; FY2027 guidance is $350M–$400M.

• Sustained adjusted EBITDA profitability is targeted for H2 2027, including at the low end of the FY2027 revenue range.

• At least $120M of annualized cost reductions are identified; at least $80M of actions are scheduled to take effect before Jan. 1, 2027, with the full run rate expected in 2027.

• Hosted-service conversion and exit from negative-gross-margin inherited contracts are expected to improve revenue predictability, ARR growth, gross margin, and EBITDA.

• Gross margin is expected to expand in 2027 and beyond as savings flow through; no numeric target was set.