SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
June 30,
2026
December 31,
2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$202,776 $248,490 
Restricted cash equivalents— — 
   Accounts receivable, net of allowances of $3,378 and $2,254 as of June 30, 2026 and December 31, 2025, respectively
27,072 32,336 
Contract assets and unbilled receivable, net34,834 38,189 
Other current assets12,363 10,114 
Total current assets277,045 329,129 
Restricted cash equivalents, non-current676 676 
Right-of-use assets5,240 3,791 
Property and equipment, net2,498 2,928 
Goodwill122,277 122,277 
Intangible assets, net190,207 181,395 
Deferred tax asset28 29 
Contract assets and unbilled receivable, non-current, net48,073 29,906 
Other non-current assets21,843 18,042 
Total assets$667,887 $688,173 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$7,572 $10,562 
Accrued liabilities31,441 26,325 
Operating lease liabilities2,456 1,812 
Finance lease liabilities226 332 
Income tax liability3,828 2,662 
Deferred revenue23,738 24,042 
Contingent acquisition liabilities— 4,400 
Other current liabilities1,614 1,604 
Total current liabilities70,875 71,739 
Operating lease liabilities, net of current portion2,756 2,069 
Deferred revenue, net of current portion5,161 8,195 
Contingent acquisition liabilities, net of current portion83,637 129,227 
Deferred tax liabilities1,403 1,363 
Income tax liability, net of current portion2,177 2,254 
Other non-current liabilities11,448 9,540 
Total liabilities177,457 224,387 
Commitments and contingencies
Stockholders’ equity:
Series A Preferred Stock, $0.0001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding, aggregate liquidation preference of $0 and $0 as of June 30, 2026 and December 31, 2025, respectively
— — 
Class A Common Stock, $0.0001 par value; 755,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 403,287,100 and 390,070,691 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
38 37 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 shares issued and outstanding as of June 30, 2026 and December 31, 2025
Additional paid-in capital1,515,141 1,420,672 
Accumulated deficit(1,024,911)(957,066)
Accumulated other comprehensive income 159 140 
Total stockholders’ equity490,430 463,786 
Total liabilities and stockholders’ equity$667,887 $688,173 


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026202520262025
Revenues$61,897 $42,683 $106,092 $71,812 
Operating expenses:
Cost of revenues33,967 26,021 64,420 44,532 
Sales and marketing16,635 15,837 35,850 27,844 
Research and development27,130 25,805 53,330 50,561 
General and administrative25,989 18,230 51,665 36,637 
Change in fair value of contingent acquisition liabilities(3,697)31,359 (43,089)(144,741)
Amortization of intangible assets5,171 3,482 9,885 6,933 
Total operating expenses105,195 120,734 172,061 21,766 
Income (loss) from operations(43,298)(78,051)(65,969)50,046 
Other income, net:
Interest expense(61)(169)(132)(404)
Other income, net2,724 4,752 1,236 7,641 
Total other income, net2,663 4,583 1,104 7,237 
Income (loss) before provision for income taxes(40,635)(73,468)(64,865)57,283 
Provision for income taxes2,182 1,256 2,980 2,075 
Net income (loss)$(42,817)$(74,724)$(67,845)$55,208 
Earnings attributable to participating Class A Common Shares— — — (297)
Net income (loss) attributable to SoundHound common shareholders$(42,817)$(74,724)$(67,845)$54,911 
Other comprehensive income:
Unrealized gains on investments(1)(33)19 (27)
Comprehensive income (loss)$(42,818)$(74,757)$(67,826)$54,884 
Net income (loss) per share:
Basic$(0.10)$(0.19)$(0.16)$0.14 
Diluted$(0.10)$(0.19)$(0.21)$0.13 
Weighted-average common shares outstanding:
Basic430,521,776 400,124,499 426,022,299 397,026,119 
Diluted438,648,450 402,043,468 434,240,315 414,145,877 

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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
20262025
Cash flows used in operating activities:
Net income (loss)$(67,845)$55,208 
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization21,071 15,529 
Stock-based compensation39,168 41,250 
Loss on disposal of property and equipment— 42 
Non-cash lease amortization1,658 1,388 
Amortization of capitalized commissions999 — 
Bad debt expenses3,478 — 
Foreign currency gain/loss from remeasurement529 (871)
Change in fair value of contingent acquisition liabilities(43,089)(144,741)
Change in fair value of derivative2,630 (2,179)
Deferred income taxes41 — 
Other, net179 1,997 
Changes in operating assets and liabilities:
Accounts receivable, net3,835 2,383 
Other current assets(3,297)(2,696)
Contract assets(16,942)(6,314)
Other non-current assets94 (1,846)
Accounts payable(2,984)4,567 
Accrued liabilities5,341 (6,210)
Contingent acquisition liabilities(1,335)— 
Other current liabilities(529)(2,481)
Operating lease liabilities(1,632)(1,359)
Deferred revenue(3,338)(891)
Other non-current liabilities1,999 3,542 
Net cash used in operating activities(59,969)(43,682)
Cash flows used in investing activities:
Purchases of property and equipment(822)(354)
Capitalized software development costs(5,404)— 
Payment related to asset acquisition(26,501)— 
Net cash used in investing activities(32,727)(354)
Cash flows provided by (used in) financing activities:
Proceeds from sales of Class A common stock under the Second Equity Distribution Agreement 48,481 75,565 
Proceeds from exercise of stock options and employee stock purchase plan3,923 2,766 
Proceeds from warrants exercised— 13 
Payment of financing costs associated with the Second Equity Distribution Agreement(970)(1,511)
Payment to settle contingent acquisition liabilities(3,538)(198)
Payment to settle deferred holdback liabilities(1,000)— 
Payments on finance leases(197)(29)
Net cash provided by financing activities46,699 76,606 
Effects of exchange rate changes on cash283 (210)
Net change in cash, cash equivalents, and restricted cash equivalents(45,714)32,360 
Cash, cash equivalents, and restricted cash equivalents, beginning of period249,166 198,916 
Cash, cash equivalents, and restricted cash equivalents, end of period$203,452 $231,276 

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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - continued
(In thousands)
(Unaudited)
Reconciliation to amounts on the condensed consolidated balance sheets:
Cash and cash equivalents$202,776 $230,340 
Non-current portion of restricted cash equivalents676 936 
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows
$203,452 $231,276 
Supplemental disclosures of cash flow information:
Cash paid for interest$28 $
Cash paid for income taxes, net$1,310 $1,905 
Noncash investing and financing activities:
Right-of-use assets obtained in exchange for lease liabilities$2,886 $— 
Issuance of Class A Common Stock to settle contingent acquisition liabilities$2,028 $3,922 
Fair value of deferred cash consideration under other acquisition$1,519 $— 
Deferred offering costs reclassified to additional paid-in capital$49 $79 
Stock-based compensation included in capitalized software development costs$1,889 $— 



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