New York, May 24, 2026, 15:03 EDT
- SoundHound AI closed Friday at $8.17, down 14 cents. Shares traded from $8.09 to $8.83. Roughly 32.9 million shares changed hands.
- The shares fell roughly 2.9% this week. The Nasdaq Composite ended up 0.5%.
- Nasdaq says its 2026 calendar lists the market closed on May 25 for Memorial Day. U.S. equities trading is set to start up again as usual Tuesday.
SoundHound AI closed down at $8.17 on Friday, underperforming the Nasdaq ahead of the U.S. market holiday. This was the lowest finish for SoundHound in trading from May 18-22, Investing.com data shows.
U.S. stocks will not trade Monday because of Memorial Day, with markets set to reopen Tuesday. Investors are expected to respond to last Friday’s selloff, the May 22 shareholder meeting, and other market moves when trading restarts.
SoundHound reported Q1 revenue of $44.2 million, a 52% jump. Net loss got bigger, reaching $25.0 million, and adjusted EBITDA was a loss of $26.7 million. Adjusted EBITDA leaves out interest, tax, depreciation, amortization and certain other items. Investors are weighing the company’s push for growth as it burns cash and continues to pick up new acquisitions.
SoundHound CEO Keyvan Mohajer said earlier this month the year was off to a good start, with the core AI business for auto and IoT up 88% when backing out acquisitions. Co-founder and interim CFO James Hom said SoundHound finished the quarter with what he called a “strong balance sheet.” SoundHound AI
Deal talk lifted some names. In April, SoundHound said it will buy LivePerson in an all-stock agreement worth $43 million. SoundHound plans to add its voice and agent AI to LivePerson’s messaging tools. Agentic AI is built to handle tasks, not just respond to user input. The companies aim to finish the deal in the back half of 2026, pending signoff and standard closing terms.
SoundHound says the deal with LivePerson targets a $500 million revenue opportunity from clients they already have. CEO Keyvan Mohajer said the companies are “complementary conversational AI pioneers.” John Sabino, CEO of LivePerson, said, “the boundaries between ‘talking’ and ‘typing’ are disappearing.” SoundHound AI
SoundHound is getting scrutiny from analysts over its M&A plans. On the May 7 earnings call, D.A. Davidson’s Gil Luria pointed out that SoundHound’s acquisition strategy isn’t what most public tech companies do—those firms usually pay up for smaller, nimble targets. CEO Mohajer said bringing enterprise AI to market can be slow, and sometimes making the right customer match makes the deal worthwhile.
Competition is getting tougher. LivePerson is opening space for SoundHound in enterprise messaging. Cerence is still in the mix for automotive voice AI, selling conversational and agentic AI to automakers and mobility firms. SoundHound’s filing says it’s focused on running outside big-tech voice systems, allowing clients to keep control of brand, experience and data.
SoundHound is rolling out OASYS, its latest platform for building and running AI agents in multiple channels. The company says OASYS handles agent development, orchestration, ongoing testing and tuning. “These kinds of platforms are more important now as requirements for governance and guardrails change,” said Hayley Sutherland, research manager for conversational AI at IDC. SoundHound AI
But the story isn’t all positive. SoundHound’s latest quarterly report showed continued losses and negative operating cash flow since the company started, with its total deficit at $982.1 million as of March 31. The company said it may need to raise more cash, either by taking on debt or selling shares. SoundHound also reported ongoing material weaknesses in its financial reporting controls. On May 11, it filed a shelf registration for an at-the-market offering that could sell up to $300 million in Class A stock.
Buyers face a big decision Tuesday. Some wonder if Friday’s selloff signals new worries—losses, dilution, integration risk—or if the market just needed a pause after all the filings and deals. Nasdaq still closed the week up. SoundHound dropped.
