NEW YORK, May 29, 2026, 10:07 EDT
- SoundHound AI shares gained 37 cents to $8.93 in early Friday trading, with volume around 10 million shares.
- SoundHound flagged financing risk in a May 27 filing, saying it can sell as much as $300 million of Class A stock using banks and brokers.
- SoundHound AI’s most recent quarter had strong revenue gains, though the company stayed in the red with a net loss and adjusted EBITDA also negative.
SoundHound AI shares climbed early Friday alongside gains in software and AI stocks. The Nasdaq-listed voice and agentic AI firm was recently at $8.93, up 4.3%. Shares hit a session high of $9.20. This move comes after the company launched a new share-sale program that could bring more stock to market.
SoundHound gets attention because it’s a mid-cap name in AI. At around $3.8 billion market cap, it’s small enough for sentiment to swing the shares, but also sizable, so investors watch how it spends cash, takes on deals, and issues stock. Broader tech was stronger: the iShares Expanded Tech-Software Sector ETF rose 2.6%, and the Invesco QQQ Trust added 0.6%, providing a tailwind for SoundHound.
AI-driven tech stocks bounced again. Dell jumped in premarket after Reuters said demand picked up for its Nvidia-based AI servers. The report also pointed to AI money moving toward infrastructure plays. For software, the question is still out: SoundHound has to show its AI agents and voice tools can actually deliver sustained profits, not just higher sales.
SoundHound’s at-the-market program is the big issue for now. The ATM lets SoundHound sell new shares on the market over time instead of doing it all at once. In a Form 8-K filed May 27, SoundHound said it signed an equity distribution deal with Cantor Fitzgerald, D.A. Davidson, H.C. Wainwright, Roth Capital, Northland, Ladenburg Thalmann, Wedbush and Joseph Gunnar. The agreement covers up to $300 million in Class A common stock.
SoundHound hasn’t disclosed any share sales yet under its new program, according to the filing. The company now has the option to raise money if it issues stock, which could dilute current holders. The filing also held financials from LivePerson and showed pro forma combined numbers related to SoundHound’s pending deal.
Mixed takeaways in the latest earnings from SoundHound. First-quarter revenue jumped 52% from last year to $44.2 million. But SoundHound booked a GAAP net loss of $25.0 million for the quarter, and an adjusted EBITDA loss of $26.7 million. Adjusted EBITDA, which excludes interest, taxes, depreciation and amortization and is set by the company, isn’t the same as net income.
SoundHound’s “top line growing 52%” shows demand in the business, according to Chief Executive Keyvan Mohajer. Chief Financial Officer James Hom called out a “strong balance sheet.” The company ended March with $216 million in cash and cash equivalents and no debt. SoundHound kept its 2026 revenue target at $225 million to $260 million. SoundHound AI
LivePerson is still the core of the stock trade. SoundHound set to buy LivePerson in April in an all-stock deal valuing the company at $43 million. The companies said the combined group could target a $500 million revenue pool and serve enterprise clients in over 30 countries. LivePerson CEO John Sabino said the gap between “talking” and “typing” is disappearing. SoundHound AI
Wedbush kept its Outperform rating and $12 target on SoundHound after the LivePerson deal, calling it a move that could grow the company’s customer base. Analysts have called the deal strategic but see some risk in execution. MarketWatch cited Wedbush’s Dan Ives, who labeled the agreement “strategic.” Seeking Alpha
Mixed signals for competitors. Snowflake, seen as a bellwether for AI software, was up about 2.4% after its recent gains. LivePerson rose, while Cerence, which makes automotive voice tech, slipped. SoundHound’s challenge now is to see if its OASYS agent platform and move into voice commerce will set it apart from bigger software players and focused voice-AI competitors.
But there’s a clear risk side. SoundHound said it’s posted recurring losses and had negative operating cash flow since it started, reporting an accumulated deficit of $982.1 million as of March 31. The company may look for more debt or equity funding. SoundHound added that revenue growth is tied to how customers adopt its services, competition, enterprise sales cycles and handling cloud and data-center costs as it grows.
SoundHound’s next signals look calmer than Friday’s stock jump: anything on the ATM program, steps on closing LivePerson in the back half of 2026, and if the company can turn higher revenue into smaller losses, not just bigger costs. For the moment, buyers like the AI software rally. But the funding question hasn’t gone away.
