SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
March 31,
2026
December 31,
2025
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$215,642 $248,490 
   Accounts receivable, net of allowances of $2,807 and $2,254 as of March 31, 2026 and December 31, 2025, respectively
30,068 32,336 
Contract assets and unbilled receivable, net32,752 38,189 
Other current assets10,343 10,114 
Total current assets288,805 329,129 
Restricted cash equivalents, non-current676 676 
Right-of-use assets5,920 3,791 
Property and equipment, net2,863 2,928 
Goodwill122,277 122,277 
Intangible assets, net172,036 181,395 
Deferred tax asset28 29 
Contract assets and unbilled receivable, non-current, net34,067 29,906 
Other non-current assets18,279 18,042 
Total assets$644,951 $688,173 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$8,048 $10,562 
Accrued liabilities29,321 26,325 
Operating lease liabilities2,751 1,812 
Finance lease liabilities289 332 
Income tax liability2,812 2,662 
Deferred revenue28,509 24,042 
Contingent acquisition liabilities— 4,400 
Other current liabilities1,557 1,604 
Total current liabilities73,287 71,739 
Operating lease liabilities, net of current portion3,186 2,069 
Deferred revenue, net of current portion6,756 8,195 
Contingent acquisition liabilities, net of current portion87,334 129,227 
Deferred tax liabilities1,379 1,363 
Income tax liability, net of current portion2,209 2,254 
Other non-current liabilities10,134 9,540 
Total liabilities184,285 224,387 
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 March 31, 2026 and December 31, 2025, respectively
— — 
Class A Common Stock, $0.0001 par value; 755,000,000 shares authorized as of March 31, 2026 and December 31, 2025; 393,742,421 and 390,070,691 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
37 37 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 shares issued and outstanding as of March 31, 2026 and December 31, 2025
Additional paid-in capital1,442,560 1,420,672 
Accumulated deficit(982,094)(957,066)
Accumulated other comprehensive income 160 140 
Total stockholders’ equity460,666 463,786 
Total liabilities and stockholders’ equity$644,951 $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
March 31,
20262025
(Unaudited)
Revenues$44,195 $29,129 
Operating expenses:
Cost of revenues30,453 18,511 
Sales and marketing19,215 12,007 
Research and development26,200 24,756 
General and administrative25,676 18,407 
Change in fair value of contingent acquisition liabilities(39,392)(176,100)
Amortization of intangible assets4,714 3,451 
Total operating expenses66,866 (98,968)
Income (loss) from operations(22,671)128,097 
Other income (expense), net:
Interest expense(71)(235)
Other income (expense), net(1,488)2,889 
Total other income (expense), net(1,559)2,654 
Income (loss) before provision for income taxes(24,230)130,751 
Provision for income taxes798 819 
Net income (loss)$(25,028)$129,932 
Earnings attributable to participating Class A Common Shares— (705)
Net income (loss) attributable to SoundHound common shareholders$(25,028)$129,227 
Other comprehensive income:
Unrealized gains on investments20 
Comprehensive income (loss)$(25,008)$129,938 
Net income (loss) per share:
Basic$(0.06)$0.33 
Diluted$(0.11)$0.31 
Weighted-average common shares outstanding:
Basic421,472,827393,893,313
Diluted429,783,201414,156,455

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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
20262025
Cash flows used in operating activities:
Net income (loss)$(25,028)$129,932 
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization9,966 7,755 
Stock-based compensation18,546 17,440 
Loss on disposal of property and equipment— 31 
Non-cash lease amortization858 664 
Amortization of capitalized commissions538 — 
Foreign currency gain/loss from remeasurement791 (160)
Change in fair value of contingent acquisition liabilities(39,392)(176,100)
Change in fair value of derivative2,491 (1,289)
Deferred income taxes17 (1)
Other, net744 903 
Changes in operating assets and liabilities:
Accounts receivable, net1,542 2,347 
Other current assets(767)(239)
Contract assets1,261 5,816 
Other non-current assets548 (1,181)
Accounts payable(2,503)1,151 
Accrued liabilities2,655 (8,403)
Contingent acquisition liabilities(1,335)— 
Other current liabilities(61)(581)
Operating lease liabilities(809)(836)
Deferred revenue3,028 3,667 
Other non-current liabilities652 (101)
Net cash used in operating activities(26,258)(19,185)
Cash flows used in investing activities:
Purchases of property and equipment(468)(162)
Capitalized software development costs(2,592)— 
Net cash used in investing activities(3,060)(162)
Cash flows provided by (used in) financing activities:
Proceeds from sales of Class A common stock under the Second Equity Distribution Agreement — 67,707 
Proceeds from exercise of stock options and employee stock purchase plan396 666 
Proceeds from warrants exercised— 13 
Payment of financing costs associated with the Second Equity Distribution Agreement— (1,355)
Payment to settle contingent earnout liabilities(3,538)— 
Payments on finance leases(101)(21)
Net cash provided by (used in) financing activities(3,243)67,010 
Effects of exchange rate changes on cash(287)(94)
Net change in cash, cash equivalents, and restricted cash equivalents(32,848)47,569 
Cash, cash equivalents, and restricted cash equivalents, beginning of period249,166 198,916 
Cash, cash equivalents, and restricted cash equivalents, end of period$216,318 $246,485 



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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$215,642 $245,809 
Non-current portion of restricted cash equivalents$676 $676 
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows
$216,318 $246,485 
Supplemental disclosures of cash flow information:
Cash paid for interest$15 $
Cash paid for income taxes, net$689 $1,230 
Noncash investing and financing activities:
Right-of-use assets obtained in exchange for lease liabilities$2,886 $— 
Issuance of Class A Common Stock to contingent earnout liabilities$2,028 $— 
Deferred offering costs reclassified to additional paid-in capital$— $69 
Stock-based compensation included in capitalized software development costs$918 $— 



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