SoundHound AI Reports Q3 2026 Revenue Growth Driven by LivePerson Acquisition
SoundHound AI (SOUN) reported third-quarter revenue of $62.4 million, a 48.5% increase year-over-year. This growth was fueled by strong product demand and the partial-quarter contribution from its recent acquisition of LivePerson. Despite the top-line surge, the company saw a decline in both GAAP and non-GAAP gross margins due to integration costs and increased cloud usage related to new agentic AI capabilities. The company is focusing heavily on cost optimization, targeting $120 million in annualized reductions through functional consolidation, cloud savings, and internal AI implementation. Management also reaffirmed 2027 revenue guidance of $350 million to $400 million, signaling confidence in long-term scaling despite a strategic shift from upfront licensing toward recurring hosted revenue models.
Tickers: $SOUN
Topics: acquisition integration cost reduction EBITDA loss guidance revenue growth