SoundHound AI, Inc. - Class A Common Stock

The company remains committed to the cloud hosting agreement, with $60.0 million in remaining non-cancelable future minimum payments as of March 31, 2026. (1 in progress across 1 tracked commitment)

Gross margins decreased year-over-year (43% vs 49% in Q3) due to acquisition-related amortization, but management maintains the mid-term improvement target as integration continues. (1 in progress, 1 missed across 2 tracked commitments)

The company is implementing a remediation plan to address material weaknesses in internal control over financial reporting.

The company plans to continue investing in its software platform and R&D to improve technology capabilities.

Research and development expenses are expected to remain stable in the short term and grow slower than revenue in the long term. — target: growth rate below revenue growth (+3 more commitments)

Hosted services revenue grew significantly, driven by the integration of SYNQ3 and Amelia acquisitions, now representing nearly half of total revenue. (4 expanding)

Hosted services revenue grew significantly, driven by the integration of acquisitions like Amelia and SYNQ3, increasing its share of total revenue to 64%. (1 expanding)

The US market share expanded dramatically, growing from 28.5% of total revenue in the prior year quarter to 53.2% in the current quarter. (5 expanding across 3 engines)

Licensing revenue experienced massive expansion, increasing over 400% year-over-year as the company scales its embedded voice solutions. (4 expanding across 1 engine)

SoundHound is shifting toward 'Agentic AI' through the integration of the Amelia platform, moving beyond simple voice response to autonomous backend actions. (2 shifted, 1 new)

The company is expanding its reach into the enterprise customer service market through the acquisition of Interactions Corporation, adding Fortune 100 clients.

Gross margins are reversing/declining sharply, dropping from 60% to 36% YoY. This is a negative trend caused by the integration of lower-margin acquired assets and increased amortization of developed technology. (1 reversing, 4 decelerating across 5 signals)

Growth could be slowed by 'material weaknesses' in internal financial controls, which require management attention and investment to fix.

The acquisition of SYNQ3 is a new and significant growth driver, contributing $6.1 million in revenue since the January 2024 closing, primarily in the restaurant sector. (2 new trend across 2 signals)

The acquisition of SYNQ3 (not Interactions) is a new trend, contributing $3.0 million in revenue in its first partial quarter, representing 26% of total revenue. (2 new trend, 2 accelerating across 4 signals)

Margins remain under significant pressure. Gross margin for the six months ended June 30, 2025, was 38%, a sharp decline from 61% in the same period in 2024. Cost of revenues surged 362% year-over-year. (4 intensifying, 1 high-severity)

Legal risks are intensifying with new derivative actions filed in April 2025 and a putative class action regarding corporate opportunities filed in February 2025. (4 intensifying, 1 stable, 2 high-severity)

The risk is easing as the company reported a net income of $55.2 million for the first half of 2025, compared to a $70.3 million loss in the prior year. However, this was driven by non-cash accounting gains on acquisition liabilities, and the accumulated deficit remains high at $887.9 million. (2 easing, 1 stable, 1 intensifying, 1 high-severity)

Integration risk is intensifying as the company recorded $6.7 million in acquisition-related expenses in the first half of 2025 and is still finalizing the purchase price allocation for the Amelia acquisition. (4 intensifying)

Dilution risk is intensifying. Stock-based compensation expense reached $41.3 million for the first half of 2025, nearly triple the $14.2 million recorded in the prior year period. (4 intensifying)