SoundHound AI Inc's stock plummeted 13.24% during intraday trading on Friday, marking a significant decline for the voice-AI company.

The sharp sell-off followed the company's release of its first-quarter 2026 financial results, which revealed wider-than-expected losses that overshadowed a revenue beat. SoundHound reported adjusted losses of 6 cents per share, missing analyst estimates of a 4-cent loss by 50%, while its adjusted EBITDA loss of $26.7 million more than doubled expectations. The disappointing earnings came despite revenue of $44.2 million representing a 52% year-over-year increase that exceeded forecasts.

Analysts noted that SoundHound's recent acquisition spree, including four acquisitions over the past two years and a recently announced agreement to acquire LivePerson, has weighed on the company's profitability. Investor sentiment turned negative as the market showed increased sensitivity to AI companies' ability to convert revenue growth into earnings, with the significant EPS miss triggering substantial selling pressure.