SoundHound AI Inc's stock experienced a significant after-hours plunge of 10.38% following the release of its first-quarter 2026 financial results.
The company reported quarterly revenue of $44.2 million, a 52% year-over-year increase that exceeded analyst expectations of $42.6 million. However, investor sentiment turned negative as the company's losses widened beyond forecasts. SoundHound reported an adjusted EBITDA loss of $26.7 million, significantly missing the consensus estimate of a $12 million loss. Furthermore, the adjusted earnings per share came in at a loss of $0.06, missing the analyst estimate of a $0.04 loss by 50%.
The wider-than-expected losses overshadowed the strong revenue growth and business developments, including the launch of its new OASYS agentic AI platform and the announced agreement to acquire LivePerson. The substantial earnings miss prompted a sell-off in after-hours trading as investors reassessed the company's path to profitability.