Document
SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| September 30, 2025 | December 31, 2024 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 268,936 | $ | 198,240 | |||||||
Accounts receivable, net of allowances of $3,466 and $726 as of September 30, 2025 and December 31, 2024, respectively | 22,417 | 23,159 | |||||||||
| Contract assets and unbilled receivable, net | 32,178 | 26,645 | |||||||||
| Other current assets | 11,835 | 7,476 | |||||||||
| Total current assets | 335,366 | 255,520 | |||||||||
| Restricted cash equivalents, non-current | 936 | 676 | |||||||||
| Right-of-use assets | 4,412 | 4,692 | |||||||||
| Property and equipment, net | 2,726 | 1,239 | |||||||||
| Goodwill | 122,277 | 101,704 | |||||||||
| Intangible assets, net | 191,066 | 174,943 | |||||||||
| Deferred tax asset | 4 | 4 | |||||||||
| Contract assets and unbilled receivable, non-current, net | 29,163 | 12,879 | |||||||||
| Other non-current assets | 16,267 | 2,296 | |||||||||
| Total assets | $ | 702,217 | $ | 553,953 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 6,864 | $ | 5,559 | |||||||
| Accrued liabilities | 28,141 | 26,291 | |||||||||
| Operating lease liabilities | 2,012 | 1,898 | |||||||||
| Finance lease liabilities | 327 | 49 | |||||||||
| Income tax liability | 2,438 | 2,750 | |||||||||
| Deferred revenue | 20,702 | 23,876 | |||||||||
| Contingent acquisition liabilities | 3,400 | — | |||||||||
| Other current liabilities | 1,248 | 7,319 | |||||||||
| Total current liabilities | 65,132 | 67,742 | |||||||||
| Operating lease liabilities, net of current portion | 2,482 | 2,403 | |||||||||
| Deferred revenue, net of current portion | 7,748 | 6,862 | |||||||||
| Contingent acquisition liabilities, net of current portion | 214,858 | 286,898 | |||||||||
| Income tax liability, net of current portion | 3,124 | 3,075 | |||||||||
| Other non-current liabilities | 9,637 | 4,320 | |||||||||
| Total liabilities | 302,981 | 371,300 | |||||||||
| 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 September 30, 2025 and December 31, 2024, respectively | — | — | |||||||||
Class A Common Stock, $0.0001 par value; 755,000,000 and 455,000,000 shares authorized as of September 30, 2025 and December 31, 2024, respectively; 386,300,291 and 361,096,457 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 37 | 35 | |||||||||
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 and 32,535,408 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively | 3 | 3 | |||||||||
| Additional paid-in capital | 1,396,094 | 1,125,470 | |||||||||
| Accumulated deficit | (997,123) | (943,060) | |||||||||
| Accumulated other comprehensive income | 225 | 205 | |||||||||
| Total stockholders’ equity | 399,236 | 182,653 | |||||||||
| Total liabilities and stockholders’ equity | $ | 702,217 | $ | 553,953 | |||||||
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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 42,049 | $ | 25,094 | $ | 113,861 | $ | 50,150 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Cost of revenues | 24,128 | 12,901 | 68,660 | 22,550 | |||||||||||||||||||
| Sales and marketing | 16,381 | 8,363 | 44,225 | 19,560 | |||||||||||||||||||
| Research and development | 22,848 | 19,545 | 73,409 | 50,161 | |||||||||||||||||||
| General and administrative | 24,346 | 17,031 | 60,983 | 36,833 | |||||||||||||||||||
| Change in fair value of contingent acquisition liabilities | 66,245 | (1,356) | (78,496) | 1,724 | |||||||||||||||||||
| Amortization of intangible assets | 3,992 | 2,377 | 10,925 | 3,603 | |||||||||||||||||||
| Total operating expenses | 157,940 | 58,861 | 179,706 | 134,431 | |||||||||||||||||||
| Loss from operations | (115,891) | (33,767) | (65,845) | (84,281) | |||||||||||||||||||
| Other expense, net: | |||||||||||||||||||||||
| Loss on early extinguishment of debt | — | — | — | (15,587) | |||||||||||||||||||
| Interest expense | (153) | (1,109) | (557) | (10,859) | |||||||||||||||||||
| Other income, net | 7,230 | 2,634 | 14,871 | 9,087 | |||||||||||||||||||
| Total other income (expense), net | 7,077 | 1,525 | 14,314 | (17,359) | |||||||||||||||||||
| Loss before provision for income taxes | (108,814) | (32,242) | (51,531) | (101,640) | |||||||||||||||||||
| Provision for income taxes | 457 | (10,491) | 2,532 | (9,558) | |||||||||||||||||||
| Net loss | $ | (109,271) | $ | (21,751) | $ | (54,063) | $ | (92,082) | |||||||||||||||
| Cumulative dividends attributable to Series A Preferred Stock | — | — | — | (416) | |||||||||||||||||||
| Net loss attributable to SoundHound common shareholders | $ | (109,271) | $ | (21,751) | $ | (54,063) | $ | (92,498) | |||||||||||||||
| Other comprehensive income: | |||||||||||||||||||||||
| Unrealized gains on investments | 47 | 57 | 20 | 63 | |||||||||||||||||||
| Comprehensive loss | $ | (109,224) | $ | (21,694) | $ | (54,043) | $ | (92,019) | |||||||||||||||
| Net loss per share: | |||||||||||||||||||||||
| Basic | $ | (0.27) | $ | (0.06) | $ | (0.13) | $ | (0.28) | |||||||||||||||
| Diluted | $ | (0.27) | $ | (0.06) | $ | (0.14) | $ | (0.28) | |||||||||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||||||
| Basic | 409,783,470 | 360,385,812 | 401,325,300 | 326,166,633 | |||||||||||||||||||
| Diluted | 411,702,440 | 360,385,812 | 403,252,575 | 326,166,633 | |||||||||||||||||||
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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash flows used in operating activities: | |||||||||||
| Net loss | $ | (54,063) | $ | (92,082) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 24,086 | 8,115 | |||||||||
| Stock-based compensation | 60,956 | 23,292 | |||||||||
| Amortization of debt issuance cost | — | 1,586 | |||||||||
| Loss on disposal of property and equipment | 42 | — | |||||||||
| Non-cash lease amortization | 2,141 | 2,218 | |||||||||
| Amortization of capitalized commissions | 990 | — | |||||||||
| Foreign currency gain/loss from remeasurement | (555) | (97) | |||||||||
| Change in fair value of contingent acquisition liabilities | (78,496) | 1,724 | |||||||||
| Change in fair value of derivative | (7,275) | — | |||||||||
| Loss on early extinguishment of debt | — | 15,587 | |||||||||
| Deferred income taxes | — | (11,494) | |||||||||
| Other, net | 3,118 | 633 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | 7,254 | (1,247) | |||||||||
| Other current assets | (4,040) | (3,049) | |||||||||
| Contract assets | (18,624) | (7,018) | |||||||||
| Other non-current assets | (399) | (1,198) | |||||||||
| Accounts payable | (1,764) | 823 | |||||||||
| Accrued liabilities | (1,329) | (2,058) | |||||||||
| Other current liabilities | (2,742) | 331 | |||||||||
| Operating lease liabilities | (1,972) | (2,612) | |||||||||
| Deferred revenue | (8,743) | (8,993) | |||||||||
| Other non-current liabilities | 5,079 | (216) | |||||||||
| Net cash used in operating activities | (76,336) | (75,755) | |||||||||
| Cash flows used in investing activities: | |||||||||||
| Purchases of property and equipment | (526) | (560) | |||||||||
| Capitalized software development costs | (1,837) | — | |||||||||
| Payment related to acquisitions, net of cash acquired | (54,602) | (11,732) | |||||||||
| Net cash used in investing activities | (56,965) | (12,292) | |||||||||
| Cash flows provided by financing activities: | |||||||||||
| Proceeds from sales of Class A common stock under the Sales Agreement, Equity Distribution Agreement, and Second Equity Distribution Agreement | 201,519 | 287,271 | |||||||||
| Proceeds from exercise of stock options and employee stock purchase plan | 7,233 | 11,064 | |||||||||
| Proceeds from warrants exercised | 29 | — | |||||||||
Payment of financing costs associated with the Sales Agreement, Equity Distribution Agreement, and Second Equity Distribution Agreement | (4,030) | (7,182) | |||||||||
| Payments on Term Loan and Amelia Debt | — | (175,602) | |||||||||
| Payment to settle contingent holdback liabilities from SYNQ3 acquisition | (198) | (17) | |||||||||
| Payments on finance leases | (39) | (89) | |||||||||
| Net cash provided by financing activities | 204,514 | 115,445 | |||||||||
| Effects of exchange rate changes on cash | (257) | (16) | |||||||||
| Net change in cash, cash equivalents, and restricted cash equivalents | 70,956 | 27,382 | |||||||||
| Cash, cash equivalents, and restricted cash equivalents, beginning of period | 198,916 | 109,035 | |||||||||
| Cash, cash equivalents, and restricted cash equivalents, end of period | $ | 269,872 | $ | 136,417 | |||||||
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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 | $ | 268,936 | $ | 135,606 | |||||||
| Non-current portion of restricted cash equivalents | 936 | 811 | |||||||||
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows | $ | 269,872 | $ | 136,417 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid for interest | $ | 33 | $ | 4,448 | |||||||
| Cash paid for income taxes | $ | 2,741 | $ | 1,677 | |||||||
| Noncash investing and financing activities: | |||||||||||
| Conversion of Series A Preferred Stock to Class A common stock | $ | — | $ | 14,187 | |||||||
| Issuance of Class A Common Stock to settle obligations under Amelia Debt | $ | — | $ | 11,817 | |||||||
| Issuance of Class A Common Stock to settle contingent holdback consideration of SYNQ3 acquisition | $ | 3,922 | $ | 189 | |||||||
| Deferred offering costs reclassified to additional paid-in capital | $ | 210 | $ | 220 | |||||||
| Property and equipment acquired under accrued liabilities | $ | — | $ | 62 | |||||||
| Fair value of Class A common stock and deferred equity consideration issued to acquire SYNQ3 | $ | — | $ | 9,687 | |||||||
| Fair value of contingent earnout consideration under SYNQ3 and Amelia acquisitions | $ | — | $ | 73,236 | |||||||
| Fair value of contingent holdback consideration under SYNQ3 acquisition | $ | — | $ | 427 | |||||||
| Fair value of deferred cash consideration under other acquisition | $ | — | $ | 195 | |||||||
| Fair value of deferred cash consideration under Interactions acquisition | $ | 1,150 | $ | — | |||||||
| Fair value of contingent earnout consideration under Interactions acquisition | $ | 9,900 | $ | — | |||||||
| Stock-based compensation included in capitalized software development costs | $ | 1,208 | $ | — | |||||||
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