CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(In thousands, except share and per share data) | ||
(Unaudited) | ||
June 30, 2026 | December 31, 2025 | |
(Unaudited) | ||
ASSETS | ||
Current assets: | ||
Cash and cash equivalents $ 202,776 | $ 248,490 | |
Restricted cash equivalents - | - | |
Accounts receivable, net of allowances of $3,378 and $2,254 as of June 30, 2026 and December 31, 2025, respectively 27,072 | 32,336 | |
Contract assets and unbilled receivable, net 34,834 | 38,189 | |
Other current assets 12,363 | 10,114 | |
Total current assets 277,045 | 329,129 | |
Restricted cash equivalents, non-current 676 | 676 | |
Right-of-use assets 5,240 | 3,791 | |
Property and equipment, net 2,498 | 2,928 | |
Goodwill 122,277 | 122,277 | |
Intangible assets, net 190,207 | 181,395 | |
Deferred tax asset 28 | 29 | |
Contract assets and unbilled receivable, non-current, net 48,073 | 29,906 | |
Other non-current assets 21,843 | 18,042 | |
Total assets $ 667,887 | $ 688,173 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ | 7,572 | $ | 10,562 | |
Accrued liabilities | 31,441 | 26,325 | |||
Operating lease liabilities | 2,456 | 1,812 | |||
Finance lease liabilities | 226 | 332 | |||
Income tax liability | 3,828 | 2,662 | |||
Deferred revenue | 23,738 | 24,042 | |||
Contingent acquisition liabilities | - | 4,400 | |||
Other current liabilities | 1,614 | 1,604 | |||
Total current liabilities | 70,875 | 71,739 | |||
Operating lease liabilities, net of current portion | 2,756 | 2,069 | |||
Deferred revenue, net of current portion | 5,161 | 8,195 | |||
Contingent acquisition liabilities, net of current portion | 83,637 | 129,227 | |||
Deferred tax liabilities | 1,403 | 1,363 | |||
Income tax liability, net of current portion | 2,177 | 2,254 | |||
Other non-current liabilities | 11,448 | 9,540 | |||
Total liabilities | 177,457 | 224,387 | |||
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 June 30, 2026 and December 31, 2025, respectively - -
Class A Common Stock, $0.0001 par value; 755,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 403,287,100 and
390,070,691 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
38
37
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized; 32,535,408 shares issued and outstanding as of June 30, 2026 and
December 31, 2025 | 3 | 3 | |
Additional paid-in capital | 1,515,141 | 1,420,672 | |
Accumulated deficit | (1,024,911) | (957,066) | |
Accumulated other comprehensive income | 159 | 140 | |
Total stockholders' equity | 490,430 | 463,786 | |
Total liabilities and stockholders' equity | $ 667,887 | $ | 688,173 |
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,2026 | 2025 | 2026 | 2025 | |
Revenues | $ 61,897 | $ 42,683 | $ 106,092 | $ 71,812 |
Operating expenses: | ||||
Cost of revenues | 33,967 | 26,021 | 64,420 | 44,532 |
Sales and marketing | 16,635 | 15,837 | 35,850 | 27,844 |
Research and development | 27,130 | 25,805 | 53,330 | 50,561 |
General and administrative | 25,989 | 18,230 | 51,665 | 36,637 |
Change in fair value of contingent acquisition liabilities | (3,697) | 31,359 | (43,089) | (144,741) |
Amortization of intangible assets | 5,171 | 3,482 | 9,885 | 6,933 |
Total operating expenses | 105,195 | 120,734 | 172,061 | 21,766 |
Income (loss) from operations | (43,298) | (78,051) | (65,969) | 50,046 |
Other income, net: | ||||
Interest expense | (61) | (169) | (132) | (404) |
Other income, net | 2,724 | 4,752 | 1,236 | 7,641 |
Total other income, net | 2,663 | 4,583 | 1,104 | 7,237 |
Income (loss) before provision for income taxes | (40,635) | (73,468) | (64,865) | 57,283 |
Provision for income taxes | 2,182 | 1,256 | 2,980 | 2,075 |
Net income (loss) | $ (42,817) | $ (74,724) | $ (67,845) | $ 55,208 |
Earnings attributable to participating Class A Common Shares | - | - | - | (297) |
Net income (loss) attributable to SoundHound common shareholders | $ (42,817) | $ (74,724) | $ (67,845) | $ 54,911 |
Other comprehensive income: | ||||
Unrealized gains on investments | (1) | (33) | 19 | (27) |
Comprehensive income (loss) | $ (42,818) | $ (74,757) | $ (67,826) | $ 54,884 |
Net income (loss) per share: | ||||
Basic | $ (0.10) | $ (0.19) | $ (0.16) | $ 0.14 |
Diluted | $ (0.10) | $ (0.19) | $ (0.21) | $ 0.13 |
Weighted-average common shares outstanding: | ||||
Basic | 430,521,776 | 400,124,499 | 426,022,299 | 397,026,119 |
Diluted | 438,648,450 | 402,043,468 | 434,240,315 | 414,145,877 |
(In thousands) (Unaudited)
Six Months Ended June 30,2026 | 2025 | |
Cash flows used in operating activities: | ||
Net income (loss) | $ (67,845) | $ 55,208 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 21,071 | 15,529 |
Stock-based compensation | 39,168 | 41,250 |
Loss on disposal of property and equipment | - | 42 |
Non-cash lease amortization | 1,658 | 1,388 |
Amortization of capitalized commissions | 999 | - |
Bad debt expenses | 3,478 | - |
Foreign currency gain/loss from remeasurement | 529 | (871) |
Change in fair value of contingent acquisition liabilities | (43,089) | (144,741) |
Change in fair value of derivative | 2,630 | (2,179) |
Deferred income taxes | 41 | - |
Other, net | 179 | 1,997 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,835 | 2,383 |
Other current assets | (3,297) | (2,696) |
Contract assets | (16,942) | (6,314) |
Other non-current assets | 94 | (1,846) |
Accounts payable | (2,984) | 4,567 |
Accrued liabilities | 5,341 | (6,210) |
Contingent acquisition liabilities | (1,335) | - |
Other current liabilities | (529) | (2,481) |
Operating lease liabilities | (1,632) | (1,359) |
Deferred revenue | (3,338) | (891) |
Other non-current liabilities | 1,999 | 3,542 |
Net cash used in operating activities | (59,969) | (43,682) |
Cash flows used in investing activities: | ||
Purchases of property and equipment | (822) | (354) |
Capitalized software development costs | (5,404) | - |
Payment related to asset acquisition | (26,501) | - |
Net cash used in investing activities | (32,727) | (354) |
Cash flows provided by (used in) financing activities: | ||
Proceeds from sales of Class A common stock under the Second Equity Distribution Agreement | 48,481 | 75,565 |
Proceeds from exercise of stock options and employee stock purchase plan | 3,923 | 2,766 |
Proceeds from warrants exercised | - | 13 |
Payment of financing costs associated with the Second Equity Distribution Agreement | (970) | (1,511) |
Payment to settle contingent acquisition liabilities | (3,538) | (198) |
Payment to settle deferred holdback liabilities | (1,000) | - |
Payments on finance leases | (197) | (29) |
Net cash provided by financing activities | 46,699 | 76,606 |
Effects of exchange rate changes on cash | 283 | (210) |
Net change in cash, cash equivalents, and restricted cash equivalents | (45,714) | 32,360 |
Cash, cash equivalents, and restricted cash equivalents, beginning of period | 249,166 | 198,916 |
Cash, cash equivalents, and restricted cash equivalents, end of period | $ 203,452 | $ 231,276 |
(In thousands) (Unaudited)
Reconciliation to amounts on the condensed consolidated balance sheets: | ||
Cash and cash equivalents | $ 202,776 | $ 230,340 |
Non-current portion of restricted cash equivalents | 676 | 936 |
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows | $ 203,452 | $ 231,276 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | $ 28 | $ 2 |
Cash paid for income taxes, net | $ 1,310 | $ 1,905 |
Noncash investing and financing activities: | ||
Right-of-use assets obtained in exchange for lease liabilities | $ 2,886 | $ - |
Issuance of Class A Common Stock to settle contingent acquisition liabilities | $ 2,028 | $ 3,922 |
Fair value of deferred cash consideration under other acquisition | $ 1,519 | $ - |
Deferred offering costs reclassified to additional paid-in capital | $ 49 | $ 79 |
Stock-based compensation included in capitalized software development costs | $ 1,889 | $ - |