EX-99.2 3 soun-20250807ex992financia.htm EX-99.2 Document

SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
June 30,
2025		December 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$230,340 $198,240 
   Accounts receivable, net of allowances of $2,458 and $726 as of June 30, 2025 and December 31, 2024, respectively
19,661 23,159 
Contract assets and unbilled receivable, net21,928 26,645 
Other current assets10,093 7,476 
Total current assets282,022 255,520 
Restricted cash equivalents, non-current936 676 
Right-of-use assets4,420 4,692 
Property and equipment, net1,070 1,239 
Goodwill101,210 101,704 
Intangible assets, net159,880 174,943 
Deferred tax asset4 4 
Contract assets and unbilled receivable, non-current, net23,631 12,879 
Other non-current assets6,321 2,296 
Total assets$579,494 $553,953 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$10,151 $5,559 
Accrued liabilities18,993 26,291 
Operating lease liabilities2,076 1,898 
Finance lease liabilities38 49 
Income tax liability2,966 2,750 
Deferred revenue23,715 23,876 
Other current liabilities351 7,319 
Total current liabilities58,290 67,742 
Operating lease liabilities, net of current portion2,274 2,403 
Deferred revenue, net of current portion6,132 6,862 
Contingent acquisition liabilities142,113 286,898 
Income tax liability, net of current portion3,082 3,075 
Other non-current liabilities7,844 4,320 
Total liabilities219,735 371,300 
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 June 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 June 30, 2025 and December 31, 2024, respectively; 373,055,866 and 361,096,457 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively
36 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 June 30, 2025 and December 31, 2024, respectively
3 3 
Additional paid-in capital1,247,394 1,125,470 
Accumulated deficit(887,852)(943,060)
Accumulated other comprehensive income 178 205 
Total stockholders’ equity359,759 182,653 
Total liabilities and stockholders’ equity$579,494 $553,953 


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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Revenues$42,683 $13,462 $71,812 $25,056 
Operating expenses:
Cost of revenues26,021 4,980 44,532 9,649 
Sales and marketing15,837 5,655 27,844 11,197 
Research and development25,805 15,738 50,561 30,616 
General and administrative18,230 9,535 36,637 19,802 
Change in fair value of contingent acquisition liabilities31,359 (1,082)(144,741)3,080 
Amortization of intangible assets3,482 621 6,933 1,226 
Total operating expenses120,734 35,447 21,766 75,570 
Income (loss) from operations(78,051)(21,985)50,046 (50,514)
Other expense, net:
Loss on early extinguishment of debt— (15,587)— (15,587)
Interest expense(169)(4,086)(404)(9,750)
Other income, net4,752 4,974 7,641 6,453 
Total other income (expense), net4,583 (14,699)7,237 (18,884)
Income (loss) before provision for income taxes(73,468)(36,684)57,283 (69,398)
Provision for income taxes1,256 638 2,075 933 
Net income (loss)$(74,724)$(37,322)$55,208 $(70,331)
Earnings attributable to participating Class A Common Shares— — (297)— 
Cumulative dividends attributable to Series A Preferred Stock— (73)— (416)
Net income (loss) attributable to SoundHound common shareholders$(74,724)$(37,395)$54,911 $(70,747)
Other comprehensive income (loss):
Unrealized gains (losses) on investments(33)(30)(27)6 
Comprehensive income (loss)$(74,757)$(37,425)$54,884 $(70,741)
Net income (loss) per share:
Basic$(0.19)$(0.11)$0.14 $(0.23)
Diluted$(0.19)$(0.11)$0.13 $(0.23)
Weighted-average common shares outstanding:
Basic400,124,499331,830,608397,026,119309,213,583
Diluted402,043,468331,830,608414,145,877309,213,583

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SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
20252024
Cash flows used in operating activities:
Net income (loss)$55,208 $(70,331)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization15,529 2,750 
Stock-based compensation41,250 14,232 
Amortization of debt issuance cost— 1,524 
Loss on disposal of property and equipment42 — 
Non-cash lease amortization1,388 1,445 
Foreign currency gain/loss from remeasurement(871)(70)
Change in fair value of contingent acquisition liabilities(144,741)3,080 
Change in fair value of derivative(2,179)— 
Loss on early extinguishment of debt— 15,587 
Deferred income taxes— (368)
Other, net1,997 (891)
Changes in operating assets and liabilities:
Accounts receivable, net2,383 211 
Other current assets(2,696)(1,426)
Contract assets(6,314)(2,267)
Other non-current assets(1,846)(842)
Accounts payable4,567 1,941 
Accrued liabilities(6,210)(625)
Other current liabilities(2,481)— 
Operating lease liabilities(1,359)(1,720)
Deferred revenue(891)(2,523)
Other non-current liabilities3,542 (147)
Net cash used in operating activities(43,682)(40,440)
Cash flows used in investing activities:
Purchases of property and equipment(354)(335)
Payment related to acquisition, net of cash acquired— (4,453)
Net cash used in investing activities(354)(4,788)
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 Agreement75,565 237,639 
Proceeds from exercise of stock options and employee stock purchase plan2,766 10,628 
Proceeds from warrants exercised13 — 
Payment of financing costs associated with the Sales Agreement, Equity Distribution Agreement, and Second Equity Distribution Agreement
(1,511)(5,639)
Payment to settle contingent holdback liabilities from SYNQ3 acquisition(198)— 
Payments on notes payable— (105,540)
Payments on finance leases(29)(58)
Net cash provided by financing activities76,606 137,030 
Effects of exchange rate changes on cash(210)130 
Net change in cash, cash equivalents, and restricted cash equivalents32,360 91,932 
Cash, cash equivalents, and restricted cash equivalents, beginning of period198,916 109,035 
Cash, cash equivalents, and restricted cash equivalents, end of period$231,276 $200,967 
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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$230,340 $200,156 
Non-current portion of restricted cash equivalents936 811 
Total cash, cash equivalents, and restricted cash equivalents shown in the condensed consolidated statements of cash flows
$231,276 $200,967 
Supplemental disclosures of cash flow information:
Cash paid for interest$2 $3,541 
Cash paid for income taxes$1,905 $1,274 
Noncash investing and financing activities:
Conversion of Series A Preferred Stock to Class A common stock$— $14,187 
Issuance of Class A Common Stock to settle contingent holdback consideration of SYNQ3 acquisition    $3,922 $— 
Deferred offering costs reclassified to additional paid-in capital$79 $147 
Unpaid financing costs in connection with the Equity Distribution Agreement$— $522 
Property and equipment acquired under accrued liabilities$— $92 
Fair value of Class A common stock and deferred equity consideration issued to acquire SYNQ3$— $9,687 
Fair value of contingent earnout consideration to acquire SYNQ3$— $1,676 
Fair value of contingent holdback consideration to acquire SYNQ3$— $427 
Fair value of deferred cash consideration under other acquisition$— $195 
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