EX-99.2 3 soun-20251006ex992financia.htm EX-99.2 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, net32,178 26,645 
Other current assets11,835 7,476 
Total current assets335,366 255,520 
Restricted cash equivalents, non-current936 676 
Right-of-use assets4,412 4,692 
Property and equipment, net2,726 1,239 
Goodwill122,277 101,704 
Intangible assets, net191,066 174,943 
Deferred tax asset4 4 
Contract assets and unbilled receivable, non-current, net29,163 12,879 
Other non-current assets16,267 2,296 
Total assets$702,217 $553,953 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$6,864 $5,559 
Accrued liabilities28,141 26,291 
Operating lease liabilities2,012 1,898 
Finance lease liabilities327 49 
Income tax liability2,438 2,750 
Deferred revenue20,702 23,876 
Contingent acquisition liabilities3,400 — 
Other current liabilities1,248 7,319 
Total current liabilities65,132 67,742 
Operating lease liabilities, net of current portion2,482 2,403 
Deferred revenue, net of current portion7,748 6,862 
Contingent acquisition liabilities, net of current portion214,858 286,898 
Income tax liability, net of current portion3,124 3,075 
Other non-current liabilities9,637 4,320 
Total liabilities302,981 371,300 
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 capital1,396,094 1,125,470 
Accumulated deficit(997,123)(943,060)
Accumulated other comprehensive income 225 205 
Total stockholders’ equity399,236 182,653 
Total liabilities and stockholders’ equity$702,217 $553,953 


1

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,
2025202420252024
Revenues$42,049 $25,094 $113,861 $50,150 
Operating expenses:
Cost of revenues24,128 12,901 68,660 22,550 
Sales and marketing16,381 8,363 44,225 19,560 
Research and development22,848 19,545 73,409 50,161 
General and administrative24,346 17,031 60,983 36,833 
Change in fair value of contingent acquisition liabilities66,245 (1,356)(78,496)1,724 
Amortization of intangible assets3,992 2,377 10,925 3,603 
Total operating expenses157,940 58,861 179,706 134,431 
Loss from operations(115,891)(33,767)(65,845)(84,281)
Other expense, net:
Loss on early extinguishment of debt— — — (15,587)
Interest expense(153)(1,109)(557)(10,859)
Other income, net7,230 2,634 14,871 9,087 
Total other income (expense), net7,077 1,525 14,314 (17,359)
Loss before provision for income taxes(108,814)(32,242)(51,531)(101,640)
Provision for income taxes457 (10,491)2,532 (9,558)
Net loss$(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)$(92,498)
Other comprehensive income:
Unrealized gains on investments47 57 20 63 
Comprehensive loss$(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:
Basic409,783,470360,385,812401,325,300326,166,633
Diluted411,702,440360,385,812403,252,575326,166,633

2

SOUNDHOUND AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
20252024
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 amortization24,086 8,115 
Stock-based compensation60,956 23,292 
Amortization of debt issuance cost— 1,586 
Loss on disposal of property and equipment42 — 
Non-cash lease amortization2,141 2,218 
Amortization of capitalized commissions990 — 
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, net3,118 633 
Changes in operating assets and liabilities:
Accounts receivable, net7,254 (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 liabilities5,079 (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 Agreement201,519 287,271 
Proceeds from exercise of stock options and employee stock purchase plan7,233 11,064 
Proceeds from warrants exercised29 — 
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 activities204,514 115,445 
Effects of exchange rate changes on cash(257)(16)
Net change in cash, cash equivalents, and restricted cash equivalents70,956 27,382 
Cash, cash equivalents, and restricted cash equivalents, beginning of period198,916 109,035 
Cash, cash equivalents, and restricted cash equivalents, end of period$269,872 $136,417 
3

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 equivalents936 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 $— 
4