EX-99.2 3 soun-20260226ex992financia.htm EX-99.2 Document

SOUNDHOUND AI, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
December 31,
2025		December 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$248,490 $198,240 
Accounts receivable, net of allowances of $2,254 and $726 as of December 31, 2025 and 2024, respectively
32,336 23,159 
Contract assets and unbilled revenue, net38,189 26,645 
Other current assets10,114 7,476 
Total current assets329,129 255,520 
Restricted cash equivalents, non-current676 676 
Right-of-use assets3,791 4,692 
Property and equipment, net2,928 1,239 
Goodwill 122,277 101,704 
Intangible assets, net181,395 174,943 
Deferred tax asset29 4 
Contract assets and unbilled revenue, non-current, net29,906 12,879 
Other non-current assets18,042 2,296 
Total assets$688,173 $553,953 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable$10,562 $5,559 
Accrued liabilities26,325 26,291 
Operating lease liabilities1,812 1,898 
Finance lease liabilities332 49 
Income tax liability2,662 2,750 
Deferred revenue24,042 23,876 
Contingent acquisition liabilities4,400 — 
Other current liabilities 1,604 7,319 
Total current liabilities71,739 67,742 
Operating lease liabilities, net of current portion2,069 2,403 
Deferred revenue, net of current portion8,195 6,862 
Contingent acquisition liabilities, net of current portion129,227 286,898 
Income tax liability, net of current portion 2,254 3,075 
Deferred tax liability1,363 — 
Other non-current liabilities9,540 4,320 
Total liabilities224,387 371,300 
Commitments and contingencies
Stockholders’ equity (deficit):
Series A Preferred Stock, $0.0001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding, aggregate liquidation preference of $— and $— as of December 31, 2025 and 2024, respectively
— — 
Class A Common Stock, $0.0001 par value; 755,000,000 and 455,000,000 shares authorized; 390,070,691 and 361,096,457 shares issued and outstanding as of December 31, 2025 and 2024, respectively
37 35 
Class B Common Stock, $0.0001 par value; 44,000,000 shares authorized as of December 31, 2025 and 2024; 32,535,408 and 32,535,408 shares issued and outstanding as of December 31, 2025 and 2024, respectively
3 3 
Additional paid-in capital1,420,672 1,125,470 
Accumulated deficit(957,066)(943,060)
Accumulated other comprehensive income140 205 
Total stockholders’ equity463,786 182,653 
Total liabilities and stockholders’ equity$688,173 $553,953 


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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
Three Months Ended December 31,
20252024
(Unaudited)
Revenues$55,059 $34,543 
Operating expenses:
Cost of revenues28,709 20,759 
Sales and marketing17,415 9,566 
Research and development24,841 20,394 
General and administrative21,205 16,437 
Change in fair value of contingent acquisition liabilities(84,631)220,946 
Amortization of intangible assets4,947 3,513 
Total operating expenses12,486 291,615 
Loss from operations42,573 (257,072)
Other income (expense), net:
Loss on early extinguishment of debt— (42)
Interest expense(113)(1,309)
Other income (expense), net(203)135 
Total other income (expense), net(316)(1,216)
Loss before provision (benefit) for income taxes42,257 (258,288)
Provision (benefit) for income taxes2,200 311 
Net income (loss)$40,057 $(258,599)
Cumulative dividends attributable to Series A Preferred Stock— — 
Net loss attributable to SoundHound common stockholders$40,057 $(258,599)
Other comprehensive income:
Unrealized gains (losses) on investments(85)(57)
Comprehensive loss$39,972 $(258,656)
Net income (loss) per share:
Basic$0.10 $(0.69)
Diluted$(0.03)$(0.69)
Weighted-average common shares outstanding:
Basic417,576,180375,102,329
Diluted425,702,854375,102,329

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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
Year Ended
December 31,
202520242023
(Unaudited)
Revenues$168,920 $84,693 $45,873 
Operating expenses:
Cost of revenues97,369 43,309 11,307 
Sales and marketing61,640 29,126 18,893 
Research and development98,250 70,555 51,439 
General and administrative82,188 53,270 28,285 
Change in fair value of contingent acquisition liabilities(163,127)222,670 — 
Amortization of intangible assets15,872 7,116 — 
Restructuring— — 4,557 
Total operating expenses192,192 426,046 114,481 
Loss from operations(23,272)(341,353)(68,608)
Other income (expense), net:
Loss on early extinguishment of debt— (15,629)(837)
Interest expense(670)(12,168)(16,733)
Other income, net14,668 9,222 1,155 
Total other income (expense), net13,998 (18,575)(16,415)
Loss before provision (benefit) for income taxes(9,274)(359,928)(85,023)
Provision (benefit) for income taxes4,732 (9,247)3,914 
Net loss(14,006)(350,681)(88,937)
Cumulative dividends attributable to Series A Preferred Stock— (416)(2,774)
Net loss attributable to SoundHound common stockholders$(14,006)$(351,097)$(91,711)
Other comprehensive loss:
Unrealized gains on investments(65)6 199 
Comprehensive loss$(14,071)$(350,675)$(88,738)
Net loss per share:
Basic$(0.03)$(1.04)$(0.40)
Diluted$(0.28)$(1.04)$(0.40)
Weighted-average common shares outstanding:
Basic405,421,412338,462,574229,264,904
Diluted409,456,342338,462,574229,264,904
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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
December 31,
202520242023
(Unaudited)
Cash flows from operating activities:
Net loss$(14,006)$(350,681)$(88,937)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization34,130 16,054 2,313 
Stock-based compensation80,620 33,145 27,931 
Loss on change in fair value of ELOC program— — 1,901 
Amortization of debt issuance cost— 1,621 5,400 
Non-cash lease amortization2,906 2,613 3,346 
Loss on disposal of property and equipment42 — — 
Amortization of capitalized commissions1,627 — — 
Loss on early extinguishment of debt— 15,629 837 
Foreign currency gain/loss from remeasurement(947)(24)143 
Change in fair value of contingent acquisition liabilities(163,127)222,670 — 
Change in fair value of derivative(4,676)— — 
Deferred income taxes1,338 (12,183)30 
Other, net1,951 (580)93 
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net(1,304)(10,264)(627)
Prepaid expenses— — 1,590 
Other current assets(2,956)(3,131)(821)
Contract assets(22,420)(7,304)(19,578)
Other non-current assets(4,498)(196)671 
Accounts payable1,930 (7,636)(1,162)
Accrued liabilities(3,918)1,846 4,266 
Other current liabilities(2,334)(642)— 
Operating lease liabilities(2,742)(3,214)(3,657)
Deferred revenue(4,956)(6,186)(4,135)
Other non-current liabilities5,118 (415)2,131 
Net cash used in operating activities(98,222)(108,878)(68,265)
Cash flows from investing activities:
Purchases of property and equipment(902)(640)(392)
Capitalized software development costs(4,000)— — 
Payment related to acquisitions, net of cash acquired(54,602)(11,732)— 
Net cash used in investing activities(59,504)(12,372)(392)
Cash flows from financing activities:
Proceeds from the issuance of Series A Preferred Stock, net of issuance costs— — 24,942 
Proceeds from sales of Class A common stock under the ELOC program, net of issuance costs— — 71,615 
Proceeds from sales of Class A common stock under the Sales Agreement, Equity Distribution Agreement, Execute Equity Distribution Agreement and Second Equity Distribution Agreement201,522 407,270 12,412 
Proceeds from exercise of stock options and employee stock purchase plan10,835 29,685 — 
Proceeds from warrants exercised114 23 — 
Payment of financing costs associated with the Sales Agreement, Equity Distribution Agreement, Execute Equity Distribution Agreement, and Second Equity Distribution Agreement(4,030)(10,357)— 
Proceeds from the issuance of debt, net of issuance costs— — 85,087 
Proceeds from the issuance of common stock— — 9,369 
Payments on Term Loan and Amelia Debt— (215,373)(35,029)
Payment to settle contingent holdback liabilities from SYNQ3 acquisitions(198)(217)— 
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SOUNDHOUND AI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands)

Year Ended
December 31,
202520242023
(Unaudited)
Payments on finance leases(169)(125)(159)
Net cash provided by financing activities208,074 210,906 168,237 
Effects of exchange rate changes on cash(98)225 (20)
Net change in cash, cash equivalents, and restricted cash equivalents50,250 89,881 99,580 
Cash, cash equivalents, and restricted cash equivalents, beginning of year198,916 109,035 9,475 
Cash, cash equivalents, and restricted cash equivalents, end of year$249,166 $198,916 $109,035 
Reconciliation to amounts on the consolidated balance sheets:
Cash and cash equivalents$248,490 $198,240 $95,260 
Current portion of restricted cash equivalents— — — 
Non-current portion of restricted cash equivalents676 676 13,775 
Total cash, cash equivalents, and restricted cash equivalents shown in the consolidated statements of cash flows
$249,166 $198,916 $109,035 

Supplemental disclosures of cash flow information:
Cash paid for interest$26 $6,337 $11,984 
Cash paid for income taxes, net of refunds$4,370 $2,717 $2,356 
Noncash investing and financing activities:
Conversion of Series A Preferred Stock to Class A common stock$— $14,187 $10,755 
Issuance of Class A Common Stock to settle obligations under Amelia Debt$— $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 $— 
Purchases of property and equipment under accrued liabilities$163 $— $— 
Operating lease liabilities arising from obtaining right-of-use assets$1,001 $1,559 $— 
Debt discount through issuance of common stock warrants$— $— $4,136 
Issuance of Class A Common Stock to settle commitment shares related to the ELOC program $— $— $915 
Fair value of Class A common stock and deferred equity consideration issued to acquire SYNQ3 and Amelia$— $33,606 $— 
Fair value of contingent earnout consideration to acquire SYNQ3 and Amelia$— $67,945 $— 
Fair value of contingent holdback consideration to acquire SYNQ3$— $570 $— 
Fair value of deferred cash consideration under other acquisition$— $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$2,431 $— $— 


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