US AI Voice Firm SoundHound Reports Record Q3 Revenue but Cuts 27% of Workforce, Guides for EBITDA Profitability in 2H 2027
SoundHound AI reported Q3 revenue of $62.4M (+48.5% YoY) while announcing a ~27% global workforce reduction with estimated charges of $18-22M, guiding for adjusted EBITDA profitability by the second half of 2027.
SoundHound AI, Inc., a US-listed provider of voice and agentic AI technology, filed an 8-K report on November 5, 2026, disclosing financial results for the third quarter ended September 30, 2026, alongside a significant restructuring plan. While the company reported record quarterly revenue, it also announced a reduction of approximately 27% of its global workforce to control costs, setting a target for adjusted EBITDA profitability in the second half of 2027.
Financial data shows SoundHound AI's Q3 revenue reached $62.4 million, a 48.5% year-over-year increase. However, GAAP gross margin declined to 34.1% from 42.6% in the same period last year, and non-GAAP gross margin fell to 50.3% from 59.3%. The GAAP net loss narrowed significantly to $46.4 million from $109.3 million in the prior year; the non-GAAP net loss was $21.2 million. Adjusted EBITDA loss stood at $20.7 million. As of the end of the quarter, the company held $207.6 million in cash and cash equivalents.
As part of the restructuring plan implemented on November 4, SoundHound AI aims to align teams and resources with strategic priorities, including cutting about 27% of its global staff. The company estimates pre-tax charges of $18 million to $22 million, substantially related to severance payments and post-employment benefits, with expected cash expenditures of $16 million to $19 million. These charges will be primarily recognized in the fourth quarter of 2026. Management stated that savings from the restructuring will be used to further strategic initiatives.
In its business outlook, SoundHound AI identified $120 million in annualized cost synergies, with over $80 million in actions scheduled to take effect before January 1, 2027. The company projects full-year 2026 revenue between $250 million and $260 million, and 2027 revenue between $350 million and $400 million. CFO John Collins emphasized that integrating the LivePerson acquisition, exiting low-margin businesses, and shifting to a hosted-service model would improve revenue stability and drive sustainable profitable growth.