How Much Downside Is Left In SOUN Stock? Trefis Team Tue, October 13, 2026 at 4:08 PM EDT 3 min read SOUN -1.81% ^GSPC -0.02% CRNC +1.60% TWLO -0.38% FIVN -0.73% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Shares of SoundHound AI (SOUN) have lost 21% in the past month. The S&P 500 gained 2.0% over the same period, and no cause for the fall in SoundHound is known. Over twelve months, the stock is down 73%. Both declines unfolded while the broader market was rising. How far has SoundHound stock dropped when the market itself turned down?
SoundHound's Average Downturn Loss Is Three Times The Index's
SoundHound went public in 2022 and has since traded through five market shocks. During those downturns, the stock has fallen 40.8% on average, compared with a 13.4% decline for the S&P 500.
The steepest of the five drops came in the 2022 inflation shock, when SoundHound lost 66.0%. The stock only began trading partway through that window, so the S&P 500's fall over it is not a like-for-like comparison. The 2023 SVB regional banking crisis offers a cleaner case: SoundHound stock fell 52%, while the S&P 500 fell 6.7%.
The stock recovered to its pre-shock highs following all five declines. The median rebound took 3.1 months from the low. The recovery after the 2022 fall proved to be the exception, taking 25.3 months.
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SoundHound Is Unprofitable, But Management Reports No Debt
SoundHound generated $61.9 million in revenue during its fiscal second quarter of 2026, marking a 45% increase from a year earlier. Yet that pace of expansion has slowed in each of the last three quarters, stepping down from 67.6% three quarters earlier.
The company continues to lose money, though the deficit per dollar of sales has narrowed. Its operating loss over the last twelve months equaled 99% of revenue, compared with 260% three years ago. Gross margin, however, sits lower than it was. It came in at 42% over the last twelve months, against 75% three years ago. That figure is up from 41% a year ago.
Management reported that SoundHound holds no debt and finished the fiscal second quarter with $203 million in cash. Still, each share now represents a smaller slice of the company, because the share count has risen 95.0% in three years.
What Could Go Wrong At SoundHound From Here?
SoundHound has completed its acquisition of LivePerson, finalizing the deal following regulatory clearance. When management raised its 2026 revenue guidance to $230 million–$260 million during the August 5, 2026 earnings call, the transaction had not yet closed, meaning that forecast excluded any financial contributions from LivePerson.
Acquisitions are already adding to SoundHound's costs. During the fiscal second quarter, general and administrative expenses rose 43% from a year earlier to $26 million. Management said the increase came mainly from legal and advisory costs tied to its acquisitions. SoundHound completed the LivePerson acquisition on September 4, 2026, after that call, so the 2026 revenue forecast of $230 million to $260 million does not yet reflect the combined company.
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