when Soundhound AI (Thorn 1.80%) The artificial intelligence (AI) voice company reported first-quarter 2026 results, reporting a 52% increase in revenue to $44.2 million. Investors soon realized that not only wasn’t enough to move the stock price, but the stock price also fell.
SoundHound did not raise its full-year 2026 earnings outlook, but the market appears to be concerned about the company’s pending acquisition of Liveperson in an all-stock deal worth $43 million. Still, the $100 million figure in that report seemed largely ignored.
Image source: Getty Images.
Why acquiring Liveperson makes sense
SoundHound’s business is based on turning conversational interactions into action. For example, with voice-enabled AI in your car, you can order and pick up dinner hands-free when you get home from work.
These voice-enabled use cases are growing, and so are the agreements SoundHound has inked. Its customer base includes: Stellantiswhite castle, Chipotle Mexican Grilland several other well-known companies.
What SoundHound doesn’t have is a message-based solution, and it’s this solution that allows Liveperson to complement the overall business. Through LivePersonal, businesses can deploy AI agents to answer customer questions on their website, send text message reminders about orders, and provide updates.
The idea is that companies can have AI agents handle everything from answering phone calls to answering questions on websites. The acquisition signals that SoundHound is looking to get ahead of the growing opportunity in the AI agent market. According to Grand View Research, the global AI agent market is expected to grow from $7.6 billion in 2025 to $182.9 billion by 2033.
By integrating and cross-selling Liveperson into its business, SoundHound believes its 2027 revenue will decline by at least between $350 million and $400 million. If the Liveperson deal closes in the second quarter, it is expected to account for $100 million of that total. For reference, 2025 revenue was $168.9 million, and the company expects full-year 2026 revenue to fall between $225 million and $260 million.
This acquisition could quickly increase SoundHound’s revenue, which is why this $100 million is such an important number from the earnings report.
What the market doesn’t like
In theory, SoundHound’s acquisition of Liveperson makes sense to create a robust AI agent product. The problem is that LivePerson is a company in financial distress, with its stock price plummeting nearly 100% over the past five years.
We do not guarantee that Liveperson will be successfully integrated into your voice service. SoundHound, an unprofitable company, faces additional challenges with the deal. The company will prove its unique business model while adding struggling companies to its fold.
Additionally, as it is an all-stock deal, there is usually short-term pressure due to investor concerns about shareholder dilution.
Today’s changes
(-1.80%) $-0.15
current price
$8.17
Key data points
Market capitalization
$3.5 billion
daily range
$8.09 – $8.84
52 week range
$5.83 – $22.17
volume
32.9 million
average volume
28.4M
gross profit
31.27%
Is the risk worth the reward?
This is a proactive move by SoundHound, and one that could prove to be a smart deal in a few years. The AI voice company has no debt and is expected to remain debt-free upon completion of the transaction, limiting some of its risks.
Still, it all comes down to execution. For bullish people, buying stocks gradually and steadily over time without taking on too much risk is potentially the ideal strategy. That way, if the acquisition doesn’t work out, you won’t have to incur large losses.
