Key Highlights

  • SOUN shares are trading 1.95% lower at $4.28 on Wednesday, October 28, 2026, implying a prior close near $4.37 (calculated).
  • Short interest was 170,799,103 shares for the settlement date of October 15, 2026, with 10.05 days to cover.
  • Second-quarter 2026 revenue rose 45.0% to $61.9 million.
  • Full-year 2026 revenue guidance was raised to $230 million to $260 million.
  • Cash was $203 million at June 30, 2026, with no debt.

Most Shorted Stock: Why Is SoundHound AI Slipping 1.95% With Heavy Short Interest?

SoundHound AI (NASDAQ:SOUN) shares are trading 1.95% lower at $4.28 on Wednesday, October 28, 2026, and the stock sits on the screen of most shorted names. No company release dated October 28 accompanied the move, so the decline sits within normal daily variation for a stock with this much short exposure.

Short-interest data for the settlement date of October 15, 2026 showed 170,799,103 shares sold short, up 11,865,325 from 158,933,778 at the prior settlement (about 7.5%, calculated). Days to cover were 10.05, based on average daily volume of about 17.0 million shares. That equals about 38.5% of the 444.11 million shares outstanding, a share of outstanding stock rather than of float.

A reading this high can mean two things at once. Sellers may be positioned for further weakness, yet a rise in the share price can force covering purchases, which can add to a move in either direction.

Second-Quarter Scorecard: How Strong Was 45.0% Growth Against a $42.8 Million Loss?

SoundHound is a voice and agentic AI company that helps businesses deploy conversational AI across phones, drive-throughs, vehicles and televisions. Its OASYS platform lets organizations build AI agents for transactions and workflows, and customers span automotive, financial services, healthcare, retail and telecommunications.

Second-quarter 2026 revenue was $61.9 million, up 45.0%. The GAAP net loss was $42.8 million, or $0.10 per share, while the non-GAAP net loss was $9.0 million, or $0.02 per share. Adjusted EBITDA was a loss of $9.6 million, and gross margin was 45.1% GAAP and 58.4% non-GAAP.

First-quarter 2026 revenue had been $44.2 million, up about 52%, so sequential growth was roughly 40% (calculated).

Balance Sheet and Guidance: What Does the $230 Million to $260 Million Outlook Assume?

The company ended June 30, 2026 with $203 million of cash and equivalents and no debt. Management raised full-year 2026 revenue guidance to $230 million to $260 million and said it would update the outlook after its pending acquisition of LivePerson (NASDAQ:LPSN) closes, which it expects before the end of 2026.

Transaction summaries put the deal at an implied enterprise value of $250 million and an equity value of $43 million. SoundHound has projected 2027 revenue of $350 million to $400 million, including about $100 million from LivePerson. LivePerson reported net losses of $134.2 million in 2024 and $67.2 million in 2025.

Integration is the stated risk: combining voice and messaging platforms, retaining LivePerson customers, and showing cost synergies that management has not yet quantified.

What to Watch Next: Does the October 30 Settlement Change the Short Picture?

The next short-interest settlement date is October 30, 2026, with publication expected on November 10. Investors will also watch the close of the LivePerson acquisition, the updated guidance that follows it, and the third-quarter report, which the company has not dated in the release.