SoundHound AI Inc. (SOUN) dropped its third-quarter results after the closing bell on Thursday, and the market's initial reaction was a shrug followed by a slide. The conversational AI company beat on both the top and bottom lines, but investors found something in the details to fret about.

The Numbers Were Good. The Reaction Was Not.

SoundHound reported revenue of $62.43 million, topping the $61.71 million consensus estimate. The adjusted loss came in at five cents per share, better than the six cents analysts expected, according to market data. Total revenue climbed 48.5% year over year.

But the company also posted an adjusted EBITDA loss of $20.7 million and ended the quarter with $207.6 million in cash and cash equivalents. Growth is expensive, and SoundHound is still spending to get it.

CEO Keyvan Mohajer framed the quarter as a turning point: "This is a milestone moment for SoundHound. We announced another record quarter, closed our acquisition of LivePerson, and guided that the company will be adjusted EBITDA profitable within the second half of 2027."

Guidance: Big Numbers, Long Timeline

For full-year 2026, SoundHound expects revenue of $250 million to $260 million, comfortably above the $238.04 million consensus. The company also guided 2027 revenue to $350 million to $400 million. Those are ambitious targets for a company still burning cash, and the profitability timeline stretches into the back half of 2027.

Management will discuss the quarter on an earnings call at 5 p.m. ET.

SOUN Shares Fall After Hours

SoundHound AI shares were down 7.02% in after-hours trading on Thursday, changing hands at $3.96 at the time of publication, according to market data. The stock has been volatile all year, and a beat-and-raise quarter apparently wasn't enough to satisfy investors who wanted a faster path to profitability.