SoundHound Tanks 11% Pre-Market After Delayed 10-K Filing Raises Red Flags

SoundHound stock plunges as financial reporting issues and delayed 10-K filing shake investor confidence

Mar 04, 2025

Summary

SoundHound drops 11.24% pre-market after delaying its 10-K filing, citing internal control weaknesses and acquisition complexities

SoundHound AI (SOUN, Financial) shares dropped 11.24% pre-market to $9.16, down $1.16 as of 7:41 AM ET Tuesday, after the company announced it would be unable to file its 10-K annual report for the fiscal year ended December 31, 2024, within the required timeframe.

The company cited ongoing material weaknesses in internal financial controls, which persist as of Dec. 31, 2024. Additionally, complex accounting issues related to its Synq3 and Amelia Holdings acquisitions require more time to finalize financial statements.

SoundHound now expects to file its Form 10-K by March 18, 2025, within the 15-day extension period under Rule 12b-25. The news follows Nvidia (NVDA) liquidating its stake in SoundHound last month, which had been one of the key market drivers for SoundHound AI over the past year or so.

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