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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Soundhound Ai, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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There have been no material changes in market risks from the information presented in Part II, Item 7A. “Quantitative and Qualitative Disclosures About Market Risk” in our Form 10-K, except as disclosed below.
Foreign Exchange Risk
Our unaudited condensed consolidated financial statements are presented in U.S. dollars, which is also the functional currency for our foreign operations. Where transactions may be denominated in foreign currencies, we are subject to market risk with respect to fluctuations in the relative value of currencies. We recorded exchange rate losses of $0.5 million and $0.9 million during the three and six months ended June 30, 2026, respectively, and approximately less than $0.1 million and $0.5 million during the three and six months ended June 30, 2025, respectively. We do not believe that an
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immediate 10% increase or decrease in the relative value of the U.S. dollar to other currencies would have a material effect on operating results.