SOUN Technology

SoundHound AI, Inc.

$4.12+0.73%

Price as of close on Nov 3, 2026 · Financials updated Sep 30, 2026

Basics

Sector: Technology
Industry: Software - Application
Country: United States
Market cap: 1.8B USD
Enterprise value: 1.6B USD
Full-time employees: 954

Overall health

Strength: growing faster than most peersgrowing faster than peers
Drawback: less profitable than most peersless profitable than peers
Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings
Drawback: its share price swings more than most peers’ (beta 2.83 vs a peer median of 0.87)bigger price swings (beta 2.83 vs peers 0.87)
About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Earnings slid into a loss. Loss per share this year after a profit last year.
SoundHound AI made a loss per share in its latest year after a profit the year before.
Stock-based pay is a large cost. Stock pay was 48% of revenue in 2025.
SoundHound AI paid employees $81M in stock in 2025, 48% of its $169M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.
Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.
Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -69%).
More volatile share price. Beta 2.83: tends to move more than the market.
SoundHound AI's shares have swung more with the market than most peers' (beta 2.83, above the market's 1.0).

StockQuotient Score

39/ 100

Oct 5 39 → Nov 4 39

Valuation

Is the price right?

10/100

Weak

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why

Weaker than most peers on:

▼ Earnings yield
▼ EBITDA yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield-6.8%

SEC filings · 12 months to Jun 2026Negative (a loss or cash outflow), so it counts as zero whatever the share price30% base weight · Z-score -1.00Sector median: 0.0225 · MAD: 0.0225

EBITDA yield-10.0%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 monthsNegative (a loss or cash outflow), so it counts as zero whatever the share price50% base weight · Z-score -1.17Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield-6.4%

SEC filings · 12 months to Jun 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.00Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield27.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

87/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 10.4%

Why

Stronger than most peers on:

▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Earnings per share turned from a profit to a loss33% base weight · Z-score -1.83Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth77.8%

SEC filings · 3 years to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score 3.42Sector median: 0.0483 · MAD: 0.0793

Revenue growth54.6%

SEC filings · 12 months to Jun 2026Reported value33% base weight · Z-score 4.53Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

1/100

Weak

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

Operating margin rose 26.0 points to -68.5%

Why

Weaker than most peers on:

▼ Operating margin
▼ ROA
▼ ROIC

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin-68.5%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score -7.12Sector median: 0.0631 · MAD: 0.0710

Return on assets-18.4%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score -3.92Sector median: 0.0293 · MAD: 0.0362

Return on invested capital-38.3%

SEC filings · 12 months to Jun 2026Outlier capped at sector 5th/95th percentile33% base weight · Z-score -4.27Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin42.3%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity-25.1%

SEC filings · 12 months to Jun 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why

Mixed versus peers:

▲ Debt / equity
▲ Current ratio
▼ Beta

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta2.83

Yahoo Finance · 5-year monthly beta vs the marketOutlier capped at sector 5th/95th percentile33% base weight · Z-score -3.51Sector median: 0.8710 · MAD: 0.3700

Current ratio3.91×

SEC filings · latest balance sheetReported value33% base weight · Z-score 3.04Sector median: 1.8295 · MAD: 0.6848

Debt / equity0.01×

Yahoo Finance fallback · no standard SEC debt tagReported value33% base weight · Z-score 1.05Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about SoundHound AI

Is SoundHound AI getting weaker?: Its latest SEC filing (Aug 10, 2026) got stronger: operating margin rose 26.0 points to -68.5%. Its overall score is unchanged at 39/100 since Oct 28, 2026.
How is SoundHound AI valued vs its peers?: Priced higher than most peers relative to what it earns. Valuation scores 10/100 against 1,711 technology peers. Earnings yield -6.8% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -6.8% vs peers 2.2% (weaker than 100% of peers).
Is SoundHound AI growing?: Yes, faster than most of its peers. Growth scores 87/100 against 1,711 technology peers. 3-year revenue growth 77.8% vs a peer median of 4.8% (stronger than 95% of peers).3-year revenue growth 77.8% vs peers 4.8% (stronger than 95% of peers).
How profitable is SoundHound AI?: Less profitable than most of its peers. Profitability scores 1/100 against 1,711 technology peers. Operating margin -68.5% vs a peer median of 6.3% (weaker than 100% of peers).Operating margin -68.5% vs peers 6.3% (weaker than 100% of peers).
How risky is SoundHound AI?: Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.01× vs a peer median of 0.25× (stronger than 90% of peers).Debt / equity 0.01× vs peers 0.25× (stronger than 90% of peers). Beta 2.83 vs a peer median of 0.87 (weaker than 100% of peers).Beta 2.83 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended Jun 30, 2026 · filed Aug 10, 2026 · compared with the quarter ended Mar 31, 2026

Got stronger

Operating margin rose 26.0 points to -68.5%

Worth watching: SoundHound AI is in the bottom fifth of its sector on profitability. From 2021 to 2025, 63% of companies in that position posted a loss over the following year, against 4% for the top fifth.

	Previous quarter	Latest quarter	Change
Revenue (12 months)	184.0M USD	203.2M USD	+10.4%
Net income (12 months)	−155.0M USD	−123.1M USD	−20.6%
Operating margin	-94.6%	-68.5%	+26.0 pts
Free cash flow (12 months)	−106.5M USD	−115.9M USD	+8.8%
Cash	215.6M USD	202.8M USD	−6.0%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Software - Application · 81 companies

Valuations in Software - Application are near the bottom of their range since 2016.

6% of months since 2016 were valued lower than now.
8% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −16% and earnings +31% (medians): earnings grew faster than prices.
Median price-to-sales is +85% vs the whole market, against a usual +235%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	68.9%	69.2%	75.4%	48.9%	42.4%	▼ 6.5 pts
Operating margin	-308.2%	-339.5%	-149.6%	-403.0%	-13.8%	▲ 389 pts
Net margin	-375.2%	-374.9%	-193.9%	-414.1%	-8.3%	▲ 406 pts
Return on assets (ROA)	-161.7%	-307.3%	-58.9%	-63.3%	-2.0%	▲ 61 pts
Return on equity (ROE)	—	—	-315.7%	-192.0%	-3.0%	▲ 189 pts
Free cash flow margin	-315.2%	-306.3%	-149.7%	-129.3%	-58.7%	▲ 71 pts
Current ratio	0.31×	0.46×	4.69×	3.77×	4.59×	▲ 22%
Debt to equity	—	—	2.99×	0.00×	—	—
Interest coverage	-7.83×	-15.33×	-3.90×	-28.05×	-34.73×	▼ 24%

SOUN price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: growing faster than most peersgrowing faster than peers

Drawback: less profitable than most peersless profitable than peers

Drawback: its shares are priced higher than most peers relative to what it earnspriced higher than peers for its earnings

Drawback: its share price swings more than most peers’ (beta 2.83 vs a peer median of 0.87)bigger price swings (beta 2.83 vs peers 0.87)

About average: risk (debt, liquidity and share-price swings)risk

Ranks #1,166 of 1,612 technology companies (bottom 28%)

See how it ranks against its peers

Worth knowing

Earnings slid into a loss. Loss per share this year after a profit last year.

SoundHound AI made a loss per share in its latest year after a profit the year before.

Stock-based pay is a large cost. Stock pay was 48% of revenue in 2025.

SoundHound AI paid employees $81M in stock in 2025, 48% of its $169M revenue. It doesn't use cash, so it flatters cash flow, but it is a real cost to shareholders through dilution.

Growing fast, still losing money. Revenue grew faster than 95% of peers, at an operating loss.

Revenue grew faster than 95% of peers, but the business runs at an operating loss (margin -69%).

More volatile share price. Beta 2.83: tends to move more than the market.

SoundHound AI's shares have swung more with the market than most peers' (beta 2.83, above the market's 1.0).

Questions investors ask about SoundHound AI

Is SoundHound AI getting weaker?

Its latest SEC filing (Aug 10, 2026) got stronger: operating margin rose 26.0 points to -68.5%. Its overall score is unchanged at 39/100 since Oct 28, 2026.

How is SoundHound AI valued vs its peers?

Priced higher than most peers relative to what it earns. Valuation scores 10/100 against 1,711 technology peers. Earnings yield -6.8% vs a peer median of 2.2% (weaker than 100% of peers).Earnings yield -6.8% vs peers 2.2% (weaker than 100% of peers).

Is SoundHound AI growing?

Yes, faster than most of its peers. Growth scores 87/100 against 1,711 technology peers. 3-year revenue growth 77.8% vs a peer median of 4.8% (stronger than 95% of peers).3-year revenue growth 77.8% vs peers 4.8% (stronger than 95% of peers).

How profitable is SoundHound AI?

Less profitable than most of its peers. Profitability scores 1/100 against 1,711 technology peers. Operating margin -68.5% vs a peer median of 6.3% (weaker than 100% of peers).Operating margin -68.5% vs peers 6.3% (weaker than 100% of peers).

How risky is SoundHound AI?

Moderate risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Debt / equity 0.01× vs a peer median of 0.25× (stronger than 90% of peers).Debt / equity 0.01× vs peers 0.25× (stronger than 90% of peers). Beta 2.83 vs a peer median of 0.87 (weaker than 100% of peers).Beta 2.83 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

184.0M USD

203.2M USD

+10.4%

Net income (12 months)

−155.0M USD

−123.1M USD

−20.6%

Operating margin

-94.6%

-68.5%

+26.0 pts

Free cash flow (12 months)

−106.5M USD

−115.9M USD

+8.8%

Cash

215.6M USD

202.8M USD

−6.0%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

68.9%

69.2%

75.4%

48.9%

42.4%

▼ 6.5 pts

Operating margin

-308.2%

-339.5%

-149.6%

-403.0%

-13.8%

▲ 389 pts

Net margin

-375.2%

-374.9%

-193.9%

-414.1%

-8.3%

▲ 406 pts

Return on assets (ROA)

-161.7%

-307.3%

-58.9%

-63.3%

-2.0%

▲ 61 pts

Return on equity (ROE)

—

-315.7%

-192.0%

-3.0%

▲ 189 pts

Free cash flow margin

-315.2%

-306.3%

-149.7%

-129.3%

-58.7%

▲ 71 pts

Current ratio

0.31×

0.46×

4.69×

3.77×

4.59×

▲ 22%

Debt to equity

—

2.99×

0.00×

—

Interest coverage

-7.83×

-15.33×

-3.90×

-28.05×

-34.73×

▼ 24%