Sound Group (SOGP) AI Stock Analysis

• Market Cap: $56.98M
• Dividend Yield: N/A
• Average Volume (3M): 133.75K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 563
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): -3.23
• Shares Outstanding: 3,779,499
• 10 Day Avg. Volume: 32,537
• 30 Day Avg. Volume: 133,750
• PEG Ratio: 0.03
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -2.10
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 27.09
• Revenue Forecast (FY): $2.97B

• Rating: 56 Neutral
• Price Target: $12.50 ▼(-1.11% Downside)

Sound Group's overall stock score reflects significant challenges in financial performance, particularly in achieving profitability and generating positive cash flows. Technical analysis indicates mixed signals, with some long-term strength but short-term bearish momentum. The valuation is reasonable, but the lack of a dividend yield may limit appeal to certain investors.

Positive Factors

CEO Share Purchase

The CEO's purchase of shares indicates strong confidence in the company's future, suggesting potential for growth and innovation in the audio industry.

Share Repurchase Program

The completion of a share repurchase program reflects a commitment to shareholder value and a robust balance sheet, enhancing long-term financial health.

Financial Turnaround

A 47% increase in net revenues and a return to net income demonstrate effective strategic execution and operational improvements, supporting future growth.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow indicates challenges in generating cash from operations, which could hinder long-term financial stability and growth.

Declining Revenue Trend

A declining revenue trend suggests potential market challenges and operational inefficiencies, impacting long-term profitability and growth prospects.

Negative Profit Margins

Consistent negative profit margins highlight ongoing operational inefficiencies, posing a risk to sustainable profitability and shareholder returns.

Sound Group Business Overview & Revenue Model

Company Description

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.

How the Company Makes Money

Sound Group generates revenue through multiple streams, including the sale of consumer audio products such as speakers and sound systems, as well as professional audio solutions tailored for businesses in the entertainment and telecommunications industries. The company also earns revenue from licensing its audio technology and intellectual property to third-party manufacturers and developers. Key partnerships with major distributors and retailers enhance its market reach and sales potential. Additionally, SOGP may engage in collaborations with entertainment companies for exclusive audio projects, further diversifying its revenue base and strengthening its brand presence.

Sound Group Financial Statement Overview

Summary

Sound Group faces significant challenges in achieving profitability and generating positive cash flows. The declining revenue trend and negative profit margins highlight operational inefficiencies. Despite a strong cash position, the company needs to address its negative operating cash flow and improve its return on equity. The balance sheet remains relatively stable with low leverage, but the company must focus on improving its operational performance to ensure long-term sustainability.

Income Statement

Sound Group has shown a declining revenue trend over the years, with a revenue decrease from 2022 to 2023. The gross profit margin has also decreased, indicating pressure on profitability. The company has consistently reported negative net income, leading to negative net profit margins, reflecting ongoing challenges in achieving profitability. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the equity ratio has been decreasing, suggesting a decline in the proportion of equity financing. Return on equity is negative due to consistent net losses, indicating challenges in generating returns for shareholders. The company maintains a strong cash position relative to its debt, which provides some financial stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow, indicating challenges in generating cash from operations. Free cash flow has been negative, although there was a significant improvement in free cash flow from 2022 to 2023. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. The company needs to improve its cash generation capabilities to enhance financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.03B	2.07B	2.19B	2.12B	1.50B
Gross Profit	556.86M	585.38M	716.35M	617.01M	368.23M
EBITDA	-48.47M	-101.41M	123.00M	-92.73M	-47.98M
Net Income	-69.58M	-126.65M	86.52M	-127.25M	-82.18M
Balance Sheet
Total Assets	521.44M	566.57M	776.34M	642.89M	463.82M
Cash, Cash Equivalents and Short-Term Investments	441.86M	494.96M	679.54M	533.29M	388.48M
Total Debt	19.85M	14.29M	100.33M	100.00M	43.80M
Total Liabilities	307.13M	276.56M	383.67M	388.03M	294.63M
Stockholders Equity	235.29M	299.48M	392.68M	254.85M	169.19M
Cash Flow
Free Cash Flow	-38.64M	-124.27M	124.43M	-61.36M	16.99M
Operating Cash Flow	-26.47M	-117.05M	136.27M	-40.43M	40.00M
Investing Cash Flow	-11.97M	105.65M	-122.78M	52.10M	-94.56M
Financing Cash Flow	-2.99M	-71.67M	4.77M	212.68M	298.05M

Sound Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOGP, the sentiment is Negative. The current price of 12.64 is below the 20-day moving average (MA) of 12.76, below the 50-day MA of 13.88, and above the 200-day MA of 8.06, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOGP.

Sound Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SOGP	56 Neutral	$56.98M	13.77	―	―	―	―
SCOR	52 Neutral	$36.01M	-1.30	-5.12%	―	0.77%	74.60%
CCG	52 Neutral	$76.01M	-8.46	―	―	105.31%	95.66%
BODI	52 Neutral	$77.12M	-1.89	-102.66%	―	-37.41%	60.58%
SLE	47 Neutral	$7.86M	-0.02	-2074.24%	―	-48.05%	88.88%
FENG	46 Neutral	$24.02M	-3.59	-4.12%	―	9.16%	-15.28%

Sound Group Corporate Events

Sound Group CEO Buys Shares, Signals Confidence in Future Growth

On October 15, 2025, Sound Group Inc.’s CEO, Jinnan (Marco) Lai, purchased company shares in the open market, signaling confidence in the company’s future growth potential. This move underscores the company’s commitment to enhancing its AI capabilities and expanding its product ecosystem, which is expected to drive innovation in the global audio industry.

Sound Group Completes Share Repurchase Program

On October 7, 2025, Sound Group Inc. announced the completion of its share repurchase program, canceling 951,252 American depositary shares, which were repurchased for nearly $4 million. This move is intended to enhance earnings per share and reflects the company’s commitment to shareholder value, supported by a robust balance sheet and strategic growth initiatives.