Sound Group (SOGP) AI Stock Analysis

• Market Cap: $94.67M
• Dividend Yield: N/A
• Average Volume (3M): 5.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 563
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -3.23
• Shares Outstanding: 3,779,499
• 10 Day Avg. Volume: 380,486
• 30 Day Avg. Volume: 5,910,552
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.50
• Price Target Upside: 14.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $22.50 ▲(14.50% Upside)

Sound Group's overall stock score is primarily influenced by its financial performance challenges, including declining revenue and negative profit margins. Technical analysis shows strong momentum, but the stock may be overbought. Valuation is difficult to assess due to missing P/E and dividend yield data. The absence of earnings call and corporate events data limits further insights.

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 direct sales of its audio products to consumers and businesses, as well as through partnerships with retailers and online marketplaces. The company leverages wholesale distribution agreements to reach a wider audience and increase market penetration. Additionally, SOGP earns income from providing after-sales services, such as installation and maintenance, and offers extended warranties on its products. Strategic collaborations with event organizers and production companies for audio equipment rentals further contribute to its revenue. The company's focus on innovation and quality not only enhances customer loyalty but also positions it favorably in competitive bidding for large-scale audio projects.

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: Positive
• Last Price: 19.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOGP, the sentiment is Positive. The current price of 19.65 is below the 20-day moving average (MA) of 21.39, above the 50-day MA of 11.41, and above the 200-day MA of 4.55, indicating a neutral trend. The MACD of 2.75 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SOGP.

Sound Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCG	58 Neutral	114.70M	-12.74	-17.21%	―	105.31%	95.66%
SOGP	55 Neutral	$94.67M	―	―	―	―	―
SCOR	52 Neutral	32.42M	-0.37	-38.20%	―	-0.06%	-87.64%
BODI	52 Neutral	42.40M	-0.71	-288.76%	―	-31.96%	56.06%
FENG	48 Neutral	37.59M	-4.37	-4.56%	―	5.72%	-39.22%
SLE	46 Neutral	8.32M	-0.14	-9785.29%	―	-45.76%	80.86%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Sound Group Corporate Events

Sound Group Sets Ex-Dividend Date for Special Cash Dividend

Sound Group Inc. announced that Nasdaq has set October 1, 2025, as the ex-dividend date for its special cash dividend, which was initially announced on August 28, 2025. The dividend, amounting to US$0.005 per ordinary share or US$1.00 per American Depositary Share, exceeds 25% of the Company’s ADS price, triggering Nasdaq’s due bill procedures. This allows trades of ADSs entered before October 1, 2025, but settled after the record date of September 15, 2025, to include a due bill for the dividend payable on September 30, 2025. This announcement impacts investors’ trading strategies, as those purchasing ADSs during the due bill period are entitled to the dividend, while sellers during this period are not.

Sound Group Sets Ex-Dividend Date for Special Cash Dividend

Sound Group Inc. announced that Nasdaq has set October 1, 2025, as the ex-dividend date for its special cash dividend, which was initially announced on August 28, 2025. The dividend, amounting to US$0.005 per ordinary share or US$1.00 per American Depositary Share, exceeds 25% of the Company’s ADS price at the time of the announcement. This development is significant for stakeholders as it affects trading and entitlement to dividends during the due bill period, which runs from September 15 to October 1, 2025.

Sound Group Inc. Reports Strong Financial Turnaround in First Half of 2025

On August 28, 2025, Sound Group Inc. reported a significant financial turnaround for the first half of 2025, with net revenues reaching RMB1,357.7 million, a 47% increase from the previous year, and a net income of RMB67.6 million, compared to a net loss in the same period in 2024. This growth was driven by strategic execution, including expanding its audio entertainment business and leveraging AI technologies to improve operational efficiency. The company also announced a US$4 million share repurchase program and a special cash dividend, highlighting its strong financial position and commitment to returning value to shareholders.