Sound Group (SOGP) AI Stock Analysis

• Market Cap: $61.59M
• Dividend Yield: N/A
• Average Volume (3M): 133.75K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.37
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 563
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): N/A
• 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: -5.53
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $14.00 ▲(21.42% Upside)

The score is held back primarily by weak financial performance (declining revenue, margin pressure, and ongoing losses with negative operating/free cash flow). Technicals are moderately supportive with price above key short-term averages, but negative MACD tempers momentum. Valuation is middling with a moderate P/E and no dividend yield data to add support.

Positive Factors

Diversified revenue streams & partnerships

Multiple revenue channels—consumer products, professional systems, licensing and distributor partnerships—provide structural resilience. Diversification lowers single-market dependence, supports recurring licensing income, and preserves distribution reach, aiding stability during cyclical demand shifts.

Conservative leverage and cash buffer

Low leverage and a relatively strong cash balance give the company financial flexibility to fund operations, R&D, or strategic initiatives without urgent refinancing. This conservative structure reduces insolvency risk and supports enduring investment through near-term revenue pressure.

Improving free cash flow trend

An improving free cash flow trend, even from negative levels, indicates progress in controlling cash burn and operational levers. If sustained, this trend can translate into reduced external funding needs and incremental runway, supporting longer-term viability and strategic execution.

Negative Factors

Declining revenue trend

A shrinking top line undermines economies of scale and makes cost absorption harder, pressuring margins and cash flow. Continued revenue declines can force deeper cost cuts, limit R&D/product investment, and erode competitive position over the medium term if not reversed.

Margin deterioration & persistent losses

Falling gross margins combined with sustained net losses indicate structural profitability issues. Negative operating and EBITDA margins constrain reinvestment capacity, risk gradual depletion of equity, and challenge the firm's ability to generate shareholder returns absent a clear path to margin recovery.

Negative operating cash flow

Persistent negative operating cash flow shows difficulty converting operations into cash, increasing reliance on financing or asset sales. This cash-generation shortfall raises refinancing risk, limits discretionary spending on growth, and can force strategic compromises if the trend continues.

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

Income statement weakness (declining revenue, shrinking gross margin, and persistent net losses with negative EBIT/EBITDA) is partially offset by a relatively stable balance sheet with low leverage and strong cash relative to debt, plus some improvement in free cash flow from 2022 to 2023 despite still-negative operating and free cash flow.

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: Neutral
• Last Price: 11.53
• 50DMA: Positive
• 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 Neutral. The current price of 11.53 is below the 20-day moving average (MA) of 13.44, below the 50-day MA of 13.00, and above the 200-day MA of 9.77, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 46.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
SCOR	56 Neutral	$42.98M	-1.56	-5.12%	―	0.77%	74.60%
SOGP	53 Neutral	$61.59M	17.00	―	―	―	―
CCG	50 Neutral	$64.62M	-7.09	―	―	105.31%	95.66%
BODI	50 Neutral	$87.25M	-1.87	-102.66%	―	-37.41%	60.58%
SLE	46 Neutral	$6.46M	-0.01	-2074.24%	―	-48.05%	88.88%
FENG	46 Neutral	$21.62M	-3.15	-4.12%	―	9.16%	-15.28%