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SoundHound AI, Inc Class A (SOUN)
NASDAQ:SOUN
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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Select Model
Rating:48Neutral
Price Target:
$12.50
▲(12.82% Upside)
SoundHound AI, Inc's overall stock score is primarily influenced by its strong revenue growth and strategic market expansion, as highlighted in the earnings call. However, significant challenges in profitability, cash flow, and technical indicators weigh down the score. The company's valuation metrics further suggest caution due to ongoing losses.
Positive Factors
Revenue Growth
SoundHound's significant revenue growth reflects strong market demand and effective strategic execution, enhancing its competitive position.
Strategic Partnerships
This partnership enhances SoundHound's in-car voice commerce platform, expanding its market reach and adding value to its offerings.
Acquisition Strategy
The acquisition of Interactions strengthens SoundHound's AI capabilities and market presence, offering new revenue and synergy opportunities.
Negative Factors
Profitability Challenges
Ongoing losses highlight challenges in achieving profitability, potentially impacting long-term financial sustainability.
Cash Flow Issues
Negative cash flows suggest financial strain, limiting the company's ability to fund operations and growth without external financing.
Higher Expenses
Rising expenses may pressure margins and delay profitability, necessitating careful cost management to sustain growth.
SoundHound AI, Inc Class A (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.86B
Dividend YieldN/A
Average Volume (3M)20.47M
Price to Earnings (P/E)―
Beta (1Y)3.10
Revenue Growth120.52%
EPS Growth-124.81%
CountryUS
Employees842
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.27
Shares Outstanding387,560,460
10 Day Avg. Volume21,657,874
30 Day Avg. Volume20,474,610
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)36.76
Price to Sales (P/S)79.29
P/FCF Ratio-61.32
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue42.07
Enterprise Value/Gross Profit105.85
Enterprise Value/Ebitda-23.67
Forecast
1Y Price Target
$16.60Price Target Upside49.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company DescriptionSoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California.
How the Company Makes MoneySoundHound AI generates revenue through a combination of licensing agreements, subscription services, and partnerships with businesses looking to implement its voice AI technology. The company charges fees for the use of its Houndify platform, which provides custom voice recognition capabilities for clients across various sectors. Additionally, revenue is derived from its music identification app through advertising and premium features. Strategic partnerships with automotive manufacturers and tech companies also contribute to its earnings by integrating SoundHound’s technology into their products.
SoundHound AI, Inc Class A Key Performance Indicators (KPIs)
Any
Revenue by Service Type
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Data provided by:
The Fly
The FlySoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
SoundHound demonstrated significant revenue growth and successful expansion into new markets with strategic acquisitions, despite challenges in the automotive segment and higher expenses impacting net loss.Q3-2025 Updates
Positive Updates
Record Revenue Growth
SoundHound achieved a record year in revenue of $114 million, up 127% in just the first three quarters of the year.
Strong Q3 Revenue and Growth
Q3 revenue was $42 million, up 68% year-over-year, with strong growth led by product and technological differentiation.
Expansion into New Markets
SoundHound signed a significant deal with a large Chinese company to integrate SoundHound Chat AI into millions of AI-enabled smart devices, expanding its reach in the Indian market.
Successful Acquisition Strategy
Acquired Interactions, enhancing customer service and workflow orchestration capabilities, and integrated them into SoundHound's platform for cost synergies and revenue opportunities.
Enterprise AI Adoption
Enterprise AI is a major focus, with SoundHound adding new Fortune 100 clients and expanding its Amelia 7 platform features.
Negative Updates
Automotive Segment Challenges
Continued pressure in the automotive business due to global tariffs and broader industry softness, although there are signs of improvement.
GAAP Net Loss
Reported a GAAP net loss of $109.3 million, impacted by a change in the fair value of contingent liabilities.
Higher Expenses
Increased expenses across R&D, sales and marketing, and G&A, primarily driven by acquisitions and related costs.
Company Guidance
During SoundHound's Third Quarter 2025 Earnings Conference Call, the company announced a record revenue of $114 million for the first three quarters, marking a 127% increase year-over-year. The company has raised its revenue outlook for 2025 to between $165 million and $180 million, reflecting ongoing enterprise AI adoption and strategic execution. SoundHound highlighted its competitive advantages, including the Polaris foundation model, which has reduced error rates by up to three times and improved cost efficiency. The company also reported significant wins across various verticals, including IoT, automotive, financial services, energy, retail, and healthcare. The acquisition of Interactions was noted as a strategic move to enhance offerings in customer service and workflow orchestration. SoundHound's Q3 revenue was $42 million, up 68% year-over-year, with a reported GAAP gross margin of 43% and a non-GAAP gross margin of 59%. The company anticipates achieving breakeven profitability as it exits 2025 and enters 2026, driven by continued high growth and acquisition synergies.SoundHound AI, Inc Class A Financial Statement Overview
Summary
SoundHound AI, Inc Class A is experiencing revenue growth, but profitability and cash flow remain significant challenges. The company has low leverage, which is a positive, but the negative returns on equity and persistent losses highlight the need for strategic improvements to achieve financial stability.Income Statement
SoundHound AI, Inc Class A has shown some revenue growth, with a 12.9% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased from previous years, showing a decline in cost efficiency.Balance Sheet
The balance sheet reflects a low debt-to-equity ratio, indicating low leverage, which is a positive aspect. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively stable, but the overall financial health is impacted by persistent losses.Cash Flow
The cash flow statement shows negative operating and free cash flows, indicating cash burn. The free cash flow to net income ratio is close to 1, suggesting that cash flow is closely tracking net income, albeit negative. The company needs to improve its cash generation to support operations and growth.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 148.40M | 84.69M | 45.87M | 31.13M | 21.20M | 13.02M |
| Gross Profit | 58.98M | 41.38M | 34.57M | 21.53M | 14.61M | 7.15M |
| EBITDA | -263.80M | -329.09M | -62.63M | -99.70M | -61.65M | -65.36M |
| Net Income | -312.66M | -350.68M | -88.94M | -116.71M | -79.54M | -74.41M |
Balance Sheet | ||||||
| Total Assets | 702.22M | 553.95M | 151.12M | 37.99M | 49.20M | 63.64M |
| Cash, Cash Equivalents and Short-Term Investments | 268.94M | 198.24M | 95.26M | 9.24M | 21.63M | 43.69M |
| Total Debt | 4.82M | 4.35M | 90.16M | 44.12M | 73.32M | 16.64M |
| Total Liabilities | 302.98M | 371.30M | 122.95M | 74.55M | 392.44M | 339.99M |
| Stockholders Equity | 399.24M | 182.65M | 28.17M | -36.56M | -343.24M | -276.35M |
Cash Flow | ||||||
| Free Cash Flow | -110.06M | -109.52M | -68.66M | -95.35M | -66.81M | -48.47M |
| Operating Cash Flow | -109.46M | -108.88M | -68.27M | -94.02M | -66.18M | -46.30M |
| Investing Cash Flow | -57.05M | -12.37M | -392.00K | -1.33M | -636.00K | 11.45M |
| Financing Cash Flow | 299.98M | 210.91M | 168.24M | 82.00M | 44.65M | 53.45M |
SoundHound AI, Inc Class A Technical Analysis
Negative
11.08
Price Trends
12.07
Negative
14.16
Negative
12.30
Negative
Market Momentum
-0.27
Negative
46.08
Neutral
65.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOUN, the sentiment is Negative. The current price of 11.08 is above the 20-day moving average (MA) of 10.92, below the 50-day MA of 12.07, and below the 200-day MA of 12.30, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 65.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOUN.
SoundHound AI, Inc Class A Risk Analysis
SoundHound AI, Inc Class A disclosed 53 risk factors in its most recent earnings report. SoundHound AI, Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoundHound AI, Inc Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $554.15M | -25.18 | -12.83% | ― | -24.05% | 96.90% | |
50 Neutral | $429.65M | -2.04 | ― | ― | -17.50% | -51.25% | |
48 Neutral | $4.86B | -13.27 | -90.15% | ― | 120.52% | -124.81% | |
47 Neutral | $1.99B | -4.79 | -46.77% | ― | 1.84% | -27.74% | |
46 Neutral | $46.72M | -0.14 | -605.44% | ― | -23.03% | -107.34% | |
46 Neutral | $2.75B | -4.29 | -111.83% | ― | -6.95% | -53.69% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
11.08
-2.81
-20.23%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.