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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Rating:58Neutral
Price Target:
$8.50
▲(37.99% Upside)
Action:Reiterated
Date:08/10/26
The score is held back primarily by weak profitability and ongoing cash burn despite strong revenue growth. Balance sheet strength (low debt, sizable cash) and a positive earnings-call backdrop with raised revenue guidance provide meaningful support. Technically, momentum is improving but the stock remains below the 200-day average and indicators are nearing overbought levels, while valuation offers limited support due to negative earnings and no dividend.
Positive Factors
Revenue Growth & Enterprise Traction
SoundHound's 45% YoY growth and $61.9M record quarter reflect durable demand for embedded voice AI across enterprise, automotive and international verticals. Recurring licensing and per‑device economics support scalable revenue and improved operating leverage as fixed costs spread with scale.
Negative Factors
Persistent GAAP Losses
Despite margin improvements, sizable GAAP losses and negative EBITDA mean profitability remains unresolved. Ongoing operating losses constrain the company's ability to self‑fund growth, increase reliance on external capital, and require demonstrable, sustained progress toward operating profit to validate scalability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Enterprise Traction
SoundHound's 45% YoY growth and $61.9M record quarter reflect durable demand for embedded voice AI across enterprise, automotive and international verticals. Recurring licensing and per‑device economics support scalable revenue and improved operating leverage as fixed costs spread with scale.
Read all positive factors
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 (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.26B
Dividend YieldN/A
Average Volume (3M)29.05M
Price to Earnings (P/E)―
Beta (1Y)3.38
Revenue Growth54.58%
EPS Growth45.83%
CountryUS
Employees954
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.33
Shares Outstanding403,138,760
10 Day Avg. Volume36,890,299
30 Day Avg. Volume29,049,520
Financial Highlights & Ratios
PEG Ratio2.98
Price to Book (P/B)8.72
Price to Sales (P/S)23.93
P/FCF Ratio-39.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$12.00Price Target Upside94.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$236.77M
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company Description
SoundHound AI, Inc. is an artificial intelligence company focused on voice AI and conversational intelligence. It develops and licenses technologies that enable voice-enabled and natural language interactions, including speech recognition and natu...
How the Company Makes Money
SoundHound AI primarily makes money by licensing and providing access to its voice AI technology to business customers, typically through contracts that can include (a) recurring subscription or usage-based fees for its software/services and (b) p...
SoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum: record quarterly revenue (61.9M), high growth rates (+45% YoY), improved margins, robust product traction after the OASYS launch, meaningful enterprise and regional wins, a healthy cash position ($203M) and constructive acquisition progress on LivePerson. Key negatives are that GAAP losses remain sizable (operating loss $43.3M, net loss $42.8M), adjusted EBITDA is still negative (-$9.6M), and there are near-term margin and expense headwinds tied to acquisitions and integration. Management provided an increased revenue outlook for the year ($230M–$260M) but excluded LivePerson contribution due to timing uncertainty. Overall, the positives (strong growth, product-led wins, pipeline, balance sheet strength) outweigh the negatives (continued GAAP losses, integration and acquisition-related costs, conversion timing risks), supporting a favorable outlook with execution risks to monitor.Positive Updates
Record Quarter Revenue and Rapid Growth
Revenue of $61.9M (CEO referenced $62M) in Q2 2026, up 45% year-over-year, up ~40% sequentially, and ~10x higher than Q2 four years ago.
Negative Updates
Continued GAAP Losses and Negative Adjusted EBITDA
GAAP operating loss of $43.3M and GAAP net loss of $42.8M (GAAP net loss per share $0.10); adjusted EBITDA remains negative at -$9.6M (though improved 33% YoY); non-GAAP net loss $9.0M (non-GAAP EPS -$0.02).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Revenue and Rapid Growth
Revenue of $61.9M (CEO referenced $62M) in Q2 2026, up 45% year-over-year, up ~40% sequentially, and ~10x higher than Q2 four years ago.
Read all positive updates
Company Guidance
SoundHound raised its 2026 revenue outlook to $230–$260 million (guidance does not include the LivePerson acquisition), said LivePerson should close by year‑end and that management will update guidance after closing; management also previously indicated pro forma revenue of at least $350–$400 million for next year assuming the merger. For context, Q2 revenue was $61.9M (up 45% YoY, ~40% sequentially), GAAP gross margin was 45% (+6 pts YoY) and non‑GAAP gross margin 58% (flat YoY, +8 pts sequentially), GAAP operating loss was $43.3M (improved 45% YoY), adjusted EBITDA loss was $9.6M (improved 33% YoY), GAAP net loss $42.8M (EPS -$0.10), non‑GAAP net loss $9M (EPS -$0.02), cash and equivalents $203M with no debt, and the company expects to drive gross margin to >70% over time as acquisition synergies and in‑house model improvements are realized.SoundHound AI, Inc Class A Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 203.20M | 168.92M | 84.69M | 45.87M | 31.13M | 21.20M |
| Gross Profit | 75.93M | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M |
| EBITDA | -57.80M | 25.53M | -329.09M | -62.63M | -99.70M | -61.65M |
| Net Income | -137.06M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M |
Balance Sheet | ||||||
| Total Assets | 667.89M | 688.17M | 553.95M | 151.12M | 37.99M | 49.20M |
| Cash, Cash Equivalents and Short-Term Investments | 202.78M | 248.49M | 198.24M | 95.26M | 9.24M | 21.63M |
| Total Debt | 5.44M | 4.21M | 4.35M | 90.16M | 44.12M | 73.32M |
| Total Liabilities | 177.46M | 224.39M | 371.30M | 122.95M | 74.55M | 392.44M |
| Stockholders Equity | 490.43M | 463.79M | 182.65M | 28.17M | -36.56M | -343.24M |
Cash Flow | ||||||
| Free Cash Flow | -118.04M | -103.12M | -109.52M | -68.66M | -95.35M | -66.81M |
| Operating Cash Flow | -114.51M | -98.22M | -108.88M | -68.27M | -94.02M | -66.18M |
| Investing Cash Flow | -91.88M | -59.50M | -12.37M | -392.00K | -1.33M | -636.00K |
| Financing Cash Flow | 178.17M | 208.07M | 210.91M | 168.24M | 82.00M | 44.65M |
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% | |
58 Neutral | $3.26B | -22.24 | -30.22% | ― | 54.58% | 45.83% | |
58 Neutral | $389.43M | -24.77 | -9.84% | ― | 25.84% | 42.54% | |
50 Neutral | $1.60B | -19.24 | -12.34% | ― | -13.72% | 87.44% | |
46 Neutral | $35.90M | -0.27 | 216.61% | ― | -15.77% | 66.35% | |
45 Neutral | $138.50M | -0.91 | -249.64% | ― | -1.81% | 46.29% | |
45 Neutral | $1.58B | -2.96 | -63.91% | ― | -35.67% | -49.96% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
7.43
-7.39
-49.87%
LPSN
Liveperson
2.85
-12.31
-81.22%
VERI
Veritone
1.15
-1.42
-55.25%
CRNC
Cerence
8.99
-2.54
-22.00%
AI
C3ai
9.93
-8.27
-45.44%
BBAI
BigBearai Holdings
3.27
-2.58
-44.10%
SoundHound AI, Inc Class A Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SoundHound AI Secures Global Approvals for LivePerson Merger
Positive
Jul 24, 2026
SoundHound AI, Inc. and LivePerson, Inc., both Delaware corporations, entered into an amended and restated merger agreement on July 2, 2026, under which two SoundHound subsidiaries will merge with LivePerson, leaving LivePerson as an indirect whol...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SoundHound AI Amends Merger Agreement With LivePerson
Neutral
Jul 2, 2026
On July 2, 2026, SoundHound AI, Inc. and LivePerson, Inc. signed an amended and restated merger agreement that restructures their planned two-step merger, under which LivePerson will become an indirect wholly owned subsidiary of SoundHound. The de...
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
SoundHound AI Holds 2026 Annual Stockholder Meeting
Neutral
May 27, 2026
SoundHound AI, Inc. held its 2026 annual meeting of stockholders on May 22, 2026, with holders of both Class A and high-vote Class B shares represented, and re-elected five directors, including CEO Dr. Keyvan Mohajer, to one-year terms while ratif...
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.