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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Rating:51Neutral
Price Target:
$7.00
▼(-13.37% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by weak financial quality—especially steep TTM losses and persistent cash burn—despite strong revenue growth and a low-debt balance sheet. The earnings call was a relative positive due to reaffirmed guidance and growth momentum, while technicals are mixed and valuation remains challenged given ongoing unprofitability and no dividend support.
Positive Factors
Revenue Growth
Sustained high revenue growth and strong organic expansion in automotive/IoT signal durable commercial traction and product-market fit. Larger recurring usage and multi-vertical deployments create a base for multi-year contract scaling and increased lifetime customer value.
Negative Factors
Cash Burn / Negative Cash Flow
Persistent negative operating and free cash flow indicate the business currently consumes substantial capital to grow. Over several quarters this increases reliance on external financing, raising dilution or refinancing risk and pressuring long-term self-sustaining operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained high revenue growth and strong organic expansion in automotive/IoT signal durable commercial traction and product-market fit. Larger recurring usage and multi-vertical deployments create a base for multi-year contract scaling and increased lifetime customer value.
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
$2.94B
Dividend YieldN/A
Average Volume (3M)25.78M
Price to Earnings (P/E)―
Beta (1Y)3.37
Revenue Growth79.98%
EPS Growth21.99%
CountryUS
Employees842
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.42
Shares Outstanding400,234,220
10 Day Avg. Volume24,296,183
30 Day Avg. Volume25,782,363
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 Cap0.95
Enterprise Value/Revenue15.23
Enterprise Value/Gross Profit40.13
Enterprise Value/Ebitda-32.32
Forecast
1Y Price Target
$12.75Price Target Upside57.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$232.47M
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company Description
SoundHound AI, Inc. (SOUN) creates and provides its own artificial intelligence platform, exclusively focused on voice technology. This technology empowers companies across a wide range of industries to offer sophisticated and engaging conversatio...
How the Company Makes Money
SoundHound AI primarily makes money by commercializing its voice AI technology through a mix of licensing and service-based arrangements. Revenue is generated from (1) licensing its voice AI software/technology to customers that embed voice capabi...
SoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call emphasized robust top-line growth (Q1 revenue +52% YoY, organic auto/IoT +88% YoY), a major product milestone (OASYS) and a strategic acquisition (LivePerson) that materially expands enterprise reach. Management highlighted strong customer ROI examples, broad multi-vertical pipeline, and a debt-free balance sheet. Offsetting these positives are ongoing operating losses, acquisition-related expense and noncash volatility, elevated S&M/G&A from integration activity, and execution risk in turning around acquired businesses. Management expects nonrecurring margin headwinds to normalize, cost synergies to materialize over the next quarters, and targeted investments in in-house models to deliver longer-term savings.Positive Updates
Strong Top-Line Growth
Q1 revenue of $44.2M, up 52% year-over-year; company reiterates 2026 revenue guidance of $225M–$260M and projects 2027 achievable revenue of $350M–$400M assuming the LivePerson acquisition closes in H2.
Negative Updates
Operating Losses and Negative EBITDA
Adjusted EBITDA loss of $26.7M in Q1; GAAP net loss of $25M and GAAP net loss per share of $0.06; non-GAAP net loss of $26.6M (non-GAAP net loss per share $0.06).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 revenue of $44.2M, up 52% year-over-year; company reiterates 2026 revenue guidance of $225M–$260M and projects 2027 achievable revenue of $350M–$400M assuming the LivePerson acquisition closes in H2.
Read all positive updates
Company Guidance
Guidance highlights: for 2026 SoundHound reaffirmed revenue guidance of $225M–$260M (Q1 revenue was $44.2M, +52% YoY; automotive & IoT ex‑acquisitions +88% YoY) and, assuming the LivePerson acquisition closes in H2, expects an achievable 2027 revenue range of at least $350M–$400M (with at least $100M from LivePerson) and believes the combined business could reach $500M based on existing customers; the company plans a time‑bound investment in its own foundation models expected to be <1% of market cap this year to drive material run‑time cost savings, while realizing acquisition cost synergies over the next two quarters; Q1 metrics included GAAP gross margin 31% (non‑GAAP gross margin 50%), R&D $26.2M (+6% YoY), sales & marketing $19.2M (+60% YoY), G&A $25.7M (+39% YoY), noncash stock‑based comp $20M, depreciation & amortization $10M, adjusted EBITDA loss $26.7M, GAAP net loss $25M (‑$0.06/sh), non‑GAAP net loss $26.6M (‑$0.06/sh), and cash & equivalents of $216M with no debt, with management forecasting a revenue ramp through the year due to seasonality and large‑deal timing.SoundHound AI, Inc Class A Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
66
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 183.99M | 168.92M | 84.69M | 45.87M | 31.13M | 21.20M |
| Gross Profit | 69.84M | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M |
| EBITDA | -86.71M | 25.53M | -329.09M | -62.63M | -99.70M | -61.65M |
| Net Income | -168.97M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M |
Balance Sheet | ||||||
| Total Assets | 644.95M | 688.17M | 553.95M | 151.12M | 37.99M | 49.20M |
| Cash, Cash Equivalents and Short-Term Investments | 215.64M | 248.49M | 198.24M | 95.26M | 9.24M | 21.63M |
| Total Debt | 6.23M | 4.21M | 4.35M | 90.16M | 44.12M | 73.32M |
| Total Liabilities | 182.91M | 224.39M | 371.30M | 122.95M | 74.55M | 392.44M |
| Stockholders Equity | 460.67M | 463.79M | 182.65M | 28.17M | -36.56M | -343.24M |
Cash Flow | ||||||
| Free Cash Flow | -108.67M | -103.12M | -109.52M | -68.66M | -95.35M | -66.81M |
| Operating Cash Flow | -105.30M | -98.22M | -108.88M | -68.27M | -94.02M | -66.18M |
| Investing Cash Flow | -62.40M | -59.50M | -12.37M | -392.00K | -1.33M | -636.00K |
| Financing Cash Flow | 137.82M | 208.07M | 210.91M | 168.24M | 82.00M | 44.65M |
SoundHound AI, Inc Class A Technical Analysis
Negative
8.08
Price Trends
7.76
Negative
7.62
Negative
10.42
Negative
Market Momentum
-0.28
Negative
44.15
Neutral
62.78
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 8.08 is above the 20-day moving average (MA) of 6.73, above the 50-day MA of 7.76, and below the 200-day MA of 10.42, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.78 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% | |
60 Neutral | $459.56M | -22.95 | -12.77% | ― | 18.84% | 94.41% | |
51 Neutral | $2.94B | -15.75 | -40.15% | ― | 79.98% | 21.99% | |
50 Neutral | $1.38B | -2.69 | -63.91% | ― | -35.67% | -49.96% | |
50 Neutral | $1.59B | -3.97 | -50.67% | ― | -20.34% | -8.67% | |
45 Neutral | $21.31M | -0.26 | 137.78% | ― | -19.19% | 67.48% | |
43 Neutral | $109.69M | -0.76 | -331.54% | ― | -9.07% | 35.07% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
6.68
-4.89
-42.26%
LPSN
Liveperson
1.82
-11.88
-86.71%
VERI
Veritone
1.20
-0.24
-16.67%
CRNC
Cerence
10.46
1.13
12.11%
AI
C3ai
9.01
-17.28
-65.73%
BBAI
BigBearai Holdings
3.32
-3.12
-48.45%
SoundHound AI, Inc Class A Corporate Events
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...
Business Operations and StrategyM&A Transactions
SoundHound AI to Acquire LivePerson in All-Stock Deal
Positive
Apr 21, 2026
On April 21, 2026, SoundHound AI agreed to acquire LivePerson in an all-stock deal valuing the target’s equity at about $43 million, a roughly 22% premium to its recent trading levels, alongside a related restructuring of LivePerson’s ...
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.