SoundHound AI, Inc Class A (SOUN)
NASDAQ:SOUN
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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Rating:53Neutral
Price Target:
$6.00
▼(-11.50% Downside)
Action:ReiteratedDate:03/19/26
The score is primarily held back by weak cash flow and ongoing losses despite rapid revenue growth and a much improved balance sheet. Technicals remain bearish with the stock trading below major moving averages. Offsetting these risks, the latest earnings call provided strong 2026 revenue guidance and highlighted improving margins and narrowing EBITDA losses, supporting a moderately better outlook.
Positive Factors
Rapid revenue growth and 2026 guidance
Nearly doubling revenue from 2020–2025 and a 2026 guide of $225M–$260M indicate durable commercial traction. Sustained top-line expansion across automotive, restaurants and telecom supports scale economics, bigger enterprise deals, and longer-term recurring licensing revenue streams.
Negative Factors
Persistent negative operating and free cash flow
Large ongoing cash burn means continued reliance on external funding until conversion improves. Even with revenue growth, negative FCF constrains reinvestment flexibility and raises execution risk if enterprise customer monetization or contract timing slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and 2026 guidance
Nearly doubling revenue from 2020–2025 and a 2026 guide of $225M–$260M indicate durable commercial traction. Sustained top-line expansion across automotive, restaurants and telecom supports scale economics, bigger enterprise deals, and longer-term recurring licensing revenue streams.
Read all positive factors
SoundHound AI, Inc Class A (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.87B
Dividend YieldN/A
Average Volume (3M)26.90M
Price to Earnings (P/E)―
Beta (1Y)3.54
Revenue Growth120.52%
EPS Growth-124.81%
CountryUS
Employees842
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.10
Shares Outstanding390,278,780
10 Day Avg. Volume21,135,808
30 Day Avg. Volume26,900,671
Financial Highlights & Ratios
PEG Ratio2.99
Price to Book (P/B)8.72
Price to Sales (P/S)23.93
P/FCF Ratio0.00
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue15.52
Enterprise Value/Gross Profit36.65
Enterprise Value/Ebitda39.21
Forecast
1Y Price Target
$14.50Price Target Upside113.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.32
Revenue Forecast (FY)$232.79M
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company Description
SoundHound 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 offer...
How the Company Makes Money
SoundHound AI primarily makes money by commercializing its voice AI technology through a mix of software licensing and service-based arrangements with enterprise customers. Key revenue streams include: (1) Licensing and royalties/usage-based fees ...
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call highlighted very strong top-line momentum, record customer wins, meaningful usage growth, improving gross margins, a healthy cash position and aggressive 2026 revenue guidance — all signaling robust commercial traction and product differentiation. Key near-term weaknesses include continued non‑GAAP losses and adjusted EBITDA deficits, sizable YoY increases in operating expenses (particularly S&M), notable stock‑based compensation and P&L volatility tied to acquisition accounting, and a non‑linear path to breakeven. Overall, the positives (revenue scaling, deal momentum, product leadership, improving margins and balance sheet strength) materially outweigh the near-term financial and operational challenges.Positive Updates
Record Revenue Growth (FY and Q4)
Q4 revenue of $55.1M, up 59% year-over-year; full-year 2025 revenue $169M, up 99% year-over-year (nearly doubled).
Negative Updates
Continued Non‑GAAP Loss and Adjusted EBITDA Deficit
Non‑GAAP net loss of $7.3M and non‑GAAP net loss per share $0.02 in Q4; adjusted EBITDA loss of $7.4M (despite a 56% YoY improvement), indicating the company is not yet profitable on an operating basis.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue Growth (FY and Q4)
Q4 revenue of $55.1M, up 59% year-over-year; full-year 2025 revenue $169M, up 99% year-over-year (nearly doubled).
Read all positive updates
Company Guidance
SoundHound guided 2026 revenue of $225 million to $260 million, with a seasonal ramp through the year, supported by strong 2025 momentum (Q4 revenue $55.1M, +59% YoY; FY2025 revenue $169M, +99% YoY), a cash balance of $248M and no debt, and the expectation of progressive movement into breakeven with continued year‑over‑year EBITDA improvement (Q4 adjusted EBITDA loss $7.4M, improved 56% YoY; Q4 non‑GAAP net loss $7.3M, non‑GAAP EPS −$0.02); management said most of $20M of annualized acquisition cost synergies were executed in Q1, Q4 GAAP/non‑GAAP gross margins were 48%/61%, they expect the majority (>75%) of customers migrated to Agentic 7.3 by mid‑year, and long‑term targets are 70%+ gross margins and 30%+ EBIT margins.SoundHound AI, Inc Class A Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 168.92M | 84.69M | 45.87M | 31.13M | 21.20M |
| Gross Profit | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M |
| EBITDA | 25.53M | -329.09M | -62.63M | -99.70M | -61.65M |
| Net Income | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M |
Balance Sheet | |||||
| Total Assets | 688.17M | 553.95M | 151.12M | 37.99M | 49.20M |
| Cash, Cash Equivalents and Short-Term Investments | 248.49M | 198.24M | 95.26M | 9.24M | 21.63M |
| Total Debt | 4.21M | 4.35M | 90.16M | 44.12M | 73.32M |
| Total Liabilities | 224.39M | 371.30M | 122.95M | 74.55M | 392.44M |
| Stockholders Equity | 463.79M | 182.65M | 28.17M | -36.56M | -343.24M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | -109.52M | -68.66M | -95.35M | -66.81M |
| Operating Cash Flow | -98.22M | -108.88M | -68.27M | -94.02M | -66.18M |
| Investing Cash Flow | -59.50M | -12.37M | -392.00K | -1.33M | -636.00K |
| Financing Cash Flow | 208.07M | 210.91M | 168.24M | 82.00M | 44.65M |
SoundHound AI, Inc Class A Technical Analysis
Negative
6.78
Price Trends
7.92
Negative
9.74
Negative
11.99
Negative
Market Momentum
-0.49
Negative
44.09
Neutral
71.44
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 6.78 is below the 20-day moving average (MA) of 7.05, below the 50-day MA of 7.92, and below the 200-day MA of 11.99, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 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 52 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% | |
53 Neutral | $2.87B | -288.59 | -3.46% | ― | 120.52% | -124.81% | |
52 Neutral | $326.38M | -22.93 | 0.22% | ― | -24.05% | 96.90% | |
49 Neutral | $1.70B | -83.08 | -69.72% | ― | -6.95% | -53.69% | |
48 Neutral | $168.01M | -2.66 | -973.13% | ― | -17.50% | -51.25% | |
48 Neutral | $1.26B | ― | -55.55% | ― | 1.84% | -27.74% | |
44 Neutral | $31.22M | -0.25 | 132.32% | ― | -23.03% | -107.34% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
6.78
-0.82
-10.79%
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SoundHound AI, Inc Class A Corporate Events
Business Operations and StrategyExecutive/Board Changes
SoundHound AI Announces CFO Transition and Interim Appointment
Positive
Mar 18, 2026
On March 18, 2026, SoundHound AI announced that Chief Financial Officer Nitesh Sharan will resign effective April 3, 2026, to take a leadership role at a quantum computing company, with the firm emphasizing his departure was for personal reasons a...
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.