SoundHound AI, Inc Class A (SOUN)
NASDAQ:SOUN
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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Rating:51Neutral
Price Target:
$8.50
▲(5.20% Upside)
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 & Guidance
SoundHound has scaled revenue quickly and provided multi-quarter guidance, which signals durable commercial traction. Sustained high organic growth (notably in automotive/IoT) improves revenue visibility, supports continued product investment, and enables longer-term contract expansion and cross-sell opportunities.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow shows the business currently lacks self-funding capability. Continued cash burn necessitates external financing or material near-term margin improvement, which raises execution and dilution risk until scale or synergies convert revenue growth into positive cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Guidance
SoundHound has scaled revenue quickly and provided multi-quarter guidance, which signals durable commercial traction. Sustained high organic growth (notably in automotive/IoT) improves revenue visibility, supports continued product investment, and enables longer-term contract expansion and cross-sell opportunities.
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
$3.60B
Dividend YieldN/A
Average Volume (3M)30.57M
Price to Earnings (P/E)―
Beta (1Y)3.25
Revenue Growth79.98%
EPS Growth21.99%
CountryUS
Employees842
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.42
Shares Outstanding393,674,650
10 Day Avg. Volume29,705,726
30 Day Avg. Volume30,565,547
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 Cap0.94
Enterprise Value/Revenue18.43
Enterprise Value/Gross Profit48.56
Enterprise Value/Ebitda-27.24
Forecast
1Y Price Target
$13.33Price Target Upside65.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.37
Revenue Forecast (FY)$232.47M
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 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 | -124.47M | 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 | -84.24M | 0.00 | -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
Neutral
8.08
Price Trends
7.66
Positive
8.47
Negative
11.50
Negative
Market Momentum
0.19
Positive
52.10
Neutral
38.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOUN, the sentiment is Neutral. The current price of 8.08 is below the 20-day moving average (MA) of 8.55, above the 50-day MA of 7.66, and below the 200-day MA of 11.50, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 38.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $417.54M | 42.52 | -12.77% | ― | 18.84% | 94.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $1.95B | ― | -50.67% | ― | -20.34% | -8.67% | |
51 Neutral | $3.60B | -23.23 | -40.15% | ― | 79.98% | 21.99% | |
51 Neutral | $1.35B | ― | -55.55% | ― | -16.22% | -41.59% | |
48 Neutral | $25.20M | -0.87 | 137.78% | ― | -19.19% | 67.48% | |
45 Neutral | $182.20M | ― | -331.54% | ― | -9.07% | 35.07% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
8.32
-1.23
-12.88%
LPSN
Liveperson
2.17
-8.51
-79.68%
VERI
Veritone
2.28
0.55
31.79%
CRNC
Cerence
9.69
1.20
14.13%
AI
C3ai
9.33
-13.40
-58.95%
BBAI
BigBearai Holdings
4.20
0.38
9.95%
SoundHound AI, Inc Class A Corporate Events
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 ...
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.