SoundHound AI, Inc Class A (SOUN) AI Stock Analysis

• Market Cap: $5.80B
• Dividend Yield: N/A
• Average Volume (3M): 47.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.13
• Revenue Growth: 120.52%
• EPS Growth: -124.81%
• Country: US
• Employees: 842
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.27
• Shares Outstanding: 375,150,880
• 10 Day Avg. Volume: 33,104,889
• 30 Day Avg. Volume: 47,811,479
• 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 Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $17.00
• Price Target Upside: 20.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $14.00 ▼(-0.99% Downside)

SoundHound AI, Inc Class A shows strong revenue growth and strategic market expansion, as highlighted in the earnings call. However, significant challenges remain in terms of profitability, valuation, and technical indicators, which are currently bearish. The company's financial performance and valuation are the most significant factors impacting the overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market expansion and product adoption, reinforcing SoundHound's competitive position in AI.

Strategic Acquisitions

The acquisition of Interactions enhances product offerings and operational efficiency, potentially driving long-term revenue and market share growth.

Enterprise AI Adoption

Growing enterprise AI adoption and new high-profile clients strengthen SoundHound's market position and future revenue potential.

Negative Factors

Profitability Challenges

Ongoing net losses highlight profitability challenges, which could impact long-term financial stability and investor confidence.

Automotive Segment Challenges

Challenges in the automotive sector could limit growth in a key market, affecting overall revenue diversification and stability.

Rising Expenses

Rising expenses may strain margins and delay profitability, impacting cash flow and the ability to invest in growth initiatives.

SoundHound AI, Inc Class A Business Overview & Revenue Model

Company Description

SoundHound AI, Inc. is a technology company specializing in voice recognition and natural language processing solutions. Founded in 2005, the company operates primarily in the artificial intelligence sector, providing advanced voice-enabled technology to various industries including automotive, consumer electronics, and mobile applications. Its core products include the SoundHound music identification app and Houndify, a voice AI platform that allows developers to integrate voice capabilities into their applications and devices.

How the Company Makes Money

SoundHound 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 Financial Statement Overview

Summary

SoundHound AI, Inc Class A is experiencing strong revenue growth, but profitability remains a significant challenge. The balance sheet reflects low leverage but also highlights past financial instability with negative equity. Cash flow management shows some improvement, but the company needs to address its operational losses to achieve financial stability.

Income Statement

SoundHound AI, Inc Class A has shown significant revenue growth, particularly in the TTM period with a 28.58% increase. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins across all periods. The gross profit margin has decreased over time, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio in the TTM period, indicating limited leverage. However, the company has experienced negative equity in previous years, which poses a risk. Return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders.

Cash Flow

The cash flow statement indicates improvement in free cash flow growth in the TTM period, but operating cash flow remains negative. The free cash flow to net income ratio is slightly above 1, suggesting that the company is managing its cash flow better relative to its net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	131.45M	84.69M	45.87M	31.13M	21.20M	13.02M
Gross Profit	53.26M	41.38M	34.57M	21.53M	14.61M	7.15M
EBITDA	-199.04M	-329.09M	-62.63M	-99.70M	-61.65M	-65.36M
Net Income	-225.14M	-350.68M	-88.94M	-116.71M	-79.54M	-74.41M
Balance Sheet
Total Assets	579.49M	553.95M	151.12M	37.99M	49.20M	63.64M
Cash, Cash Equivalents and Short-Term Investments	230.34M	198.24M	95.26M	9.24M	21.63M	43.69M
Total Debt	4.39M	4.35M	90.16M	44.12M	73.32M	16.64M
Total Liabilities	219.74M	371.30M	122.95M	74.55M	392.44M	339.99M
Stockholders Equity	359.76M	182.65M	28.17M	-36.56M	-343.24M	-276.35M
Cash Flow
Free Cash Flow	-131.91M	-109.52M	-68.66M	-95.35M	-66.81M	-48.47M
Operating Cash Flow	-131.09M	-108.88M	-68.27M	-94.02M	-66.18M	-46.30M
Investing Cash Flow	-7.94M	-12.37M	-392.00K	-1.33M	-636.00K	11.45M
Financing Cash Flow	150.48M	210.91M	168.24M	82.00M	44.65M	53.45M

SoundHound AI, Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.14 is below the 20-day moving average (MA) of 17.87, below the 50-day MA of 16.67, and above the 200-day MA of 12.29, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 35.72 is Neutral, neither overbought nor oversold. The STOCH value of 8.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOUN.

SoundHound AI, Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DSP	59 Neutral	$541.38M	255.95	5.20%	―	30.92%	―
GRND	53 Neutral	$2.61B	―	-171.54%	―	28.97%	-4.18%
FRGE	53 Neutral	$599.41M	―	-28.14%	―	14.78%	21.87%
SMRT	53 Neutral	$274.34M	―	-25.48%	―	-24.30%	-181.62%
BMBL	50 Neutral	$441.00M	―	-25.34%	―	-7.43%	61.29%
SOUN	47 Neutral	$5.80B	―	-90.15%	―	120.52%	-124.81%

SoundHound AI, Inc Class A Corporate Events

SoundHound AI Reports Record Revenue and Raises Outlook

SoundHound AI, Inc., a global leader in voice and conversational AI, provides advanced solutions across various sectors, including retail, automotive, and healthcare, leveraging its proprietary technology to enhance customer experiences.

SoundHound AI Completes Acquisition of Interactions Corp

On September 3, 2025, SoundHound AI completed the acquisition of Interactions Corporation, a pioneer in AI for customer service and workflow orchestration. This strategic move is expected to bolster SoundHound’s leadership in Agentic AI and expand its market presence in customer service for enterprise businesses. The acquisition introduces new global brands to SoundHound’s portfolio and is anticipated to generate significant revenue through product and geographic expansion, as well as cross-selling opportunities. The combined company now holds over $270 million in cash with no debt, and the transaction is expected to be immediately accretive to SoundHound’s operating profitability.

The most recent analyst rating on (SOUN) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on SoundHound AI, Inc Class A stock, see the SOUN Stock Forecast page.

SoundHound AI Faces Persistent Business Risks Despite No New Changes

SoundHound AI, Inc Class A faces significant business risks and uncertainties that could impact its operations and financial performance. These risks are detailed in the company’s annual and quarterly reports, highlighting potential adverse effects on its business, financial condition, and stock trading price. Despite regular updates, no material changes in risk factors were noted for the quarter ending June 30, 2025. Investors should remain vigilant of these risks as they could influence the company’s future prospects.