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

• Market Cap: $4.97B
• Dividend Yield: N/A
• Average Volume (3M): 34.84M
• 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: 387,560,460
• 10 Day Avg. Volume: 32,941,766
• 30 Day Avg. Volume: 34,841,263
• 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: 1.28
• Enterprise Value/Revenue: 42.83
• Enterprise Value/Gross Profit: 107.76
• Enterprise Value/Ebitda: -24.09
• 1Y Price Target: $17.20
• Price Target Upside: 45.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $11.50 ▼(-2.71% Downside)

SoundHound AI, Inc Class A's overall stock score is primarily influenced by its strong revenue growth and strategic market expansion, as highlighted in the earnings call. However, significant challenges in profitability, cash flow, and technical indicators weigh heavily on the stock's attractiveness. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong market demand and successful strategic execution, enhancing long-term business sustainability.

Strategic Acquisitions

Strategic acquisitions like Interactions bolster product offerings and operational efficiency, potentially leading to increased market share and profitability.

Enterprise AI Adoption

Expanding enterprise AI adoption, especially with Fortune 100 clients, strengthens SoundHound's competitive position and revenue base in a growing market.

Negative Factors

Profitability Challenges

Ongoing profitability challenges, as evidenced by significant net losses, may hinder financial stability and require strategic adjustments to achieve breakeven.

Cash Flow Issues

Negative cash flows suggest operational inefficiencies and could limit the company's ability to invest in growth opportunities without external financing.

Automotive Segment Challenges

Challenges in the automotive segment, a key market, may impact revenue growth and require strategic pivots to mitigate industry-related risks.

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 offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California.

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 revenue growth, but profitability and cash flow remain significant challenges. The company has low leverage, which is a positive, but the negative returns on equity and persistent losses highlight the need for strategic improvements to achieve financial stability.

Income Statement

SoundHound AI, Inc Class A has shown some revenue growth, with a 12.9% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased from previous years, showing a decline in cost efficiency.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio, indicating low leverage, which is a positive aspect. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively stable, but the overall financial health is impacted by persistent losses.

Cash Flow

The cash flow statement shows negative operating and free cash flows, indicating cash burn. The free cash flow to net income ratio is close to 1, suggesting that cash flow is closely tracking net income, albeit negative. The company needs to improve its cash generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.40M	84.69M	45.87M	31.13M	21.20M	13.02M
Gross Profit	58.98M	41.38M	34.57M	21.53M	14.61M	7.15M
EBITDA	-263.80M	-329.09M	-62.63M	-99.70M	-61.65M	-65.36M
Net Income	-312.66M	-350.68M	-88.94M	-116.71M	-79.54M	-74.41M
Balance Sheet
Total Assets	702.22M	553.95M	151.12M	37.99M	49.20M	63.64M
Cash, Cash Equivalents and Short-Term Investments	268.94M	198.24M	95.26M	9.24M	21.63M	43.69M
Total Debt	4.82M	4.35M	90.16M	44.12M	73.32M	16.64M
Total Liabilities	302.98M	371.30M	122.95M	74.55M	392.44M	339.99M
Stockholders Equity	399.24M	182.65M	28.17M	-36.56M	-343.24M	-276.35M
Cash Flow
Free Cash Flow	-110.06M	-109.52M	-68.66M	-95.35M	-66.81M	-48.47M
Operating Cash Flow	-109.46M	-108.88M	-68.27M	-94.02M	-66.18M	-46.30M
Investing Cash Flow	-57.05M	-12.37M	-392.00K	-1.33M	-636.00K	11.45M
Financing Cash Flow	299.98M	210.91M	168.24M	82.00M	44.65M	53.45M

SoundHound AI, Inc Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 11.82 is below the 20-day moving average (MA) of 13.46, below the 50-day MA of 16.16, and below the 200-day MA of 12.12, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 51.07 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 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%
CRNC	52 Neutral	$469.16M	―	-12.83%	―	-24.05%	96.90%
VERI	49 Neutral	$394.77M	―	―	―	-17.50%	-51.25%
SOUN	47 Neutral	$4.97B	―	-90.15%	―	120.52%	-124.81%
LPSN	46 Neutral	$58.13M	-0.19	-605.44%	―	-23.03%	-107.34%
AI	45 Neutral	$1.95B	―	-40.94%	―	14.34%	-13.27%
BBAI	44 Neutral	$2.63B	―	-111.83%	―	-6.95%	-53.69%

SoundHound AI, Inc Class A Corporate Events

SoundHound AI Reports Record Growth Amid Challenges

SoundHound AI, Inc. recently held its earnings call, revealing a positive sentiment driven by significant revenue growth and strategic market expansion. Despite facing challenges in the automotive sector and increased expenses affecting net loss, the company showcased its resilience and strategic foresight.

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.