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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SOUN - US8361001071 - Common Stock

11.52 USD
-0.53 (-4.4%)
Last: 12/1/2025, 8:00:03 PM
11.56 USD
+0.04 (+0.35%)
After Hours: 12/1/2025, 8:00:03 PM
Fundamental Rating

4

Taking everything into account, SOUN scores 4 out of 10 in our fundamental rating. SOUN was compared to 281 industry peers in the Software industry. No worries on liquidiy or solvency for SOUN as it has an excellent financial health rating, but there are worries on the profitability. SOUN shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

SOUN had negative earnings in the past year.
SOUN had a negative operating cash flow in the past year.
SOUN had negative earnings in each of the past 5 years.
SOUN had a negative operating cash flow in each of the past 5 years.
SOUN Yearly Net Income VS EBIT VS OCF VS FCFSOUN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 2024 -100M -200M -300M

1.2 Ratios

With a Return On Assets value of -44.89%, SOUN is not doing good in the industry: 82.92% of the companies in the same industry are doing better.
With a Return On Equity value of -78.96%, SOUN is not doing good in the industry: 74.73% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -44.89%
ROE -78.96%
ROIC N/A
ROA(3y)-143.77%
ROA(5y)-142.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SOUN Yearly ROA, ROE, ROICSOUN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 2024 0 5K 10K

1.3 Margins

With a Gross Margin value of 39.75%, SOUN is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
SOUN's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for SOUN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 39.75%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.84%
GM growth 5Y3.48%
SOUN Yearly Profit, Operating, Gross MarginsSOUN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800

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8

2. Health

2.1 Basic Checks

SOUN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SOUN has more shares outstanding
The number of shares outstanding for SOUN has been increased compared to 5 years ago.
SOUN has a better debt/assets ratio than last year.
SOUN Yearly Shares OutstandingSOUN Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 100M 200M 300M
SOUN Yearly Total Debt VS Total AssetsSOUN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

An Altman-Z score of 7.19 indicates that SOUN is not in any danger for bankruptcy at the moment.
SOUN has a Altman-Z score of 7.19. This is in the better half of the industry: SOUN outperforms 79.36% of its industry peers.
There is no outstanding debt for SOUN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 7.19
ROIC/WACCN/A
WACC10.83%
SOUN Yearly LT Debt VS Equity VS FCFSOUN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 2024 0 50M -50M 100M -100M 150M

2.3 Liquidity

SOUN has a Current Ratio of 5.15. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.15, SOUN belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
A Quick Ratio of 5.15 indicates that SOUN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 5.15, SOUN belongs to the top of the industry, outperforming 88.26% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5.15
Quick Ratio 5.15
SOUN Yearly Current Assets VS Current LiabilitesSOUN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

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7

3. Growth

3.1 Past

The earnings per share for SOUN have decreased strongly by -93.55% in the last year.
SOUN shows a strong growth in Revenue. In the last year, the Revenue has grown by 120.52%.
Measured over the past years, SOUN shows a very strong growth in Revenue. The Revenue has been growing by 61.63% on average per year.
EPS 1Y (TTM)-93.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)120.52%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%67.57%

3.2 Future

The Earnings Per Share is expected to grow by 25.37% on average over the next years. This is a very strong growth
SOUN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 47.14% yearly.
EPS Next Y85.72%
EPS Next 2Y39.47%
EPS Next 3Y25.37%
EPS Next 5YN/A
Revenue Next Year98.03%
Revenue Next 2Y59.78%
Revenue Next 3Y47.14%
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
SOUN Yearly Revenue VS EstimatesSOUN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 50M 100M 150M 200M 250M
SOUN Yearly EPS VS EstimatesSOUN Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 -0.5 -1

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SOUN. In the last year negative earnings were reported.
Also next year SOUN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SOUN Price Earnings VS Forward Price EarningsSOUN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 -100 -150 -200

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SOUN Per share dataSOUN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5

4.3 Compensation for Growth

SOUN's earnings are expected to grow with 25.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.47%
EPS Next 3Y25.37%

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0

5. Dividend

5.1 Amount

No dividends for SOUN!.
Industry RankSector Rank
Dividend Yield N/A

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (12/1/2025, 8:00:03 PM)

After market: 11.56 +0.04 (+0.35%)

11.52

-0.53 (-4.4%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-25 2026-02-25/amc
Inst Owners46.8%
Inst Owner Change10.02%
Ins Owners1.34%
Ins Owner Change5.87%
Market Cap4.84B
Revenue(TTM)148.40M
Net Income(TTM)-315.23M
Analysts80
Price Target17.28 (50%)
Short Float %27.78%
Short Ratio1.92
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-57.63%
Min EPS beat(2)-129.26%
Max EPS beat(2)14%
EPS beat(4)2
Avg EPS beat(4)-57.94%
Min EPS beat(4)-596.39%
Max EPS beat(4)479.9%
EPS beat(8)4
Avg EPS beat(8)-28.95%
EPS beat(12)6
Avg EPS beat(12)-17.61%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)14.54%
Min Revenue beat(2)1.83%
Max Revenue beat(2)27.26%
Revenue beat(4)3
Avg Revenue beat(4)5.9%
Min Revenue beat(4)-6%
Max Revenue beat(4)27.26%
Revenue beat(8)6
Avg Revenue beat(8)4.82%
Revenue beat(12)9
Avg Revenue beat(12)4.07%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)9.72%
PT rev (3m)18.86%
EPS NQ rev (1m)76.74%
EPS NQ rev (3m)76.95%
EPS NY rev (1m)-261.67%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.88%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 32.61
P/FCF N/A
P/OCF N/A
P/B 12.12
P/tB 56.34
EV/EBITDA N/A
EPS(TTM)-0.6
EYN/A
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)-0.26
OCFYN/A
SpS0.35
BVpS0.95
TBVpS0.2
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -44.89%
ROE -78.96%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 39.75%
FCFM N/A
ROA(3y)-143.77%
ROA(5y)-142.98%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-10.84%
GM growth 5Y3.48%
F-Score4
Asset Turnover0.21
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 7.63%
Cap/Sales 1.65%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 5.15
Quick Ratio 5.15
Altman-Z 7.19
F-Score4
WACC10.83%
ROIC/WACCN/A
Cap/Depr(3y)17.95%
Cap/Depr(5y)20.25%
Cap/Sales(3y)1.96%
Cap/Sales(5y)5.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-93.55%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y85.72%
EPS Next 2Y39.47%
EPS Next 3Y25.37%
EPS Next 5YN/A
Revenue 1Y (TTM)120.52%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%67.57%
Revenue Next Year98.03%
Revenue Next 2Y59.78%
Revenue Next 3Y47.14%
Revenue Next 5YN/A
EBIT growth 1Y-236.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57.24%
EBIT Next 3Y28.84%
EBIT Next 5YN/A
FCF growth 1Y-48.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.32%
OCF growth 3YN/A
OCF growth 5YN/A

SOUNDHOUND AI INC-A / SOUN FAQ

Can you provide the ChartMill fundamental rating for SOUNDHOUND AI INC-A?

ChartMill assigns a fundamental rating of 4 / 10 to SOUN.


What is the valuation status of SOUNDHOUND AI INC-A (SOUN) stock?

ChartMill assigns a valuation rating of 1 / 10 to SOUNDHOUND AI INC-A (SOUN). This can be considered as Overvalued.


Can you provide the profitability details for SOUNDHOUND AI INC-A?

SOUNDHOUND AI INC-A (SOUN) has a profitability rating of 1 / 10.


What is the financial health of SOUNDHOUND AI INC-A (SOUN) stock?

The financial health rating of SOUNDHOUND AI INC-A (SOUN) is 8 / 10.