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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

USA - NASDAQ:SOUN - US8361001071 - Common Stock

18.25 USD
+0.4 (+2.24%)
Last: 10/6/2025, 6:19:43 PM
18.36 USD
+0.11 (+0.6%)
After Hours: 10/6/2025, 6:19:43 PM
Fundamental Rating

4

Overall SOUN gets a fundamental rating of 4 out of 10. We evaluated SOUN against 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

In the past year SOUN has reported negative net income.
In the past year SOUN has reported a negative cash flow from operations.
SOUN had negative earnings in each of the past 5 years.
In the past 5 years SOUN always reported negative operating cash flow.
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

SOUN has a worse Return On Assets (-38.97%) than 81.14% of its industry peers.
SOUN has a worse Return On Equity (-62.78%) than 72.95% of its industry peers.
Industry RankSector Rank
ROA -38.97%
ROE -62.78%
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 40.52%, SOUN is not doing good in the industry: 74.38% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SOUN has grown nicely.
SOUN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 40.52%
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.
The number of shares outstanding for SOUN has been increased compared to 1 year ago.
SOUN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SOUN has been reduced compared to a year ago.
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 17.04 indicates that SOUN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 17.04, SOUN belongs to the best of the industry, outperforming 92.53% of the companies in the same industry.
SOUN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 17.04
ROIC/WACCN/A
WACC11.26%
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

A Current Ratio of 4.84 indicates that SOUN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 4.84, SOUN belongs to the best of the industry, outperforming 88.61% of the companies in the same industry.
SOUN has a Quick Ratio of 4.84. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
SOUN's Quick ratio of 4.84 is amongst the best of the industry. SOUN outperforms 88.61% of its industry peers.
Industry RankSector Rank
Current Ratio 4.84
Quick Ratio 4.84
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 -85.29% in the last year.
Looking at the last year, SOUN shows a very strong growth in Revenue. The Revenue has grown by 136.97%.
The Revenue has been growing by 61.63% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-85.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
Revenue 1Y (TTM)136.97%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%217.06%

3.2 Future

The Earnings Per Share is expected to grow by 20.58% on average over the next years. This is a very strong growth
Based on estimates for the next years, SOUN will show a very strong growth in Revenue. The Revenue will grow by 47.52% on average per year.
EPS Next Y96.49%
EPS Next 2Y29.37%
EPS Next 3Y20.58%
EPS Next 5YN/A
Revenue Next Year98.28%
Revenue Next 2Y59.99%
Revenue Next 3Y47.52%
Revenue Next 5YN/A

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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 20 -20 40 -40 -60

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 20.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.37%
EPS Next 3Y20.58%

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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 (10/6/2025, 6:19:43 PM)

After market: 18.36 +0.11 (+0.6%)

18.25

+0.4 (+2.24%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-10 2025-11-10/amc
Inst Owners46.8%
Inst Owner Change0.01%
Ins Owners1.34%
Ins Owner Change6.91%
Market Cap7.44B
Analysts80
Price Target15.75 (-13.7%)
Short Float %32.04%
Short Ratio1.95
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)178.98%
Min EPS beat(2)-99.59%
Max EPS beat(2)457.56%
EPS beat(4)2
Avg EPS beat(4)-55.19%
Min EPS beat(4)-596.39%
Max EPS beat(4)457.56%
EPS beat(8)3
Avg EPS beat(8)-30.15%
EPS beat(12)6
Avg EPS beat(12)-17.26%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)10.63%
Min Revenue beat(2)-6%
Max Revenue beat(2)27.26%
Revenue beat(4)3
Avg Revenue beat(4)7.16%
Min Revenue beat(4)-6%
Max Revenue beat(4)27.26%
Revenue beat(8)6
Avg Revenue beat(8)4.68%
Revenue beat(12)9
Avg Revenue beat(12)5.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)8.33%
PT rev (3m)30.69%
EPS NQ rev (1m)-10.47%
EPS NQ rev (3m)-26.67%
EPS NY rev (1m)N/A
EPS NY rev (3m)-132%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.71%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)4.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 56.6
P/FCF N/A
P/OCF N/A
P/B 20.68
P/tB 75.41
EV/EBITDA N/A
EPS(TTM)-0.63
EYN/A
EPS(NY)-0.3
Fwd EYN/A
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)-0.28
OCFYN/A
SpS0.32
BVpS0.88
TBVpS0.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -38.97%
ROE -62.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 40.52%
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.23
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 2.29%
Cap/Sales 0.5%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.84
Quick Ratio 4.84
Altman-Z 17.04
F-Score4
WACC11.26%
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)-85.29%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-72.73%
EPS Next Y96.49%
EPS Next 2Y29.37%
EPS Next 3Y20.58%
EPS Next 5YN/A
Revenue 1Y (TTM)136.97%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%217.06%
Revenue Next Year98.28%
Revenue Next 2Y59.99%
Revenue Next 3Y47.52%
Revenue Next 5YN/A
EBIT growth 1Y-214.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57.24%
EBIT Next 3Y28.84%
EBIT Next 5YN/A
FCF growth 1Y-38.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-38.59%
OCF growth 3YN/A
OCF growth 5YN/A