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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

USA - NASDAQ:SOUN - US8361001071 - Common Stock

18.15 USD
+0.44 (+2.48%)
Last: 10/29/2025, 8:00:39 PM
17.7709 USD
-0.38 (-2.09%)
Pre-Market: 10/30/2025, 8:52:56 AM
Fundamental Rating

4

Taking everything into account, SOUN scores 4 out of 10 in our fundamental rating. SOUN was compared to 285 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 is valied quite expensively at the moment, while it does show a decent growth rate.


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.
SOUN had a negative operating cash flow in the past year.
In the past 5 years SOUN always reported negative net income.
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

The Return On Assets of SOUN (-38.97%) is worse than 80.35% of its industry peers.
Looking at the Return On Equity, with a value of -62.78%, SOUN is doing worse than 72.28% of the companies in the same industry.
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: 74.04% 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 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.
Compared to 1 year ago, SOUN has an improved debt to assets ratio.
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 17.38 indicates that SOUN is not in any danger for bankruptcy at the moment.
SOUN has a Altman-Z score of 17.38. This is amongst the best in the industry. SOUN outperforms 92.28% of its industry peers.
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 17.38
ROIC/WACCN/A
WACC10.99%
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.
SOUN has a better Current ratio (4.84) than 88.07% of its industry peers.
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 has a better Quick ratio (4.84) than 88.07% 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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6

3. Growth

3.1 Past

The earnings per share for SOUN have decreased strongly by -85.29% in the last year.
The Revenue has grown by 136.97% in the past year. This is a very strong growth!
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)-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

Based on estimates for the next years, SOUN will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.95% on average per year.
SOUN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 47.14% yearly.
EPS Next Y96.05%
EPS Next 2Y29.77%
EPS Next 3Y19.95%
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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0

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 19.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y29.77%
EPS Next 3Y19.95%

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0

5. Dividend

5.1 Amount

SOUN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (10/29/2025, 8:00:39 PM)

Premarket: 17.7709 -0.38 (-2.09%)

18.15

+0.44 (+2.48%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-06 2025-11-06/amc
Inst Owners46.8%
Inst Owner Change-0.19%
Ins Owners1.34%
Ins Owner Change5.9%
Market Cap7.40B
Revenue(TTM)131.45M
Net Income(TTM)-225847000
Analysts80
Price Target15.75 (-13.22%)
Short Float %27.79%
Short Ratio1.67
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)3.78%
PT rev (3m)30.69%
EPS NQ rev (1m)2.34%
EPS NQ rev (3m)-27.61%
EPS NY rev (1m)-12.5%
EPS NY rev (3m)-136%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-8.8%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)4.07%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 56.29
P/FCF N/A
P/OCF N/A
P/B 20.57
P/tB 74.99
EV/EBITDA N/A
EPS(TTM)-0.63
EYN/A
EPS(NY)-0.29
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
Graham NumberN/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
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 Turnover0.23
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 17.38
F-Score4
WACC10.99%
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 Y96.05%
EPS Next 2Y29.77%
EPS Next 3Y19.95%
EPS Next 5YN/A
Revenue 1Y (TTM)136.97%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%217.06%
Revenue Next Year98.03%
Revenue Next 2Y59.78%
Revenue Next 3Y47.14%
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

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 0 / 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.