SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SOUN • US8361001071

7.35 USD
-0.72 (-8.92%)
At close: Feb 5, 2026
7.38 USD
+0.03 (+0.41%)
Pre-Market: 2/6/2026, 4:26:01 AM
Fundamental Rating

4

SOUN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 278 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 valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • SOUN had negative earnings in the past year.
  • In the past year SOUN has reported a negative cash flow from operations.
  • 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: 84.53% of the companies in the same industry are doing better.
  • SOUN's Return On Equity of -78.96% is on the low side compared to the rest of the industry. SOUN is outperformed by 75.18% of its industry peers.
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

  • SOUN's Gross Margin of 39.75% is on the low side compared to the rest of the industry. SOUN is outperformed by 75.90% of its industry peers.
  • 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 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 5 years ago, SOUN has more shares outstanding
  • 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

  • SOUN has an Altman-Z score of 3.28. This indicates that SOUN is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of SOUN (3.28) is better than 69.78% 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 3.28
ROIC/WACCN/A
WACC11.21%
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.
  • SOUN has a better Current ratio (5.15) than 87.77% of its industry peers.
  • SOUN has a Quick Ratio of 5.15. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
  • SOUN has a Quick ratio of 5.15. This is amongst the best in the industry. SOUN outperforms 87.77% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. Growth

3.1 Past

  • SOUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -93.55%.
  • Looking at the last year, SOUN shows a very strong growth in Revenue. 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

  • SOUN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.24% yearly.
  • Based on estimates for the next years, SOUN will show a very strong growth in Revenue. The Revenue will grow by 50.24% on average per year.
EPS Next Y86.07%
EPS Next 2Y38.48%
EPS Next 3Y25.24%
EPS Next 5YN/A
Revenue Next Year100.56%
Revenue Next 2Y65.86%
Revenue Next 3Y50.24%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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

More info and screens

Find the best growth stocksShow best growing peers

1

4. Valuation

4.1 Price/Earnings Ratio

  • SOUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SOUN. No positive earnings are expected for the next year.
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

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

  • A more expensive valuation may be justified as SOUN's earnings are expected to grow with 25.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.48%
EPS Next 3Y25.24%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • SOUN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

SOUNDHOUND AI INC-A

NASDAQ:SOUN (2/5/2026, 8:00:02 PM)

Premarket: 7.38 +0.03 (+0.41%)

7.35

-0.72 (-8.92%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners50.45%
Inst Owner Change1.44%
Ins Owners1%
Ins Owner Change6.17%
Market Cap3.09B
Revenue(TTM)148.40M
Net Income(TTM)-315.23M
Analysts81.33
Price Target16.64 (126.39%)
Short Float %30.87%
Short Ratio4.78
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)-5.09%
PT rev (3m)-1.51%
EPS NQ rev (1m)-9.94%
EPS NQ rev (3m)74.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-252.78%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)-0.51%
Revenue NY rev (3m)1.28%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 20.81
P/FCF N/A
P/OCF N/A
P/B 7.73
P/tB 35.95
EV/EBITDA N/A
EPS(TTM)-0.6
EYN/A
EPS(NY)-0.08
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 3.28
F-Score4
WACC11.21%
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 Y86.07%
EPS Next 2Y38.48%
EPS Next 3Y25.24%
EPS Next 5YN/A
Revenue 1Y (TTM)120.52%
Revenue growth 3Y58.68%
Revenue growth 5Y61.63%
Sales Q2Q%67.57%
Revenue Next Year100.56%
Revenue Next 2Y65.86%
Revenue Next 3Y50.24%
Revenue Next 5YN/A
EBIT growth 1Y-236.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.89%
EBIT Next 3Y29.53%
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 for 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.