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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

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

11.08 USD
-0.15 (-1.34%)
Last: 1/7/2026, 10:14:08 AM
Fundamental Rating

4

Taking everything into account, SOUN scores 4 out of 10 in our fundamental rating. SOUN was compared to 276 industry peers in the Software industry. SOUN has a great financial health rating, but its profitability evaluates not so good. SOUN is valued quite expensively, but it does show have an excellent growth rating.


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 (-44.89%) than 84.42% of its industry peers.
Looking at the Return On Equity, with a value of -78.96%, SOUN is doing worse than 75.00% of the companies in the same industry.
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

Looking at the Gross Margin, with a value of 39.75%, SOUN is doing worse than 75.72% of the companies in the same industry.
In the last couple of years the Gross Margin of SOUN has grown nicely.
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
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

SOUN has an Altman-Z score of 6.51. This indicates that SOUN is financially healthy and has little risk of bankruptcy at the moment.
SOUN's Altman-Z score of 6.51 is fine compared to the rest of the industry. SOUN outperforms 78.26% 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 6.51
ROIC/WACCN/A
WACC11%
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 5.15 indicates that SOUN has no problem at all paying its short term obligations.
SOUN has a better Current ratio (5.15) than 88.04% 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.
The Quick ratio of SOUN (5.15) is better than 88.04% 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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7

3. Growth

3.1 Past

The earnings per share for SOUN have decreased strongly by -93.55% in the last year.
The Revenue has grown by 120.52% in the past year. This is a very strong growth!
The Revenue has been growing by 61.63% on average over the past years. This is a very strong growth!
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 25.24% 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 51.14% on average per year.
EPS Next Y86.07%
EPS Next 2Y38.48%
EPS Next 3Y25.24%
EPS Next 5YN/A
Revenue Next Year101.59%
Revenue Next 2Y67.02%
Revenue Next 3Y51.14%
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

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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.
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 -50 -100

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 25.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.48%
EPS Next 3Y25.24%

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0

5. Dividend

5.1 Amount

No dividends for SOUN!.
Industry RankSector Rank
Dividend Yield 0%

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SOUNDHOUND AI INC-A

NASDAQ:SOUN (1/7/2026, 10:14:08 AM)

11.08

-0.15 (-1.34%)

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 Owners50.45%
Inst Owner Change0%
Ins Owners1%
Ins Owner Change6.85%
Market Cap4.65B
Revenue(TTM)148.40M
Net Income(TTM)-315.23M
Analysts80
Price Target17.53 (58.21%)
Short Float %30.48%
Short Ratio4.06
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)1.48%
PT rev (3m)11.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)75.5%
EPS NY rev (1m)-1.6%
EPS NY rev (3m)-296.87%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.67%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 31.37
P/FCF N/A
P/OCF N/A
P/B 11.66
P/tB 54.19
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 6.51
F-Score4
WACC11%
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 Year101.59%
Revenue Next 2Y67.02%
Revenue Next 3Y51.14%
Revenue Next 5YN/A
EBIT growth 1Y-236.83%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.85%
EBIT Next 3Y29.54%
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.