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SOUNDHOUND AI INC-A (SOUN) Stock Fundamental Analysis

USA - NASDAQ:SOUN - US8361001071 - Common Stock

14.12 USD
-0.46 (-3.16%)
Last: 9/12/2025, 8:17:58 PM
14.19 USD
+0.07 (+0.5%)
After Hours: 9/12/2025, 8:17:58 PM
Fundamental Rating

4

SOUN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. While SOUN has a great health rating, there are worries on its profitability. 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.
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

Looking at the Return On Assets, with a value of -38.97%, SOUN is doing worse than 81.43% of the companies in the same industry.
With a Return On Equity value of -62.78%, SOUN is not doing good in the industry: 73.57% of the companies in the same industry are doing better.
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: 75.36% of the companies in the same industry are doing better.
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 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.
Compared to 1 year ago, SOUN has more shares outstanding
SOUN has more shares outstanding than it did 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 12.89 indicates that SOUN is not in any danger for bankruptcy at the moment.
SOUN has a Altman-Z score of 12.89. This is amongst the best in the industry. SOUN outperforms 90.71% 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 12.89
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

SOUN has a Current Ratio of 4.84. This indicates that SOUN is financially healthy and has no problem in meeting its short term obligations.
SOUN's Current ratio of 4.84 is amongst the best of the industry. SOUN outperforms 88.21% 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.
The Quick ratio of SOUN (4.84) is better than 88.21% 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

SOUN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -85.29%.
SOUN shows a strong growth in Revenue. In the last year, 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

Based on estimates for the next years, SOUN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.58% on average per year.
SOUN is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 47.52% yearly.
EPS Next Y100%
EPS Next 2Y30.87%
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 2026 2027 -0.5 -1

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1

4. Valuation

4.1 Price/Earnings Ratio

SOUN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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

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 20.58% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y30.87%
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 (9/12/2025, 8:17:58 PM)

After market: 14.19 +0.07 (+0.5%)

14.12

-0.46 (-3.16%)

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 Owners45.62%
Inst Owner Change5.73%
Ins Owners0.75%
Ins Owner Change6.64%
Market Cap5.76B
Analysts81.43
Price Target15.17 (7.44%)
Short Float %31.68%
Short Ratio2.34
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)25.93%
PT rev (3m)25.93%
EPS NQ rev (1m)-22.5%
EPS NQ rev (3m)-30.67%
EPS NY rev (1m)-100%
EPS NY rev (3m)-100%
Revenue NQ rev (1m)-4.33%
Revenue NQ rev (3m)-8.73%
Revenue NY rev (1m)4.2%
Revenue NY rev (3m)4.2%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 43.79
P/FCF N/A
P/OCF N/A
P/B 16
P/tB 58.34
EV/EBITDA N/A
EPS(TTM)-0.63
EYN/A
EPS(NY)-0.27
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 12.89
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 Y100%
EPS Next 2Y30.87%
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 Year58.42%
EBIT Next 3YN/A
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