SoundHound AI (SOUN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

SoundHound AI

NasdaqGM•Technology•Software - Application

$5.93-0.22(-0.04%)Pre-market

Market Cap

$2.55B

P/S

12.6x

P/B

5.2x

SoundHound AI, Inc. provides independent voice artificial intelligence (AI) solutions that enables businesses across the automotive, TV, IoT, and customer service industries to deliver conversational experiences to customers in the United States, Korea, France, Japan, Germany, and internationally. The company offers Houndify platform, which provides a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI, a voice assistant with integrated generative AI that integrates with knowledge domains, pulling real-time data, such as weather, sports, stocks, flight status, restaurants, and other data; and SoundHound Smart Answering, which offers customer establishments the option to build an easy to use custom AI-powered voice assistant. It also provides CaiNET software that uses machine learning to enhance how domains work together to handle complex queries; CaiLAN software that arbitrates responses, so users get answers from the right domain; Dynamic Interaction, a real-time multimodal customer service interface; Smart Ordering, which offers an easy-to-understand voice assistant for restaurants; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; Employee Assist; and edge and cloud connectivity, which includes embedded voice solutions. In addition, the company offers Amelia Platform, which builds AI agents for enterprises; Chat AI for Automotive; Dynamic Drive-Thru for GenAI; Voice Commerce, which connects drivers and merchants with Voice AI; Autonomics Platform; Custom Voice AI Solutions; Voice AI Platform; and SoundHound Music App. SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.

How this company scores

WeakMetricSide Score: 41/100

Grade capped at D — Interest coverage below 1× (-570.8x) — earnings cannot cover interest. Strongest: Growth (20/25); weakest: Cash & Earnings Quality (2/25).

Profitability12/25

Growth20/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality2/25

Strengths

Growing revenueProfit converts from growthConsistent growthNet cash position

Grade capped at D

Interest coverage below 1× (-570.8x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 12.6x5y range 8.9x – 90.6x

Currently below its 17-quarter median.

P/B · 5.2x5y range 5.2x – 2623.8x

Currently below its 16-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $2.55B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $203.20M
Q. Revenue: $61.90M
TTM EBITDA: $-99.61M
TTM Op. Income: $-139.29M
Q. Op. Income: $-43.30M
TTM Net Income: $-137.06M
Q. Net Income: $-42.82M
EPS: $-0.1
Shares Out.: $430.52M

$203.20M in TTM revenue grew 54.6% YoY, reaching $61.90M last quarter. TTM EBITDA of $-99.61M and TTM operating income of $-139.29M show growth is flowing through to the bottom line. However, net income is negative at $137.06M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 45.1%
EBITDA Margin: -52.0%
Op. Margin: -70.0%
Net Margin: -69.2%

Op. margin of -70.0% is up 112.9% YoY — cost efficiency is improving. Net margin at -69.2% and gross margin of 45.1% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 12.6x
P/B Ratio: 5.2x

P/S of 12.6x and P/B of 5.2x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $667.89M
Cash: $202.78M
Long-Term Debt: N/A
Book Value: $490.43M
D/E Ratio: N/A
Debt/EBITDA: N/A

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-33.71M
TTM Free Cash Flow: $-115.88M
FCF Margin: -57.0%
FCF / Net Income: 0.8

TTM FCF of $-115.88M on $-33.71M in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.