SOUN

SoundHound AI, Inc.

Fundamental data last updated:October 20, 2026

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company profile

SECTOR

Technology

industry

Software - Application

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

SoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California.

 


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VALUATION

P/E

-17.15

Market Cap ($M USD)

$3.70B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

20.13

PRICE TO BOOK

6.29

EV / EBITDA

-28.08

5-Year Average P/E

Free Cash Flow Yield

-2.27%

DCF Value

$-16.23

Graham Number

N/A

Price to FCF

-43.98

EV to FCF

-41.49

Earnings Yield

-5.83%

FCF Yield

-2.27%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.50

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$266.90M

Return on Equity (ROE)

-40.15%

FREE CASH FLOW

Operating Margin

-115.93%

Debt-to-Equity

0.01

Piotroski F-Score

3

Altman Z-Score

8.99

Return on Invested Capital (ROIC)

-37.31%

Current Ratio

3.94

Quick Ratio

3.94

Net Debt to EBITDA

1.68

Interest Coverage

-421.52

Gross Profit margin

37.96%

FCF PER SHARE

$-0.25

REVENUE PER SHARE

$0.54

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Gainseekers Quantitative Analysis

Summary

SoundHound AI, Inc. presents a perplexing valuation conundrum. Despite a staggering market cap, its DCF Value suggests a significant overvaluation, with the stock trading well above this metric. The negative Price/Earnings ratio and Earnings Yield highlight ongoing profitability challenges, while the Altman Z-score of 9.01 indicates financial stability, suggesting bankruptcy is not an immediate concern. However, the absence of a Forward P/E and the negative ROIC underscore a company struggling to convert its potential into tangible returns. The market appears to be pricing in future growth that is not yet evident in its financials.

AI Exposure / Tech Reliance

Positioned within the Software - Application industry, SoundHound AI is at the forefront of AI integration. Its focus on voice recognition technology aligns well with the increasing demand for AI-driven solutions. This strategic positioning could enable it to capitalize on the growing trend toward automation and intelligent systems.

The Bull Case

For the bullish investor, SoundHound AI's low Debt/Equity ratio of 0.009 suggests a fortress-like balance sheet, providing flexibility to navigate market challenges. The high Current Ratio of 4.59 indicates robust liquidity, while the Altman Z-score reassures on financial health. Despite a negative ROIC, the company's potential for explosive sales growth next year could entice those betting on a turnaround. The consensus "Buy" rating and target price further bolster the argument for future upside.

The Bear Case

Yet, the bear case is hard to ignore. The company's Price/Sales ratio of 27.08 and Price/Book of 6.48 signal a stock priced for perfection, with little room for error. Negative cash flow metrics, such as the FCF Yield and Price to FCF, reveal a business struggling to generate cash. The stock's proximity to its 52-week high suggests technical overextension, making it vulnerable to a pullback. With an Operating Margin of -108.28%, profitability remains a distant dream.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$12.50

Institutional Ownership %

1-Year Beta

2.76

Insider Buying % (6 Mo)

Distance to 52-Week High

159.00%

Distance to 52-Week Low

31.89%

EARNINGS SURPRISE %

40.00%

50-DAY SMA

$7.72

200-DAY SMA

$11.40

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.