SoundHound AI, Inc. (SOUN) AI Stock Analysis

SoundHound AI, Inc. is a Santa Clara, California-based software company that develops an advanced voice artificial intelligence platform designed to help businesses deliver conversational experiences. Its primary product is the Houndify platform, which offers a suite of tools for brands building custom voice assistants. These technologies include automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech capabilities, and embedded voice solutions. The platform serves multiple industries, facilitating use cases such as automated customer service interactions and voice accessibility features across consumer electronics.

Revenue increased from $21.2M in FY2021 to $168.9M in FY2025, posting a 5-year revenue CAGR of 67.0%. FY2025 revenue grew 99.4% year-over-year, following 84.6% growth in FY2024. Gross margin declined to 42.4% in FY2025 from 48.9% in FY2024 and 75.4% in FY2023. Operating margin improved to -13.8% in FY2025 from -403.0% in FY2024, while net loss narrowed to -$14.0M compared to -$350.7M. Over the trailing twelve months ended June 30, 2026, revenue stood at $203.2M with a net profit margin of -67.5% and diluted EPS of -$0.62. In the quarter ended June 30, 2026, quarterly revenue grew 45.0% year-over-year.

As of June 30, 2026, SoundHound AI held $202.8M in cash and short-term investments against total debt of $5.4M, resulting in net cash of $197.3M. Total assets were $667.9M, shareholders' equity was $490.4M, and the current ratio stood at 3.91, alongside a debt-to-equity ratio of 0.01. The company has historically absorbed cash through operations, generating operating cash flow of -$98.2M and free cash flow of -$103.1M in FY2025. Capital expenditures totaled $4.9M in FY2025, and the 5-year change in share count was 114.0%.

SoundHound AI trades at a market capitalization of $2.10B and an enterprise value of $2.52B. Its forward P/E is 227.3x, compared to the median of 18.8x for its US-listed Technology peers. Its price-to-sales ratio is 10.3x versus the peer median of 2.8x, and its EV-to-EBITDA ratio is 135.8x compared to the peer median of 16.6x. The stock closed at $4.72 on October 16, 2026, having fallen 77.3% over the past year and 52.7% year-to-date, while the S&P 500 benchmark (SPY) gained 16.8% over the past year.

Wall Street coverage includes 6 Strong Buy and 2 Hold ratings, with 0 Buy, Sell, or Strong Sell ratings. The mean price target is $12.57, representing an upside of 166.3% over the last close of $4.72. For the current fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.16 on revenue of $293.7M. For the next fiscal year, analysts forecast an EPS of -$0.10 and revenue of $390.2M. The company beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 5, 2026.

This page is an AI-written research summary of SoundHound AI, Inc. (SOUN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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