📊 SOUNW Key Takeaways
Is Soundhound AI, Inc.. (SOUNW) a Good Investment?
SoundHound AI demonstrates impressive 99.4% YoY revenue growth and improving loss trends, indicating potential market traction. However, the company is burning $98.2M in operating cash flow annually while posting -$14.0M in net losses, suggesting a fundamentally challenged business model or unsustainable spending structure. Despite adequate cash reserves of $248.5M, the path to profitability remains unclear with negative operating margins of -13.8% and no evidence of unit economics improvement.
Why Buy Soundhound AI, Inc.. Stock? SOUNW Key Strengths
- Exceptional top-line growth of 99.4% YoY demonstrates strong market demand
- Improving losses (net income loss improved 96% YoY) suggests operational trajectory
- Strong balance sheet with $248.5M cash and zero long-term debt provides runway
- Solid liquidity position (4.59x current ratio) mitigates near-term solvency risk
SOUNW Stock Risks: Soundhound AI, Inc.. Investment Risks
- Severe operating cash flow deficit of -$98.2M indicates unsustainable burn rate despite revenue growth
- Negative free cash flow of -$99.1M with -58.7% FCF margin shows revenue is not converting to cash
- Persistent unprofitability with negative operating margin (-13.8%) and net margin (-8.3%) after achieving substantial scale
- Operating cash burn at current levels will exhaust $248.5M cash reserve in ~2.5 years if trend continues
- Missing gross margin data raises data quality concerns and masks cost structure issues
Key Metrics to Watch
- Operating cash flow inflection point (must turn positive within 12-18 months)
- Operating margin expansion path toward breakeven
- Cash burn rate relative to revenue growth (currently deteriorating)
- Gross profit realization and margin stabilization
Soundhound AI, Inc.. (SOUNW) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.59x current ratio provides a solid financial cushion.
SOUNW Profit Margin, ROE & Profitability Analysis
SOUNW vs Technology Sector: How Soundhound AI, Inc.. Compares
How Soundhound AI, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Soundhound AI, Inc.. Stock Overvalued? SOUNW Valuation Analysis 2026
Based on fundamental analysis, Soundhound AI, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Soundhound AI, Inc.. Balance Sheet: SOUNW Debt, Cash & Liquidity
SOUNW Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Soundhound AI, Inc..'s revenue has grown significantly by 443% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.40 indicates the company is currently unprofitable.
SOUNW Revenue Growth, EPS Growth & YoY Performance
SOUNW Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $25.1M | -$21.8M | $-0.06 |
| Q2 2025 | $13.5M | -$37.3M | $-0.11 |
| Q1 2025 | $11.6M | -$33.0M | $-0.12 |
| Q3 2024 | $13.3M | -$20.2M | $-0.06 |
| Q2 2024 | $8.8M | -$23.3M | $-0.11 |
| Q1 2024 | $6.7M | -$23.3M | $-0.11 |
| Q3 2023 | $11.2M | -$20.2M | $-0.09 |
| Q2 2023 | $6.2M | -$21.9M | $-0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Soundhound AI, Inc.. Dividends, Buybacks & Capital Allocation
SOUNW SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Soundhound AI, Inc.. (CIK: 0001840856)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SOUNW
What is the AI rating for SOUNW?
Soundhound AI, Inc.. (SOUNW) has an AI rating of SELL with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SOUNW's key strengths?
Claude: Exceptional top-line growth of 99.4% YoY demonstrates strong market demand. Improving losses (net income loss improved 96% YoY) suggests operational trajectory.
What are the risks of investing in SOUNW?
Claude: Severe operating cash flow deficit of -$98.2M indicates unsustainable burn rate despite revenue growth. Negative free cash flow of -$99.1M with -58.7% FCF margin shows revenue is not converting to cash.
What is SOUNW's revenue and growth?
Soundhound AI, Inc.. reported revenue of $168.9M.
Does SOUNW pay dividends?
Soundhound AI, Inc.. does not currently pay dividends.
Where can I find SOUNW SEC filings?
Official SEC filings for Soundhound AI, Inc.. (CIK: 0001840856) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SOUNW's EPS?
Soundhound AI, Inc.. has a diluted EPS of $-0.28.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SOUNW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Soundhound AI, Inc.. has a SELL rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SOUNW stock overvalued or undervalued?
Valuation metrics for SOUNW: ROE of -3.0% (sector avg: 22%), net margin of -8.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SOUNW stock in 2026?
Our dual AI analysis gives Soundhound AI, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SOUNW's free cash flow?
Soundhound AI, Inc..'s operating cash flow is $-98.2M, with capital expenditures of $902.0K. FCF margin is -58.7%.
How does SOUNW compare to other Technology stocks?
Vs Technology sector averages: Net margin -8.3% (avg: 18%), ROE -3.0% (avg: 22%), current ratio 4.59 (avg: 2.5).