One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
SoundHound AI, Inc.
SOUN · NGM · Technology · Software - Application
Current price
$6.12
52-week range
$5.65 - $22.17
Market cap
$2.72B
Balance sheet
Healthy
-278.21x Concerning
Net cash $197.34M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Revenue grew 99.4% last year.
- Risk Return on equity was -32.2% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 1.9% (peer median: 3.4%).
What this company does
SoundHound AI, Inc.
SoundHound AI creates voice recognition technology that companies like car makers and restaurants use to build their own voice assistants, similar to an Alexa or Siri for their specific brand. The company primarily earns money by charging these businesses ongoing fees to use its software platform, creating a stream of recurring revenue (predictable income from subscriptions or licensing). This matters because it allows any brand to add advanced voice features to its products without having to develop the complex AI technology themselves.
How the company got here
SoundHound AI was started in 2005 by three founders who were fascinated with the idea of talking to machines as naturally as we talk to each other. For many years, its most well-known product was a music recognition app, similar to Shazam, which helped build its brand and technology. A key turning point was in 2015 when the company launched its Houndify platform, shifting its focus to providing voice AI (artificial intelligence) technology to other businesses. This move allowed companies in industries like automotive and restaurants to build their own custom voice assistants, setting the stage for its growth. The company went public in 2022, which provided more funds to expand its reach and technology.
What it actually does
SoundHound AI creates voice and conversational intelligence software that lets people interact with products and services by speaking naturally. Think of it as the technology that powers the voice assistant in a car, allowing you to ask for directions or play music hands-free, or the automated voice that takes your order at a restaurant's drive-thru. The company provides the underlying AI that allows businesses to create their own branded voice experiences instead of using a generic one from a big tech company. This technology is designed to understand complex sentences and even follow-up questions, making the interaction feel more like a real conversation.
Automotive
A major part of SoundHound's business is providing voice assistants for car manufacturers. Automakers pay SoundHound to embed its technology into their vehicle infotainment systems (the screen in the dashboard). This allows drivers to control things like navigation, music, and even ask questions about the car's features using their voice, all under the car maker's own brand. This is a significant business because a single deal with a car company can lead to steady revenue (money earned from sales) for many years as new cars are produced.
Restaurants & Hospitality
SoundHound also provides voice AI solutions for restaurants, especially quick-service chains. Restaurants pay for services like 'Smart Ordering' and 'Smart Answering', where an AI-powered assistant takes customer orders over the phone or at the drive-thru. This helps restaurants handle more orders, especially during busy times, and frees up employees to focus on other tasks. This has become a fast-growing slice of their business, particularly after acquiring other companies specializing in restaurant technology.
Enterprise Conversational AI
This segment provides a broad platform, now called OASYS, that allows all kinds of businesses to build and manage their own AI agents for customer service. Companies pay licensing or subscription fees to use this platform to create voice assistants for their apps, websites, or customer support phone lines. For example, a bank could use it to create an AI agent that helps customers with common questions about their accounts. This part of the business has grown through acquisitions (buying other companies) to serve a wider range of industries like healthcare and financial services.
What management is betting on now
Management is heavily focused on expanding its enterprise business, moving beyond just cars to power customer service AI for many different industries. They are making aggressive acquisitions (buying other tech companies) to quickly add new capabilities and customer bases, especially in restaurant and enterprise software. The company is also investing in making its AI more advanced by integrating generative AI, the same kind of technology behind ChatGPT, to make conversations more natural and helpful. A key part of their strategy is offering businesses a way to have powerful voice AI without giving up control of their brand and customer data to big tech giants.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-35.54M
FY2024 Q4
$-33.20M
FY2025 Q1
$-19.35M
FY2025 Q2
$-24.69M
FY2025 Q3
$-32.83M
FY2025 Q4
$-22.26M
FY2026 Q1
$-26.73M
FY2026 Q2
$-34.06M
Revenue
—
Net income
$-42.82M
Diluted EPS
-0.10
Operating cash flow
$-33.71M
Free cash flow
$-34.06M
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Sources
Revenue
—
Net income
$-25.03M
Diluted EPS
-0.11
Operating cash flow
$-26.26M
Free cash flow
$-26.73M
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Sources
Revenue
—
Net income
$40.06M
Diluted EPS
-0.13
Operating cash flow
$-21.89M
Free cash flow
$-22.26M
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Sources
Revenue
—
Net income
$-109.27M
Diluted EPS
-0.27
Operating cash flow
$-32.65M
Free cash flow
$-32.83M
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Sources
Revenue
—
Net income
$-74.72M
Diluted EPS
-0.19
Operating cash flow
$-24.50M
Free cash flow
$-24.69M
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Sources
Revenue
—
Net income
$129.93M
Diluted EPS
0.31
Operating cash flow
$-19.18M
Free cash flow
$-19.35M
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Sources
Revenue
—
Net income
$-258.60M
Diluted EPS
-0.75
Operating cash flow
$-33.12M
Free cash flow
$-33.20M
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Sources
Revenue
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Net income
$-21.75M
Diluted EPS
-0.06
Operating cash flow
$-35.31M
Free cash flow
$-35.54M
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Sources
Is it cheap or expensive?
Fair value — vs current price $6.12
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $197.3M - more cash than debt. Interest coverage -278.2x.
Net debt
$-197.34M
Interest coverage
-278.21x
SoundHound AI, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SOUN
BASELINE
SoundHound AI, Inc.
Total debt $5.44M Interest coverage -278.21x This is the baseline the peer rows are being compared against.
Total debt $187.05M Interest coverage 1.28x This peer still has a real interest-payment cushion, while SOUN does not.
Total debt $59.47M Interest coverage -17.14x Neither company has much profit cushion over interest right now.
Total debt $22.75M Interest coverage -4.60x Neither company has much profit cushion over interest right now.
Total debt $398.56M Interest coverage -0.80x Neither company has much profit cushion over interest right now.
Total debt $5.51M Interest coverage -449.21x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SOUN
1 Reward
2 Risks
Rewards
-
Revenue grew 99.4% last year.
Risks
-
Return on equity was -32.2% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 1.9% (peer median: 3.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-41.49x
P/B
5.44x
P/S
13.38x
EV/EBITDA
-16.45x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
42.3%
Operating margin
-75.9%
Net margin
-67.5%
ROE
-32.2%
ROA
-19.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
3.91x
Quick ratio
3.73x
Total debt
$5.44M
Total cash
$202.78M
Growth
How the business has been compounding
Revenue TTM
$203.20M
Revenue 5Y CAGR
75.7%
EPS TTM
-0.62
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-114.51M
Free CF TTM
$-99.12M
FCF margin
-48.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—