SOUN Stock Analysis: SoundHound AI | NASDAQ

Software - Application | NASDAQ, USA | Market Cap: 2.589m USD | 12M Return: -67.3% | US8361001071 | Charts, Fundamentals & Technical Analysis

Voice AI, Restaurant Ordering, Automotive Assistants, Music App
Total Rating 17
Safety 37
Buy Signal -1.35
Software - Application
Industry Rotation: -20.0
Market Cap: 2.59B
Avg Turnover: 113M
Risk 3d forecast
Volatility67.2%
VaR 5th Pctl9.87%
VaR vs Median-10.9%
Reward TTM
Sharpe Ratio-1.31
Rel. Str. IBD4.6
Rel. Str. Peer Group5
Character TTM
Beta2.608
Beta Downside1.745
Hurst Exponent0.537
Drawdowns 3y
Max DD76.48%
CAGR/Max DD0.56
CAGR/Mean DD0.95
EPS (Earnings per Share) EPS (Earnings per Share) of SOUN over the last years for every Quarter: "2021-09": -0.01, "2021-12": -0.04, "2022-03": -2, "2022-06": -0.19, "2022-09": -0.15, "2022-12": -0.15, "2023-03": -0.13, "2023-06": -0.1, "2023-09": -0.09, "2023-12": -0.07, "2024-03": -0.07, "2024-06": -0.04, "2024-09": -0.04, "2024-12": -0.05, "2025-03": -0.06, "2025-06": -0.19, "2025-09": -0.03, "2025-12": 0.1, "2026-03": -0.06, "2026-06": -0.1,
Last SUE: 0.34
Qual. Beats: 0
Revenue Revenue of SOUN over the last years for every Quarter: 2021-09: 4.028, 2021-12: 5.151, 2022-03: 4.29, 2022-06: 6.152, 2022-09: 11.186, 2022-12: 9.501, 2023-03: 6.707, 2023-06: 8.751, 2023-09: 13.268, 2023-12: 17.147, 2024-03: 11.594, 2024-06: 13.462, 2024-09: 25.094, 2024-12: 34.543, 2025-03: 29.129, 2025-06: 42.683, 2025-09: 42.049, 2025-12: 55.059, 2026-03: 44.195, 2026-06: 61.897,
Rev. CAGR: 91.38%
Rev. Trend: 99.4%
Last SUE: 2.88
Qual. Beats: 1

Warnings

Interest Coverage Ratio Critical
Altman Z'' In Financial Distress Zone
Volatile
Below Avwap Earnings
Below Sma 200d

Tailwinds

No distinct edge detected

Seasonality 4.4 years of data

Jan -19.9% 47
Feb -2.1% 11
Mar -21.6% 48
Apr +1.6% 0
May +9.5% 45
Jun -1.3% 18
Jul -4.1% 19
Aug +13.7% 27
Sep -0.4% 11
Oct +0.3% 11
Nov +22.1% 12
Dec -4.3% 12

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: SOUN SoundHound AI

SoundHound AI, Inc. is an independent voice artificial intelligence company that provides conversational AI solutions to businesses across the automotive, TV, IoT, and customer service sectors. It operates in the United States, Korea, France, Japan, Germany, and other international markets, and is headquartered in Santa Clara, California, having been founded in 2005.

The companys core offerings include the Houndify platform for building custom voice assistants, SoundHound Chat AI (a voice assistant with integrated generative AI), and SoundHound Smart Answering for customer service use cases. It also sells supporting technologies such as automatic speech recognition, natural language understanding, text-to-speech, and edge/cloud connectivity solutions.

Additional products span enterprise and automotive applications, including the Amelia Platform for AI agents, Chat AI for Automotive, Dynamic Drive-Thru, Voice Commerce, Smart Ordering for restaurants, and the SoundHound Music App. As a GICS-classified Application Software company in the Information Technology sector, SoundHound AI operates in the broader conversational AI market, which encompasses speech recognition, natural language processing, and generative AI-driven voice interfaces.

Headlines to Watch Out For
  • Stellantis and Hyundai contracts boost automotive revenue
  • Drive-thru AI adoption accelerates in restaurant segment
  • Dilutive capital raises weigh on share price
Piotroski VR-10 (Strict) 0.5
Net Income: -137.1m TTM > 0 and > 6% of Revenue
FCF/TA: -0.18 > 0.02 and ΔFCF/TA 1.79 > 1.0
NWC/Revenue: 101.5% < 20% (prev 170.2%; Δ -68.74% < -1%)
CFO/TA -0.17 > 3% & CFO -114.5m > Net Income -137.1m
Net Debt/EBITDA: error (EBITDA <= 0)
Current Ratio: 3.91 > 1.5 & < 3
Outstanding Shares: last quarter (428.2m) vs 12m ago 6.50% < -2%
Gross Margin: 37.37% > 18% (prev 40.52%; Δ -3.15% > 0.5%)
Asset Turnover: 32.58% > 50% (prev 22.68%; Δ 9.90% > 0%)
Interest Coverage Ratio: -345.3 > 6 (EBIT TTM -137.4m / Interest Expense TTM 398k)
Altman Z'' -1.56
A: 0.31 (Total Current Assets 277.0m - Total Current Liabilities 70.9m) / Total Assets 667.9m
B: -1.53 (Retained Earnings -1.02b / Total Assets 667.9m)
C: -0.22 (EBIT TTM -137.4m / Avg Total Assets 623.7m)
D: 2.76 (Book Value of Equity 490.4m / Total Liabilities 177.5m)
Altman-Z'' = -1.56 = D
Beneish M -2.51
DSRI: 0.96 (Receivables 61.9m/41.6m, Revenue 203.2m/131.4m)
GMI: 1.08 (GM 40.52% / 37.37%)
AQI: 1.14 (AQ_t 0.57 / AQ_t-1 0.50)
SGI: 1.55 (Revenue 203.2m / 131.4m)
TATA: -0.03 (NI -137.1m - CFO -114.5m) / TA 667.9m)
Beneish M = -2.51 (Cap -4..+1) = A
What is the price of SOUN shares?

As of October 04, 2026, the stock is trading at USD 5.84 with a total of 23,317,445 shares traded. Over the past week, the price has changed by -3.47%, over one month by -13.86%, over three months by -10.84% and over the past year by -67.26%.

Current recommended Stop Loss: 5.50 (which is 5.8% or 1.3 ATR below the current price).

Is SOUN a buy, sell or hold?

SoundHound AI has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy SOUN.

  • StrongBuy: 3
  • Buy: 2
  • Hold: 3
  • Sell: 0
  • StrongSell: 0

What are the forecasts/targets for the SOUN price?
Analysts Target Price 12.6 115.2%
SoundHound AI (SOUN) - Fundamental Data Overview as of 30 September 2026
Market Cap USD = 2.59b (2.59b USD * 1.0 USD.USD)
P/E Forward = 227.2727
P/S = 12.742
P/B = 5.5375
Revenue TTM = 203.2m USD
EBIT TTM = -137.4m USD
EBITDA TTM = -57.8m USD
Long Term Debt = 2.76m USD (estimated: total debt 5.44m - short term 2.68m)
Short Term Debt = 2.68m USD (from shortTermDebt, last quarter)
Debt = 5.44m USD (from shortLongTermDebtTotal, last quarter) (leases 5.44m already included)
Net Debt = -197.3m USD (calculated: Debt 5.44m - CCE 202.8m)
Enterprise Value = 2.39b USD (2.59b + Debt 5.44m - CCE 202.8m)
Interest Coverage Ratio = -345.3 (Ebit TTM -137.4m / Interest Expense TTM 398k)
EV/FCF = -20.26x (Enterprise Value 2.39b / FCF TTM -118.0m)
FCF Yield = -4.94% (FCF TTM -118.0m / Enterprise Value 2.39b)
FCF Margin = -58.09% (FCF TTM -118.0m / Revenue TTM 203.2m)
Net Margin = -67.45% (Net Income TTM -137.1m / Revenue TTM 203.2m)
Gross Margin = 37.37% ((Revenue TTM 203.2m - Cost of Revenue TTM 127.3m) / Revenue TTM)
Gross Margin QoQ = 36.77% (prev 20.15%)
Tobins Q-Ratio = 3.58 (Enterprise Value 2.39b / Total Assets 667.9m)
Interest Expense / Debt = 7.32% (Interest Expense 398k / Debt 5.44m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -108.6m (EBIT -137.4m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 3.91 (Total Current Assets 277.0m / Total Current Liabilities 70.9m)
Debt / Equity = 0.01 (Debt 5.44m / totalStockholderEquity, last quarter 490.4m)
 Debt / EBITDA = 3.41 (negative EBITDA) (Net Debt -197.3m / EBITDA -57.8m)
 Debt / FCF = 1.67 (negative FCF - burning cash) (Net Debt -197.3m / FCF TTM -118.0m)
 Total Stockholder Equity = 453.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -21.98% (Net Income -137.1m / Total Assets 667.9m)
RoE = -30.22% (Net Income TTM -137.1m / Total Stockholder Equity 453.5m)
RoCE = -30.12% (EBIT -137.4m / Capital Employed (Equity 453.5m + L.T.Debt 2.76m))
 RoIC = -18.42% (negative operating profit) (NOPAT -108.6m / Invested Capital 589.5m)
 WACC = 15.14% (E(2.59b)/V(2.59b) * Re(15.16%) + D(5.44m)/V(2.59b) * Rd(7.32%) * (1-Tc(0.21)))
Discount Rate = 15.16% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 67.26 | Cagr: 19.53%
 [DCF] Fair Price = unknown (Cash Flow -118.0m)
 EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.34 | # QB: 0
Revenue Correlation: 99.36 | Revenue CAGR: 91.38% | SUE: 2.88 | # QB: 1
EPS current Quarter (2026-09-30): EPS=-0.06 | Chg30d=+0.00% | Revisions=-25% | Analysts=5
EPS current Year (2026-12-31): EPS=-0.18 | Chg30d=-2.25% | Revisions=+0% | GrowthEPS=-40.0% | GrowthRev=+49.0%
EPS next Year (2027-12-31): EPS=-0.10 | Chg30d=+32.20% | Revisions=-25% | GrowthEPS=+45.1% | GrowthRev=+55.0%
[Analyst] Revisions Ratio: -29% (up=1, down=3)