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SOUN

SOUN

Technology · Software - Application

$6.97-4.84%
Mkt Cap: $3.02B

Performance

SOUN (SOUN) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

SOUN (SOUN) operates in the Software - Application space within the Technology sector. With a market cap of $3.0B, it qualifies as a small-cap company. Revenue is expanding quickly, but the company has yet to translate that growth into consistent profits — a common risk in high-growth early-stage businesses.

Bull Case3
  • Revenue grew 52% year-over-year — exceptional top-line expansion
  • Current ratio of 3.9× — ample short-term liquidity
  • Price is near its 52-week low — potential entry point with asymmetric upside
Bear Case4
  • Negative profit margin of -91.8% — company is currently unprofitable
  • Negative ROE of -39.4% — shareholder equity is being eroded
  • No dividend history — total return depends entirely on price appreciation
  • High beta of 2.73 — this stock is significantly more volatile than the broader market

Verdict

Caution

More risks than strengths. Consider waiting for fundamentals to improve before adding.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

This stock does not pay dividends.

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Aug 6, 2026

51

days

EPS (TTM)

$-0.70

P/E (TTM)

Fwd P/E

-58.1

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$3.02B
P/E Ratio
Forward P/E-58.13
P/B Ratio
PEG Ratio
EPS (TTM)$-0.70

Trading

Open
Day High
Day Low
52W High$22.17
52W Low$5.83
Volume
Avg Volume (3M)27,726,407
Beta2.73

Dividends

Dividend Yield
Annual Rate
Ex-Div Date
Payout Ratio0.00%

Profitability

Profit Margin-91.84%
Operating Margin-139.30%
ROE-39.40%
ROA-19.67%
Revenue Growth51.70%
Earnings Growth

Balance Sheet

Total Revenue$183.99M
Total Debt$6.23M
Debt / Equity1.35
Current Ratio3.94
Free Cash Flow$-16,690,625

Fair Value Estimates

Current price: $6.97

Graham Number

√(22.5 × EPS × Book Value)

N/A

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

N/A

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

4/10

57% score

Pays dividends

No dividend history found

Dividend consistency (5Y+)

Uninterrupted dividend payments for at least 5 years

ROE above 10%

-39.4%

Return on equity — measures how efficiently capital is used

Positive profit margin

-91.8%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+51.7%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

1.35×

Low financial leverage reduces risk of distress

Current ratio above 1

3.94×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$193M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

Stock must distribute income to shareholders

Related Assets

Technology

About SOUN

SoundHound AI, Inc. provides independent voice artificial intelligence (AI) solutions that enables businesses across the automotive, TV, IoT, and customer service industries to deliver conversational experiences to customers in the United States, Korea, France, Japan, Germany, and internationally. The company offers Houndify platform, which provides a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI, a voice assistant with integrated generative AI that integrates with knowledge domains, pulling real-time data, such as weather, sports, stocks, flight status, restaurants, and other data; and SoundHound Smart Answering, which offers customer establishments the option to build an easy to use custom AI-powered voice assistant. It also provides CaiNET software that uses machine learning to enhance how domains work together to handle complex queries; CaiLAN software that arbitrates responses, so users get answers from the right domain; Dynamic Interaction, a real-time multimodal customer service interface; Smart Ordering, which offers an easy-to-understand voice assistant for restaurants; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; Employee Assist; and edge and cloud connectivity, which includes embedded voice solutions. In addition, the company offers Amelia Platform, which builds AI agents for enterprises; Chat AI for Automotive; Dynamic Drive-Thru for GenAI; Voice Commerce, which connects drivers and merchants with Voice AI; Autonomics Platform; Custom Voice AI Solutions; Voice AI Platform; and SoundHound Music App. SoundHound AI, Inc. was founded in 2005 and is headquartered in Santa Clara, California.

Sector

Technology

Industry

Software - Application

Location

Santa Clara, United States

Employees

954