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Upturn AI Summary - About
SoundHound AI Inc(SOUN)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for SOUN
09/25/2026: SOUN (1-star) is currently NOT-A-BUY. Pass it for now.
SoundHound AI is a software provider specializing in voice-enabled AI and conversational intelligence for automotive and retail enterprises. The company has a leading position in niche enterprise segments, leveraging proprietary technology to differentiate itself from massive, general-purpose competitors. Its primary growth opportunity lies in scaling automated voice-ordering for restaurants and increasing its footprint within automotive dashboards. However, the company faces significant execution risks, including stiff competition from large-cap tech players and a history of operating losses. SoundHound AI may best suit high-growth investors comfortable with volatility, who should monitor quarterly enterprise contract wins and paths toward long-term profitability.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company operates in the high-growth AI software sector with significant scaling potential. |
| Momentum investor | Strong fit while signal remains positive | Stock price often reacts aggressively to AI sector news and enterprise partnership announcements. |
| Value investor | Weak fit | Current valuation is based on growth expectations rather than existing earnings multiples. |
| Dividend investor | Weak fit | The company is in an aggressive growth phase and does not pay dividends. |
| Low-risk investor | Weak fit | High volatility and pre-profit status make this unsuitable for risk-averse investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is subject to significant daily price swings typical of small-cap tech growth companies. |
| Valuation risk | High | Investors are paying for future growth that has yet to be fully validated by consistent profitability. |
| Competition risk (AI competition) | High | Major tech giants with vast resources pose a constant threat to SoundHound's market share. |
| Business quality | Medium | The company provides specialized, sticky software, but it lacks the scale of dominant industry leaders. |
| Dividend income | Low / none | Capital preservation and income are not primary features of this investment. |
| Execution risk | Medium / high | Success depends on the company's ability to maintain technological parity and secure long-term enterprise contracts. |
Price Behavior

Steep Decline
The stock price has dropped sharply with strong downward pressure.

Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 41.55% | Avg. Invested days 25 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.69B USD | Price to earnings Ratio - | 1Y Target Price 12.57 |
Price to earnings Ratio - | 1Y Target Price 12.57 | ||
Volume (30-day avg) 22.4M shares | Beta 2.83 | 52 Weeks Range 5.65 - 22.17 | Updated Date 09/27/2026 |
52 Weeks Range 5.65 - 22.17 | Updated Date 09/27/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.62 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription & Royalties | Revenue from licensing voice AI software to automotive and enterprise customers. | This is recurring, predictable income from ongoing platform usage. |
| Professional Services | Customization and deployment support for clients implementing SoundHound technology. | These are one-time project fees that support the primary product implementation. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE - | Forward PE 227.27 | Enterprise Value 2.52B | Price to Sales(TTM) 13.22 |
Enterprise Value 2.52B | Price to Sales(TTM) 13.22 | ||
Enterprise Value to Revenue 12.39 | Enterprise Value to EBITDA 135.77 | Shares Outstanding 411.58M | Shares Floating 401.07M |
Shares Outstanding 411.58M | Shares Floating 401.07M | ||
Percent Insiders 1.92 | Percent Institutions 38.59 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About SoundHound AI Inc
Exchange NASDAQ | Headquarters Santa Clara, CA, United States | ||
IPO Launch date 2022-04-28 | Co-Founder, CEO, President & Director Dr. Keyvan Mohajer | ||
Sector Technology | Industry Software - Application | Full time employees 954 | Website https://www.soundhound.com |
Full time employees 954 | Website https://www.soundhound.com | ||
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.

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