SoundHound AI Inc logo

SoundHound AI Inc(SOUN)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$6.05
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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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 styleFitWhy
Growth investorStrong fitThe company operates in the high-growth AI software sector with significant scaling potential.
Momentum investorStrong fit while signal remains positiveStock price often reacts aggressively to AI sector news and enterprise partnership announcements.
Value investorWeak fitCurrent valuation is based on growth expectations rather than existing earnings multiples.
Dividend investorWeak fitThe company is in an aggressive growth phase and does not pay dividends.
Low-risk investorWeak fitHigh volatility and pre-profit status make this unsuitable for risk-averse investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is subject to significant daily price swings typical of small-cap tech growth companies.
Valuation riskHighInvestors are paying for future growth that has yet to be fully validated by consistent profitability.
Competition risk (AI competition)HighMajor tech giants with vast resources pose a constant threat to SoundHound's market share.
Business qualityMediumThe company provides specialized, sticky software, but it lacks the scale of dominant industry leaders.
Dividend incomeLow / noneCapital preservation and income are not primary features of this investment.
Execution riskMedium / highSuccess depends on the company's ability to maintain technological parity and secure long-term enterprise contracts.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
SOUN receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, soft quantitative characteristics, and weak price momentum.

Company Fundamentals

★★★★★
SOUN has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and moderate ownership. In FY2025 versus FY2024, strong earnings growth (+96.0%) and strong revenue growth (+99.4%) are partially offset by soft cash generation (FCF margin -61.0%), soft profitability (net margin -8.3%), modest insider ownership of 1.92%.

Financial Health Rating

★★★★★
SOUN's financial health is supported by moderate liquidity, including working-capital and asset support (WC/assets 37.4%). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is SOUN's strongest growth driver at +99.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+96.0%, strong) is also strong, while free-cash-flow growth (+5.8%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 38.6% and approximately 97.4% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.92% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 7.30%
Vanguard Portfolio Management, LLC 5.75%
Vanguard Capital Management, LLC 3.92%
Geode Capital Management, LLC 2.16%
State Street Corp 2.05%

Unit Economics (Per $1K Revenue)

★★★★★
SOUN generates approximately $424 of gross profit, $-138 of operating income, and $-610 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: -51.02% (Tax Credit)

Quantitative Style Profile

★★★★★
SOUN has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

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 areaWhat it includesRetail investor read
Subscription & RoyaltiesRevenue from licensing voice AI software to automotive and enterprise customers.This is recurring, predictable income from ongoing platform usage.
Professional ServicesCustomization 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

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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

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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
Full time employees 954

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.