SOUN

Company Overview — What Does SOUNDHOUND AI, INC. Do?

SoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California. SOUNDHOUND AI, INC. (SOUN) is classified as a mid-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Keyvan Mohajer and employs approximately 200 people. With a market capitalization of $2.8B, SOUN is one of the notable companies in the Technology sector.

SOUNDHOUND AI, INC. (SOUN) Stock Rating — Avoid (April 2026)

As of April 2026, SOUNDHOUND AI, INC. receives a Avoid rating with a composite score of 23.2/100 and 1 out of 5 stars from the Blank Capital Research quantitative model.SOUN ranks #4,300 out of 4,446 stocks in our coverage universe. Within the Technology sector, SOUNDHOUND AI, INC. ranks #566 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

SOUN Stock Price and 52-Week Range

SOUNDHOUND AI, INC. (SOUN) currently trades at $6.45. The stock lost $0.10 (1.5%) in the most recent trading session. The 52-week high for SOUN is $22.17, which means the stock is currently trading -70.9% from its annual peak. The 52-week low is $6.52, putting the stock -1.1% above its annual trough. Recent trading volume was 17.4M shares, indicating strong institutional interest and high liquidity.

Is SOUN Overvalued or Undervalued? — Valuation Analysis

SOUNDHOUND AI, INC. (SOUN) carries a value factor score of 35/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 6.11x, versus the sector average of 3.16x. The price-to-sales ratio is 20.39x, compared to 1.06x for the average Technology stock.

At current multiples, SOUNDHOUND AI, INC. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

SOUNDHOUND AI, INC. Profitability — ROE, Margins, and Quality Score

SOUNDHOUND AI, INC. (SOUN) earns a quality factor score of 18/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -16.4%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -11.0% versus the sector average of -1.0%.

On a margin basis, SOUNDHOUND AI, INC. reports gross margins of 41.7%, compared to 50.9% for the sector. The operating margin is -38.3% (sector: -0.5%). Net profit margin stands at -18.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 212.3% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

SOUN Debt, Balance Sheet, and Financial Health

SOUNDHOUND AI, INC. has a debt-to-equity ratio of 48.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 4.59x, indicating strong short-term liquidity. Total debt on the balance sheet is $3M. Cash and equivalents stand at $269M.

SOUN has a beta of 2.65, meaning it is more volatile than the broader market — a $10,000 investment in SOUN would be expected to move 164.7% more than the S&P 500 on any given day. The stability factor score for SOUNDHOUND AI, INC. is 20/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

SOUNDHOUND AI, INC. Revenue and Earnings History — Quarterly Trend

In TTM 2026, SOUNDHOUND AI, INC. reported revenue of $139M and earnings per share (EPS) of $-0.03. Net income for the quarter was $-76M. Gross margin was 41.7%. Operating income came in at $-100M.

In FY 2025, SOUNDHOUND AI, INC. reported revenue of $169M and earnings per share (EPS) of $-0.03. Net income for the quarter was $-14M. Gross margin was 42.4%. Revenue grew 99.4% year-over-year compared to FY 2024. Operating income came in at $-23M.

In Q3 2025, SOUNDHOUND AI, INC. reported revenue of $42M and earnings per share (EPS) of $-0.27. Net income for the quarter was $-109M. Gross margin was 42.6%. Revenue grew 67.6% year-over-year compared to Q3 2024. Operating income came in at $-116M.

In Q2 2025, SOUNDHOUND AI, INC. reported revenue of $43M and earnings per share (EPS) of $-0.19. Net income for the quarter was $-75M. Gross margin was 39.0%. Revenue grew 217.1% year-over-year compared to Q2 2024. Operating income came in at $-78M.

Over the past 8 quarters, SOUNDHOUND AI, INC. has demonstrated a growth trajectory, with revenue expanding from $13M to $139M. Investors analyzing SOUN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

SOUN Dividend Yield and Income Analysis

SOUNDHOUND AI, INC. (SOUN) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.

SOUN Momentum and Technical Analysis Profile

SOUNDHOUND AI, INC. (SOUN) has a momentum factor score of 21/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 21/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 34/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

SOUN vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, SOUNDHOUND AI, INC. (SOUN) ranks #566 out of 584 stocks based on the Blank Capital composite score. This places SOUN in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing SOUN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full SOUN vs S&P 500 (SPY) comparison to assess how SOUNDHOUND AI, INC. stacks up against the broader market across all factor dimensions.

SOUN Next Earnings Date

No upcoming earnings date has been announced for SOUNDHOUND AI, INC. (SOUN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy SOUN? — Investment Thesis Summary

The quantitative profile for SOUNDHOUND AI, INC. suggests caution. The quality score of 18/100 flags below-average profitability. The value score of 35/100 indicates premium valuation. Momentum is weak at 21/100, a headwind for near-term performance. High volatility (stability score 20/100) increases portfolio risk.

In summary, SOUNDHOUND AI, INC. (SOUN) earns a Avoid rating with a composite score of 23.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on SOUN stock.

Related Resources for SOUN Investors

Explore more research and tools: SOUN vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare SOUN head-to-head with peers: SOUN vs IHS, SOUN vs VRSN, SOUN vs ESE.