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SoundHound AI, Inc Class A
(NASDAQ:SOUN)
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Rating:56Neutral
Price Target:
$7.00
▼(-0.71% Downside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by weak financial performance (large losses and ongoing cash burn) and a soft technical trend (price below key longer-term moving averages). Offsetting factors include a strong balance sheet with no debt, a favorable earnings call with raised revenue guidance and improving margins/loss metrics, and positive M&A-driven scale potential from the completed LivePerson acquisition. Valuation is difficult to anchor given negative earnings and no dividend data.
Positive Factors
Strong revenue growth and improving margins
Rapid revenue growth combined with expanding GAAP gross margin indicates increasing customer adoption and improving economics in the core offering. If sustained, this operating scale can support greater efficiency, strengthen market position, and provide a foundation for future profitability.
Negative Factors
Large losses and continued cash consumption
Persistent operating and free-cash-flow deficits show that strong revenue growth has not yet translated into self-funded operations. Continued cash consumption can constrain investment flexibility and increase dependence on the company’s cash balance or future financing until profitability and cash conversion improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and improving margins
Rapid revenue growth combined with expanding GAAP gross margin indicates increasing customer adoption and improving economics in the core offering. If sustained, this operating scale can support greater efficiency, strengthen market position, and provide a foundation for future profitability.
Read all positive factors
SoundHound AI, Inc Class A Key Performance Indicators (KPIs)
Any
Revenue by Service Type
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Breaks down revenue by different service offerings, indicating which services drive growth and where the company might expand or face competition.
Data provided by:
The Fly
The FlySoundHound AI, Inc Class A (SOUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99B
Dividend YieldN/A
Average Volume (3M)30.68M
Price to Earnings (P/E)―
Beta (1Y)3.46
Revenue Growth54.58%
EPS Growth45.83%
CountryUS
Employees954
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.33
Shares Outstanding411,574,430
10 Day Avg. Volume23,087,994
30 Day Avg. Volume30,683,976
Financial Highlights & Ratios
PEG Ratio2.98
Price to Book (P/B)8.72
Price to Sales (P/S)23.93
P/FCF Ratio-39.20
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$12.00Price Target Upside70.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.39
Revenue Forecast (FY)$237.37M
SoundHound AI, Inc Class A Business Overview & Revenue Model
Company Description
SoundHound AI, Inc. (SOUN) creates and provides its own artificial intelligence platform, exclusively focused on voice technology. This technology empowers companies across a wide range of industries to offer sophisticated and engaging conversatio...
How the Company Makes Money
SoundHound AI primarily makes money by licensing and providing access to its voice AI technology to business customers, typically through contracts that can include (a) recurring subscription or usage-based fees for its software/services and (b) p...
SoundHound AI, Inc Class A Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call communicated strong operational momentum: record quarterly revenue (61.9M), high growth rates (+45% YoY), improved margins, robust product traction after the OASYS launch, meaningful enterprise and regional wins, a healthy cash position ($203M) and constructive acquisition progress on LivePerson. Key negatives are that GAAP losses remain sizable (operating loss $43.3M, net loss $42.8M), adjusted EBITDA is still negative (-$9.6M), and there are near-term margin and expense headwinds tied to acquisitions and integration. Management provided an increased revenue outlook for the year ($230M–$260M) but excluded LivePerson contribution due to timing uncertainty. Overall, the positives (strong growth, product-led wins, pipeline, balance sheet strength) outweigh the negatives (continued GAAP losses, integration and acquisition-related costs, conversion timing risks), supporting a favorable outlook with execution risks to monitor.Positive Updates
Record Quarter Revenue and Rapid Growth
Revenue of $61.9M (CEO referenced $62M) in Q2 2026, up 45% year-over-year, up ~40% sequentially, and ~10x higher than Q2 four years ago.
Negative Updates
Continued GAAP Losses and Negative Adjusted EBITDA
GAAP operating loss of $43.3M and GAAP net loss of $42.8M (GAAP net loss per share $0.10); adjusted EBITDA remains negative at -$9.6M (though improved 33% YoY); non-GAAP net loss $9.0M (non-GAAP EPS -$0.02).
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarter Revenue and Rapid Growth
Revenue of $61.9M (CEO referenced $62M) in Q2 2026, up 45% year-over-year, up ~40% sequentially, and ~10x higher than Q2 four years ago.
Read all positive updates
Company Guidance
SoundHound raised its 2026 revenue outlook to $230–$260 million (guidance does not include the LivePerson acquisition), said LivePerson should close by year‑end and that management will update guidance after closing; management also previously indicated pro forma revenue of at least $350–$400 million for next year assuming the merger. For context, Q2 revenue was $61.9M (up 45% YoY, ~40% sequentially), GAAP gross margin was 45% (+6 pts YoY) and non‑GAAP gross margin 58% (flat YoY, +8 pts sequentially), GAAP operating loss was $43.3M (improved 45% YoY), adjusted EBITDA loss was $9.6M (improved 33% YoY), GAAP net loss $42.8M (EPS -$0.10), non‑GAAP net loss $9M (EPS -$0.02), cash and equivalents $203M with no debt, and the company expects to drive gross margin to >70% over time as acquisition synergies and in‑house model improvements are realized.SoundHound AI, Inc Class A Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
33
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 203.20M | 168.92M | 84.69M | 45.87M | 31.13M | 21.20M |
| Gross Profit | 75.93M | 71.55M | 41.38M | 34.57M | 21.53M | 14.61M |
| EBITDA | -57.80M | 25.53M | -329.09M | -62.63M | -99.70M | -61.65M |
| Net Income | -137.06M | -14.01M | -350.68M | -88.94M | -116.71M | -79.54M |
Balance Sheet | ||||||
| Total Assets | 667.89M | 688.17M | 553.95M | 151.12M | 37.99M | 49.20M |
| Cash, Cash Equivalents and Short-Term Investments | 202.78M | 248.49M | 198.24M | 95.26M | 9.24M | 21.63M |
| Total Debt | 5.44M | 4.21M | 4.35M | 90.16M | 44.12M | 73.32M |
| Total Liabilities | 177.46M | 224.39M | 371.30M | 122.95M | 74.55M | 392.44M |
| Stockholders Equity | 490.43M | 463.79M | 182.65M | 28.17M | -36.56M | -343.24M |
Cash Flow | ||||||
| Free Cash Flow | -118.04M | -103.12M | -109.52M | -68.66M | -95.35M | -66.81M |
| Operating Cash Flow | -114.51M | -98.22M | -108.88M | -68.27M | -94.02M | -66.18M |
| Investing Cash Flow | -91.88M | -59.50M | -12.37M | -392.00K | -1.33M | -636.00K |
| Financing Cash Flow | 178.17M | 208.07M | 210.91M | 168.24M | 82.00M | 44.65M |
SoundHound AI, Inc Class A Technical Analysis
Negative
7.05
Price Trends
6.75
Negative
7.38
Negative
8.34
Negative
Market Momentum
>-0.01
Positive
45.43
Neutral
10.88
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOUN, the sentiment is Negative. The current price of 7.05 is below the 20-day moving average (MA) of 7.12, above the 50-day MA of 6.75, and below the 200-day MA of 8.34, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 10.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOUN.
SoundHound AI, Inc Class A Risk Analysis
SoundHound AI, Inc Class A disclosed 53 risk factors in its most recent earnings report. SoundHound AI, Inc Class A reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoundHound AI, Inc Class A Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $2.99B | -20.17 | -30.22% | ― | 54.58% | 45.83% | |
56 Neutral | $385.81M | -23.51 | -9.84% | ― | 25.84% | 42.54% | |
51 Neutral | $1.67B | -3.39 | -62.87% | 1.14% | -37.55% | -18.96% | |
50 Neutral | $38.25M | -0.30 | 216.61% | ― | -15.77% | 66.35% | |
49 Neutral | $1.40B | -17.24 | -12.34% | ― | -13.72% | 87.44% | |
44 Neutral | $91.06M | -0.71 | -249.64% | ― | -1.81% | 46.29% |
* Technology Sector Average
SOUN
SoundHound AI, Inc Class A
6.74
-8.55
-55.92%
LPSN
Liveperson
3.10
-11.45
-78.69%
VERI
Veritone
0.91
-1.72
-65.55%
CRNC
Cerence
8.53
-0.92
-9.74%
AI
C3ai
10.46
-5.28
-33.55%
BBAI
BigBearai Holdings
2.92
-1.95
-40.04%
SoundHound AI, Inc Class A Corporate Events
Business Operations and StrategyExecutive/Board ChangesDelistings and Listing ChangesM&A Transactions
SoundHound AI Completes LivePerson Acquisition, Expands AI Reach
Positive
Sep 4, 2026
On September 4, 2026, SoundHound AI completed its acquisition of LivePerson, creating a unified omnichannel conversational AI player that combines SoundHound’s proprietary voice and agentic AI with LivePerson’s enterprise digital messa...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SoundHound AI advances LivePerson acquisition share resale plans
Neutral
Sep 4, 2026
On September 4, 2026, SoundHound AI, Inc. filed a prospectus supplement with the SEC related to the resale of Class A common stock issued to former noteholders of LivePerson, Inc. following SoundHound’s recently completed acquisition of Live...
Business Operations and StrategyM&A TransactionsShareholder Meetings
SoundHound AI advances LivePerson merger and integration plans
Positive
Sep 2, 2026
On September 2, 2026, LivePerson stockholders approved an amended merger agreement under which two SoundHound AI subsidiaries will sequentially merge with LivePerson, leaving LivePerson as an indirect wholly owned subsidiary of SoundHound AI. The ...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SoundHound AI Secures Global Approvals for LivePerson Merger
Positive
Jul 24, 2026
SoundHound AI, Inc. and LivePerson, Inc., both Delaware corporations, entered into an amended and restated merger agreement on July 2, 2026, under which two SoundHound subsidiaries will merge with LivePerson, leaving LivePerson as an indirect whol...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
SoundHound AI Amends Merger Agreement With LivePerson
Neutral
Jul 2, 2026
On July 2, 2026, SoundHound AI, Inc. and LivePerson, Inc. signed an amended and restated merger agreement that restructures their planned two-step merger, under which LivePerson will become an indirect wholly owned subsidiary of SoundHound. The de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.