SoundHound AI, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

In the fiscal year to Dec 2025, United States was 64% and South Korea was 6% of revenue; United States rose from 15% in the fiscal year to Dec 2023.

Quarters: SoundHound AI, Inc.'s SEC filings, named by the month they end. Fiscal years: SoundHound AI, Inc.'s annual reports to the SEC.

How it makes money

The company loses $8.3 for every $100 of revenue. Operating expenses exceed all of gross profit.

Beyond ±100% the scale is logarithmic, so that Dec 2024's −749% and the quarters near zero both read. Circled: Jun 2023 (net −266.3%, operating −188.4%), Jun 2024 (net −277.2%, operating −163.3%). Net margin is usually about 5 points below operating margin; in those quarters something below operating income (a tax charge or benefit, a gain or loss on investments, a write-down) moved it, not the business itself.

Each margin is that line of the income statement divided by revenue. Fiscal year: SoundHound AI, Inc.'s annual reports to the SEC; quarters: SEC filings.

Growth and margins together

Rule of 40 score −4.9 (growth 48.5% + FCF margin −53.4%): weak, far short of the 40 line. Stock pay is 36.1% of revenue; counted as a cost, it brings the FCF margin down to −89.5%.

SoundHound AI trades at 7.0× revenue on 48.5% growth. SNOW grows fastest of its peers, 35.1%, and costs 19.4×.

Growth: revenue in the quarter ended Sep 2026 against the quarter ended Sep 2025. FCF margin: operating cash flow minus capex, over revenue, for the 4 quarters ended Sep 2026. From SEC filings.

How long can the cash last?

SoundHound AI had $208M in cash and short-term investments at the end of Sep 2026. It burned $119M over the last four quarters (operating cash flow minus capital spending), so at that pace the cash lasts about 7 quarters. Its diluted share count is up 26% from two years earlier.

From SoundHound AI, Inc.'s SEC filings: cash and cash equivalents plus short-term investments (none where none is filed) at each quarter end; free cash flow is operating cash flow minus capital spending; shares are each quarter's diluted weighted average as filed, since the stock's listing and its latest split (a 10-K gives no fourth-quarter figure). Shown while the last four quarters' operating cash flow and net income are both negative.

Customers

SoundHound AI's 10-Q for the quarter to Jun 2026 gives two customers' shares of its revenue: Customer B (13%) and Customer G (12%).

From SoundHound AI, Inc.'s 10-Q and 10-K filings (XBRL): each customer whose share of revenue a filing tags, under the filing's own label, so “Customer A” in one filing can be another company in the next; a later filing's figures for a period replace an earlier one's. Rings are fiscal years: a 10-K gives the year, not its fourth quarter.

Is it expensive?

EV/revenue of 7.0x, in line with the peer median of 7.0x.

EV/revenue in line with the peer median of 7.0x: priced like its peers.

Compared on enterprise value (market cap plus debt minus cash) per $1 of revenue: for companies that reinvest what they earn or borrow to grow (software, AI data centers), P/E can mislead.

What analysts expect

The average analyst price target is $11.00, 206% above the current price; 71% of 7 analysts rate it a buy; earnings beat estimates in 2 of the last 4 quarters.

Buy or Strong Buy: 5 analysts (71%). Sell or Strong Sell: 0.

Over the past year the average of the analysts' latest price targets went from $18.00 to $7.00 (−61%), while SOUN went from $12.22 to $3.60 (−71%). In the past three months targets were cut 3 times and never raised. 1 upgrade and no downgrades over the year; the latest: Cantor Fitzgerald moved it to Overweight from Neutral on Dec 12, 2025.

The day after each of these reports the stock moved +0.9% (Dec 2025, in line); −5.2% (Mar 2026, missed); +8.8% (Jun 2026, beat); −4.9% (Sep 2026, beat).

For the quarter ending Dec 2026, analysts expect an adjusted loss of $0.04 a share, against a loss of $0.02 a year earlier, and revenue of $87M, up 57% on a year earlier. For the fiscal year ending Dec 2027, they expect an adjusted loss of $0.12 a share, and revenue of $388M, up 52% on the year before's estimate.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Capex of $1.5M exceeds operating cash flow of −$118M, leaving free cash flow of −$119M. The gap has to be covered with cash on hand or borrowing.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings.

Financial health

Current ratio 4.6, no pressure to repay short-term debt; debt-to-equity 0.0, debt is very low and the balance sheet is solid.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 1 fund whose copy leaves SOUN out (on the exchange, not in the app yet): Swiss National Bank.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 2 held SOUN at the end of their latest quarter (for most, Q2 2026). Over that quarter 1 added shares, 1 cut and 1 sold all. The largest of them is Swiss National Bank, 815,200 shares worth $4.9M at Sep 30, 2026, 4.1% more than a quarter earlier.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of SOUN at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end.

Are insiders buying or selling?

Officers and directors sold $789K of SOUN on the open market in the 12 months to Nov 12, 2026; none bought. 100% of the sales were made under 10b5-1 plans, set up in advance. The largest was Timothy Stonehocker (Chief Technology Officer), who sold $379K in 2 sales.

From the Form 4s filed with the SEC about SoundHound AI, Inc. (45 in the 12 months): purchases (code P) and sales (code S) on the open market by its officers and directors, at the price each filing gives (often an average of the day's trades). A sale is a 10b5-1 sale when its filing says it was made under such a plan, set up in advance. Not counted: 44 other transactions (grants and shares sold to pay tax).