SoundHound AI, Inc. (SOUN) Stock Analysis — Fair Value, Risk & Moat Rating
NGM · Technology · Software - Application
Is SoundHound AI, Inc. a safe investment right now?
SoundHound AI, Inc.'s Altman Z-Score of 8.07 places it in the safe zone. Fair value estimate is not available for this stock. Moat rating: 2.3/5 stars.
Could SoundHound AI, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 8.07 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives SOUN's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.374 | 1.2 | 0.45 |
| B · Retained Earnings / Total Assets | RE / TA | -1.3907 | 1.4 | -1.95 |
| C · EBIT / Total Assets | EBIT / TA | -0.0125 | 3.3 | -0.04 |
| D · Market Cap / Total Liabilities | MCap / TL | 15.6134 | 0.6 | 9.37 |
| E · Revenue / Total Assets | Rev / TA | 0.2455 | 1.0 | 0.25 |
How has SOUN's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 0.51 | Distress |
| 2023 | 11.13 | Safe |
| 2024 | 1.77 | Distress |
| 2025 | 8.07 | Safe |
Source: Calculated from SOUN's latest 10-K filing on SEC EDGAR.
What is SoundHound AI, Inc. actually worth?
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does SoundHound AI, Inc. have a durable competitive advantage?
Moat rating: 2.3/5.
What makes up SOUN's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is SOUN's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | -1717.5% | — |
| 2023 | -69.5% | Rising |
| 2024 | -190.4% | Declining |
| 2025 | -1.9% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is SoundHound AI, Inc.'s dividend safe?
SoundHound AI, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $0.2B | $0.1B | $0.0B | Rising |
| Net Income | −$0.0B | −$0.4B | −$0.1B | Rising |
| Free Cash Flow | −$0.1B | −$0.1B | −$0.1B | Declining |
| Gross Margin | 42.4% | 48.9% | 69.2% | Declining |
Recent events that affect our SOUN analysis
SOUN earnings report scheduled
Upcoming report. Consensus EPS estimate: $-0.04. Revenue estimate: $42.6M.
SOUN analyst consensus: 75% bullish (6 of 8 analysts)
0 Strong Buy, 6 Buy, 2 Hold, 0 Sell, 0 Strong Sell. Consensus target: $14.62 (77.9% upside).
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SOUN beat EPS estimates by 202.9%
Reported EPS: $0.10 vs estimate $-0.10.
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SOUN missed EPS estimates by 194.5%
Reported EPS: $-0.27 vs estimate $-0.09.
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SOUN beat EPS estimates by 42.9%
Reported EPS: $-0.03 vs estimate $-0.05.
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
SOUN beat EPS estimates by 5.3%
Reported EPS: $-0.06 vs estimate $-0.06.
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
SOUN filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
SOUN beat EPS estimates by 37.5%
Reported EPS: $-0.05 vs estimate $-0.08.
SOUN filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about SoundHound AI, Inc.
What is SoundHound AI, Inc. stock price today?
SoundHound AI, Inc. (SOUN) stock price is $8.22 as of the latest market close, traded on the NASDAQ exchange.
What does SoundHound AI, Inc. do?
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. It 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.
What is SoundHound AI, Inc. market cap?
SoundHound AI, Inc. has a market capitalization of $3.50B, classifying it as a mid-cap stock in the Technology sector.
What sector and industry is SOUN in?
SoundHound AI, Inc. operates in the Technology sector, specifically within the Software - Application industry. It trades on the NASDAQ under the ticker symbol SOUN.
Is SOUN stock overvalued or undervalued?
We do not have sufficient earnings data to produce a reliable fair value estimate for SoundHound AI, Inc. at this time. Stocks without stable earnings history are difficult to value using traditional models.
What is SOUN stock forecast and analyst target price?
Based on 8 Wall Street analysts, the consensus price target for SoundHound AI, Inc. is $14.62, implying upside of 77.9% from the current price.
- Analyst High Target: $20.00
- Analyst Low Target: $9.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is SoundHound AI, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for SoundHound AI, Inc.:
- Revenue growth (current year est.): 37.8%
- EPS growth (current year est.): 59.6%
- Revenue growth (next year est.): 20.2%
- EPS growth (next year est.): 81.0%
What are SoundHound AI, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $0.2B | Rising |
| Net Income | −$0.0B | Rising |
| Free Cash Flow | −$0.1B | Declining |
| Gross Margin | 42.4% | Declining |
What is SOUN's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Forward P/E (next 12 months est.): -822.0x
How volatile is SOUN stock?
SoundHound AI, Inc. has a beta of 2.97, meaning it is significantly more volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does SoundHound AI, Inc. have?
SoundHound AI, Inc.'s balance sheet shows:
- Total Cash: $248.5M
- Total Debt: $4.4M
- Net Cash Position: $244.1M
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is SoundHound AI, Inc.'s free cash flow?
SoundHound AI, Inc. generated $-18.3M in trailing twelve-month free cash flow (from $-98.2M in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does SoundHound AI, Inc. pay a dividend?
SoundHound AI, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is SoundHound AI, Inc. at risk of going bankrupt?
SoundHound AI, Inc.'s Altman Z-Score is 8.07, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does SoundHound AI, Inc. have a durable competitive advantage?
SoundHound AI, Inc. scores 2.3/5 stars (Weak moat) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 2/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is SOUN's return on equity (ROE)?
SoundHound AI, Inc.'s return on equity is -4.3%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy SOUN stock?
SOUN shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol SOUN
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is SOUN a value stock or speculative?
FairValueLabs classifies SoundHound AI, Inc. as Pure Speculation. It lacks the financial stability or valuation margin typically required for value investing. This stock is considered high risk.
Who is the CEO of SoundHound AI, Inc.?
The current CEO of SoundHound AI, Inc. is Dr. Keyvan Mohajer.
What is SOUN's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $-0.28
- Forward EPS (next 12 months est.): $-0.01
- Analyst consensus EPS (this year): $-0.05
- Analyst consensus EPS (next year): $-0.01
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
SOUN analysis methodology: How we calculate fair value, Z-Scores, and moat ratings