SoundHound AI, Inc.
- Open
- 6.10
- Day high
- 6.43
- Day low
- 5.97
- Prev close
- 6.31
- Volume
- 44.3M
- Mkt cap
- $2.7B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 5.9
- P/S
- 14.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$2.0M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
SoundHound AI, Inc. (SOUN) is a Technology company listed on NASDAQ. The stock is down 51% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4).
SoundHound AI, Inc. (SOUN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SOUN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $-0.10 | $-0.06 | +40.0% | $44M | +3.8% |
| Nov 6, 2025 | $-0.04 | $-0.03 | +25.0% | $42M | -22.0% |
| Aug 7, 2025 | $-0.06 | $-0.03 | +50.0% | $43M | +5.4% |
| May 8, 2025 | $-0.07 | $-0.06 | +14.3% | $29M | -4.1% |
| Feb 27, 2025 | $-0.11 | $-0.69 | -527.3% | $35M | +2.5% |
| Aug 8, 2024 | $-0.09 | $-0.11 | -22.2% | $13M | +2.9% |
| May 9, 2024 | $-0.09 | $-0.07 | +22.2% | $12M | +14.8% |
| Feb 29, 2024 | $-0.05 | $-0.06 | -20.0% | $17M | -3.4% |
| Nov 9, 2023 | $-0.09 | $-0.09 | +0.0% | $13M | +3.8% |
| May 11, 2023 | $-0.12 | $-0.12 | +0.0% | $7M | -16.8% |
| Mar 7, 2023 | $-0.17 | $-0.15 | +11.8% | $10M | +44.2% |
| Nov 10, 2022 | $-0.17 | $-0.15 | +11.8% | $11M | +25.0% |
SOUN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | MOHAJER KEYVANdirector, 10 percent owner, officer: CEO | Sell | 126,540 | $7.46 |
| Jun 17, 2026 | HOM JAMES MINGdirector, officer: Chief Product Officer | Sell | 28,843 | $7.46 |
| Jun 17, 2026 | STONEHOCKER TIMOTHYofficer: Chief Technology Officer | Sell | 18,802 | $7.46 |
| Jun 17, 2026 | EMAMI MAJID10 percent owner, officer: CSO & SVP, Engineering | Sell | 28,843 | $7.46 |
| Jun 17, 2026 | ZAGORSEK MICHAELofficer: Chief Operating Officer | Sell | 64,994 | $7.46 |
| May 27, 2026 | MARCUS LAWRENCEdirector | Grant | 20,694 | — |
| May 27, 2026 | Ball Eric R.director | Grant | 20,694 | — |
| May 27, 2026 | SROKA DIANAdirector | Grant | 20,694 | — |
| Mar 24, 2026 | ZAGORSEK MICHAELofficer: Chief Operating Officer | Sell | 52,968 | $6.79 |
| Mar 24, 2026 | MOHAJER KEYVANdirector, 10 percent owner, officer: CEO | Sell | 124,510 | $6.79 |
| Mar 24, 2026 | HOM JAMES MINGdirector, officer: Chief Product Officer | Sell | 31,019 | $6.79 |
| Mar 24, 2026 | SROKA DIANAdirector | Sell | 1,343 | $6.77 |
| Mar 24, 2026 | EMAMI MAJID10 percent owner, officer: CSO & SVP, Engineering | Sell | 31,019 | $6.79 |
| Mar 24, 2026 | STONEHOCKER TIMOTHYofficer: Chief Technology Officer | Sell | 23,087 | $6.79 |
| Mar 24, 2026 | SHARAN NITESHofficer: Chief Financial Officer | Sell | 44,027 | $6.79 |
Source: SOUN SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full SOUN insider & 13F page →SoundHound AI, Inc. company profile
Overview
SoundHound AI, Inc. (NASDAQ:SOUN) is a voice artificial intelligence company founded in 2005 and headquartered in Santa Clara, California. The company went public in April 2022 through a SPAC merger. Originally known for its music recognition app, SoundHound has evolved into a comprehensive voice AI platform provider that enables businesses across multiple industries to integrate conversational voice experiences into their products and services. The company has grown through strategic acquisitions, including SYNQ3, Allset, and Amelia, to expand its capabilities in restaurant ordering, voice commerce, and enterprise AI customer service solutions.
Business
SoundHound AI operates in the conversational artificial intelligence industry, developing voice-enabled solutions that allow businesses to create natural language interactions with their customers. The company's core offering is the Houndify platform, which provides a comprehensive suite of voice AI tools including automatic speech recognition, natural language understanding, wake word detection, custom domain creation, text-to-speech conversion, and embedded voice solutions. The company operates through three main business pillars that generate revenue across different market segments: 1. Voice-Enabled Products (Automotive) - This segment focuses on integrating voice assistants into vehicles, representing the company's original core business. SoundHound's technology is embedded in cars from over 20 automotive brands including Hyundai, Kia, Genesis, and Stellantis brands, covering approximately 25% of the global automotive industry. This segment historically generated the majority of revenue through per-unit royalties. 2. AI Customer Service Solutions - This rapidly growing segment provides conversational AI agents for customer service applications across industries including restaurants, healthcare, financial services, and energy. The company's Smart Answering and Smart Ordering solutions help businesses automate phone interactions, with restaurant clients including major quick-service restaurant chains. This segment has grown from less than 10% to over 50% of total revenue. 3. Voice Commerce Ecosystem - The newest pillar focuses on enabling voice-powered transactions and ordering across various platforms and devices. This includes integration with point-of-sale systems and the development of voice-enabled ordering capabilities for restaurants and other retail environments. The company's proprietary Polaris foundation model serves as the underlying AI technology that powers these applications, offering multimodal and multilingual capabilities designed to reduce AI hallucinations and improve accuracy in real-world conversational scenarios.
Revenue model
SoundHound AI generates revenue through multiple business models across its three operational pillars. The automotive segment operates on a per-unit royalty model, where the company receives recurring payments for each vehicle sold that contains its voice AI technology. This creates a steady, predictable revenue stream that grows with automotive production volumes and has shown double-digit unit price expansion as customers demand more advanced generative AI features. The AI customer service segment operates primarily on a subscription-based model, charging clients monthly or annual fees for access to conversational AI capabilities. Revenue is often tied to usage metrics such as the number of interactions, locations served, or seats licensed. For restaurant clients, the company typically charges per location, with some major quick-service restaurant chains now operating SoundHound's technology across thousands of locations. The voice commerce segment represents an emerging revenue opportunity that combines transaction fees and subscription revenues from enabling voice-powered ordering and purchasing across various platforms. Several factors influence the company's margins and profitability. Positive margin drivers include the scalability of software solutions, increasing customer willingness to pay premium prices for generative AI capabilities, and the shift toward higher-margin enterprise solutions. The company's cumulative subscriptions and bookings backlog of nearly $1.2 billion provides revenue visibility and recurring income potential. However, margin pressures come from significant research and development investments required to maintain competitive AI technology, integration costs for acquired companies like Amelia, and the need for customer acquisition and support in new verticals. Macroeconomic factors present mixed impacts - while economic uncertainty may pressure some automotive customers, it simultaneously drives demand for AI automation solutions that help businesses reduce labor costs and improve operational efficiency.
Competitive moat
SoundHound AI's competitive moat is moderate but faces significant challenges in the rapidly evolving AI landscape. The company's primary defensive assets include its decade-long experience in conversational AI and voice recognition technology, which has resulted in proprietary capabilities for reducing AI hallucinations and improving accuracy in real-world applications. The company's Polaris foundation model and extensive dataset from processing billions of voice interactions annually provide some technological differentiation. The company benefits from integration barriers once embedded in customer systems, particularly in automotive applications where voice AI becomes deeply integrated into vehicle infotainment systems. These integrations create switching costs for customers and provide some protection against competitive displacement. Additionally, SoundHound's established relationships with major automotive OEMs and restaurant chains create network effects and reference value for new customer acquisition. However, the company's moat faces substantial threats from well-funded technology giants including Google, Amazon, Microsoft, and Apple, all of whom have significantly larger resources to invest in AI research and development. These competitors can potentially offer voice AI capabilities at lower costs or bundle them with other services. The rapid advancement of large language models and generative AI technologies also creates risk that newer, more capable solutions could leapfrog SoundHound's current offerings. The company's recent diversification strategy across multiple verticals and its acquisition-driven growth approach suggest management recognizes the need to build scale and capabilities quickly to maintain competitiveness. While SoundHound has established positions in specific niches like automotive voice AI and restaurant ordering, the overall conversational AI market remains highly competitive with low barriers to entry for well-capitalized competitors.
Risks & safety
SoundHound AI presents a mixed margin of safety profile with strong liquidity but ongoing profitability challenges. **Liquidity and Solvency:** - Strong cash position of $245.8 million with minimal debt (debt-to-equity ratio of 0.012) - Current ratio of 4.9 indicates excellent short-term liquidity - Negative free cash flow of -$19.3 million in Q1 2025, though improving from -$109.5 million for full year 2024 - Current cash burn rate suggests approximately 3-4 years of runway at recent spending levels **Valuation Metrics:** - Trading at 6.2x forward P/E ratio based on Q1 2025 positive earnings, though this reflects one-time gains - EV/EBITDA of 5.8x based on recent positive EBITDA, but historical EBITDA has been consistently negative - Price-to-book ratio of 8.1x suggests premium valuation relative to book value - Revenue multiple appears reasonable given 151% year-over-year growth rates **Other Considerations:** - Company guidance targets adjusted EBITDA profitability by end of 2025 - Cumulative bookings backlog of $1.2 billion provides revenue visibility - High customer concentration risk, though improving (reduced from 90% to one-third for largest customer) - Dependence on successful integration of recent acquisitions (Amelia, SYNQ3, Allset)
Recent development
Over the past few years, SoundHound AI has undergone significant strategic transformation through both organic growth initiatives and aggressive acquisition activity. The company has evolved from primarily an automotive voice AI provider to a diversified conversational AI platform serving multiple industries. **Strategic Acquisitions and Integration:** The company completed three major acquisitions - SYNQ3 (restaurant technology), Allset (voice commerce platform), and Amelia (enterprise AI customer service) - to rapidly expand its capabilities and market reach. The Amelia acquisition was particularly significant, adding enterprise-grade conversational AI solutions and expanding SoundHound's addressable market into sectors like healthcare, financial services, and energy. Management has focused on integrating these acquisitions to create synergies and cross-selling opportunities. **Technology Platform Development:** SoundHound launched its Polaris multimodal, multilingual foundation model, which the company positions as superior to competitors in accuracy and reduced hallucination rates. The company also introduced Amelia 7.0 with Agentic Plus framework, representing advancement in autonomous AI agent capabilities. These technology developments support the company's strategy to differentiate through proprietary AI capabilities rather than relying on third-party large language models. **Market Diversification Strategy:** The company has systematically reduced customer concentration risk by expanding beyond its core automotive and restaurant verticals into healthcare, financial services, government, military, energy, and retail sectors. This diversification has helped reduce dependency on the largest customer from 90% to approximately one-third of total revenue. **Three-Pillar Business Model Evolution:** SoundHound formalized its business strategy around three pillars: Voice Assistant (automotive), AI Customer Service (enterprise solutions), and Voice Commerce Ecosystem (transaction-enabled voice interactions). The voice commerce pillar represents the newest growth initiative, with plans to demonstrate capabilities at industry events and expand ordering functionality across multiple platforms and devices.
SOUN company profile · for informational purposes only — not investment advice.
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