SoundHound AI Inc Class A Common Stock (SOUN)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach SoundHound AI as a speculator's story, not a value investor's bargain. The business sells independent voice AI software into automotive, TV, IoT, and customer service. Revenue is growing: filed figures show fiscal 2023 revenue of $45.9 million, fiscal 2024 revenue of $84.7 million, and fiscal 2025 revenue of $168.9 million. But profits are absent. Fiscal 2024 produced a net loss of $350.7 million; fiscal 2025 still produced a net loss of $14.0 million; and in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $61.9 million with a net loss of $42.8 million. FairStock calculates trailing free cash flow at negative $125.3 million, a negative 5.9% FCF yield, and return on equity at negative 32.24%. The balance sheet shows low debt with a D/E of 0.01, and FairStock's Altman Z-Score is 5.32, so solvency is not the immediate issue; cash burn is. The moat is unproven. Voice AI may have technical barriers, but a company that has lost money in each of the last four years, as FairStock notes in assigning no Peter Lynch category, has not demonstrated durable economics. At the 2026-10-13 close of $4.88, the market cap is $2.1 billion, price-to-book is 4.32, and the P/E is negative 7.87 because EPS is negative $0.62. The Piotroski F-Score is 4/9. I see a fast-growing but cash-consuming enterprise. Until losses narrow and free cash flow turns positive, the stock is a hope-based valuation, not a Graham-style value.

In plain English: SoundHound AI makes voice artificial intelligence software for cars, televisions, devices, and customer service. The company is growing sales quickly, but it has been losing money and spending more cash than it brings in, so the business does not look financially strong yet. At the close on 2026-10-13, the $4.88 price looks expensive for a business that is not yet making a profit.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer