# SoundHound AI Inc (SOUN) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Software. Price $6.74, market value $3.0 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). SoundHound AI Inc reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **Price / sales: 14.7×**. Each dollar of revenue is priced at 14.7×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 6.0×**. The shares trade at 6.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: -3.9%** (5-yr avg -13.1%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.

## Profitability
- **Operating margin: -68.5%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -8.3%**. The company reported a net loss over the last twelve months.
- **Return on equity: -3.0%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -51.1%**. Return on all capital, debt included, is -51.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -19.9%**. Each dollar of assets produces -19.9% of profit.

## Growth
- **Revenue growth (1 yr): 99.4%** (3-yr 75.7%/yr). Revenue grew 99.4% over the last year.
- **EPS growth (1 yr): 73.1%**. Earnings per share rose 73.1%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.9×**. It would take 1.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 4.59** (quick 4.59). Current assets cover the next year's liabilities 4.59 times.
- **Altman Z-score: 9.53**. A Z-score of 9.53 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. SoundHound AI Inc does not currently pay a dividend.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover SoundHound AI Inc; the consensus is strong_buy, with an average price target of $12.71 (+89% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -49.3%** (YTD -32.4%, 3-mo -8.8%). The shares are down 49.3% over twelve months including dividends.
- **From 52-week high: -69.6%** (19.3% above the low). Trading 70% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 3.09** (volatility 73%). Beta of 3.09 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SOUN · Page: https://foliofundamentals.com/stocks/soun

Not investment advice.