SoundHound AI

SOUN

Software - Application · Technology

Price

$7.32

+0.35 (+5.02%)

Market Cap

$3.19B

Exchange

NASDAQ

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Data not available

Valuation

Data not available

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Share count rising — dilution

+102.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 200.0M (2021) → 405.4M (2025)

Winston Score History

The full picture

SoundHound AI makes voice recognition software that lets machines understand and respond to spoken commands. Its technology is used in cars, restaurants, and smart devices — helping companies like automakers and fast-food chains build voice assistants into their products. SoundHound competes in the conversational AI industry alongside much larger players like Google and Amazon.

The company earns money by licensing its voice AI platform to businesses and charging fees based on usage or subscriptions. It operates mainly in North America and Europe, with a growing presence in automotive markets globally. SoundHound's main competitive edge is its independent, brand-neutral platform — meaning car companies and restaurants can use it without relying on a tech giant's ecosystem. However, the company is losing significantly more money than it earns, with an operating margin of roughly negative 116%, so its biggest risk is burning through cash before it can scale revenue enough to reach profitability.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+45.0% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+47.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$98M/ year

↑ Rising (+39% vs prior year)

58.2% of revenue

3.9x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

9.7%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

5+ years

Quarterly Free Cash Flow

↓ Burn rate worsening

$250M cash & investments at current burn rate

Strong grower

SoundHound AI is growing revenue at 45% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

45.1%

Healthy — 45.1% gross margin

Profit after running costs

Operating Margin

-70.0%

Losing money on operations — -70.0%

Return on the money invested

ROCE

-38.8%

Weak — -38.8% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

+54.6%

Fast-growing sales (+54.6% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-41.4%

Burning cash (-41.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

Data not available

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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