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SOUNW

SoundHound AI, Inc.

SOUNW

SoundHound AI, Inc. • NASDAQ
$5.31 ▲ 1.92% (+0.10)
Market Cap $5.15 B
52w High $7.86
52w Low $5.10
Dividend Yield 0%
P/E -0.81
Volume 20.28K
Outstanding Shares 957.42M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $42.049M ▼ $133.812M ▲ $-109.271M ▼ -259.866% ▼ $-0.27 ▼ $-91.974M ▼
Q2-2025 $42.683M ▲ $94.713M ▲ $-74.724M ▼ -175.067% ▼ $-0.19 ▼ $-64.801M ▼
Q1-2025 $29.129M ▼ $-117.479M ▼ $129.932M ▲ 446.057% ▲ $0.33 ▲ $139.405M ▲
Q4-2024 $34.543M ▲ $270.856M ▲ $-258.599M ▼ -748.629% ▼ $-0.69 ▼ $-246.427M ▼
Q3-2024 $25.094M $45.96M $-21.751M -86.678% $-0.06 $-27.213M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $268.936M ▲ $702.217M ▲ $302.981M ▲ $399.236M ▲
Q2-2025 $230.34M ▼ $579.494M ▼ $219.735M ▲ $359.759M ▼
Q1-2025 $245.809M ▲ $587.536M ▲ $190.543M ▼ $396.993M ▲
Q4-2024 $198.24M ▲ $553.953M ▲ $371.3M ▲ $182.653M ▼
Q3-2024 $135.606M $499.654M $203.667M $295.987M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-109.271M ▼ $-32.654M ▼ $-56.611M ▼ $127.908M ▲ $38.596M ▲ $-32.826M ▼
Q2-2025 $-74.724M ▼ $-24.497M ▼ $-192K ▼ $9.596M ▼ $-15.209M ▼ $-24.689M ▼
Q1-2025 $129.932M ▲ $-19.185M ▲ $-162K ▼ $67.01M ▼ $47.569M ▼ $-19.347M ▲
Q4-2024 $-258.599M ▼ $-33.123M ▲ $-80K ▲ $95.461M ▲ $62.499M ▲ $-33.203M ▲
Q3-2024 $-21.751M $-35.315M $-7.504M $-21.585M $-64.55M $-35.54M

Revenue by Products

Product Q3-2024Q4-2024Q1-2025Q2-2025
Hosted Services
Hosted Services
 $20.00M ▲$30.00M ▲$20.00M ▼$20.00M ▲
Licensing
Licensing
 $0 ▲$10.00M ▲$0 ▼$20.00M ▲
Professional Service
Professional Service
 $0 ▲$10.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement SoundHound AI is still very much in a build‑out phase. Revenue is small but has been climbing steadily each year, and the company is consistently generating positive gross profit on that revenue, which suggests the core technology and services have economic value. The challenge is that operating costs are far larger than revenues. Losses from operations and at the net income level have been persistent and, most recently, have widened as the company has ramped up spending to grow and to integrate acquisitions. In simple terms, the business is growing from a tiny base, but profitability is still far off and dependent on achieving much larger scale and tighter cost control over time.

Balance Sheet

Balance Sheet The balance sheet has improved meaningfully over the last few years. Total assets and cash levels are now much higher than they were, and shareholder equity has swung from negative to clearly positive. That points to successful fundraising and recapitalization after the SPAC listing and subsequent financing. Debt that previously sat on the balance sheet has been reduced to effectively zero, which lowers financial risk and interest burden. Even so, the overall size of the asset base is still modest, so the company remains relatively small and sensitive to setbacks. The stronger equity and cash position give it more breathing room, but not a permanent safety net if losses remain large for many years.

Cash Flow

Cash Flow SoundHound AI has not yet reached self‑funding status. Operating cash flow has been consistently negative, reflecting that cash going out for salaries, R&D, and overhead still far exceeds cash coming in from customers. Free cash flow mirrors operating cash flow because capital spending is minimal, which underscores how asset‑light and software‑driven the model is. To date, the company has relied on external financing and balance sheet strengthening rather than internal cash generation. A key long‑term question is how quickly cash burn can be reduced as revenues scale.

Competitive Edge

Competitive Edge Competitively, SoundHound sits in a specialized corner of the broader AI market: voice‑driven, conversational interfaces. Its main edge is being an independent, focused provider at a time when many voice solutions are tied to large ecosystems run by big tech companies. The company’s proprietary voice and language technology, long operating history in this niche, and sizable patent portfolio give it a “narrow but real” moat. Strategic partnerships in autos and restaurants, plus recent acquisitions, deepen that position. However, SoundHound still competes against extremely powerful players like Google, Amazon, and Apple, which can invest heavily in similar capabilities. As a result, its competitive position is promising but exposed, and continued customer wins and renewals are crucial to sustain its edge.

Innovation and R&D

Innovation and R&D Innovation is the clear centerpiece of SoundHound’s story. The company has built its own engines for understanding speech and user intent, aiming to interpret what people mean rather than just what they say. It is also layering on generative AI, more advanced conversational models, and multimodal capabilities that blend voice with visual understanding. A large patent portfolio, specialized platforms such as Houndify and Chat AI, and vertical solutions for restaurants and autos all point to heavy and ongoing R&D investment. New pushes into agent‑like AI, Vision AI, and broader industry use cases show an ambition to stay on the cutting edge. The flip side is that this level of innovation spending contributes to the company’s sizable losses, so maintaining this pace while moving toward profitability is a delicate balance.

Summary

SoundHound AI is an early‑stage, high‑growth AI platform company focused on voice and conversational interfaces, with SOUNW representing a derivative exposure to its equity. Financially, the business shows encouraging revenue and gross profit growth from a small base, but it remains deeply loss‑making and cash‑consuming. The balance sheet is in much better shape than a few years ago, with more cash, no meaningful debt, and positive equity, giving it time to execute its strategy. The company’s technology, patent base, and partnerships offer a differentiated, though not unassailable, position in a market dominated by much larger rivals. Overall, this is a story of a company trading near the frontier of AI innovation, backed by an improved financial foundation but still facing significant execution, competitive, and financing risks until it can scale enough to cover its costs and generate sustainable cash flow.