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SoundHound AI logo

SoundHound AI

SOUNW
18
Software - Application · Technology
Price
$1.51
-0.04 (-2.58%)
Market Cap
$2.61B
Exchange
NASDAQ Global Market
Winston Score
18
Winston is worried
Weak fundamentals across most pillars.
Data as of Jul 28, 2026 · filings through Mar 31, 2026

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)

SoundHound AI builds voice artificial intelligence software that lets machines understand and respond to spoken commands. Its technology is used in cars, restaurants, and consumer devices — helping companies like automakers and fast-food chains add voice ordering and voice control to their products. SoundHound is one of the few independent AI voice companies, meaning it is not owned by a big tech giant like Google or Amazon.

The company earns money by licensing its voice AI platform and charging subscription or usage-based fees to business customers. It operates mainly in North America and Europe, with a growing presence in automotive markets globally. SoundHound's independence from big tech is both a potential advantage — customers who want a neutral partner may prefer it — and a risk, since it competes against far larger companies with much deeper resources. The company is still losing significant money, so its main challenge is growing revenue fast enough to reach profitability before it needs to raise more cash.

Winston Score History

Growth Profile

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

Revenue Growth

+51.7% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

-118.2% YoY

YoY Growth Rate

Earnings declining

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

9.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~2 years

$250M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$250M cash & investments at current burn rate

Strong grower

SoundHound AI is growing revenue at 52% 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

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Quality

Gross Margin
20.1%
Thin — 20.1% gross margin
Operating Margin
-140.1%
Losing money on operations — -140.1%
ROCE
-13.4%
Weak — -13.4% return on capital

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

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Growth

Sales YoY
+80.0%
Fast-growing sales (80.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-59.1%
Burning cash (-59.1%)

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

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
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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