SOUNDHOUND AI INC Financials
Financial Health Signals
Based on FY2024 annual data. Scores normalized against common benchmarks. How we calculate these scores
SOUNDHOUND AI INC has an operating margin of -403.1%, meaning the company retains $-403 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is down from -149.6% the prior year.
SOUNDHOUND AI INC's revenue surged 84.6% year-over-year to $84.7M, reflecting rapid business expansion. This strong growth earns a score of 100/100.
SOUNDHOUND AI INC carries a low D/E ratio of 0.00, meaning only $0.00 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.77, SOUNDHOUND AI INC holds $3.77 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 100/100.
While SOUNDHOUND AI INC generated -$108.9M in operating cash flow, capex of $640K consumed most of it, leaving -$109.5M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
SOUNDHOUND AI INC passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, SOUNDHOUND AI INC generates $0.31 in operating cash flow (-$108.9M OCF vs -$350.7M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
SOUNDHOUND AI INC earns $-28.1 in operating income for every $1 of interest expense (-$341.4M vs $12.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
This page shows SOUNDHOUND AI INC (SOUN) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
SOUNDHOUND AI INC generated $84.7M in revenue in fiscal year 2024. This represents an increase of 84.6% from the prior year.
SOUNDHOUND AI INC's EBITDA was -$340.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 413.0% from the prior year.
SOUNDHOUND AI INC generated -$109.5M in free cash flow in fiscal year 2024, representing cash available after capex. This represents a decrease of 59.5% from the prior year.
SOUNDHOUND AI INC reported -$350.7M in net income in fiscal year 2024. This represents a decrease of 294.3% from the prior year.
SOUNDHOUND AI INC earned $-1.04 per diluted share (EPS) in fiscal year 2024. This represents a decrease of 160.0% from the prior year.
SOUNDHOUND AI INC held $198.2M in cash against $0 in long-term debt as of fiscal year 2024.
SOUNDHOUND AI INC's gross margin was 48.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs. This is down 26.5 percentage points from the prior year.
SOUNDHOUND AI INC's operating margin was -403.1% in fiscal year 2024, reflecting core business profitability. This is down 253.5 percentage points from the prior year.
SOUNDHOUND AI INC's net profit margin was -414.1% in fiscal year 2024, showing the share of revenue converted to profit. This is down 220.2 percentage points from the prior year.
SOUNDHOUND AI INC invested $70.6M in research and development in fiscal year 2024. This represents an increase of 37.2% from the prior year.
SOUNDHOUND AI INC invested $640K in capex in fiscal year 2024, funding long-term assets and infrastructure. This represents an increase of 63.3% from the prior year.
SOUN Income Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $42.0M-1.5% | $42.7M+46.5% | $29.1M-15.7% | $34.5M+156.6% | $13.5M+16.1% | $11.6M-32.4% | $17.1M+29.2% | $13.3M |
| Cost of Revenue | $24.1M-7.3% | $26.0M+40.6% | $18.5M-10.8% | $20.8M+316.8% | $5.0M+6.7% | $4.7M+19.4% | $3.9M+8.9% | $3.6M |
| Gross Profit | $17.9M+7.6% | $16.7M+56.9% | $10.6M-23.0% | $13.8M+62.5% | $8.5M+22.5% | $6.9M-47.7% | $13.2M+36.8% | $9.7M |
| R&D Expenses | $22.8M-11.5% | $25.8M+4.2% | $24.8M+21.4% | $20.4M+29.6% | $15.7M+5.8% | $14.9M+17.0% | $12.7M-0.7% | $12.8M |
| SG&A Expenses | $24.3M+33.5% | $18.2M-1.0% | $18.4M+12.0% | $16.4M+72.4% | $9.5M-7.1% | $10.3M+34.4% | $7.6M+10.2% | $6.9M |
| Operating Income | -$115.9M-48.5% | -$78.1M-160.9% | $128.1M+149.8% | -$257.1M-1069.3% | -$22.0M+22.9% | -$28.5M-130.2% | -$12.4M+14.7% | -$14.5M |
| Interest Expense | $153K-9.5% | $169K-28.1% | $235K-82.0% | $1.3M-68.0% | $4.1M-27.9% | $5.7M+3.7% | $5.5M+0.3% | $5.4M |
| Income Tax | $457K-63.6% | $1.3M+53.4% | $819K+163.3% | $311K-51.3% | $638K+116.3% | $295K-81.6% | $1.6M+2.9% | $1.6M |
| Net Income | -$109.3M-46.2% | -$74.7M-157.5% | $129.9M+150.2% | -$258.6M-592.9% | -$37.3M-13.1% | -$33.0M-83.4% | -$18.0M+10.9% | -$20.2M |
| EPS (Diluted) | $-0.27-42.1% | $-0.19-161.3% | $0.31+141.3% | $-0.75-581.8% | $-0.11+8.3% | $-0.12-100.0% | $-0.06+33.3% | $-0.09 |
SOUN Balance Sheet
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $702.2M+21.2% | $579.5M-1.4% | $587.5M+6.1% | $554.0M+107.7% | $266.7M-7.2% | $287.4M+90.2% | $151.1M+4.9% | $144.0M |
| Current Assets | $335.4M+18.9% | $282.0M-4.4% | $295.1M+15.5% | $255.5M+14.0% | $224.1M-4.3% | $234.0M+106.1% | $113.5M+3.8% | $109.4M |
| Cash & Equivalents | $268.9M+16.8% | $230.3M-6.3% | $245.8M+24.0% | $198.2M-1.0% | $200.2M-5.5% | $211.7M+122.3% | $95.3M-0.9% | $96.1M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $22.4M+14.0% | $19.7M-2.6% | $20.2M-12.9% | $23.2M+357.8% | $5.1M-26.1% | $6.8M+69.1% | $4.0M+20.0% | $3.4M |
| Goodwill | $122.3M+20.8% | $101.2M0.0% | $101.2M-0.5% | $101.7M+1584.1% | $6.0M+4.8% | $5.8M | $0 | N/A |
| Total Liabilities | $303.0M+37.9% | $219.7M+15.3% | $190.5M-48.7% | $371.3M+768.9% | $42.7M-67.6% | $131.9M+7.3% | $123.0M+4.1% | $118.1M |
| Current Liabilities | $65.1M+11.7% | $58.3M-2.9% | $60.0M-11.4% | $67.7M+165.3% | $25.5M-3.6% | $26.5M+9.3% | $24.2M+13.1% | $21.4M |
| Long-Term Debt | N/A | N/A | N/A | $0 | $0-100.0% | $85.5M+1.5% | $84.3M+1.2% | $83.3M |
| Total Equity | $399.2M+11.0% | $359.8M-9.4% | $397.0M+117.3% | $182.7M-18.4% | $223.9M+44.0% | $155.5M+452.0% | $28.2M+8.6% | $25.9M |
| Retained Earnings | -$997.1M-12.3% | -$887.9M-9.2% | -$813.1M+13.8% | -$943.1M-42.3% | -$662.7M-6.0% | -$625.4M-5.6% | -$592.4M-3.1% | -$574.4M |
SOUN Cash Flow Statement
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$32.7M-33.3% | -$24.5M-27.7% | -$19.2M+42.1% | -$33.1M-79.1% | -$18.5M+15.7% | -$21.9M-58.2% | -$13.9M+31.3% | -$20.2M |
| Capital Expenditures | $172K-10.4% | $192K+18.5% | $162K+102.5% | $80K-66.1% | $236K+138.4% | $99K+70.7% | $58K+41.5% | $41K |
| Free Cash Flow | -$32.8M-33.0% | -$24.7M-27.6% | -$19.3M+41.7% | -$33.2M-77.3% | -$18.7M+15.1% | -$22.0M-58.3% | -$13.9M+31.2% | -$20.2M |
| Investing Cash Flow | -$56.6M-29384.9% | -$192K-18.5% | -$162K-102.5% | -$80K+92.0% | -$1.0M+73.6% | -$3.8M-6431.0% | -$58K-41.5% | -$41K |
| Financing Cash Flow | $127.9M+1232.9% | $9.6M-85.7% | $67.0M-29.8% | $95.5M+1784.2% | -$5.7M-104.0% | $142.7M+992.5% | $13.1M+2017.0% | $617K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
SOUN Financial Ratios
| Metric | Q3'25 | Q2'25 | Q1'25 | Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.6%+3.6pp | 39.0%+2.6pp | 36.4%-3.5pp | 39.9%-23.1pp | 63.0%+3.3pp | 59.7%-17.5pp | 77.2%+4.2pp | 72.9% |
| Operating Margin | -275.6%-92.8pp | -182.9%-622.6pp | 439.8%+1184.0pp | -744.2%-580.9pp | -163.3%+82.8pp | -246.1%-173.8pp | -72.3%+37.2pp | -109.5% |
| Net Margin | -259.9%-84.8pp | -175.1%-621.0pp | 446.0%+1194.6pp | -748.6%-471.4pp | -277.2%+7.5pp | -284.7%-179.7pp | -105.0%+47.2pp | -152.2% |
| Return on Equity | N/A | N/A | 32.7% | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | -15.6%-2.7pp | -12.9%-35.0pp | 22.1%+68.8pp | -46.7%-32.7pp | -14.0%-2.5pp | -11.5%+0.4pp | -11.9%+2.1pp | -14.0% |
| Current Ratio | 5.15+0.3 | 4.84-0.1 | 4.92+1.1 | 3.77-5.0 | 8.77-0.1 | 8.84+4.1 | 4.69-0.4 | 5.11 |
| Debt-to-Equity | 0.76+0.1 | 0.61+0.1 | 0.48+0.5 | 0.000.0 | 0.00-0.6 | 0.55-2.4 | 2.99-0.2 | 3.21 |
| FCF Margin | -78.1%-20.2pp | -57.8%+8.6pp | -66.4%+29.7pp | -96.1%+43.0pp | -139.1%+51.0pp | -190.2%-108.9pp | -81.2%+71.3pp | -152.5% |
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Frequently Asked Questions
What is SOUNDHOUND AI INC's annual revenue?
SOUNDHOUND AI INC (SOUN) reported $84.7M in total revenue for fiscal year 2024. This represents a 84.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is SOUNDHOUND AI INC's revenue growing?
SOUNDHOUND AI INC (SOUN) revenue grew by 84.6% year-over-year, from $45.9M to $84.7M in fiscal year 2024.
Is SOUNDHOUND AI INC profitable?
No, SOUNDHOUND AI INC (SOUN) reported a net income of -$350.7M in fiscal year 2024, with a net profit margin of -414.1%.
What is SOUNDHOUND AI INC's earnings per share (EPS)?
SOUNDHOUND AI INC (SOUN) reported diluted earnings per share of $-1.04 for fiscal year 2024. This represents a -160.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is SOUNDHOUND AI INC's EBITDA?
SOUNDHOUND AI INC (SOUN) had EBITDA of -$340.2M in fiscal year 2024, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does SOUNDHOUND AI INC have?
As of fiscal year 2024, SOUNDHOUND AI INC (SOUN) had $198.2M in cash and equivalents against $0 in long-term debt.
What is SOUNDHOUND AI INC's gross margin?
SOUNDHOUND AI INC (SOUN) had a gross margin of 48.9% in fiscal year 2024, indicating the percentage of revenue retained after direct costs of goods sold.
What is SOUNDHOUND AI INC's operating margin?
SOUNDHOUND AI INC (SOUN) had an operating margin of -403.1% in fiscal year 2024, reflecting the profitability of core business operations before interest and taxes.
What is SOUNDHOUND AI INC's net profit margin?
SOUNDHOUND AI INC (SOUN) had a net profit margin of -414.1% in fiscal year 2024, representing the share of revenue converted into profit after all expenses.
What is SOUNDHOUND AI INC's free cash flow?
SOUNDHOUND AI INC (SOUN) generated -$109.5M in free cash flow during fiscal year 2024. This represents a -59.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is SOUNDHOUND AI INC's operating cash flow?
SOUNDHOUND AI INC (SOUN) generated -$108.9M in operating cash flow during fiscal year 2024, representing cash generated from core business activities.
What are SOUNDHOUND AI INC's total assets?
SOUNDHOUND AI INC (SOUN) had $554.0M in total assets as of fiscal year 2024, including both current and long-term assets.
What are SOUNDHOUND AI INC's capital expenditures?
SOUNDHOUND AI INC (SOUN) invested $640K in capital expenditures during fiscal year 2024, funding long-term assets and infrastructure.
How much does SOUNDHOUND AI INC spend on research and development?
SOUNDHOUND AI INC (SOUN) invested $70.6M in research and development during fiscal year 2024.
What is SOUNDHOUND AI INC's current ratio?
SOUNDHOUND AI INC (SOUN) had a current ratio of 3.77 as of fiscal year 2024, which is generally considered healthy.
What is SOUNDHOUND AI INC's debt-to-equity ratio?
SOUNDHOUND AI INC (SOUN) had a debt-to-equity ratio of 0.00 as of fiscal year 2024, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is SOUNDHOUND AI INC's return on assets (ROA)?
SOUNDHOUND AI INC (SOUN) had a return on assets of -63.3% for fiscal year 2024, measuring how efficiently the company uses its assets to generate profit.
What is SOUNDHOUND AI INC's cash runway?
Based on fiscal year 2024 data, SOUNDHOUND AI INC (SOUN) had $198.2M in cash against an annual operating cash burn of $108.9M. This gives an estimated cash runway of approximately 22 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is SOUNDHOUND AI INC's Piotroski F-Score?
SOUNDHOUND AI INC (SOUN) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are SOUNDHOUND AI INC's earnings high quality?
SOUNDHOUND AI INC (SOUN) has an earnings quality ratio of 0.31x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can SOUNDHOUND AI INC cover its interest payments?
SOUNDHOUND AI INC (SOUN) has an interest coverage ratio of -28.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is SOUNDHOUND AI INC?
SOUNDHOUND AI INC (SOUN) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.