What is SOUNDHOUND AI INC's earnings per share (EPS)?

SOUNDHOUND AI INC (SOUNW) reported diluted earnings per share of $-0.28 for fiscal year 2025. This represents a 73.1% 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.

SOUNDHOUND AI INC Financials

SOUNW

Source SEC Filings (10-K/10-Q) Data as of Mar 31, 2026 Currency USD FYE December

This page shows SOUNDHOUND AI INC (SOUNW) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 5 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).

Rhea AI SOUNW FY2025 2026-04-22

Sales are scaling fast, but the business still runs on external cash because revenue has not turned self-funding.

Between FY2024 and FY2025, operating loss shrank from -$341.4M to -$23.3M, a much faster improvement than the underlying unit economics suggest. Gross margin slipped to 42.4% and operating cash flow remained near -$98.2M; that combination says overhead was absorbed across a larger base, while cash conversion still lags the reported progress.

The liquidity position looks comfortable on the surface: FY2025 cash of $248.5M against current liabilities of $71.7M gives the company room to absorb continued burn. But that cushion is externally financed, not internally earned, because three straight years of large financing inflows were needed while free cash flow stayed negative; the balance sheet is acting like runway, not evidence the model funds itself yet.

R&D still exceeds gross profit in FY2025, with research spending of $98.3M against gross profit of $71.6M. That keeps the company in build-out mode: additional scale is still being reinvested into capability and selling effort rather than dropping through as durable cash generation.

Financial Health Signals

Financial Health Score 57/100

Scored as: Emerging companies peer group

Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of SOUNDHOUND AI INC's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Cash Runway

R&D Intensity

Revenue Progress

Burn Trend

Balance Sheet

Piotroski F-Score Partial

3/7

SOUNDHOUND AI INC passes 3 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 1 of 4 profitability signals pass, all 1 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Low Quality

7012.85x

For every $1 of reported earnings, SOUNDHOUND AI INC generates $7012.85 in operating cash flow (-$98.2M OCF vs -$14K net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.

Interest Coverage At Risk

-34.7x

SOUNDHOUND AI INC earns $-34.7 in operating income for every $1 of interest expense (-$23.3M vs $670K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$168.9M

YoY+99.4%

SOUNDHOUND AI INC generated $168.9M in revenue in fiscal year 2025. This represents an increase of 99.4% from the prior year.

EBITDA

-$22.3M

YoY+93.5%

SOUNDHOUND AI INC's EBITDA was -$22.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 93.5% from the prior year.

Net Income

-$14K

YoY+96.0%

SOUNDHOUND AI INC reported -$14K in net income in fiscal year 2025. This represents an increase of 96.0% from the prior year.

EPS (Diluted)

$-0.28

YoY+73.1%

SOUNDHOUND AI INC earned $-0.28 per diluted share (EPS) in fiscal year 2025. This represents an increase of 73.1% from the prior year.

Cash & Balance Sheet

Free Cash Flow

-$99.1M

YoY+9.5%

SOUNDHOUND AI INC generated -$99.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 9.5% from the prior year.

Cash & Debt

$248.5M

YoY+25.3%

SOUNDHOUND AI INC held $248.5M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share

N/A

Shares Outstanding

N/A

Margins & Returns

Gross Margin

42.4%

YoY-6.5pp

SOUNDHOUND AI INC's gross margin was 42.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 6.5 percentage points from the prior year.

Operating Margin

-13.8%

YoY+389.3pp

SOUNDHOUND AI INC's operating margin was -13.8% in fiscal year 2025, reflecting core business profitability. This is up 389.3 percentage points from the prior year.

Net Margin

-0.0%

YoY+0.4pp

SOUNDHOUND AI INC's net profit margin was -0.0% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.4 percentage points from the prior year.

Return on Equity

0.0%

YoY+0.2pp

SOUNDHOUND AI INC's ROE was 0.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 0.2 percentage points from the prior year.

Capital Allocation

R&D Spending

$98.3M

YoY+39.3%

SOUNDHOUND AI INC invested $98.3M in research and development in fiscal year 2025. This represents an increase of 39.3% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$902K

YoY+40.9%

SOUNDHOUND AI INC invested $902K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 40.9% from the prior year.

SOUNW Income Statement

Metric	FY25	FY24	FY23	FY22	FY21
Revenue	$168.9M+99.4%	$84.7M+84.6%	$45.9M+47.4%	$31.1M+46.9%	$21.2M
Cost of Revenue	$97.4M+124.8%	$43.3M+283.0%	$11.3M+17.8%	$9.6M+45.8%	$6.6M
Gross Profit	$71.6M+72.9%	$41.4M+19.7%	$34.6M+60.5%	$21.5M+47.3%	$14.6M
R&D Expenses	$98.3M+39.3%	$70.6M+37.2%	$51.4M-32.7%	$76.4M+29.1%	$59.2M
SG&A Expenses	$82.2M+54.3%	$53.3M+88.3%	$28.3M-7.1%	$30.4M+84.3%	$16.5M
Operating Income	-$23.3M+93.2%	-$341.4M-397.5%	-$68.6M+35.1%	-$105.7M-61.8%	-$65.3M
Interest Expense	$670K-94.5%	$12.2M-30.7%	$17.6M+154.9%	$6.9M-17.4%	$8.3M
Income Tax	$4.7M+151.2%	-$9.2M-336.3%	$3.9M+35.5%	$2.9M+533.6%	$456K
Net Income	-$14K+96.0%	-$351K-294.3%	-$89K+23.8%	-$117K+99.9%	-$79.5M
EPS (Diluted)	$-0.28+73.1%	$-1.04-160.0%	$-0.40+45.9%	$-0.74+37.3%	$-1.18

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Revenue	$44.2M-19.7%	$55.1M+30.9%	$42.0M-1.5%	$42.7M+46.5%	$29.1M-15.7%	$34.5M+37.7%	$25.1M+86.4%	$13.5M
Cost of Revenue	$30.5M+6.1%	$28.7M+19.0%	$24.1M-7.3%	$26.0M+40.6%	$18.5M-10.8%	$20.8M+60.9%	$12.9M+159.1%	$5.0M
Gross Profit	$13.7M-47.8%	$26.4M+47.0%	$17.9M+7.6%	$16.7M+56.9%	$10.6M-23.0%	$13.8M+13.0%	$12.2M+43.8%	$8.5M
R&D Expenses	$26.2M+5.5%	$24.8M+8.7%	$22.8M-11.5%	$25.8M+4.2%	$24.8M+21.4%	$20.4M+4.3%	$19.5M+24.2%	$15.7M
SG&A Expenses	$25.7M+21.1%	$21.2M-12.9%	$24.3M+33.5%	$18.2M-1.0%	$18.4M+12.0%	$16.4M-3.5%	$17.0M+78.6%	$9.5M
Operating Income	-$22.7M-153.3%	$42.6M+136.7%	-$115.9M-48.5%	-$78.1M-160.9%	$128.1M+149.8%	-$257.1M-661.3%	-$33.8M-53.6%	-$22.0M
Interest Expense	$71K-37.2%	$113K-26.1%	$153K-9.5%	$169K-28.1%	$235K-82.0%	$1.3M+18.0%	$1.1M-72.9%	$4.1M
Income Tax	$798K-63.7%	$2.2M+381.4%	$457K-63.6%	$1.3M+53.4%	$819K+163.3%	$311K+103.0%	-$10.5M-1744.4%	$638K
Net Income	-$25.0M-146.3%	$54.0M+149.5%	-$109.3M-46.2%	-$74.7M-157.5%	$129.9M+41.6%	$91.7M+521.7%	-$21.8M+41.7%	-$37.3M
EPS (Diluted)	$-0.11	N/A	$-0.27-42.1%	$-0.19-161.3%	$0.31	N/A	$-0.06+45.5%	$-0.11

SOUNW Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21
Total Assets	$688.2M+24.2%	$554.0M+266.6%	$151.1M+297.8%	$38.0M-22.8%	$49.2M
Current Assets	$329.1M+28.8%	$255.5M+125.0%	$113.5M+541.4%	$17.7M-35.6%	$27.5M
Cash & Equivalents	$248.5M+25.3%	$198.2M+108.1%	$95.3M+930.4%	$9.2M-57.3%	$21.6M
Inventory	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$32.3M+39.6%	$23.2M+471.8%	$4.0M+18.6%	$3.4M+62.6%	$2.1M
Goodwill	$122.3M+20.2%	$101.7M	$0	N/A	N/A
Total Liabilities	$224.4M-39.6%	$371.3M+202.0%	$123.0M+64.9%	$74.6M-81.0%	$392.4M
Current Liabilities	$71.7M+5.9%	$67.7M+179.7%	$24.2M-37.2%	$38.6M-56.0%	$87.7M
Long-Term Debt	N/A	$0-100.0%	$84.3M+360.7%	$18.3M	N/A
Total Equity	$463.8M+153.9%	$182.7M+548.4%	$28.2M+177.0%	-$36.6M+89.3%	-$343.2M
Retained Earnings	-$957.1M-1.5%	-$943.1M-59.2%	-$592.4M-17.7%	-$503.4M-30.2%	-$386.7M

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Total Assets	$645.0M-6.3%	$688.2M-2.0%	$702.2M+21.2%	$579.5M-1.4%	$587.5M+6.1%	$554.0M+10.9%	$499.7M+87.4%	$266.7M
Current Assets	$288.8M-12.3%	$329.1M-1.9%	$335.4M+18.9%	$282.0M-4.4%	$295.1M+15.5%	$255.5M+41.0%	$181.2M-19.1%	$224.1M
Cash & Equivalents	$215.6M-13.2%	$248.5M-7.6%	$268.9M+16.8%	$230.3M-6.3%	$245.8M+24.0%	$198.2M+46.2%	$135.6M-32.2%	$200.2M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$30.1M-7.0%	$32.3M+44.2%	$22.4M+14.0%	$19.7M-2.6%	$20.2M-12.9%	$23.2M+70.7%	$13.6M+168.2%	$5.1M
Goodwill	$122.3M0.0%	$122.3M0.0%	$122.3M+20.8%	$101.2M0.0%	$101.2M-0.5%	$101.7M-9.0%	$111.7M+1750.1%	$6.0M
Total Liabilities	$184.3M-17.9%	$224.4M-25.9%	$303.0M+37.9%	$219.7M+15.3%	$190.5M-48.7%	$371.3M+82.3%	$203.7M+376.6%	$42.7M
Current Liabilities	$73.3M+2.2%	$71.7M+10.1%	$65.1M+11.7%	$58.3M-2.9%	$60.0M-11.4%	$67.7M-3.5%	$70.2M+174.8%	$25.5M
Long-Term Debt	N/A	N/A	N/A	N/A	N/A	$0-100.0%	$39.7M	$0
Total Equity	$460.7M-0.7%	$463.8M+16.2%	$399.2M+11.0%	$359.8M-9.4%	$397.0M+117.3%	$182.7M-38.3%	$296.0M+32.2%	$223.9M
Retained Earnings	-$982.1M-2.6%	-$957.1M+4.0%	-$997.1M-12.3%	-$887.9M-9.2%	-$813.1M+13.8%	-$943.1M-37.8%	-$684.5M-3.3%	-$662.7M

SOUNW Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21
Operating Cash Flow	-$98.2M+9.8%	-$108.9M-59.5%	-$68.3M+27.4%	-$94.0M-42.1%	-$66.2M
Capital Expenditures	$902K+40.9%	$640K+63.3%	$392K-70.5%	$1.3M+109.0%	$636K
Free Cash Flow	-$99.1M+9.5%	-$109.5M-59.5%	-$68.7M+28.0%	-$95.3M-42.7%	-$66.8M
Investing Cash Flow	-$59.5M-381.0%	-$12.4M-3056.1%	-$392K+70.5%	-$1.3M-109.0%	-$636K
Financing Cash Flow	$208.1M-1.3%	$210.9M+25.4%	$168.2M+105.2%	$82.0M+83.6%	$44.7M
Dividends Paid	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Operating Cash Flow	-$26.3M-20.0%	-$21.9M+33.0%	-$32.7M-33.3%	-$24.5M-27.7%	-$19.2M+42.1%	-$33.1M+6.2%	-$35.3M-91.0%	-$18.5M
Capital Expenditures	$468K+24.5%	$376K+118.6%	$172K-10.4%	$192K+18.5%	$162K+102.5%	$80K-64.4%	$225K-4.7%	$236K
Free Cash Flow	-$26.7M-20.1%	-$22.3M+32.2%	-$32.8M-33.0%	-$24.7M-27.6%	-$19.3M+41.7%	-$33.2M+6.6%	-$35.5M-89.8%	-$18.7M
Investing Cash Flow	-$3.1M-20.5%	-$2.5M+95.5%	-$56.6M-29384.9%	-$192K-18.5%	-$162K-102.5%	-$80K+98.9%	-$7.5M-650.4%	-$1.0M
Financing Cash Flow	-$3.2M-191.1%	$3.6M-97.2%	$127.9M+1232.9%	$9.6M-85.7%	$67.0M-29.8%	$95.5M+542.3%	-$21.6M-280.8%	-$5.7M
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

SOUNW Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21
Gross Margin	42.4%-6.5pp	48.9%-26.5pp	75.3%+6.2pp	69.2%+0.2pp	68.9%
Operating Margin	-13.8%+389.3pp	-403.1%-253.5pp	-149.6%+189.9pp	-339.5%-31.3pp	-308.2%
Net Margin	-0.0%+0.4pp	-0.4%-0.2pp	-0.2%+0.2pp	-0.4%+374.9pp	-375.2%
Return on Equity	0.0%+0.2pp	-0.2%+0.1pp	-0.3%	N/A	N/A
Return on Assets	0.0%+0.1pp	-0.1%0.0pp	-0.1%+0.3pp	-0.3%+161.3pp	-161.7%
Current Ratio	4.59+0.8	3.77-0.9	4.69+4.2	0.46+0.1	0.31
Debt-to-Equity	0.48+0.5	0.00-3.0	2.99+3.5	-0.50+0.6	-1.14
FCF Margin	-58.7%+70.6pp	-129.3%+20.4pp	-149.7%+156.6pp	-306.3%+8.9pp	-315.2%

Metric	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24	Q2'24
Gross Margin	31.1%-16.8pp	47.9%+5.2pp	42.6%+3.6pp	39.0%+2.6pp	36.4%-3.5pp	39.9%-8.7pp	48.6%-14.4pp	63.0%
Operating Margin	-51.3%-128.6pp	77.3%+352.9pp	-275.6%-92.8pp	-182.9%-622.6pp	439.8%+1184.0pp	-744.2%-609.6pp	-134.6%+28.8pp	-163.3%
Net Margin	-56.6%-154.8pp	98.2%+358.0pp	-259.9%-84.8pp	-175.1%-621.1pp	446.1%+180.5pp	265.6%+352.2pp	-86.7%+190.6pp	-277.2%
Return on Equity	-5.4%-17.1pp	11.7%+39.0pp	-27.4%-6.6pp	-20.8%-53.5pp	32.7%-17.5pp	50.2%+57.6pp	-7.3%+9.3pp	-16.7%
Return on Assets	-3.9%-11.7pp	7.8%+23.4pp	-15.6%-2.7pp	-12.9%-35.0pp	22.1%+5.5pp	16.6%+20.9pp	-4.3%+9.7pp	-14.0%
Current Ratio	3.94-0.6	4.59-0.6	5.15+0.3	4.84-0.1	4.92+1.1	3.77+1.2	2.58-6.2	8.77
Debt-to-Equity	0.40-0.1	0.48-0.3	0.76+0.1	0.61+0.1	0.48+0.5	0.00-0.1	0.13+0.1	0.00
FCF Margin	-60.5%-20.0pp	-40.4%+37.6pp	-78.1%-20.2pp	-57.8%+8.6pp	-66.4%+29.7pp	-96.1%+45.5pp	-141.6%-2.5pp	-139.1%

Frequently Asked Questions

What is SOUNDHOUND AI INC's annual revenue?

SOUNDHOUND AI INC (SOUNW) reported $168.9M in total revenue for fiscal year 2025. This represents a 99.4% 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 (SOUNW) revenue grew by 99.4% year-over-year, from $84.7M to $168.9M in fiscal year 2025.

Is SOUNDHOUND AI INC profitable?

No, SOUNDHOUND AI INC (SOUNW) reported a net income of -$14K in fiscal year 2025, with a net profit margin of -0.0%.

What is SOUNDHOUND AI INC's EBITDA?

SOUNDHOUND AI INC (SOUNW) had EBITDA of -$22.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

What is SOUNDHOUND AI INC's gross margin?

SOUNDHOUND AI INC (SOUNW) had a gross margin of 42.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is SOUNDHOUND AI INC's operating margin?

SOUNDHOUND AI INC (SOUNW) had an operating margin of -13.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is SOUNDHOUND AI INC's net profit margin?

SOUNDHOUND AI INC (SOUNW) had a net profit margin of -0.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

What is SOUNDHOUND AI INC's return on equity (ROE)?

SOUNDHOUND AI INC (SOUNW) has a return on equity of 0.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is SOUNDHOUND AI INC's free cash flow?

SOUNDHOUND AI INC (SOUNW) generated -$99.1M in free cash flow during fiscal year 2025. This represents a 9.5% 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 (SOUNW) generated -$98.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are SOUNDHOUND AI INC's total assets?

SOUNDHOUND AI INC (SOUNW) had $688.2M in total assets as of fiscal year 2025, including both current and long-term assets.

What are SOUNDHOUND AI INC's capital expenditures?

SOUNDHOUND AI INC (SOUNW) invested $902K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does SOUNDHOUND AI INC spend on research and development?

SOUNDHOUND AI INC (SOUNW) invested $98.3M in research and development during fiscal year 2025.

What is SOUNDHOUND AI INC's current ratio?

SOUNDHOUND AI INC (SOUNW) had a current ratio of 4.59 as of fiscal year 2025, which is generally considered healthy.

What is SOUNDHOUND AI INC's debt-to-equity ratio?

SOUNDHOUND AI INC (SOUNW) had a debt-to-equity ratio of 0.48 as of fiscal year 2025, 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 (SOUNW) had a return on assets of 0.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is SOUNDHOUND AI INC's cash runway?

Based on fiscal year 2025 data, SOUNDHOUND AI INC (SOUNW) had $248.5M in cash against an annual operating cash burn of $98.2M. This gives an estimated cash runway of approximately 30 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 (SOUNW) has a Piotroski F-Score of 3 out of 7 computable signals; 2 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 (SOUNW) has an earnings quality ratio of 7012.85x, 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 (SOUNW) has an interest coverage ratio of -34.7x, 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 (SOUNW) scores 57 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.