SOUNDHOUND AI INC (SOUNW) Financials
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 10, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the SOUNW SEC filings page.
SOUNDHOUND AI INC (SOUNW) reported $203.2M in revenue over the twelve months to Jun 30, 2026, up 54.6% from the prior twelve months. This page shows its 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).
Rapid revenue scaling is paired with falling gross margins and financing-led balance-sheet expansion rather than self-funded cash generation.
From FY2024 to FY2025, revenue nearly doubled while gross margin fell from48.9% to42.4% ; meanwhile, operating margin improved from-403.1% to-13.8% . This divergence shows gross-margin pressure did not determine operating outcome: changes below gross profit dominated reported profitability.
Despite operating margin improvement to
FY2025 financing cash flow was
Financial Health Signals
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.
SOUNDHOUND AI INC held $248.5M in cash, cash equivalents and investments at the end of fiscal year 2025, and its operations used $98.2M of cash that year. Cash Runway ranks emerging companies on the size of that balance against the outflow behind it, and SOUNDHOUND AI INC scores 56/100 among other emerging companies.
Not available for SOUNDHOUND AI INC, and counted as zero in the overall score.
SOUNDHOUND AI INC spent $98.3M on research and development in fiscal year 2025, which was 51.1% of its operating costs that year. R&D Intensity ranks emerging companies on the share of operating costs that goes into research, and SOUNDHOUND AI INC scores 78/100 among other emerging companies.
SOUNDHOUND AI INC reported revenue of $168.9M in fiscal year 2025, against $84.7M in fiscal year 2024. Revenue Progress ranks emerging companies on the three-year path of that line, and SOUNDHOUND AI INC scores 85/100 among other emerging companies.
SOUNDHOUND AI INC's operations used $98.2M of cash in fiscal year 2025, against $108.9M used in fiscal year 2024. Burn Trend ranks emerging companies on which way that figure has moved over three years, and SOUNDHOUND AI INC scores 30/100 among other emerging companies.
SOUNDHOUND AI INC's cash, cash equivalents and investments came to $248.5M at the end of fiscal year 2025, against $224.4M of total liabilities. Balance Sheet ranks emerging companies on that comparison, and SOUNDHOUND AI INC scores 61/100 among other emerging companies.
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.
SOUNDHOUND AI INC reported a net loss of $14K while operations used $98.2M of cash. With neither figure positive, the ratio between the two carries no quality signal.
SOUNDHOUND AI INC reported an operating loss of $23.3M against $670K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
Key Financial Metrics
Earnings & Revenue
SOUNDHOUND AI INC generated $61.9M in revenue in Q2 2026. This represents an increase of 45.0% from the same quarter a year earlier. Against the prior quarter it is up 40.1%.
SOUNDHOUND AI INC's EBITDA was -$32.2M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 54.2% from the same quarter a year earlier. Against the prior quarter it is down 153.4%.
SOUNDHOUND AI INC reported -$42.8M in net income in Q2 2026. This represents an increase of 42.7% from the same quarter a year earlier. Against the prior quarter it is down 71.1%.
SOUNDHOUND AI INC earned -$0.10 per diluted share (EPS) in Q2 2026. This represents an increase of 47.4% from the same quarter a year earlier.
Cash & Balance Sheet
SOUNDHOUND AI INC recorded an outflow of $34.1M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 38.0% from the same quarter a year earlier. Against the prior quarter it is down 27.5%.
SOUNDHOUND AI INC held $202.8M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
SOUNDHOUND AI INC's gross margin was 45.1% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 6.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 14.0 percentage points.
SOUNDHOUND AI INC's operating margin was -70.0% in Q2 2026, reflecting core business profitability. Against the prior quarter it is down 18.6 percentage points. No change is given against Q2 2025: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
SOUNDHOUND AI INC's net profit margin was -69.2% in Q2 2026, showing the share of revenue converted to profit. Against the prior quarter it is down 12.5 percentage points. No change is given against Q2 2025: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
SOUNDHOUND AI INC's ROE was -8.7% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 12.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 3.3 percentage points.
Capital Allocation
SOUNDHOUND AI INC invested $27.1M in research and development in Q2 2026. This represents an increase of 5.1% from the same quarter a year earlier. Against the prior quarter it is up 3.5%.
SOUNDHOUND AI INC invested $354K in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 84.4% from the same quarter a year earlier. Against the prior quarter it is down 24.4%.
Not reported for Q2 2026.
SOUNW Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $61.9M+45.0% | $44.2M+51.7% | $55.1M+59.4% | $42.0M+67.6% | $42.7M+217.1% | $29.1M+151.2% | $34.5M+101.5% | $25.1M+89.1% |
| Cost of Revenue | $34.0M+30.5% | $30.5M+64.5% | $28.7M+38.3% | $24.1M+87.0% | $26.0M+422.5% | $18.5M+296.5% | $20.8M+430.8% | $12.9M+259.4% |
| Gross Profit | $27.9M+67.6% | $13.7M+29.4% | $26.4M+91.2% | $17.9M+47.0% | $16.7M+96.4% | $10.6M+53.3% | $13.8M+4.1% | $12.2M+26.0% |
| R&D Expenses | $27.1M+5.1% | $26.2M+5.8% | $24.8M+21.8% | $22.8M+16.9% | $25.8M+64.0% | $24.8M+66.4% | $20.4M+60.4% | $19.5M+52.6% |
| SG&A Expenses | $26.0M+42.6% | $25.7M+39.5% | $21.2M+29.0% | $24.3M+43.0% | $18.2M+91.2% | $18.4M+79.3% | $16.4M+115.1% | $17.0M+145.7% |
| Operating Income | -$43.3M+44.5% | -$22.7M-117.7% | $42.6M+116.6% | -$115.9M-243.2% | -$78.1M-255.0% | $128.1M+549.0% | -$257.1M-1974.5% | -$33.8M-132.4% |
| EBITDA | -$32.2M+54.2% | -$12.7M-109.4% | $19.5M+107.4% | -$107.3M-277.9% | -$70.3M-239.4% | $135.9M+602.1% | -$264.0M-2093.9% | -$28.4M-102.9% |
| Interest Expense | $61K-63.9% | $71K-69.8% | $113K-91.4% | $153K-86.2% | $169K-95.9% | $235K-95.9% | $1.3M-76.0% | $1.1M-79.6% |
| Income Tax | $2.2M+73.7% | $798K-2.6% | $2.2M+607.4% | $457K+104.4% | $1.3M+96.9% | $819K+177.6% | $311K-80.6% | -$10.5M-772.1% |
| Net Income | -$42.8M+42.7% | -$25.0M-119.3% | $54.0M-41.1% | -$109.3M-402.4% | -$74.7M-100.2% | $129.9M+493.6% | $91.7M+29.5% | -$21.8M-7.7% |
| EPS (Basic) | -$0.10+47.4% | -$0.06-118.2% | $0.10+113.2% | -$0.27-350.0% | -$0.19-72.7% | $0.33+375.0% | -$0.76-985.7% | -$0.06+33.3% |
| EPS (Diluted) | -$0.10+47.4% | -$0.11 | -$0.14+81.6% | -$0.27-350.0% | -$0.19-72.7% | $0.31 | -$0.76-985.7% | -$0.06 |
| Diluted Shares (Avg) | 439M+9.1% | 430M | N/A | 412M+14.2% | 402M+21.2% | 414M | N/A | 360M |
SOUNW Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $667.9M+15.3% | $645.0M+9.8% | $688.2M+24.2% | $702.2M+40.5% | $579.5M+117.3% | $587.5M+104.4% | $554.0M+266.6% | $499.7M+247.0% |
| Current Assets | $277.0M-1.8% | $288.8M-2.1% | $329.1M+28.8% | $335.4M+85.1% | $282.0M+25.9% | $295.1M+26.1% | $255.5M+125.0% | $181.2M+65.7% |
| Cash & Equivalents | $202.8M-12.0% | $215.6M-12.3% | $248.5M+25.3% | $268.9M+98.3% | $230.3M+15.1% | $245.8M+16.1% | $198.2M+108.1% | $135.6M+41.0% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Accounts Receivable | $27.1M+37.7% | $30.1M+49.0% | $32.3M+39.6% | $22.4M+65.2% | $19.7M+288.6% | $20.2M+194.6% | $23.2M+471.8% | $13.6M+302.0% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $122.3M+20.8% | $122.3M+20.8% | $122.3M+20.2% | $122.3M+9.4% | $101.2M+1575.9% | $101.2M+1657.1% | $101.7M | $111.7M |
| Total Liabilities | $177.5M-19.2% | $184.3M-3.3% | $224.4M-39.6% | $303.0M+48.8% | $219.7M+414.2% | $190.5M+44.4% | $371.3M+202.0% | $203.7M+72.5% |
| Current Liabilities | $70.9M+21.6% | $73.3M+22.1% | $71.7M+5.9% | $65.1M-7.2% | $58.3M+128.3% | $60.0M+126.7% | $67.7M+179.7% | $70.2M+227.8% |
| Non-Current Liabilities | $106.6M-34.0% | $111.0M-15.0% | $152.6M-49.7% | $237.8M+78.2% | $161.4M+838.9% | $130.5M+23.7% | $303.6M+207.5% | $133.5M+38.1% |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | $0-100.0% | $39.7M-52.4% |
| Total Equity | $490.4M+36.3% | $460.7M+16.0% | $463.8M+153.9% | $399.2M+34.9% | $359.8M+60.6% | $397.0M+155.3% | $182.7M+548.4% | $296.0M+1041.4% |
| Retained Earnings | -$1.0B-15.4% | -$982.1M-20.8% | -$957.1M-1.5% | -$997.1M-45.7% | -$887.9M-34.0% | -$813.1M-30.0% | -$943.1M-59.2% | -$684.5M-19.2% |
Not reported in any period shown, so not listed: Inventory.
SOUNW Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$33.7M-37.6% | -$26.3M-36.9% | -$21.9M+33.9% | -$32.7M+7.5% | -$24.5M-32.5% | -$19.2M+12.6% | -$33.1M-138.8% | -$35.3M-74.9% |
| Depreciation & Amortization | $11.1M+42.8% | $10.0M+28.5% | -$23.1M-233.9% | $8.6M+59.5% | $7.8M+507.3% | $7.8M+427.6% | -$6.9M-2026.2% | $5.4M+912.3% |
| Stock-Based Compensation | $20.6M-13.4% | $18.5M+6.3% | N/A | $19.7M+117.5% | $23.8M+228.3% | $17.4M+149.9% | N/A | $9.1M+35.4% |
| Capital Expenditures | $354K+84.4% | $468K+188.9% | $376K+370.0% | $172K-23.6% | $192K-18.6% | $162K+63.6% | $80K+37.9% | $225K+448.8% |
| Free Cash Flow | -$34.1M-38.0% | -$26.7M-38.1% | -$22.3M+33.0% | -$32.8M+7.6% | -$24.7M-31.8% | -$19.3M+12.2% | -$33.2M-138.4% | -$35.5M-75.6% |
| Investing Cash Flow | -$29.7M-15351.6% | -$3.1M-1788.9% | -$2.5M-3073.8% | -$56.6M-654.4% | -$192K+80.8% | -$162K+95.7% | -$80K-37.9% | -$7.5M-18202.4% |
| Financing Cash Flow | $49.9M+420.4% | -$3.2M-104.8% | $3.6M-96.3% | $127.9M+692.6% | $9.6M+269.3% | $67.0M-53.0% | $95.5M+630.8% | -$21.6M-3598.4% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
SOUNW Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.1%+6.1pp | 31.1%-5.4pp | 47.9%+8.0pp | 42.6%-6.0pp | 39.0%-24.0pp | 36.4%-23.3pp | 39.9%-37.3pp | 48.6%-24.4pp |
| Operating Margin | -70.0% | -51.3% | 77.3% | -275.6% | -182.9% | 439.8% | -744.2% | -134.6% |
| Net Margin | -69.2% | -56.6% | 98.2% | -259.9% | -175.1% | 446.1% | 265.6% | -86.7% |
| Return on Equity | -8.7%+12.0pp | -5.4%-38.2pp | 11.7%-38.6pp | -27.4%-20.0pp | -20.8%-4.1pp | 32.7%+54.0pp | 50.2%-201.3pp | -7.3%+70.5pp |
| Return on Assets | -6.4%+6.5pp | -3.9%-26.0pp | 7.8%-8.7pp | -15.6%-11.2pp | -12.9%+1.1pp | 22.1%+33.6pp | 16.6%-30.3pp | -4.3%+9.7pp |
| Current Ratio | 3.91-0.9x | 3.94-1.0x | 4.59+0.8x | 5.15+2.6x | 4.84-3.9x | 4.92-3.9x | 3.77-0.9x | 2.58-2.5x |
| Debt-to-Equity | 0.36-0.2x | 0.40-0.1x | 0.48+0.5x | 0.76+0.6x | 0.61+0.4x | 0.48-0.1x | 0.00-3.0x | 0.13-3.1x |
| Asset Turnover | 0.090.0x | 0.070.0x | 0.080.0x | 0.060.0x | 0.070.0x | 0.050.0x | 0.06-0.1x | 0.050.0x |
| FCF Margin | -55.0%+2.8pp | -60.5%+5.9pp | -40.4%+55.7pp | -78.1% | -57.8% | -66.4% | -96.1%-14.9pp | -141.6% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.
Where SOUNDHOUND AI INC Ranks
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) recorded an outflow of $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) recorded an outflow of $98.2M in operating cash flow during fiscal year 2025, representing cash used by 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 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) reported a net loss of $14K while operations used $98.2M of cash. With neither figure positive, the ratio between the two carries no quality signal. 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) reported an operating loss of $23.3M against $670K in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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 52 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.