SoundHound AI (SOUN)
Market Price (12/4/2025): $12.39 | Market Cap: $5.0 BilSector: Information Technology | Industry: Application Software
SoundHound AI (SOUN)
Market Price (12/4/2025): $12.39Market Cap: $5.0 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 137% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -166 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -126% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -63% | Expensive valuation multiplesP/SPrice/Sales ratio is 33x |
| Megatrend and thematic driversMegatrends include Artificial Intelligence. Themes include AI Software Platforms, and Edge AI. | Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -85%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -86% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -9.5% | |
| High stock price volatilityVol 12M is 113% | |
| Significant short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 29% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 137% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -63% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence. Themes include AI Software Platforms, and Edge AI. |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -166 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -126% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 33x |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -85%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -86% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -9.5% |
| High stock price volatilityVol 12M is 113% |
| Significant short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 29% |
Valuation, Metrics & Events
SOUN Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Based on the most recent available information for SoundHound AI (SOUN), the stock experienced significant declines during the approximate period from late August to early December 2025. While the precise -9.5% movement is a specific figure, the following key points explain the broader negative stock performance during this timeframe:
1. Significant Widening of Operating Losses: Despite impressive revenue growth, SoundHound AI reported a substantial increase in its net losses. For instance, in the third quarter of 2025, the company's GAAP net loss was $109.3 million, a 402% increase from the prior year, raising considerable concerns about its path to profitability and heavy cash usage.
2. High Valuation Amidst Broader AI Sector Concerns: The stock's valuation was perceived as high, which, combined with general market anxieties about the actual bottom-line improvements from generative AI investments and a potential "AI bubble," led to significant valuation pullbacks.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| SOUN Return | - | - | - | 20% | 836% | -43% | 534% |
| Peers Return | 13% | -2% | -7% | 5% | 55% | 836% | 1483% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| SOUN Win Rate | - | - | 50% | 50% | 50% | 60% | |
| Peers Win Rate | 13% | 10% | 9% | 30% | 44% | 36% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| SOUN Max Drawdown | - | - | - | -42% | -23% | -64% | |
| Peers Max Drawdown | -5% | -4% | -8% | -15% | -8% | -51% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: ADSK, HIT, BMR, BTTC, CCC.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)
How Low Can It Go
| Event | SOUN | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -93.6% | -25.4% |
| % Gain to Breakeven | 1451.2% | 34.1% |
| Time to Breakeven | 715 days | 464 days |
Compare to ADSK, HIT, BMR, BTTC, CCC
In The Past
SoundHound AI's stock fell -93.6% during the 2022 Inflation Shock from a high on 5/5/2022. A -93.6% loss requires a 1451.2% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
Trade Ideas
Select past ideas related to SOUN. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 1.9% | 1.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 3.7% | 3.7% | 0.0% |
| 11212025 | CRM | Salesforce | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 5.1% | 5.1% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.5% | 5.5% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 8.0% | 8.0% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11302025 | ENPH | Enphase Energy | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 1.9% | 1.9% | -0.9% |
| 11262025 | PD | PagerDuty | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 3.7% | 3.7% | 0.0% |
| 11212025 | CRM | Salesforce | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 5.1% | 5.1% | -0.1% |
| 11212025 | HUBS | HubSpot | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 5.5% | 5.5% | 0.0% |
| 11212025 | FIVN | Five9 | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 8.0% | 8.0% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for SoundHound AI
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 5.49 |
| Mkt Cap | 4.7 |
| Rev LTM | 131 |
| Op Inc LTM | 1 |
| FCF LTM | 128 |
| FCF 3Y Avg | 216 |
| CFO LTM | 157 |
| CFO 3Y Avg | 271 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 21.7% |
| Rev Chg 3Y Avg | 11.7% |
| Rev Chg Q | 51.7% |
| QoQ Delta Rev Chg LTM | 11.7% |
| Op Mgn LTM | 5.0% |
| Op Mgn 3Y Avg | 6.9% |
| QoQ Delta Op Mgn LTM | 0.4% |
| CFO/Rev LTM | 21.3% |
| CFO/Rev 3Y Avg | 29.0% |
| FCF/Rev LTM | 14.9% |
| FCF/Rev 3Y Avg | 23.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.7 |
| P/S | 10.0 |
| P/EBIT | 24.6 |
| P/E | 35.8 |
| P/CFO | 13.5 |
| Total Yield | 1.6% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | -1.1% |
| D/E | 0.0 |
| Net D/E | -0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -12.8% |
| 3M Rtn | -17.3% |
| 6M Rtn | -5.8% |
| 12M Rtn | 2.8% |
| 3Y Rtn | 412.7% |
| 1M Excs Rtn | -12.7% |
| 3M Excs Rtn | -21.5% |
| 6M Excs Rtn | -20.5% |
| 12M Excs Rtn | -8.3% |
| 3Y Excs Rtn | 348.7% |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 8112025 | 10-Q 6/30/2025 |
| 3312025 | 5122025 | 10-Q 3/31/2025 |
| 12312024 | 3112025 | 10-K 12/31/2024 |
| 9302024 | 11122024 | 10-Q 9/30/2024 |
| 6302024 | 8092024 | 10-Q 6/30/2024 |
| 3312024 | 5102024 | 10-Q 3/31/2024 |
| 12312023 | 3012024 | 10-K 12/31/2023 |
| 9302023 | 11152023 | 10-Q 9/30/2023 |
| 6302023 | 8112023 | 10-Q 6/30/2023 |
| 3312023 | 5122023 | 10-Q 3/31/2023 |
| 12312022 | 3282023 | 10-K 12/31/2022 |
| 9302022 | 11142022 | 10-Q 9/30/2022 |
| 6302022 | 8152022 | 10-Q 6/30/2022 |
| 12312021 | 4082022 | 424B3 12/31/2021 |
External Quote Links
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| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |