SoundHound AI, Inc. SOUN
Promising (early) Emerging Frontier sector · Conversational voice AI for restaurants, cars, and devices.
SoundHound AI, Inc. (SOUN) is an early-stage Emerging Frontier company, graded Promising (early) on FrontierLab's evidence-based quality rubric (data as of 2026-10-05). Revenue grew 54.6% year-over-year at a 37.4% gross margin. Gross-profits-to-assets is 0.11; Rule of 40 is -35.1. Net share issuance 6.5% YoY (heavy issuance). 2 risk flags are noted below. Analyst mix: 12 buy / 3 hold / 0 sell. Track record: 27% of Early-stage-graded names beat the S&P over 63 sessions (95% CI 15–44%, N=33). Median excess vs the S&P was -14.6%.
These sentences are generated from the day's data by deterministic templates.
Key quality signals
| Revenue growth (YoY) | 54.6% |
|---|---|
| Gross margin | 37.4% |
| Gross profits / assets | 0.11 |
| Rule of 40 | -35.1 |
| Net margin | -89.7% |
| Cash runway (months) | 21.2 |
| PEG | — |
| Price / sales | 12.5 |
Quality checklist
Each line is one quality test behind the grade — ✓ passed · ~ borderline · ✗ failed. Hover a metric in the tables below for what it means.
- ✓ Revenue growth — 54.6% (pass ≥ 20%)
- ✓ Capital efficiency
- ~ Gross margin — 37.4% (pass ≥ 45% · Emerging Frontier)
- ✗ Gross-margin trend — -3.1 (pass ≥ 2)
- ✓ Share dilution — 6.5%
- ✗ Competitive moat — None
- ✓ Market size (TAM) — Large
Grade history
- 2026-09-01 — Promising (early) (from Mixed (early))
- 2026-08-27 — Mixed (early) (from Promising (early))
- 2026-08-26 — Promising (early) (from Mixed (early))
- 2026-08-25 — Mixed (early) (from Promising (early))
- 2026-08-24 — Promising (early) (from Mixed (early))
- 2026-08-21 — Mixed (early) (from Promising (early))
- 2026-08-20 — Promising (early) (from Mixed (early))
- 2026-08-19 — Mixed (early) (from Promising (early))
- 2026-08-18 — Promising (early) (from Mixed (early))
- 2026-08-14 — Mixed (early) (from Promising (early))
- 2026-08-07 — Promising (early) (from Mixed (early))
- 2026-08-04 — Mixed (early) (from Promising (early))
- 2026-07-28 — Promising (early) (from Mixed (early))
- 2026-07-27 — Mixed (early) (from Promising (early))
- 2026-07-23 — Promising (early) (from Mixed (early))
- 2026-07-21 — Mixed (early) (from Promising (early))
- 2026-07-16 — Promising (early) (from Mixed (early))
- 2026-06-26 — Mixed (early) (from Promising (early))
- 2026-06-24 — Promising (early) (from Mixed (early))
- 2026-06-10 — Mixed (early) (first graded)
Every grade change since FrontierLab began tracking this name — the receipts behind the current grade.
How have Early-stage-graded names performed?
The forward returns of all Early-stage-graded names since each grade was recorded — the bucket this name currently sits in, not a forecast of this individual stock.
| Window | Forward record vs the S&P | Median |
|---|---|---|
| ~1 month | 45% of Early-stage-graded names beat the S&P over 21 sessions (95% CI 29–62%, N=31). | Median excess vs the S&P was -3.2%. |
| ~3 months | 27% of Early-stage-graded names beat the S&P over 63 sessions (95% CI 15–44%, N=33). | Median excess vs the S&P was -14.6%. |
| ~6 months | building — 46 more sessions needed | |
How have this name's flags scored?
| Flag | N | Mean excess vs S&P |
|---|---|---|
| Burning cash — operating margin is negative. | 36 | -6.5% |
| Heavy share dilution (>5%/yr) — your slice shrinks. | sample still too small to report (need ≥ 8) | |
These per-flag figures are observational — a flag firing is not a randomized assignment, so any edge can reflect what kind of names trip a flag, not the flag itself. Descriptive, not causal.
Scope: these are forward returns vs the S&P among names still covered at each horizon's end, within the curated universe — not a survivorship-clean whole-market backtest. Names later dropped from coverage are counted as attrition (not hidden), and single-session moves beyond ±300% are treated as split/data artifacts and excluded. How this is measured → · Full track record →
How it compares
Coarse same-sector, same-stage context — not a percentile or rank. GP/A is graded on its absolute level, not position.
Fundamentals
| Market cap | $2.54B |
|---|---|
| Stage | Early |
| Share issuance (YoY) | 6.5% · heavy issuance |
| Moat | None |
| TAM | LARGE |
| P/E (trailing) | — |
| EPS (trailing) | $-0.33 |
| Burn multiple | 0.6 |
| Gross-margin trend (pts) | -3.1 |
| Cash / assets | 0.3 |
| Accruals (%) | -3.6% |
| Net debt / EBITDA | — |
| Statements as of | Q2 FY2026 · filed 2026-08-10 |
Momentum context — describes the past, not a signal
Low reached Jul 29, 2026 · high reached Oct 15, 2025 — by daily close.
| Price | $5.84 (as of 2026-10-02) |
|---|---|
| Last session move | — |
| % off 52-wk high | -73.7% |
| RSI (14) | 38 |
| Relative volume | 1.2× |
Risk flags
Insider activity (90 days)
| Cluster buyers | 0 |
|---|---|
| Sellers | 5 |
Insider selling is routine diversification, not a bearish signal.
Analyst mix
| Strong buy | 4 |
|---|---|
| Buy | 8 |
| Hold | 3 |
| Sell | 0 |
| Strong sell | 0 |
Ratings are context, not a price target. "Momentum" = how the mix changed over recent weeks, not a forecast.
From the headlines
- SoundHound vs. Rezolve: Which AI Growth Story Is Worth the Financing Risk?
- With Shares Down 41% This Year, Could Buying SoundHound AI (SOUN) Stock Today Set You Up for Life?
- SoundHound AI, Inc. (SOUN) Stock Declines While Market Improves: Some Information for Investors
AI take — daily, AI-generated
AI leans mixed
Strong growth and healthy margins suggest real traction, but early-stage with limited profitability per asset and only 21 months of runway—execution risk is high.
Generated by an AI model from the day's news — an opinion for context only. Not financial advice, not a recommendation, and not a price target.
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Data as of 2026-10-05 08:19 (end-of-day). How grades are computed →