Is the business good?
How good a business is SOUN?
SoundHound AI, Inc. earns −38% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−38%
Return on invested capital · cost of capital 9.0% · 47 points below what the capital costs: growth destroys value
- Operating margin
- −69%
Operating margin · Software - Application median 8.2% · 12 months to Q2 2026
- Share count, year on year
- +9.1%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 50%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −308% |
| FY2022 | −339% |
| FY2023 | −150% |
| FY2024 | −403% |
| FY2025 | −14% |
Details›
- Gross margin12 months to Q2 2026
- 42%
- Operating margin12 months to Q2 2026
- −69%
- Net margin12 months to Q2 2026
- −67%
- Free cash flow margin
- −57%
- R&D as % of revenue
- 50%
- Revenue, trailing twelve months
- $203M
- Free cash flow, trailing twelve months
- −$116M
- Net income, trailing twelve months
- −$137M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −38%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #86 of 90 by Smart Score