Forensic Analysis · Technology / Software · as of Aug 11, 2026
Soundhound Ai, Inc. (SOUN)
A forensic read on Soundhound Ai, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
10.3
Distress distance
Watch
Earnings quality
4
Forensic signals
-24.0
P / E (ttm)
-3.0%
ROE
$3.2B
Market cap
0.00%
Dividend yield
99.4%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Soundhound Ai, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 10.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-5.0%
FY2025
Return on invested capital.Return on invested capital is -5.0% in the latest fiscal year and rising from -1221% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+37.6%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +160% over the last 3 years to FY2025 (+37.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~37.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~62%.
n/m (sign flip)
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets flipped from negative to positive FY2024→FY2025 (FY2024 $-15.6M to FY2025 $+215.3M) — the standard accruals ratio divides by the average of the two, which collapses toward zero right as the sign changes, so the resulting percentage is a denominator artifact, not a real accrual measurement. Treat this as a structural balance-sheet shift to understand on its own terms rather than a clean or dirty accruals read.
48% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 48% of revenue in FY2025 — about $0.20 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 38.1% a year and is falling.
Key fundamentals
Latest Revenue$168.9M
Revenue Growth YoY+99.4%
Revenue CAGR (3yr)+75.7%
Net Margin-8.3%
Free Cash Flow-$99.1M
Return on Equity-3.0%
Debt / Equity0.00x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Soundhound Ai, Inc.'s actual 10-K/10-Q/8-K filings?