Forensic Analysis · Technology / Software · as of Sep 25, 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.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
10.3
Distress distance
Watch
Earnings quality
4
Forensic signals
-17.7
P / E (ttm)
-3.0%
ROE
$2.9B
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, going concern, valuation). 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 an F (Poor — capital at risk) 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 across FY2023–FY2025 from -171.3%. After-tax operating profit was ($54M) in FY2023 and ($18M) in FY2025, with operating income at -149.6% of revenue in FY2023, -403.0% in FY2024 and -13.8% in FY2025. The capital base behind it cannot be compared across FY2023–FY2025: short-term debt and long-term debt are tagged in one of those two fiscal years and not the other, and an untagged line enters this calculation as zero, so any change in the base would be a change in what the filer tagged.
+33.6%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +79% over the last 2 years to FY2025 (+33.6%/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 ~33.6% 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 FY2023 has been diluted ~44%.
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. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 34.3% a year, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$168.9M
Revenue Growth YoY+99.4%
Revenue CAGR (2yr)+91.8%
Net Margin-8.3%
Free Cash Flow-$103.1M
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?