Forensic Analysis · Technology / Software · as of Jun 27, 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
Distress
Financial health
-0.1
Altman Z-score
Watch
Earnings quality
4
Forensic signals
-40.2%
ROE
$2.8B
Market cap
SOUNDHOUND AI, INC. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -0.1, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+231.2%Accruals ratio.Net operating assets grew +231.2% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran ahead of operating cash by +84% of net operating assets.
-5%Return on invested capital.Return on invested capital is -5% and rising from -1221% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+53.4%/yrShare-count dilution.Diluted share count changed +160% over the last 3 years to FY2025 (+53.4%/yr). The count is GROWING — existing holders are being diluted. That's ~53.4% 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 ~160%.
48% of revStock-based comp load.Stock-based compensation ran 48% of revenue in FY2025 — about $0.20 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-8.3%
Debt / Equity0.00x
Free Cash Flow$-99.1M
Latest Revenue$168.9M
Return on Equity-3.0%
Revenue Growth YoY+99.4%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on SOUNDHOUND AI, INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about SOUN's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown