SoundHound AI, Inc.
SOUN Technology Software Application
SoundHound AI, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $168.9 million, up 99.4% from fiscal 2024. In the quarter to June 2026, revenue grew 45.0%, EPS grew 47.4% and free cash flow fell 49.4%, each against the same quarter a year earlier. Revenue growth for three consecutive years.
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SoundHound AI, Inc. (SOUN) Altman Z-score
SoundHound AI, Inc.'s Altman Z-score for fiscal 2025 is 9.44, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 9.44 | 2.45 |
| FY2024 | 6.99 | 10.60 |
| FY2023 | −3.60 | 21.73 |
| FY2022 | −25.33 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.37 | — | 0.45 | |
| Retained earnings / total assets | (1.39) | — | −1.95 | |
| EBIT / total assets | (0.03) | — | −0.11 | |
| Market value of equity / total liabilities | 18.01 | — | 10.81 | |
| Sales / total assets | 0.25 | — | 0.25 | |
| Altman Z-score | Safe zone | 9.44 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −0.14 | ||
Z and Z″ put SoundHound AI, Inc. in different zones: safe zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SOUN SoundHound AI, Inc. | 9.4× |
| AMPL Amplitude, Inc. compare | 3.7× |
| ADEA Adeia Inc. compare | 3.4× |
| NCNO nCino Inc. compare | 2.5× |
| VERX Vertex, Inc. compare | 2.4× |
| DBD Diebold Nixdorf, Incorporated compare | 1.9× |
| BLKB Blackbaud, Inc. compare | 1.4× |
| BTDR Bitdeer Technologies Group compare | 0.8× |
| ASAN Asana, Inc. compare | −1.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets