TendieTensor TendieTensor
You’re browsing as
Guest
Free Preview
Sign in/sign up to unlock all features.

News  ›  The Motley Fool

Is SoundHound AI Stock a Buy Now?

The Motley Fool Logo The Motley Fool By Chris Neiger
Is SoundHound AI Stock a Buy Now?

SoundHound AI stock is not recommended as a buy despite impressive 68% revenue growth to $42 million in Q3. The company remains unprofitable with rising expenses, negative free cash flow of -$78.7 million in the first nine months of 2025, and lacks operational leverage. With a price-to-sales ratio of 30 (versus tech sector average of 9), the stock is overvalued relative to its path to profitability.

Insights
BACpS   neutral

Mentioned as having a speaker (Arshad Ghafur) at the forum, with no specific positive or negative context


SOUN   negative

Company is unprofitable with rising expenses, negative and worsening free cash flow (-$78.7M in 9M 2025 vs -$76.3M in 9M 2024), lacks operational leverage, and stock is significantly overvalued at P/S ratio of 30 versus tech sector average of 9. Despite revenue growth, the company is burning cash and unlikely to achieve profitability soon.