FCF Margin % is calculated as Free Cash Flow divided by its Revenue. SoundHound AI's Free Cash Flow for the
three
months ended in Mar. 2026 was $-29.3 Mil. SoundHound AI's Revenue for the
three
months ended in Mar. 2026 was $44.2 Mil. Therefore, SoundHound AI's FCF Margin % for the quarter that ended in Mar. 2026 was -66.34%.
The historical rank and industry rank for SoundHound AI's FCF Margin % or its related term are showing as below:
SOUN'
s FCF Margin % Range Over the Past 10 Years
Min: -372.33 Med: -227.99 Max: -61.05
Current: -61.47
During the past 6 years, the highest FCF Margin % of SoundHound AI was -61.05%. The lowest was -372.33%. And the median was -227.99%.
SOUN's FCF Margin % is ranked worse than 87.14% of 2814
companies
in the Software industry
Industry Median: 2.41
vs SOUN: -61.47
SoundHound AI FCF Margin % Related Terms
SoundHound AI FCF Margin % Historical Data
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The historical data trend for SoundHound AI's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, SoundHound AI's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SoundHound AI FCF Margin % vs Software Industry
For the Software industry and Technology sector, SoundHound AI's FCF Margin % distribution charts can be found below:
* The bar in red indicates where SoundHound AI's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SoundHound AI (SOUN) has a FCF Margin % of -66.34% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on SoundHound AI and its competitors. According to the industry distribution chart, SoundHound AI ranks #2452 out of 2814 companies in the Software industry, placing it in the top 87.1%.
Is SoundHound AI's FCF Margin % too high?
SoundHound AI's current FCF Margin % is -66.34%. Based on the distribution chart, SoundHound AI ranks #2452 out of 2814 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, SoundHound AI has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SoundHound AI's FCF Margin % compare to SRAD and BILL?
According to the Software industry distribution chart, SoundHound AI ranks #2452 out of 2814 companies for FCF Margin %. This places SoundHound AI in the lower half of its industry. The industry median FCF Margin % is 2.41. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.41, based on 2,814 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on SoundHound AI and its competitors. For the Software industry, the median FCF Margin % is 2.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current FCF Margin % is -66.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoundHound AI stock overvalued right now?
Based on GuruFocus' analysis, SoundHound AI (SOUN) is currently considered Possible Value Trap. The stock's GF Value™ is $11.67, compared to a current price of $6.20 — trading 46.9% below its estimated fair value. The current FCF Margin % is -66.34%. SoundHound AI's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For SoundHound AI (SOUN), the current FCF Margin % is -66.34% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SoundHound AI (SOUN) Overvalued in 2026?
Based on GuruFocus' analysis, SoundHound AI stock appears to be undervalued.
The current stock price of $6.20 is trading 46.9% below its estimated GF Value™ of $11.67.
GuruFocus considers SoundHound AI to be Possible Value Trap.
Key valuation signals for SOUN:
FCF Margin %: -66.34%
GF Value™: $11.67 vs. price of $6.20 (46.9% below fair value)
No single metric tells the full story. See the SOUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoundHound AI Inc is an innovator of conversational intelligence, offering an independent Voice AI platform that enables businesses across industries to deliver high-quality conversational experiences to customers. The company's voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via groundbreaking AI-driven products like Smart Answering, Smart Ordering, Dynamic Drive-Thru, and Amelia AI Agents.
72GF Score
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FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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