Net margin is calculated as Net Income divided by its Revenue. SoundHound AI's Net Income for the
three
months ended in Mar. 2026 was MXN-451 Mil. SoundHound AI's Revenue for the
three
months ended in Mar. 2026 was MXN797 Mil. Therefore, SoundHound AI's net margin for the quarter that ended in Mar. 2026 was -56.63%.
The historical rank and industry rank for SoundHound AI's Net Margin % or its related term are showing as below:
MEX:SOUN'
s Net Margin % Range Over the Past 10 Years
Min: -571.61 Med: -375.09 Max: -8.29
Current: -91.84
MEX:SOUN's Net Margin % is ranked worse than 87.86% of 2825
companies
in the Software industry
Industry Median: 2.53
vs MEX:SOUN: -91.84
SoundHound AI (MEX:SOUN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
SoundHound AI Net Margin % Related Terms
SoundHound AI Net Margin % Historical Data
* Premium members only.
The historical data trend for SoundHound AI's Net 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.
MEX:SOUN vs WK, FRSH, FSLY: Net Margin % Comparison
For the Software - Application subindustry, SoundHound AI's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, SoundHound AI's Net Margin % distribution charts can be found below:
* The bar in red indicates where SoundHound AI's Net 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 (MEX:SOUN) has a Net Margin % of -56.63% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on SoundHound AI and its competitors. According to the industry distribution chart, SoundHound AI ranks #2482 out of 2825 companies in the Software industry, placing it in the top 87.9%.
Is SoundHound AI's Net Margin % too high?
SoundHound AI's current Net Margin % is -56.63%. Based on the distribution chart, SoundHound AI ranks #2482 out of 2825 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, SoundHound AI has a GF Score™ of 52/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SoundHound AI's Net Margin % compare to WK and FRSH?
According to the Software industry distribution chart, SoundHound AI ranks #2482 out of 2825 companies for Net Margin %. This places SoundHound AI in the lower half of its industry. The industry median Net Margin % is 2.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.53, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on SoundHound AI and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current Net Margin % is -56.63%. 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 (MEX:SOUN) is currently considered Possible Value Trap. The stock's GF Value™ is MXN206.12, compared to a current price of MXN115.00 — trading 44.2% below its estimated fair value. The current Net Margin % is -56.63%. SoundHound AI's overall GF Score™ is 52/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For SoundHound AI (MEX:SOUN), the current Net Margin % is -56.63% 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 (MEX:SOUN) Overvalued in 2026?
Based on GuruFocus' analysis, SoundHound AI stock appears to be undervalued.
The current stock price of MXN115.00 is trading 44.2% below its estimated GF Value™ of MXN206.12.
GuruFocus considers SoundHound AI to be Possible Value Trap.
Key valuation signals for MEX:SOUN:
Net Margin %: -56.63%
GF Value™: MXN206.12 vs. price of MXN115.00 (44.2% below fair value)
No single metric tells the full story. See the MEX: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.
52GF Score
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