SoundHound AISOUN +3.39%72 Quick Ratio is 3.94 as of Mar. 2026, which is 8% below its 10-year median of 4.27. GuruFocus rates SOUN with a GF Score™ of 72/100 and a GF Value™ of $11.68 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,865 Software companies, SoundHound AI ranks better than 81.95% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. SoundHound AI's quick ratio for the quarter that ended in Mar. 2026 was 3.94.
SoundHound AI has a quick ratio of 3.94. It generally indicates good short-term financial strength.
The historical rank and industry rank for SoundHound AI's Quick Ratio or its related term are showing as below:
SOUN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.31 Med: 4.27 Max: 8.84
Current: 3.94
During the past 6 years, SoundHound AI's highest Quick Ratio was 8.84. The lowest was 0.31. And the median was 4.27.
SOUN's Quick Ratio is ranked better than 81.95% of 2865
companies
in the Software industry
Industry Median: 1.7
vs SOUN: 3.94
SoundHound AI (NAS:SOUN) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
SoundHound AI Quick Ratio Related Terms
SoundHound AI Quick Ratio Historical Data
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The historical data trend for SoundHound AI's Quick Ratio 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 Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Software Industry
For the Software industry and Technology sector, SoundHound AI's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SoundHound AI's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
SoundHound AI's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Quick Ratio of 3.94 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on SoundHound AI and its competitors. This is near median its historical median of 4.27. Over the past decade, SoundHound AI's Quick Ratio has ranged from 0.31 to 8.84. According to the industry distribution chart, SoundHound AI ranks #517 out of 2865 companies in the Software industry, placing it in the top 18%.
Is SoundHound AI's Quick Ratio too high?
SoundHound AI's current Quick Ratio of 3.94 is near median its 10-year median of 4.27. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 8.84. The Software industry median Quick Ratio is 1.70. SoundHound AI's value of 3.94 is 131.8% above this industry median. Based on the distribution chart, SoundHound AI ranks #517 out of 2865 companies in the Software industry, which is in the top quartile — a strong position 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 Quick Ratio compare to SRAD and BILL?
According to the Software industry distribution chart, SoundHound AI ranks #517 out of 2865 companies for Quick Ratio. This places SoundHound AI in the top 18% of its industry — outperforming the majority of peers. The industry median Quick Ratio is 1.70. SoundHound AI's value of 3.94 is 131.8% above this benchmark. Historically, SoundHound AI's own Quick Ratio has ranged from 0.31 to 8.84 over the past decade. While the company's 10-year median is 4.27 vs. the industry median of 1.70, SoundHound AI has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,865 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SoundHound AI's current Quick Ratio of 3.94 is 131.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on SoundHound AI and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoundHound AI's current Quick Ratio is 3.94, which is near median its own 10-year median of 4.27. 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 $11.68, compared to a current price of $6.41 — trading 45.1% below its estimated fair value. The current Quick Ratio is 3.94, which is near median its 10-year median of 4.27 and 131.8% above the Software industry median of 1.70. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For SoundHound AI (SOUN), the current Quick Ratio is 3.94 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 $6.41 is trading 45.1% below its estimated GF Value™ of $11.68.
GuruFocus considers SoundHound AI to be Possible Value Trap.
Key valuation signals for SOUN:
Quick Ratio: 3.94 (near median its 10-year median of 4.27)
GF Value™: $11.68 vs. price of $6.41 (45.1% below fair value)
Industry Position: 131.8% above the Software median (#517 of 2865)
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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