Down 66% From Its High: Is SoundHound AI Finally a Screaming Buy?

By Reuben Gregg Brewer – Mar 12, 2026 at 4:15PM ESTKey PointsSoundHound uses AI to create voice-based products and services.The stock continues to bleed red ink despite a material increase in revenue.SoundHound AI (SOUN 4.11%) provides companies with artificial intelligence technology to deliver voice services to their customers. There is a material cost benefit to using AI over humans, but Wall Street appears to have lost interest in SoundHound's stock, which is down 66% from its all-time high in late 2025. Is it a screaming buy? SoundHound is growing fast The good news is that SoundHound's top line is expanding rapidly. Sales rose from roughly $85 million in 2024 to nearly $169 million in 2025. That's an increase of just under 100%. Management is projecting revenues to fall between $225 and $260 million in 2026. At the low end, that's top-line growth of 33%, with the high end suggesting growth of just over 50%. Image source: Getty Images. While 33% to 50% revenue growth is down materially from 100%, it is kind of hard to complain about what still amounts to a very rapid sales increase. There's just one wrinkle in the mix that you shouldn't ignore. The company isn't profitable, so it is still a money-losing technology start-up. The artificial intelligence angle is exciting, but, at the end of the day, SoundHound is just a software company. With the rapid development of AI, it may not be able to differentiate its products for much longer. The earnings numbers are complicated To make the story even more uncertain, SoundHound's earnings are complicated by the "fair value of contingent acquisition liabilities where future earn-out shares" are in play. These shares are related to past acquisitions and have to be marked to market values each quarter, which can materially impact the company's earnings. ExpandNASDAQ: SOUNSoundHound AIToday's Change(-4.11%) $-0.32Current Price$7.47Key Data PointsMarket Cap$3.3BDay's Range$7.43 - $7.7552wk Range$6.52 - $22.17Volume465KAvg Vol26MGross Margin32.96% For example, in the fourth quarter of 2025, SoundHound's falling stock price resulted in a benefit, as its contingent acquisition liabilities declined along with its stock price. That added to GAAP earnings, pushing the company into the black. Take out that non-cash item and the company continues to lose money. For most companies, GAAP earnings are lower than non-GAAP earnings, as companies aim to remove one-time negative impacts. The opposite is true here, at least at the moment. Cheaper than it has been, but still only for aggressive investors SoundHound is much cheaper than it has been, and it is still growing revenues at a rapid clip. That could make it worth buying for more aggressive growth investors. However, given the ongoing red ink and the complexity of the earnings statement, more conservative investors should probably still be sitting on the sidelines here as the market for AI products continues to evolve.Read NextMar 12, 2026 •By Keithen DrurySoundHound AI: Could the Stock 10X by 2030?Mar 11, 2026 •By Harsh ChauhanIs SoundHound AI Stock Going to $15?Mar 10, 2026 •By Adria CiminoPrediction: This Artificial Intelligence (AI) Stock Could Deliver 75% Upside From Here, According to Wall StreetMar 10, 2026 •By Jack DelaneyConsider This AI Agent Stock Over C3.aiMar 9, 2026 •By David Jagielski, CPAWhy SoundHound AI Stock Isn't Taking Off Despite Doubling Its Revenue Last YearMar 6, 2026 •By Jack DelaneyAgentic AI Is Rising Fast, and SoundHound AI Might Be Better Positioned Than You ThinkAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedSoundHound AINASDAQ: SOUN$7.47(-4.11%)-$0.32*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.