Why SoundHound AI Stock Isn't Taking Off Despite Doubling Its Revenue Last Year

By David Jagielski, CPA – Mar 9, 2026 at 4:00PM ESTKey PointsSoundHound's growth rate has been slowing down sharply in recent quarters.The company remains unprofitable and continues to burn through cash.Investors appear concerned about the stock, as it has been in a tailspin this year.SoundHound AI (SOUN +1.92%) is a voice artificial intelligence (AI) company that looks to help its customers add efficiency to their day-to-day operations. It has been growing its customer base via acquisitions, and that has enabled the business to become more diversified in the process. Investors may be surprised to learn, however, that despite doubling its sales in 2025, the AI stock has been struggling badly. At around $3.4 billion, its market cap is a fraction of what it was in the past, and the stock is down 64% from its 52-week high of $22.17. Here's why there is no shortage of bearish investors when it comes to SoundHound AI stock. Image source: Getty Images. SoundHound's growth rate has been slowing down Last month, SoundHound reported its fourth-quarter results for 2025, which showed strong top-line growth of 59%, as revenue came in at just over $55 million for the last three months of the year. And the company's full-year revenue of $168.9 million roughly doubled the $84.7 million that SoundHound reported a year ago. Normally, a fast-growing business will see its most recent quarterly results growing at a faster rate than the full-year rate. But in SoundHound's case, its growth rate has actually been slowing down in recent quarters. SOUN Revenue (Quarterly YoY Growth) data by YCharts The chart paints a very different story, one of a brief spike followed by a sharp slowdown. While a near-60% growth rate is impressive, it's important to understand why SoundHound has done well. The growth has been primarily due to acquisitions, which can make it difficult to determine just how well the tech business is doing organically. While acquisitions can provide a company's top line with a boost, that type of growth can be short-lived if the entire entity isn't growing organically. ExpandNASDAQ: SOUNSoundHound AIToday's Change(1.92%) $0.15Current Price$8.22Key Data PointsMarket Cap$3.4BDay's Range$7.61 - $8.2352wk Range$6.52 - $22.17Volume664KAvg Vol25MGross Margin32.96% Why SoundHound doesn't make for a great growth stock As impressive as its growth rate may seem, there are still sizable problems with SoundHound's business. Last year, the company incurred an operating loss of $23.3 million, which would have been significantly worse if not for a favorable $163.1 million change in the fair value of contingent acquisition liabilities. SoundHound also used up $98.2 million just from its day-to-day operating activities. The company's lack of profitability, ongoing cash burn, and pursuit of acquisitions make this a risky stock to own, as investors may experience a lot of dilution in the future. Year to date, the stock is down 20%, and it wouldn't be surprising to see SoundHound go even lower because while its growth rate may seem impressive, it doesn't tell the whole story.Read NextMar 6, 2026 •By Jack DelaneyAgentic AI Is Rising Fast, and SoundHound AI Might Be Better Positioned Than You ThinkMar 5, 2026 •By Anthony Di PizioThis Popular Artificial Intelligence (AI) Stock Is Down 19% in 2026. Here's What Could Happen Next.Mar 5, 2026 •By Keithen DruryIs SoundHound AI the Ultimate AI Play for 2026?Mar 4, 2026 •By Geoffrey SeilerAs Revenue Continues to Surge, Is SoundHound Stock a Buy?Mar 3, 2026 •By Keithen Drury3 Red-Hot Growth Stocks to Buy in 2026Mar 3, 2026 •By John BromelsBattle Royale: BigBear.ai vs. SoundHound AI.

Only One Can Make You Rich.About the AuthorDavid Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.TMFdjagielskiStocks MentionedSoundHound AINASDAQ: SOUN$8.23(+1.92%)+$0.16*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.