MeritValue

SOUNDHOUND AI, INC.

SOUNdata completeness 88%5 fiscal years on file
The thesis, from the filings

SOUNDHOUND AI, INC. earns about -170% on equity, but has diluted owners by 509% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$21.2M1$31.1M2$45.9M3$84.7M3$168.9M3
Net income−$79.5M4−$116.7M5−$88.9M6−$350.7M6−$14M6
Operating cash flow−$66.2M7−$94M8−$68.3M9−$108.9M9−$98.2M9
Capital expenditure$636,00010$1.33M11$392,00012$640,00012$902,00012
Free cash flow (derived)−$66.8M7−$95.3M8−$68.7M9−$109.5M9−$99.1M9
Total debt—$35M13$168.6M14$014—
Cash & equivalents$21.6M15$9.25M16$95.3M17$198.2M17$248.5M17
Diluted shares67.3M157.3M229.3M338.5M409.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$11.33
your share of equity
Profit it earned you last year
−$0.34
Free cash flow it threw off
−$2.42
Debt you’d be carrying
—

10 shares is a claim on $11.33 of net worth that earned you −$0.34 and generated −$2.42 of cash last year.

iii. Is this a good business?
Moat signal · return on equity
-170% avg · 5y
FY21 —FY22 —FY23 -316%FY24 -192%FY25 -3%

It earned an average -170% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+509% shares · 5y

Share count is up 509% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001840856-24-000013 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-011821 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001840856-26-000006 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001840856-24-000013 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-011821 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001840856-26-000006 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001840856-24-000013 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-011821 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001840856-26-000006 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001840856-24-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-25-011821 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001840856-26-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-12-31 · accession 0001840856-24-000013 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-12-31 · accession 0001628280-25-011821 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2021-12-31 · accession 0001840856-24-000013 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2022-12-31 · accession 0001628280-25-011821 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001840856-26-000006 (CashAndCashEquivalentsAtCarryingValue)