SoundHound AI, Inc. — Earnings Quality Grade F
SOUN · Technology
Major red flags
Screening Summary
Management Signals
Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 70 days, change -30 days YoY
AR growth 39.6% vs revenue growth 99.4%
Revenue grew 99.4% but CFFO only 9.8%
Expense Quality
No material inventory
CapEx growth 665.9% is >2x revenue growth 99.4%
SG&A/Gross Profit = 201.0%, exceeds 70%
Gross margin swung -6.5pp (48.9% → 42.4%)
Cash Flow Quality
CFFO/NI = 7.01. Profits backed by cash
FCF is negative ($-0.1B)
Accruals ratio = 12.2%. Exceeds 10%
Cash $0.2B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.3B = 65% of equity. Over 50%
Interest coverage = -278.2x (<2x). Financial stress
Other assets grew 529.8% vs revenue 99.4%
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 10% YoY. Normal
Manipulation Score
M-Score = -1.17 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25