Free cash flow remains deeply negative with a -60.5% margin in 2026Q1, reflecting the substantial cash burn required to sustain ongoing research and development initiatives.
| Cash from Operations | -105.3M | -98.22M | -108.88M | -68.27M | -94.02M | -66.18M | -46.3M | -46.03M |
| Operating CF Margin % | - | -58.15% | -128.56% | -148.81% | -302.03% | -312.2% | -355.72% | -599.62% |
| Operating CF Growth % | -27.88% | 9.79% | -59.49% | 27.39% | -42.07% | -42.92% | -0.59% | - |
| Net Income | -168.97M | -14.01M | -350.68M | -88.94M | -115.37M | -79.54M | -74.41M | -64.47M |
| Depreciation & Amortization | 38.81M | 34.13M | 20.29M | 2.31M | 7.23M | 9.09M | 6.04M | 4.67M |
| Stock-Based Compensation | 23.81M | 0 | 33.15M | 27.93M | 28.79M | 6.32M | 5.9M | 3.33M |
| Deferred Taxes | 18K | 0 | -12.18M | 30K | 2.13M | 113K | -2.28M | -3.38M |
| Other Non-Cash Items | 11.56M | -118.35M | 237.69M | 11.72M | 2.89M | 9.67M | 6.69M | 10.59M |
| Working Capital Changes | -10.53M | 0 | -37.14M | -21.32M | -19.68M | -11.83M | 11.76M | 3.22M |
| Change in Receivables | -16.73M | 0 | -17.57M | -20.2M | -1.35M | 1.51M | -1.89M | 50K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -3.48M | 1.5M | 0 |
| Change in Payables | 913K | 0 | -7.64M | -1.16M | 302K | 424K | 1.17M | 0 |
| Cash from Investing | -62.4M | -59.5M | -12.37M | -392K | -1.33M | -636K | 11.45M | 8.32M |
| Capital Expenditures | -5.26M | -902K | -640K | -392K | -1.33M | -636K | -2.16M | -5.11M |
| CapEx % of Revenue | 2.86% | 0.53% | 0.76% | 0.85% | 4.27% | 3% | 16.61% | 66.55% |
| Acquisitions | -54.6M | -54.6M | -11.73M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -2.54M | -4M | 0 | 0 | 0 | 0 | 0 | 13.43M |
| Cash from Financing | 137.82M | 208.07M | 210.91M | 168.24M | 82M | 44.65M | 53.45M | -2.33M |
| Debt Issued (Net) | -119K | 0 | -215.5M | 49.9M | -12.85M | 42.16M | 37M | -2.48M |
| Equity Issued (Net) | 11.02M | 0 | 436.95M | 118.34M | 4.16M | 2.49M | 16M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 126.92M | 208.07M | -10.55M | 0 | 90.69M | 0 | 454K | 152K |
| Net Change in Cash | -30.4M | 49.76M | 89.88M | 99.56M | -13.35M | -22.16M | 18.6M | 26.38M |
| Free Cash Flow | -84.24M | 0 | -109.52M | -68.66M | -95.35M | -66.81M | -48.47M | -51.14M |
| FCF Margin % | -45.79% | - | -129.31% | -149.67% | -306.3% | -315.2% | -372.33% | -666.17% |
| FCF Growth % | 21.14% | 100% | -59.51% | 27.99% | -42.71% | -37.86% | 5.23% | - |
| FCF per Share | -0.25 | - | -0.32 | -0.30 | -0.61 | -0.33 | -2.78 | -4.41 |
| FCF Conversion (FCF/Net Income) | 0.50x | 7.01x | 0.31x | 0.77x | 0.81x | 0.83x | 0.62x | 0.71x |
| Interest Paid | 0 | 0 | 6.34M | 11.98M | 4.36M | 2.63M | 0 | 0 |
| Taxes Paid | 675K | 0 | 2.72M | 2.36M | 1.04M | 263K | 0 | 0 |
Persistent operating cash burn
As reported in financial statements, the company exhibits a persistent divergence between net income and operating cash flow, with the OCF/NI ratio frequently fluctuating, such as the 1.05 observed in 2026Q1, suggesting that accounting profits are not currently translating into tangible cash generation for the business.
The lack of a consistent relationship between net income and operating cash flow indicates that non-cash items and accruals are heavily influencing reported earnings. Investors should monitor this gap closely, as it suggests that the company's profitability metrics may be significantly decoupled from its actual ability to fund operations through internal cash generation.
Based on the company's reported figures, free cash flow has remained consistently negative over the last ten quarters, with a 2026Q1 FCF margin of -60.5%, highlighting the substantial cash requirements needed to sustain the current growth trajectory and ongoing research and development initiatives.
The persistent negative FCF trajectory underscores the company's reliance on external financing to bridge the gap between its operational costs and revenue intake. This trend suggests that the business model has yet to reach the scale necessary to achieve self-sustaining cash flow, leaving it vulnerable to shifts in capital market sentiment.
According to recent SEC filings, working capital changes have been erratic, including a notable $12.9 million outflow in 2025Q2, which indicates that the timing of collections and payables management is creating significant quarterly fluctuations in the company's available cash position.
The inconsistent nature of working capital movements suggests potential challenges in managing the cash conversion cycle, particularly as the company scales its service-based AI offerings. Such volatility warrants further investigation into the underlying credit terms with customers and the efficiency of the company's accounts receivable processes.
As indicated by the provided data, stock-based compensation has been a recurring feature of the company's financial structure, reaching $23.8 million in 2025Q2, which effectively obscures the true extent of the cash burn required to retain the talent necessary for its AI development.
While stock-based compensation is a non-cash expense, it represents a significant dilution risk to shareholders that is not fully captured in the operating cash flow statement. Analysts should adjust for these costs to understand the true economic cost of the company's human capital and its impact on long-term shareholder value.
Based on reported financial data, the company has utilized cash for strategic acquisitions, such as the $54.6 million outflow in 2025Q3, demonstrating a clear management preference for inorganic expansion over the preservation of cash reserves during this high-growth phase of the business cycle.
The deployment of capital toward acquisitions suggests an aggressive strategy to capture market share and technical capabilities, though the long-term return on these investments remains unproven. Investors should monitor whether these acquisitions successfully integrate into the core platform or if they merely add to the company's existing operational complexity.
Quick answers to the most common questions about buying SOUN stock.
SoundHound AI, Inc. (SOUN) generated $-98.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SoundHound AI, Inc. (SOUN) reported negative free cash flow of $0.0M in 2025, indicating capital requirements exceeded cash from operations.
SoundHound AI, Inc. (SOUN) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.