SOUNWCAUTIOUS

SOUNW Gross Margin Analysis

31.1%

Higher than 6% of Technology sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

Gross margin, the share of revenue left after paying direct production costs, is 31.1% for SoundHound AI.

Sector Performance

6th percentile

SOUNW

31.1%

Sector Median

65.7%

Sector Avg

61.2%

Prior Period

20.1%(Jun 2026)

↑ Improving

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Deep Analysis

Gross margin, the share of revenue left after paying direct production costs, is 31.1% for SoundHound AI.

This places it far below the Technology sector median of 66.4%, at the 6th percentile among peers, meaning most competitors retain a larger slice of revenue. The metric's trend is N/A, with both year-over-year change and quarter-over-quarter change unavailable, so there is no recent trajectory to evaluate. The combination of a low margin level and no trend data creates uncertainty about the company's ability to convert revenue into profit sustainably. This directly supports the overall CAUTIOUS verdict, as the 31.1% margin is a clear lagging signal with no evidence of improvement.

Frequently Asked Questions

What does the Gross Margin tell investors about SOUNW?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does SOUNW's Gross Margin compare to its sector?

SOUNW's Gross Margin of 31.1% compares to a Technology sector median of 65.7%, placing it in the 6th percentile.

Who are SOUNW's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MODN (55.0%), ASML (53.0%), AMD (52.8%), MRVL (52.1%), SMTC (52.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.