SOUNWCAUTIOUS

SOUNW Return on Equity (ROE) Analysis

-39.4%

Higher than 11% of Technology sector peers

Updated 26h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders’ equity; a negative value like -39.4% means SoundHound AI is losing money relative to its equity base.

Sector Performance

11th percentile

SOUNW

-39.4%

Sector Median

6.9%

Sector Avg

-3.9%

Prior Period

-3.0%(Jun 2026)

↓ Declining

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Deep Analysis

This sits far below the Technology sector median of 6.9%, placing it in the 11th percentile among peers — indicating much weaker profitability than the vast majority of comparable firms. The year-over-year change is not available (N/A), but the quarter-over-quarter change of -1,213.3% shows a severe deterioration from the prior quarter's ROE of -3.0%. Combining a deeply negative level with a sharp worsening trend points to elevated investment risk, as the company is not only unprofitable but the loss is accelerating. This metric directly supports the overall CAUTIOUS verdict, as both the current performance and recent trajectory are well below sector norms and show no signs of improvement.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SOUNW?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SOUNW's Return on Equity (ROE) compare to its sector?

SOUNW's Return on Equity (ROE) of -39.4% compares to a Technology sector median of 6.9%, placing it in the 11th percentile.

Who are SOUNW's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: COHU (-7.0%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.