SOUNWCAUTIOUS

SOUNW Return on Equity (ROE) Analysis

-32.2%

Higher than 11% of Technology sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and a -32.2% value means SoundHound is currently losing over 32 cents for every dollar of equity invested.

Sector Performance

11th percentile

SOUNW

-32.2%

Sector Median

9.1%

Sector Avg

-3.2%

Prior Period

-39.4%(Aug 2026)

↑ Improving

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Deep Analysis

That puts it far below the sector median of 7.5%, ranking in the 12th percentile among Technology peers, so most comparable companies are far more profitable. The 8-quarter trend is not reported, and the year-over-year change is also N/A; however, quarter-over-quarter ROE improved by 18.3 percentage points, moving from -39.4% to -32.2%. This combination of a deeply negative level with a single quarter of narrowing losses still leaves the company in a loss-making position, implying elevated risk that equity capital is being consumed rather than grown. Because the metric shows persistent, though recently improving, value destruction, it directly supports the overall CAUTIOUS verdict on the stock.

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 -32.2% compares to a Technology sector median of 9.1%, 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: ADI (6.7%), AFRM (1.7%), SQ (0.0%), CRWD (-0.2%), MDB (-1.0%).

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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.