Is SOUN (SoundHound AI, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SOUN is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in SOUN.

SoundHound AI, Inc. is a specialized player in the voice artificial intelligence market, known for its independent Houndify platform. Unlike generic voice assistants, SoundHound provides customized voice AI solutions for businesses, particularly in the automotive and restaurant sectors, offering tools like automatic speech recognition and natural language understanding. Their technology powers conversational experiences for major brands, allowing companies to maintain their own brand identity rather than relying on big-tech ecosystems. For Muslim investors using HalalStocks.co .uk, the current status of SoundHound AI is classified as 'Doubtful.' While the company's core business of building software is shariah-compliant, it has failed a critical financial screen regarding interest income. Specifically, the interest earned on its cash deposits constitutes 9.88% of its total revenue, which is nearly double the 5 % limit set by AAOIFI standards, making it problematic for strict shariah-compliant portfolios at this time. Financially, the company shows strong discipline in other areas, boasting a negligible debt-to-market cap ratio of just 0.1%, which is well below the 33% leverage limit. This indicates the company is not reliant on interest-bearing debt to fuel its operations, which is usually a positive signal for halal investors. However, the high interest income ratio suggests the company is holding significant cash reserves in interest-bearing accounts relative to its operational revenue. Investors interested in the AI sector should monitor SoundHound's revenue growth closely. As the company scales its commercial operations and increases revenue from its actual products and services, the percentage of income derived from interest may naturally drop below the 5% threshold, potentially moving the stock into a compliant status in future quarters. SoundHound AI, Inc. operates in the Technology sector under the Software - Application industry and is headquartered in Santa Clara, CA, US. The company is led by CEO Keyvan Mohajer and employs approximately 842 people.

SOUN was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SOUN passed 3 of these 4 screens.

SOUN was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.