The Short Answer
SoundHound AI stock (SOUN) is doubtful on the current record. Voice-AI software is generally permissible, but the latest filing puts identifiable liquidity/assets at 33.44%, just above the examined limits; restaurant and customer workflows also remain qualitative.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
0.289 / 644.951
215.642 / 644.951
312.529 / 644.951
1.657 / 44.195
- Financial
- Fails
- Overall
- Fails
Debt/assets is 0.04%, liquidity/assets is 33.44% and receivables plus cash/assets is 48.46%; liquidity is just above the examined 33.333% limit, while disclosed interest income/revenue is 3.75%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 33.44%, above the examined MSCI 33.33% total-assets limit; debt/assets is 0.04% and receivables plus cash/assets is 48.46%. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Identifiable liquidity/assets is 33.44%, above the examined Malaysia SAC 33% financial limit; debt/assets is 0.04%. This is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
SoundHound develops voice-AI software, subscriptions and royalties for automotive, restaurant, consumer-electronics and enterprise customers. General-purpose AI software is generally permissible, while customer end use, advertising and restaurant workflows require qualitative review.
Limitation: The filing does not classify every customer workflow or monetization stream under a universal Sharia taxonomy.
Purification
Interest income of 1.657 million is disclosed, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from SoundHound AI's March 31, 2026 Form 10-Q.
- Interest-bearing debt is the 0.289 finance-lease liability; the filing says prior convertible notes and term debt were repaid.
- Cash and cash equivalents are 215.642; no separate marketable-securities line is reported.
- Accounts receivable includes accounts receivable plus current and non-current contract assets and unbilled receivables (96.887).
- Quarterly revenue is 44.195 and interest income is 1.657; customer categories and monetization revenue are not allocated to a universal prohibited-revenue numerator.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
SoundHound's March 31, 2026 filing supplies the current ratios above. Interest income is 1.657 million for the quarter; investors should seek qualified guidance on purification.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
SoundHound AI's Business Activity
SoundHound AI develops proprietary voice AI technology used across multiple industries. Core products and markets include:
- Automotive: In-car voice assistants for brands like Stellantis, Honda, and others
- Restaurant: AI-powered drive-through ordering systems for fast food chains
- Enterprise: Custom voice AI solutions for businesses and customer service applications
- Smart devices: Voice AI integration for IoT and connected devices
Voice AI technology is generally permissible, but the permissibility of a specific customer workflow depends on its use. The filing does not provide enough contract-level detail to treat every end use as identical.
Financial Ratios (March 31, 2026)
Using the latest Form 10-Q and the total-assets inputs shown above:
- Interest-bearing debt / total assets: 0.04% ✅
- Identifiable liquidity / assets: 33.44% ❌
- Receivables + cash / assets: 48.46% ✅ under the examined FTSE screen
- Interest income / revenue: 3.75% ✅
The liquidity screen fails narrowly under the examined asset-based methods. Market-cap denominator methods and customer-level prohibited revenue are not calculated.
Concerns to Be Aware Of
1. Restaurant Industry Clients (Indirect)
A significant portion of SoundHound AI's revenue comes from fast food restaurant chains that serve non-halal meat. However, SoundHound AI provides voice ordering technology — it is not involved in food preparation or serving haram products. This is an indirect business relationship that most scholars would not consider disqualifying.
2. Pre-Profitability Stage
SoundHound AI is not yet profitable and continues to invest heavily in growth. This creates meaningful investment risk, but it is not a Sharia compliance issue — many permissible growth companies operate at a loss while scaling.
3. Interest Expense on Debt
SoundHound AI has a small finance-lease liability and reports 71 thousand of quarterly interest expense. The main quantitative issue is liquidity/assets, not conventional borrowings.
Investors should seek qualified guidance on purification; ZakatInvest does not prescribe a fixed donation percentage.
How to Read the Quantitative Result
The record documents the examined FTSE, MSCI and Malaysia asset-based ratios. SOUN fails the liquidity screen narrowly; customer workflows, market-cap methods and a universal prohibited-revenue numerator remain uncalculated.
Bottom Line
SoundHound AI (SOUN) is doubtful on the current record. Voice-AI software is generally permissible, but the latest liquidity screen fails narrowly and customer workflows are not fully classified. Re-screen after a successor filing and consult a qualified scholar for a personal ruling.
For Muslim investors interested in AI exposure, SoundHound AI offers a focused bet on voice AI technology without the content or financial service concerns present in larger tech companies.
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