Quality Investor

Sound Group Inc.

Rank #6Hypergrowth

SOGP · Nasdaq · Communication Services

Sound Group Inc. (SOGP) — Rank #6 by gross profitability (GP/assets 1.21) · ROE 56.5% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001783407 · all metrics point-in-time as of the filing date.

About

Sound Group Inc. operates as an AI-powered audio company in the People's Republic of China.

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The company offers voice live streaming, multi-user voice interaction, and podcast content for social entertainment, online companionship, and interest-based engagement; and content creation platforms, which enable intelligent event planning, voice enhancement, and AI-driven interactive features. It also provides SoundSphereAI, a voice AI technology showcase and experience platform. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc.

was founded in 2010 and is based in Singapore.

Industry
Internet Content & Information
Sector
Communication Services
State
E9
Filer Category
Non-accelerated filer
Fiscal Year End
December 31

Price History

SOGP-68.3% · -20.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$47.75M

P/E (annual)

47.5

P/S (annual)

0.0

P/B

0.1

P/OCF (annual)

0.2

Shareholder Yield

8.1%

Employees

590

Industry

Internet Content & Information

Exchange

Nasdaq

Signal Flags

2 green
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal

Quality Profile

Profitability

1/1 pass
GP / assets
1.21
Return on equity
56.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.00
Current ratio
1.94×
Net cash
$647.87M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.1%

Growth

2/2 pass
Revenue growth
52.7%
Piotroski F-Score
8 / 9
Share dilution
-8.1%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

16.8%

fairly valued

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -8.1% — per-share value needs a total required return of 8.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 15.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

11.9%

r = 10% (base)

16.8%

r = 12%

20.9%

Net debt / market cap: -6.0%

Note: current FCF margin is 1.6σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $276.6M3Y mean FCF: $38.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

5.2xFair
1.0xmed 6.1x44.5x

P / B

Price / book value per share

40.5xFair
7.0xmed 29.6x395.7x

P / GP

Price / gross profit per share

17.9xFair
3.6xmed 21.1x181.8x

P / FCF

Price / free cash flow per share

58.7xCheap
58.7xmed 59.3x3570.5x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

1.21

Primary signal (Novy-Marx).

1st of 14 SIC 7370 peers

Return on equity

56.5%

Gross margin

29.2%

14th of 14 SIC 7370 peers

Revenue growth (YoY)

52.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

12.4%

Revenue CAGR (5Y)

15.6%

Earnings CAGR (3Y)

FCF CAGR (3Y)

30.5%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.00

12th of 13 SIC 7370 peers (best = lowest)

Current ratio

1.94×

12th of 14 SIC 7370 peers

Quick ratio

1.80×

Net cash

$647.87M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$276.58M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.22

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Value
Decline
Startup