Form 4: SoundHound AI COO Sells Shares for Tax Obligations

SoundHound AI's Chief Operating Officer, Michael Zagorsek, sold 73,406 shares of Class A Common Stock to cover tax withholding obligations related to vested restricted stock units.

Summary

• Michael Zagorsek, Chief Operating Officer of SoundHound AI, Inc. (SOUN), reported a sale of company stock.
• The transaction involved 73,406 shares of Class A Common Stock.
• The shares were sold at an average price of $11.2769 per share on December 22, 2025.
• The total value of the sale was approximately $827,800.
• The primary purpose of the sale was to satisfy tax withholding obligations in connection with the vesting of restricted stock units (RSUs) granted between August 2022 and July 2025.
• Following this transaction, Mr. Zagorsek beneficially owns 1,787,459 shares of Class A Common Stock.
• The reported beneficial ownership includes 75 shares of common stock acquired in November 2025 through the SoundHound AI, Inc. 2022 Employee Stock Purchase Plan.

Sentiment

Score: 5

Explanation: The filing reports a routine insider sale of shares to cover tax obligations upon the vesting of restricted stock units, which is a common practice and not indicative of a change in company fundamentals. The executive also acquired shares through an employee stock purchase plan.

Positives

• The vesting of restricted stock units indicates the achievement of performance or time-based conditions, reflecting compensation for the Chief Operating Officer.
• The Chief Operating Officer acquired 75 shares through the SoundHound AI, Inc. 2022 Employee Stock Purchase Plan in November 2025, indicating continued participation in employee ownership programs.

Negatives

• The sale of 73,406 shares by a key executive reduces their direct ownership stake in the company.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The sale represents a minor reduction in executive ownership, but it is a routine transaction for tax purposes and not typically viewed as a signal of lack of confidence.
• Employees: The vesting of restricted stock units and participation in the Employee Stock Purchase Plan demonstrate the company's compensation structure and opportunities for employee ownership.

Key Dates

Recommendation

This Form 4 reports a routine insider transaction where the Chief Operating Officer sold shares to cover tax obligations arising from the vesting of restricted stock units. Such sales are common and typically do not reflect a change in the company's fundamental outlook or warrant a change in investment recommendation. The executive also acquired shares through an employee stock purchase plan, indicating continued participation in company ownership. Therefore, a 'hold' recommendation is appropriate as this filing does not provide new information to alter an existing investment thesis.

Keywords

SoundHound AI, SOUN, Insider Trading, Form 4, Stock Sale, Restricted Stock Units, COO, Michael Zagorsek, Employee Stock Purchase Plan