Sound Group Inc. (NASDAQ: SOGP)

Sound Group Inc. is a global AI-powered audio company that integrates voice artificial intelligence technologies across a wide range of application scenarios to build an open, intelligent audio ecosystem. The company develops and operates online audio applications that offer voice live streaming, multi-user voice interaction and podcast content, while also providing AI-driven tools such as meeting transcription, real-time translation and voice cloning. Its business model combines content creation, user engagement and monetization within a cohesive platform that serves creators and listeners worldwide.

Sound Group Inc. generates revenue primarily from two streams: value-added services and subscription and others. Value-added services, which include virtual gift sales, premium benefits, in-app purchases of virtual avatar items and mini-games, accounted for approximately 98.5% of total net revenues in 2025, amounting to RMB3,056.4 million (US$437.1 million). Subscription and others, consisting of AI application subscriptions and paid audio content, contributed the remaining 1.5% of net revenues, totaling RMB46.3 million (US$6.6 million) in the same year.

The company operates through the following segments: Online Audio Business and AI Application Business.

• Online Audio Business: This segment provides voice live streaming, multi-user voice interaction and podcast content, enabling social entertainment, online companionship and interest-based engagement for users. It monetizes through virtual gift sales, premium benefits, in-app purchases of virtual avatar items and mini-games.

• AI Application Business: This segment offers voice AI technologies such as automatic speech recognition, text-to-speech, voice cloning and real-time voice interaction, delivered via subscription-based tools for meeting transcription, real-time translation and voice cloning to improve productivity in business, education and content creation.

Sound Group Inc. competes in highly competitive markets for online audio and AI applications. In the online audio space, it faces competition from other voice-based live streaming platforms, interactive audio services and large online video and social media platforms that vie for user attention and content creators. In the AI applications arena, it contends with providers of AI-powered productivity tools, voice-based applications and general-purpose AI solutions. The company’s competitive advantage stems from its integrated technology, product and data flywheel, which leverages a deep audio-specific voice AI core, a stable user base and extensive real-time interaction data to continuously enhance its models and product offerings.

The company serves a global base of individual users who engage with its online audio platforms for live streaming, voice chat and podcast consumption, as well as content creators and hosts who produce audio content and interact with audiences. Its AI application customers include professionals, educators and businesses seeking transcription, translation and voice cloning tools to improve workflow efficiency.