SoundThinking (NASDAQ:SSTI) Posts Quarterly Earnings Results, Misses Estimates By $0.30 EPS

Key Points

• SoundThinking missed earnings expectations, reporting Q1 EPS of ($0.54) versus the expected ($0.24). Revenue came in at $24.18 million, slightly below consensus.
• The company reaffirmed full-year 2026 guidance for $109 million to $111 million in revenue and a 16% to 18% adjusted EBITDA margin, saying performance should improve in the second half of the year as cost savings take hold.
• Management highlighted strong customer retention and an accelerating SafePointe pipeline, including new hospital and casino wins, while also expanding its platform with drone integrations and a new AI product in beta.

SoundThinking (NASDAQ:SSTI - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.54) earnings per share for the quarter, missing the consensus estimate of ($0.24) by ($0.30), FiscalAI reports. The firm had revenue of $24.18 million during the quarter, compared to the consensus estimate of $24.27 million. SoundThinking had a negative return on equity of 12.81% and a negative net margin of 9.05%.

Here are the key takeaways from SoundThinking's conference call:

• SoundThinking reported Q1 revenue of $24.2 million and adjusted EBITDA of about negative $100,000, both in line with expectations. Management reaffirmed its full-year 2026 guidance for $109 million-$111 million in revenue, 16%-18% adjusted EBITDA margin, and exiting ARR of $110 million.
• Executives said the business is expected to improve meaningfully in the second half of 2026 as revenue is back-end loaded and the company benefits from about $4 million in annual cost savings from workforce and business optimization actions. They also said more than 90% of revenue growth beyond the Q1 run rate should flow to adjusted EBITDA.
• Customer retention and renewals remain strong, with management highlighting renewal performance ahead of plan and the Cleveland renewal as evidence that the company’s technology continues to win in competitive situations. The company also cited 25 years of ground-truth acoustic data and independently validated accuracy as a core competitive moat.
• SoundThinking said its SafePointe pipeline is accelerating, with new hospital and casino wins including a $3.2 million, 3-year booking and another expected $1 million-plus deal. Management expects SafePointe to reach profitability by end-2027 or early 2028, though it is currently a major drag on earnings.
• The company is expanding its platform with drone-first-responder integrations now live in 16 cities and a new AI product, SafetySmart Field Agent, which is in beta with more than a dozen agencies. Management framed these as retention and platform-stickiness drivers that deepen its public safety data ecosystem rather than immediate revenue contributors.

SoundThinking Stock Performance

SSTI traded up $0.43 during trading on Thursday, reaching $6.57. The stock had a trading volume of 149,164 shares, compared to its average volume of 156,749. The stock has a market cap of $85.11 million, a PE ratio of -8.88 and a beta of 1.17. SoundThinking has a one year low of $5.78 and a one year high of $16.92. The business has a 50-day moving average of $6.73 and a 200-day moving average of $7.32.

Insider Buying and Selling

In other news, major shareholder Veradace Partners Lp bought 105,880 shares of SoundThinking stock in a transaction that occurred on Wednesday, February 18th. The shares were acquired at an average price of $7.14 per share, with a total value of $755,983.20. Following the completion of the purchase, the insider directly owned 2,008,368 shares in the company, valued at $14,339,747.52. The trade was a 5.57% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders acquired a total of 137,417 shares of company stock valued at $979,843 over the last quarter. 10.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SSTI. Wasatch Advisors LP boosted its position in SoundThinking by 3.7% during the third quarter. Wasatch Advisors LP now owns 554,085 shares of the company's stock valued at $6,682,000 after buying an additional 19,848 shares during the period. Mackenzie Financial Corp boosted its position in SoundThinking by 50.2% during the fourth quarter. Mackenzie Financial Corp now owns 203,411 shares of the company's stock valued at $1,640,000 after buying an additional 67,981 shares during the period. Dimensional Fund Advisors LP boosted its position in SoundThinking by 2.1% during the third quarter. Dimensional Fund Advisors LP now owns 184,182 shares of the company's stock valued at $2,221,000 after buying an additional 3,771 shares during the period. JPMorgan Chase & Co. boosted its position in SoundThinking by 7.6% during the third quarter. JPMorgan Chase & Co. now owns 47,346 shares of the company's stock valued at $571,000 after buying an additional 3,330 shares during the period. Finally, Man Group plc boosted its position in SoundThinking by 13.7% during the second quarter. Man Group plc now owns 38,166 shares of the company's stock valued at $498,000 after buying an additional 4,588 shares during the period. Institutional investors own 60.74% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. Wall Street Zen raised SoundThinking from a "sell" rating to a "hold" rating in a report on Saturday, April 4th. Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundThinking in a research report on Friday, March 27th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $14.00.

About SoundThinking

SoundThinking, Inc, a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact.

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