SoundThinking (NASDAQ:SSTI) Releases Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Key Points

• SoundThinking missed quarterly expectations, reporting an adjusted loss of $0.37 per share versus the $0.25 consensus estimate, while revenue of $23.89 million fell short of analysts’ $25.77 million forecast.
• The company cut its full-year 2026 guidance to $99–$100 million in revenue and 8%–9% adjusted EBITDA margin, citing delayed projects, slower SafePointe deployments, weaker ShotSpotter conversions, and slower sales cycles.
• Despite the weaker outlook, cost reductions lifted adjusted EBITDA to $1.2 million from a loss in the prior quarter, while retention remained strong and management said about 70% of the guidance reduction reflects timing-related revenue shifts into 2027.

SoundThinking (NASDAQ:SSTI - Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.37) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.12), FiscalAI reports. SoundThinking had a negative net margin of 14.95% and a negative return on equity of 20.76%. The business had revenue of $23.89 million for the quarter, compared to analyst estimates of $25.77 million.

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

• Full-year 2026 revenue guidance was cut to $99–$100 million from $109–$111 million, while adjusted EBITDA margin guidance fell to 8%–9%. The reduction reflects delayed professional-services projects, slower SafePointe deployments, the removal of Puerto Rico revenue, and weaker-than-expected ShotSpotter sales conversion.
• ShotSpotter bookings and go-lives missed expectations as sales cycles lengthened amid greater political scrutiny, tighter municipal budgets, and slower federal funding. Management also acknowledged sales execution and pipeline-conversion issues that it is working to address.
• Cost reductions helped adjusted EBITDA improve to $1.2 million from a loss of roughly $100,000 in Q1 despite nearly flat sequential revenue. Management remains on track for approximately $4 million in annualized savings and expects the leaner cost structure to support margin expansion.
• Customer retention remained strong, with more than $23 million of contract value secured through multi-year renewals, alongside ShotSpotter win-backs in Erie and Cambridge. SoundThinking also signed a new Texas Anti-Gang CrimeTracer contract worth approximately $2.5 million in annual recurring revenue.
• Management said roughly 70% of the approximately $10 million guidance reduction is timing-related rather than lost business, with much of the revenue shifting into 2027. ARR is still expected to rise from $95.4 million at the start of 2026 to more than $100 million entering 2027, although SafePointe deployments and several booked projects are taking longer to go live.

SoundThinking Stock Performance

Shares of NASDAQ SSTI traded up $0.12 during trading on Thursday, hitting $8.27. The company had a trading volume of 50,340 shares, compared to its average volume of 141,234. SoundThinking has a 52 week low of $5.78 and a 52 week high of $13.34. The business's 50-day moving average is $8.23 and its 200 day moving average is $7.38. The company has a market cap of $107.10 million, a P/E ratio of -7.13 and a beta of 1.16.

Wall Street Analysts Forecast Growth

Several research firms have commented on SSTI. Zacks Research raised shares of SoundThinking from a "strong sell" rating to a "hold" rating in a research note on Tuesday, July 14th. Weiss Ratings lowered shares of SoundThinking from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, July 30th. Finally, Wall Street Zen upgraded shares of SoundThinking from a "strong sell" rating to a "sell" rating in a report on Sunday, May 31st. Three equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $14.00.

Institutional Investors Weigh In On SoundThinking

Institutional investors and hedge funds have recently modified their holdings of the stock. State of Wyoming acquired a new position in shares of SoundThinking in the 2nd quarter valued at $33,000. BNP Paribas Financial Markets raised its holdings in shares of SoundThinking by 160.5% during the third quarter. BNP Paribas Financial Markets now owns 2,740 shares of the company's stock valued at $33,000 after acquiring an additional 1,688 shares during the period. Wells Fargo & Company MN lifted its position in shares of SoundThinking by 78.1% in the 4th quarter. Wells Fargo & Company MN now owns 10,448 shares of the company's stock valued at $84,000 after acquiring an additional 4,580 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in shares of SoundThinking in the 4th quarter valued at approximately $87,000. Finally, Jain Global LLC acquired a new position in SoundThinking in the 4th quarter worth approximately $114,000. 60.74% of the stock is owned by institutional investors and hedge funds.

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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