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

SoundThinking (NASDAQ:SSTI) issued its quarterly earnings results on Thursday. The company reported ($0.37) earnings per share 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 analysts’ expectations 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 SoundThinking stock traded up $0.12 during midday trading on Thursday, reaching $8.27. 50,340 shares of the company’s stock traded hands, compared to its average volume of 141,234. The company has a market cap of $107.10 million, a price-to-earnings ratio of -7.13 and a beta of 1.16. The company’s 50 day simple moving average is $8.23 and its 200 day simple moving average is $7.38. SoundThinking has a 52 week low of $5.78 and a 52 week high of $13.34.

Analysts Set New Price Targets

SSTI has been the subject of several research analyst reports. Weiss Ratings downgraded SoundThinking from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, July 30th. Wall Street Zen raised SoundThinking from a “strong sell” rating to a “sell” rating in a research note on Sunday, May 31st. Finally, Zacks Research upgraded SoundThinking from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 14th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $14.00.

Institutional Investors Weigh In On SoundThinking

A number of large investors have recently bought and sold shares of the business. Wasatch Advisors LP raised its holdings in SoundThinking by 42.9% in the 2nd quarter. Wasatch Advisors LP now owns 534,237 shares of the company’s stock worth $6,974,000 after acquiring an additional 160,451 shares during the period. Mackenzie Financial Corp boosted its holdings 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 acquiring an additional 67,981 shares during the period. Manatuck Hill Partners LLC bought a new stake in SoundThinking during the second quarter valued at about $402,000. Connective Capital Management LLC acquired a new stake in shares of SoundThinking in the third quarter valued at about $297,000. Finally, Corient Private Wealth LLC acquired a new stake in shares of SoundThinking in the second quarter valued at about $263,000. 60.74% of the stock is currently owned by institutional investors.

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.