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

SoundThinking (NASDAQ:SSTI) issued its quarterly earnings data 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 company had revenue of $23.89 million for the quarter, compared to the consensus estimate 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

NASDAQ:SSTI opened at $6.39 on Friday. The firm’s fifty day moving average is $8.24 and its two-hundred day moving average is $7.39. The firm has a market cap of $82.79 million, a price-to-earnings ratio of -5.51 and a beta of 1.16. SoundThinking has a one year low of $5.78 and a one year high of $13.34.

SoundThinking News Summary

Here are the key news stories impacting SoundThinking this week:

• Positive Sentiment: Management outlined a 2026 revenue target of $99 million to $100 million and an adjusted EBITDA margin target of 8% to 9%. The plan provides investors with a path toward positive adjusted profitability, although both targets were reduced from prior expectations. SoundThinking outlines 2026 revenue plan
• Neutral Sentiment: The company’s second-quarter earnings call provided additional detail on operating performance and management’s outlook, including efforts to grow recurring revenue and improve profitability. SoundThinking Q2 2026 earnings call transcript
• Negative Sentiment: SoundThinking reported a second-quarter loss of $0.37 per share, wider than the consensus loss estimate of $0.25-$0.27 and the $0.24 loss reported a year earlier. Revenue was $23.89 million, below analysts’ $25.77 million estimate, indicating weaker-than-expected execution. SoundThinking Q2 results
• Negative Sentiment: The company cut 2026 revenue guidance to $99 million-$100 million from $109 million-$111 million and reduced adjusted EBITDA margin guidance to 8%-9% from 16%-18%. Its expected increase in annual recurring revenue was also lowered to more than $100 million by the beginning of 2027 from a previous $110 million target. SoundThinking second-quarter financial results
• Negative Sentiment: Lake Street Capital downgraded SSTI from “buy” to “hold” and set an $8.00 price target, implying approximately 3.3% downside from the referenced $8.27 price. The downgrade adds to investor concerns following the earnings miss and guidance reductions. Finviz analyst rating information

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on SSTI shares. Roth Capital set a $13.00 price target on shares of SoundThinking in a report on Friday. Wall Street Zen upgraded shares of SoundThinking from a “strong sell” rating to a “sell” rating in a research note on Sunday, May 31st. Weiss Ratings lowered shares of SoundThinking from a “sell (d-)” rating to a “sell (e+)” rating in a report on Thursday, July 30th. Lake Street Capital downgraded SoundThinking from a “buy” rating to a “hold” rating and set a $8.00 price target on the stock. in a research report on Friday. Finally, Citizens Jmp restated a “market perform” rating on shares of SoundThinking in a research note on Friday. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $11.00.

Institutional Trading of SoundThinking

A number of hedge funds have recently modified their holdings of SSTI. XTX Topco Ltd purchased a new position in SoundThinking during the fourth quarter valued at approximately $120,000. Occudo Quantitative Strategies LP boosted its position in SoundThinking by 77.7% in the 4th quarter. Occudo Quantitative Strategies LP now owns 19,540 shares of the company’s stock worth $157,000 after purchasing an additional 8,541 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of SoundThinking during the 4th quarter worth approximately $147,000. Mercer Global Advisors Inc. ADV grew its stake in shares of SoundThinking by 9.5% during the 3rd quarter. Mercer Global Advisors Inc. ADV now owns 20,336 shares of the company’s stock worth $245,000 after purchasing an additional 1,759 shares during the period. Finally, Rhumbline Advisers increased its holdings in shares of SoundThinking by 6.5% during the 2nd quarter. Rhumbline Advisers now owns 15,960 shares of the company’s stock valued at $208,000 after purchasing an additional 980 shares in the last quarter. Hedge funds and other institutional investors own 60.74% of the company’s stock.

SoundThinking Company Profile

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.