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

SoundThinking (NASDAQ:SSTI) announced its quarterly earnings data on Thursday. The company reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.25) by ($0.12), FiscalAI reports. The firm had revenue of $23.89 million for the quarter, compared to analysts’ expectations of $25.77 million. SoundThinking had a negative return on equity of 20.76% and a negative net margin of 14.95%.

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 Price Performance

Shares of SSTI stock traded up $0.12 on Thursday, hitting $8.27. The company’s stock had a trading volume of 50,340 shares, compared to its average volume of 141,234. The stock has a market capitalization of $107.10 million, a price-to-earnings ratio of -7.13 and a beta of 1.16. SoundThinking has a fifty-two week low of $5.78 and a fifty-two week high of $13.34. The firm’s fifty day moving average price is $8.23 and its 200-day moving average price is $7.38.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on SSTI shares. Weiss Ratings lowered SoundThinking from a “sell (d-)” rating to a “sell (e+)” rating in a research report 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 research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $14.00.

Hedge Funds Weigh In On SoundThinking

Institutional investors have recently bought and sold shares of the stock. XTX Topco Ltd acquired a new position in shares of SoundThinking during the 4th quarter valued at about $120,000. Occudo Quantitative Strategies LP lifted its holdings 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 during the last quarter. Jump Financial LLC acquired a new stake in SoundThinking in the 4th quarter worth approximately $147,000. Mercer Global Advisors Inc. ADV boosted its position in SoundThinking by 9.5% during the third 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 boosted its position in SoundThinking by 6.5% during the second quarter. Rhumbline Advisers now owns 15,960 shares of the company’s stock worth $208,000 after purchasing an additional 980 shares during the period. 60.74% of the stock is currently owned by institutional investors.

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.