SoundThinking (NASDAQ:SSTI) Issues Earnings Results

SoundThinking (NASDAQ:SSTI) released 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 return on equity of 23.31% and a negative net margin of 16.92%.The firm 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 Down 25.0%

Shares of SSTI stock opened at $6.20 on Friday. SoundThinking has a 52 week low of $5.78 and a 52 week high of $13.34. The stock has a market capitalization of $80.29 million, a PE ratio of -4.81 and a beta of 1.16. The firm has a 50 day moving average of $8.21 and a two-hundred day moving average of $7.38.

SoundThinking News Summary

Here are the key news stories impacting SoundThinking this week:

• Positive Sentiment: Analysts still see potential upside: Cantor Fitzgerald set an $8 price target, and Lake Street Capital also maintained an $8 target. Both targets are above the current trading level, although Cantor now rates the shares “neutral” and Lake Street downgraded the stock to “hold.” Cantor Fitzgerald price target report
• Positive Sentiment: Management outlined a 2026 revenue plan of $99 million to $100 million and expects annual recurring revenue to exceed $100 million by the beginning of 2027, suggesting continued growth in the company’s subscription-based public-safety technology business. SoundThinking 2026 revenue plan
• Neutral Sentiment: Citizens JMP reaffirmed its “market perform” rating, indicating no immediate catalyst from its view. Citizens JMP rating report
• Negative Sentiment: Second-quarter results missed expectations: SoundThinking reported a loss of $0.37 per share versus the approximately $0.25-$0.27 consensus loss estimate, while revenue of $23.89 million fell short of the $25.77 million forecast. The loss also widened from $0.24 per share a year earlier. SoundThinking second-quarter results
• Negative Sentiment: The company cut 2026 revenue guidance to $99 million-$100 million from $109 million-$111 million and reduced its adjusted EBITDA margin target to 8%-9% from 16%-18%. The new revenue outlook is also well below the roughly $109.2 million analyst consensus, raising concerns about slowing growth and profitability. SoundThinking financial results and guidance

Institutional Trading of SoundThinking

Several hedge funds have recently modified their holdings of the stock. Strs Ohio purchased a new position in SoundThinking in the first quarter valued at $127,000. Rhumbline Advisers raised its holdings in shares of SoundThinking by 6.5% in 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. Marshall Wace LLP acquired a new stake in shares of SoundThinking in the 2nd quarter valued at $245,000. Manatuck Hill Partners LLC purchased a new stake in shares of SoundThinking during the 2nd quarter worth $402,000. Finally, Man Group plc lifted its position in shares of SoundThinking by 13.7% during the 2nd quarter. Man Group plc now owns 38,166 shares of the company’s stock worth $498,000 after purchasing an additional 4,588 shares during the last quarter. 60.74% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on SSTI shares. Roth Capital set a $13.00 price objective on SoundThinking in a research note on Friday. Weiss Ratings lowered SoundThinking from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, July 30th. Northland Securities set a $10.00 target price on SoundThinking in a report on Friday. Lake Street Capital downgraded SoundThinking from a “buy” rating to a “hold” rating and set a $8.00 target price for the company. in a research report on Friday. Finally, Cantor Fitzgerald cut their price target on shares of SoundThinking from $10.00 to $8.00 and set a “neutral” rating on the stock in a research note on Friday. One investment 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, SoundThinking has a consensus rating of “Hold” and a consensus price target of $10.83.

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.