SoundThinking (NASDAQ:SSTI) Announces Quarterly Earnings Results, Misses Estimates By $0.30 EPS

SoundThinking (NASDAQ:SSTI) posted its quarterly earnings results on Thursday. The company reported ($0.54) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.30), FiscalAI reports. SoundThinking had a negative net margin of 14.95% and a negative return on equity of 20.35%. The company had revenue of $24.18 million during the quarter, compared to the consensus estimate of $24.27 million.

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

• SoundThinking reported Q1 revenue of $24.2 million and adjusted EBITDA of about negative $100,000, both in line with expectations. Management reaffirmed its full-year 2026 guidance for $109 million-$111 million in revenue, 16%-18% adjusted EBITDA margin, and exiting ARR of $110 million.
• Executives said the business is expected to improve meaningfully in the second half of 2026 as revenue is back-end loaded and the company benefits from about $4 million in annual cost savings from workforce and business optimization actions. They also said more than 90% of revenue growth beyond the Q1 run rate should flow to adjusted EBITDA.
• Customer retention and renewals remain strong, with management highlighting renewal performance ahead of plan and the Cleveland renewal as evidence that the company’s technology continues to win in competitive situations. The company also cited 25 years of ground-truth acoustic data and independently validated accuracy as a core competitive moat.
• SoundThinking said its SafePointe pipeline is accelerating, with new hospital and casino wins including a $3.2 million, 3-year booking and another expected $1 million-plus deal. Management expects SafePointe to reach profitability by end-2027 or early 2028, though it is currently a major drag on earnings.
• The company is expanding its platform with drone-first-responder integrations now live in 16 cities and a new AI product, SafetySmart Field Agent, which is in beta with more than a dozen agencies. Management framed these as retention and platform-stickiness drivers that deepen its public safety data ecosystem rather than immediate revenue contributors.

SoundThinking Stock Up 0.8%

Shares of NASDAQ SSTI traded up $0.05 during mid-day trading on Friday, reaching $6.62. 149,054 shares of the company were exchanged, compared to its average volume of 90,218. The company’s 50-day simple moving average is $6.71 and its 200-day simple moving average is $7.29. The stock has a market capitalization of $85.73 million, a P/E ratio of -5.71 and a beta of 1.17. SoundThinking has a twelve month low of $5.78 and a twelve month high of $16.92.

Insider Transactions at SoundThinking

In other news, major shareholder Veradace Partners Lp acquired 105,880 shares of the firm’s stock in a transaction dated Wednesday, February 18th. The stock was purchased at an average price of $7.14 per share, for a total transaction of $755,983.20. Following the completion of the acquisition, the insider directly owned 2,008,368 shares in the company, valued at $14,339,747.52. The trade was a 5.57% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders purchased a total of 137,417 shares of company stock valued at $979,843 in the last 90 days. 10.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundThinking

A number of large investors have recently modified their holdings of SSTI. Rhumbline Advisers increased its stake in 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. Barclays PLC lifted its stake in shares of SoundThinking by 4.3% in the fourth quarter. Barclays PLC now owns 32,365 shares of the company’s stock valued at $260,000 after buying an additional 1,347 shares in the last quarter. BNP Paribas Financial Markets grew 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 buying an additional 1,688 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in shares of SoundThinking by 9.5% during the third quarter. Mercer Global Advisors Inc. ADV now owns 20,336 shares of the company’s stock valued at $245,000 after buying an additional 1,759 shares during the last quarter. Finally, State of Wyoming bought a new stake in shares of SoundThinking during the second quarter worth about $33,000. 60.74% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

SSTI has been the topic of a number of recent analyst reports. Weiss Ratings restated a “sell (e+)” rating on shares of SoundThinking in a report on Friday, March 27th. Wall Street Zen raised shares of SoundThinking from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, SoundThinking presently has an average rating of “Hold” and a consensus price target of $14.00.

SoundThinking News Roundup

Here are the key news stories impacting SoundThinking this week:

• Negative Sentiment: SoundThinking reported a wider-than-expected Q1 loss of $0.54 per share versus an expected loss of $0.24, while revenue of $24.18 million also came in slightly below estimates. Article: SoundThinking (SSTI) Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: Revenue fell 15% year over year, largely because last year’s quarter included about $3.5 million from delayed New York City Police Department contract renewals, underscoring lumpy top-line comparisons. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Management reaffirmed FY 2026 revenue guidance of $109 million to $111 million and adjusted EBITDA margin guidance of 16% to 18%, which may help limit downside by signaling confidence in the full-year outlook. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Neutral Sentiment: The company reiterated expectations for annual recurring revenue to rise from $95.4 million at the start of 2026 to about $110 million at the start of 2027, suggesting steady longer-term subscription growth. Article: SoundThinking, Inc. Reports First Quarter 2026 Financial Results
• Positive Sentiment: Investors may also view the company’s new executive appointment and strategic commentary as supportive of execution, though these updates are likely secondary to the earnings miss. Article: SoundThinking Appoints David Jochim as Senior Vice President of TechnoLogic and Professional Services

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.