SoundThinking Inc Financials
This page shows SoundThinking Inc (SSTI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Healthy gross margins are being absorbed by a heavier operating cost base, leaving profits elusive and cash flow uneven.
FY2024 and FY2025 produced nearly the same net loss, yet operating cash flow fell from$22.2M to$9.3M as receivables rebuilt while sales barely moved. That pattern says cash conversion has recently depended more on working-capital timing than on a stable improvement in the underlying earnings engine.
The business still keeps a mid-50s gross margin, but that cushion is not reaching the bottom line because R&D plus SG&A rose from
The balance sheet reads as liquidity-tight rather than burdened by total liabilities: the current ratio was only 0.8x in FY2025, while total liabilities were about
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of SoundThinking Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
SoundThinking Inc has an operating margin of -8.4%, meaning the company retains $-8 of operating profit per $100 of revenue. This below-average margin results in a low score of 7/100, suggesting thin profitability after operating expenses. This is down from -7.7% the prior year.
SoundThinking Inc's revenue grew a modest 2.1% year-over-year to $104.1M. This slow but positive growth earns a score of 43/100.
SoundThinking Inc carries a low D/E ratio of 0.88, meaning only $0.88 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 84/100, indicating a strong balance sheet with room for future borrowing.
SoundThinking Inc's current ratio of 0.85 is below the typical benchmark, resulting in a score of 12/100. This tight liquidity could limit financial flexibility if cash inflows slow.
SoundThinking Inc has a free cash flow margin of 4.7%, earning a moderate score of 46/100. The company generates positive cash flow after capital investments, but with room for improvement.
SoundThinking Inc generates a -13.1% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is down from -12.7% the prior year.
SoundThinking Inc passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, SoundThinking Inc generates $-0.99 in operating cash flow ($9.3M OCF vs -$9.4M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
SoundThinking Inc generated $104.1M in revenue in fiscal year 2025. This represents an increase of 2.1% from the prior year.
SoundThinking Inc's EBITDA was $1.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 49.6% from the prior year.
SoundThinking Inc reported -$9.4M in net income in fiscal year 2025. This represents a decrease of 2.6% from the prior year.
SoundThinking Inc earned $-0.74 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 2.8% from the prior year.
Cash & Balance Sheet
SoundThinking Inc generated $4.9M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 69.5% from the prior year.
SoundThinking Inc held $15.8M in cash against $0 in long-term debt as of fiscal year 2025.
SoundThinking Inc had 13M shares outstanding in fiscal year 2025. This represents an increase of 1.5% from the prior year.
Margins & Returns
SoundThinking Inc's gross margin was 54.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 2.3 percentage points from the prior year.
SoundThinking Inc's operating margin was -8.4% in fiscal year 2025, reflecting core business profitability. This is down 0.7 percentage points from the prior year.
SoundThinking Inc's net profit margin was -9.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.1 percentage points from the prior year.
SoundThinking Inc's ROE was -13.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 0.4 percentage points from the prior year.
Capital Allocation
SoundThinking Inc invested $15.9M in research and development in fiscal year 2025. This represents an increase of 13.9% from the prior year.
SoundThinking Inc spent $3.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 50.4% from the prior year.
SoundThinking Inc invested $4.4M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 29.7% from the prior year.
SSTI Income Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $23.4M-5.6% | $24.8M-1.2% | $25.1M-3.0% | $25.9M-8.7% | $28.3M+21.1% | $23.4M-10.8% | $26.3M-2.6% | $27.0M |
| Cost of Revenue | $12.5M+3.6% | $12.1M+7.3% | $11.2M-6.9% | $12.1M+2.9% | $11.7M+1.8% | $11.5M+4.8% | $11.0M+1.8% | $10.8M |
| Gross Profit | $11.3M-10.7% | $12.6M-7.5% | $13.6M-1.2% | $13.8M-16.9% | $16.6M+41.7% | $11.7M-23.1% | $15.2M-5.3% | $16.1M |
| R&D Expenses | $4.4M+11.3% | $4.0M-3.4% | $4.1M+9.4% | $3.7M-7.8% | $4.1M+16.7% | $3.5M+2.1% | $3.4M-1.6% | $3.5M |
| SG&A Expenses | $6.7M+49.4% | $4.5M-22.9% | $5.8M-10.4% | $6.5M-0.1% | $6.5M+17.4% | $5.5M-2.7% | $5.7M-3.6% | $5.9M |
| Operating Income | -$6.9M-171.1% | -$2.5M-23.0% | -$2.1M+30.1% | -$2.9M-144.4% | -$1.2M+71.0% | -$4.2M-296.8% | -$1.0M-2332.6% | -$43K |
| Interest Expense | $100K | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $29K-65.9% | $85K+153.8% | -$158K-283.7% | $86K-14.0% | $100K-9.9% | $111K-65.2% | $319K+36.3% | $234K |
| Net Income | -$7.0M-152.7% | -$2.8M-35.6% | -$2.0M+34.5% | -$3.1M-110.2% | -$1.5M+63.6% | -$4.1M-183.3% | -$1.4M-91.5% | -$752K |
| EPS (Diluted) | $-0.54 | N/A | $-0.16+33.3% | $-0.24-100.0% | $-0.12 | N/A | $-0.11-83.3% | $-0.06 |
SSTI Balance Sheet
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $125.7M-7.4% | $135.8M+1.0% | $134.4M-0.3% | $134.8M-1.1% | $136.3M-0.4% | $136.8M-3.5% | $141.7M-2.8% | $145.9M |
| Current Assets | $40.2M-17.2% | $48.6M+5.4% | $46.1M+3.6% | $44.5M-0.9% | $44.9M+3.2% | $43.5M-6.1% | $46.4M-5.4% | $49.0M |
| Cash & Equivalents | $14.2M-9.8% | $15.8M+33.5% | $11.8M+32.2% | $8.9M-23.2% | $11.7M-11.6% | $13.2M-13.6% | $15.3M+55.8% | $9.8M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $17.9M-23.6% | $23.5M-3.8% | $24.4M-12.0% | $27.7M+4.6% | $26.5M+34.9% | $19.6M+6.0% | $18.5M-40.9% | $31.4M |
| Goodwill | $34.2M0.0% | $34.2M0.0% | $34.2M0.0% | $34.2M0.0% | $34.2M0.0% | $34.2M0.0% | $34.2M0.0% | $34.2M |
| Total Liabilities | $58.1M-8.6% | $63.6M+4.4% | $60.9M+1.0% | $60.3M-3.5% | $62.5M-3.0% | $64.4M-5.9% | $68.4M-2.6% | $70.3M |
| Current Liabilities | $52.6M-8.4% | $57.4M+6.3% | $54.0M+1.9% | $53.0M-3.1% | $54.7M-2.5% | $56.1M-5.9% | $59.6M-2.1% | $60.9M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $67.6M-6.3% | $72.2M-1.9% | $73.5M-1.3% | $74.5M+0.9% | $73.8M+2.0% | $72.4M-1.3% | $73.3M-3.0% | $75.6M |
| Retained Earnings | -$120.7M-6.2% | -$113.7M-2.5% | -$110.9M-1.9% | -$108.9M-2.9% | -$105.8M-1.4% | -$104.3M-4.1% | -$100.2M-1.5% | -$98.8M |
SSTI Cash Flow Statement
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $207K-95.4% | $4.5M-28.0% | $6.2M+585.9% | -$1.3M-809.9% | -$141K+83.6% | -$859K-106.3% | $13.7M+210.1% | $4.4M |
| Capital Expenditures | $1.7M+115.2% | $801K-41.5% | $1.4M-0.4% | $1.4M+52.4% | $902K-33.9% | $1.4M+9.6% | $1.2M-21.4% | $1.6M |
| Free Cash Flow | -$1.5M-141.1% | $3.7M-24.2% | $4.9M+283.0% | -$2.7M-154.8% | -$1.0M+53.1% | -$2.2M-117.9% | $12.4M+339.5% | $2.8M |
| Investing Cash Flow | -$1.7M-116.9% | -$795K+42.0% | -$1.4M+0.7% | -$1.4M-51.6% | -$910K+33.3% | -$1.4M-3.5% | -$1.3M+18.0% | -$1.6M |
| Financing Cash Flow | $6K-96.9% | $196K+109.8% | -$2.0M-4247.8% | -$46K+90.8% | -$501K-301.2% | $249K+103.6% | -$6.9M | N/A |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $504K | $0-100.0% | $2.0M+325.5% | $470K-6.7% | $504K+50300.0% | $1K-100.0% | $4.0M | N/A |
SSTI Financial Ratios
| Metric | Q2'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 48.1%-2.8pp | 50.9%-3.4pp | 54.3%+1.0pp | 53.3%-5.2pp | 58.5%+8.5pp | 50.0%-8.0pp | 58.0%-1.6pp | 59.6% |
| Operating Margin | -29.3%-19.1pp | -10.2%-2.0pp | -8.2%+3.2pp | -11.4%-7.1pp | -4.3%+13.5pp | -17.7%-13.8pp | -4.0%-3.8pp | -0.2% |
| Net Margin | -29.9%-18.8pp | -11.2%-3.0pp | -8.1%+3.9pp | -12.0%-6.8pp | -5.2%+12.2pp | -17.4%-11.9pp | -5.5%-2.7pp | -2.8% |
| Return on Equity | -10.4%-6.5pp | -3.8%-1.1pp | -2.8%+1.4pp | -4.2%-2.2pp | -2.0%+3.6pp | -5.6%-3.7pp | -2.0%-1.0pp | -1.0% |
| Return on Assets | -5.6%-3.5pp | -2.0%-0.5pp | -1.5%+0.8pp | -2.3%-1.2pp | -1.1%+1.9pp | -3.0%-2.0pp | -1.0%-0.5pp | -0.5% |
| Current Ratio | 0.77-0.1 | 0.850.0 | 0.85+0.0 | 0.84+0.0 | 0.82+0.0 | 0.780.0 | 0.78-0.0 | 0.81 |
| Debt-to-Equity | 0.86-0.0 | 0.88+0.1 | 0.83+0.0 | 0.81-0.0 | 0.85-0.0 | 0.89-0.0 | 0.930.0 | 0.93 |
| FCF Margin | -6.5%-21.4pp | 14.9%-4.5pp | 19.4%+29.6pp | -10.3%-6.6pp | -3.7%+5.8pp | -9.5%-56.9pp | 47.4%+36.9pp | 10.5% |
Note: The current ratio is below 1.0 (0.85), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is SoundThinking Inc's annual revenue?
SoundThinking Inc (SSTI) reported $104.1M in total revenue for fiscal year 2025. This represents a 2.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is SoundThinking Inc's revenue growing?
SoundThinking Inc (SSTI) revenue grew by 2.1% year-over-year, from $102.0M to $104.1M in fiscal year 2025.
Is SoundThinking Inc profitable?
No, SoundThinking Inc (SSTI) reported a net income of -$9.4M in fiscal year 2025, with a net profit margin of -9.0%.
What is SoundThinking Inc's EBITDA?
SoundThinking Inc (SSTI) had EBITDA of $1.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is SoundThinking Inc's gross margin?
SoundThinking Inc (SSTI) had a gross margin of 54.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is SoundThinking Inc's operating margin?
SoundThinking Inc (SSTI) had an operating margin of -8.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is SoundThinking Inc's net profit margin?
SoundThinking Inc (SSTI) had a net profit margin of -9.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is SoundThinking Inc's return on equity (ROE)?
SoundThinking Inc (SSTI) has a return on equity of -13.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is SoundThinking Inc's free cash flow?
SoundThinking Inc (SSTI) generated $4.9M in free cash flow during fiscal year 2025. This represents a -69.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is SoundThinking Inc's operating cash flow?
SoundThinking Inc (SSTI) generated $9.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are SoundThinking Inc's total assets?
SoundThinking Inc (SSTI) had $135.8M in total assets as of fiscal year 2025, including both current and long-term assets.
What are SoundThinking Inc's capital expenditures?
SoundThinking Inc (SSTI) invested $4.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does SoundThinking Inc spend on research and development?
SoundThinking Inc (SSTI) invested $15.9M in research and development during fiscal year 2025.
What is SoundThinking Inc's current ratio?
SoundThinking Inc (SSTI) had a current ratio of 0.85 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is SoundThinking Inc's debt-to-equity ratio?
SoundThinking Inc (SSTI) had a debt-to-equity ratio of 0.88 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is SoundThinking Inc's return on assets (ROA)?
SoundThinking Inc (SSTI) had a return on assets of -6.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is SoundThinking Inc's Piotroski F-Score?
SoundThinking Inc (SSTI) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are SoundThinking Inc's earnings high quality?
SoundThinking Inc (SSTI) has an earnings quality ratio of -0.99x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is SoundThinking Inc?
SoundThinking Inc (SSTI) scores 32 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.