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SoundThinking (SSTI) hits record 2025 sales but lowers 2026 guidance

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

SoundThinking, Inc. reported fourth quarter and full year 2025 results showing modest growth but continued losses. Full year revenue rose 2% to a record $104.1 million, while fourth quarter revenue increased 6% to $24.8 million, largely from new and expanded customer subscriptions.

Profitability remained pressured. Full year GAAP net loss was $9.4 million, slightly wider than 2024, and adjusted EBITDA declined to $12.6 million, or 12% of revenue. Fourth quarter GAAP net loss improved to $2.8 million, but adjusted EBITDA fell to $1.3 million, or 5% of revenue.

For 2026, the company lowered its revenue outlook to $109.0–$111.0 million, implying about 6% growth at the midpoint, and reduced its adjusted EBITDA margin guidance to 16–18%. Annual recurring revenue was $95.4 million at the start of 2026 and is expected to reach about $110.0 million at the beginning of 2027.

Positive

  • None.

Negative

  • None.

Insights

Record revenue and solid ARR outlook, but lower margins and guidance temper the picture.

SoundThinking delivered record 2025 revenue of $104.1 million, up 2%, with Q4 revenue up 6%. Growth was held back by the loss of roughly $9 million of Chicago revenue that was present in 2024 but not 2025.

Profitability softened as gross margin slipped from 57% to 54% and adjusted EBITDA fell from $14.4 million to $12.6 million. Operating expenses were essentially flat year over year, so the margin pressure primarily reflects mix and lost high‑volume business.

Management lowered 2026 revenue guidance to $109.0–$111.0 million and trimmed adjusted EBITDA margin expectations to 16–18%, while targeting ARR growth from $95.4 million to about $110.0 million by early 2027. Execution on delayed contracts and the realigned sales organization will be key drivers of whether results track these goals.

false000135163600013516362025-02-252025-02-25

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 3, 2026

 

 

SoundThinking, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-38107

47-0949915

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

39300 Civic Center Dr.

Suite 300

 

Fremont, California

 

94538

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 510 794-3100

 

Name

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common stock, par value $0.005 per share

 

SSTI

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 

Item 2.02 Results of Operations and Financial Condition.

 

On March 3, 2026, SoundThinking, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2025. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit

Number

 

Description

 

 

 

99.1

 

Press release dated March 3, 2026

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

SoundThinking, Inc.

Date: March 3, 2026

By:

/s/ Ralph A. Clark

Ralph A. Clark

President and Chief Executive Officer

 


Exhibit 99.1

img167426416_0.gif

SoundThinking, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

 

Full Year 2025 Revenues Increased 2% to $104.1 Million, the Highest Annual Revenues in Company History

 

Company Updates Full Year 2026 Revenue Guidance Range to $109.0 Million to $111.0 Million, Representing 6% Year-Over-Year Growth at the Midpoint, and Updates Full Year 2026 Adjusted EBITDA Margin Guidance Range to 16% to 18%. ARR Expected to Increase from $95.4 Million at the Beginning of 2026 to Approximately $110.0 Million at the Beginning of 2027

 

FREMONT, CA – March 3, 2026 – SoundThinking, Inc. (Nasdaq: SSTI) (“SoundThinking” or the “Company”), a leading public safety technology company, today reported financial results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025 Financial and Operational Highlights

Revenues increased 6% to $24.8 million, compared to $23.4 million for the same quarter of 2024.
Gross profit increased 8% to $12.6 million (51% of revenues), compared to $11.7 million (50% of revenues) for the same quarter of 2024.
GAAP net loss totaled $2.8 million, compared to GAAP net loss of $4.1 million for the same quarter of 2024.
Adjusted EBITDA1 totaled $1.3 million (5% of revenues), compared to $1.7 million (7% of revenues) for the same quarter of 2024.
Went “live” with ShotSpotter in 1 new city and 4 expansions with current customers.

 

1 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss).

 

Full Year 2025 Financial and Operational Highlights

 

Revenues increased 2% to a record $104.1 million, compared to $102.0 million in 2024.
Gross profit decreased 2% to $56.6 million (54% of revenues), compared to $57.9 million (57% of revenues) in 2024.
GAAP net loss totaled $9.4 million, compared to GAAP net loss of $9.2 million in 2024.
Adjusted EBITDA2 totaled $12.6 million (12% of revenues), compared to $14.4 million (14% of revenues) in 2024.
Annual recurring revenue2 starting on January 1, 2026 was $95.4 million, compared to $95.6 million on January 1, 2025. Revenue retention rate2 was 99%, related to the loss of the Chicago ShotSpotter contract in 2024, compared to 105% in 2024.
Sales and marketing spend per $1.00 of new annualized contract value2 was $0.56, compared to $0.63 in 2024.
Went “live” with ShotSpotter in 10 new cities, 2 universities and 11 expansions with current customers.

 

2 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss), annual recurring revenue, revenue retention rate and sales and marketing spend per $1.00 of new annualized contract value.

Management Commentary


 

“2025 was a transitional year for SoundThinking,” said President and CEO Ralph Clark. “Despite encountering some headwinds, we delivered record full year revenue of $104.1 million, representing a 2% increase. We accomplished that while maintaining low double digit Adjusted EBITDA margin profitability. We also continued to expand our customer footprint and strengthen the operating leverage of our platform through decisive actions to increase our investments in innovation, AI-driven capabilities, and go-to-market execution that we believe are bearing fruit.”

“While the delay of a few new contracts and key contract renewals impacted results, underlying demand for our solutions remains strong and converting that demand into bookings remains a top priority. We are entering 2026 with a realigned sales organization, refreshed go-to-market strategies and healthy pipeline expansion across both existing and new markets. As we move forward, we remain focused on executing against our strategic growth priorities to enter into new vertical expansion markets, grow our recurring revenue base and improve margins to expand our leadership position as an integrated public safety technology platform. Consistent with our focus on creating value, we are also reviewing the business to identify opportunities to drive efficiencies across the organization.”

“We are confident in our ability to drive growth, reduce costs and deliver increasing value for our customers and shareholders.”

Fourth Quarter 2025 Financial Results

 

Revenues for the fourth quarter of 2025 were $24.8 million, compared to $23.4 million for the same quarter of 2024. The increase in revenue was due to new bookings partially offset by approximately $1.6 million of revenue from Chicago in the fourth quarter of 2024 that was not present in the same period in 2025.

Gross profit for the fourth quarter of 2025 was $12.6 million (51% of revenues), compared to $11.7 million (50% of revenues) for the same period in 2024.

Total operating expenses for the fourth quarter of 2025 were $15.1 million, compared to $15.5 million for the same period in 2024.

Net loss for the fourth quarter of 2025 totaled $2.8 million or $(0.22) per basic share and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding), compared to net loss of $4.1 million or $(0.32) per basic and diluted share (based on 12.6 million basic and diluted weighted-average shares outstanding), for the same period in 2024.

Adjusted EBITDA for the fourth quarter of 2025 totaled $1.3 million, compared to $1.7 million in the same period last year.

At quarter end, the Company had $15.8 million in cash and cash equivalents, $28.6 million in accounts receivable and contract assets, net, $43.9 million in deferred revenue, $4.0 million in debt outstanding, and approximately $36.0 million available on our credit facility.

 


Full Year 2025 Financial Results

 

Revenues in 2025 increased 2% to $104.1 million from $102.0 million in 2024. The increase in revenues was primarily due to new and expanding customer subscriptions partially offset by approximately $9 million of revenue from Chicago in 2024 that was not present in 2025.

Gross profit in 2025 decreased 2% to $56.6 million (54% of revenues) from $57.9 million (57% of revenues) for the same period in 2024.

Total operating expenses in 2025 decreased 1% to $65.4 million from $65.7 million in 2024.

Net loss in 2025 totaled $9.4 million or $(0.74) per basic and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding), compared to net loss in 2024 which totaled $9.2 million or $(0.72) per basic and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding).

Adjusted EBITDA for 2025 totaled $12.6 million, compared to $14.4 million in 2024.

 

Financial Outlook

 

The Company is lowering its full year 2026 revenue guidance range to $109.0 million to $111.0 million, representing 6% year-over-year growth at the midpoint. The Company is also lowering its Adjusted EBITDA margin guidance to 16% to 18% for the full year 2026. The Company expects ARR to increase from $95.4 million at the beginning of 2026 to approximately $110.0 million at the start of 2027.

The Company’s financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Safe Harbor Statement” below. The Company has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses and acquisition-related expenses, including adjustments to the Company’s contingent consideration obligation, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because the Company cannot reasonably predict such items, a reconciliation to forecasted GAAP net income (loss) is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net income (loss). For more information, see “Non-GAAP Financial Measures and Key Business Metrics” below.

Conference Call

 

SoundThinking will hold a conference call today March 3, 2026 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions.

SoundThinking management will host the presentation, followed by a question-and-answer period. Those wishing to participate via webcast should access the call through SoundThinking’s Investor Relations website at https://ir.soundthinking.com/. Those wishing to participate via telephone may dial in at 1-877-407-8029 (USA) or 1-201-689-8029 (International). The replay will be available via webcast through SoundThinking’s Investor Relations website.

 

Non-GAAP Financial Measures and Key Business Metrics

 

Adjusted Net Income (Loss): Adjusted net income (loss), a non-GAAP financial measure, represents the Company’s net income (loss) before acquisition-related expenses, including adjustments to the Company's contingent consideration obligation, restructuring expense and loss from disposal of fixed assets.

Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the Company’s net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, restructuring costs and losses on restructuring related fixed asset disposals, stock-based compensation expense, and acquisition-related expenses, including adjustments to the Company's contingent consideration obligation. Adjusted EBITDA is a measure used by management internally to understand and evaluate the Company’s core operating performance and trends across accounting periods and


in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for its solutions. In particular, the exclusion of these expenses in calculating Adjusted EBITDA facilitates comparisons of the Company’s operating performance on a period-to-period basis.

SoundThinking believes adjusted net income (loss) and Adjusted EBITDA also provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense and acquisition-related expenses because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the Company and its stockholders, rather than to address operational performance for any particular period’s financial performance measures, in particular net income (loss), or its other GAAP financial results.

 


The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to adjusted net loss, for each of the periods indicated (in thousands, except share and per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(Unaudited)

 

 

(Unaudited)

 

GAAP net loss

 

$

(2,772

)

 

$

(4,079

)

 

$

(9,420

)

 

$

(9,180

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring expense

 

 

197

 

 

 

(10

)

 

 

197

 

 

 

336

 

Loss on disposal of fixed assets

 

 

 

 

 

18

 

 

 

 

 

 

23

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

 

 

(554

)

Adjusted net loss

 

$

(2,575

)

 

$

(4,071

)

 

$

(9,223

)

 

$

(9,375

)

Net loss per share, basic and diluted

 

$

(0.22

)

 

$

(0.32

)

 

$

(0.74

)

 

$

(0.72

)

Adjusted net loss per share, basic and diluted

 

$

(0.20

)

 

$

(0.32

)

 

$

(0.73

)

 

$

(0.74

)

Weighted-average shares used in computing net loss per share and adjusted net loss per share, basic and diluted

 

 

12,748,874

 

 

 

12,589,833

 

 

 

12,717,901

 

 

 

12,710,236

 

 

The following table presents a reconciliation of Adjusted EBITDA to GAAP net loss, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

(Unaudited)

 

 

(Unaudited)

 

GAAP net loss

 

$

(2,772

)

 

$

(4,079

)

 

$

(9,420

)

 

$

(9,180

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Interest (income) expense, net

 

 

1

 

 

 

(22

)

 

 

19

 

 

 

154

 

Income taxes

 

 

85

 

 

 

111

 

 

 

113

 

 

 

778

 

Depreciation, amortization and impairment

 

 

2,593

 

 

 

2,699

 

 

 

10,282

 

 

 

10,673

 

Restructuring expense

 

 

197

 

 

 

(10

)

 

 

197

 

 

 

336

 

Loss on disposal of fixed assets

 

 

 

 

 

18

 

 

 

 

 

 

23

 

Stock-based compensation expense

 

 

1,148

 

 

 

3,000

 

 

 

11,445

 

 

 

12,128

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

 

 

(554

)

Adjusted EBITDA

 

$

1,252

 

 

$

1,717

 

 

$

12,636

 

 

$

14,358

 

 

Annual Recurring Revenue (ARR): ARR is calculated for a year based on the expected GAAP revenue for the year from contracts that are in effect on January 1st of such year, assuming all such contracts that are due for renewal during the year renew as expected on or near their renewal date, and including contracts executed during the year after January 1st, but for which GAAP revenue recognition starts January 1st of the year.

 

Revenue Retention Rate: We calculate our revenue retention rate for each year by dividing the (a) total revenues for such year from those customers who were customers during the corresponding prior year by (b) the total revenues from all customers in the corresponding prior year. For the purposes of calculating our revenue retention rate, we count as customers all entities with which we had contracts in the applicable year. Revenue retention rate for any given period does not include revenues attributable to customers first acquired during such period. We focus on our revenue retention rate because we believe that this metric provides insight into revenues related to and retention of existing customers. If our revenue retention rate for a year exceeds 100%, this indicates a low churn and means that the revenues retained during the year, including from customer expansions, more than offset the revenues that we lost from customers that did not renew their contracts during the year.

 

Sales and Marketing Spend per $1.00 of New Annualized Contract Value: We calculate sales and marketing spend annually as the total sales and marketing expense during a year divided by the first 12 months of contract value for contracts


entered into during the same year. We use this metric to measure the efficiency of our sales and marketing efforts in acquiring customers, renewing customer contracts, and expanding their coverage areas.

 

Forward-Looking Statements

 

This press release and earnings call referencing this press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the Company’s expectations for its estimated revenue and Adjusted EBITDA for 2026, the Company's expectations for the increase in its ARR, ability to drive profitable growth, enter into new vertical expansion markets and build upon existing contracts and partnerships, including in the United States and internationally, the potential entry into and renewal of customer contracts, including execution of the delayed contracts, the timing of such entry or renewal, and the Company’s plan to continue innovating and executing against its strategic and financial growth priorities to deliver meaningful value to its stakeholders, the Company's expectations of benefits through integration of AI-driven capabilities, operating momentum, sales pipeline, revenue growth, operating leverage and margin expansion in 2026 and beyond. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company’s control. The Company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the Company’s ability to enter into new contracts or renew its contract with key customers and the timing of such entry or renewal; the Company’s ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the Company’s ability to maintain and increase sales, including sales of the Company’s newer product lines and through expansion into new vertical markets; the availability of funding for the Company’s customers to purchase the Company’s solutions; the complexity, expense and time associated with contracting with government entities; the Company’s ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the potential effects of negative publicity; the Company’s ability to sell its solutions into international and other new markets; the lengthy sales cycle for the Company’s solutions; changes in federal funding available to support local law enforcement; the Company’s ability to deploy and deliver its solutions; the Company’s ability to maintain and enhance its brand; and the Company’s ability to address the business and other impacts and uncertainties associated with macroeconomic factors, as well as other risk factors included in the Company’s most recent annual report on Form 10-K and other subsequent SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the Company undertakes no duty or obligation to update any forward-looking statements contained in this press release and the earnings call referencing this press release as a result of new information, future events or changes in its expectations.

About SoundThinking, Inc.

SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by more than 300 customers and has worked with approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmartTM platform includes ShotSpotter®, the leading acoustic gunshot detection system; CrimeTracerTM, the leading law enforcement search engine; CaseBuilderTM, a one-stop investigation management system; ResourceRouterTM, software that directs patrol and community anti-violence resources to help maximize their impact; SafePointe®, an AI-based weapons detection system; and PlateRangerTM powered by Rekor®, a leading ALPR solution. SoundThinking has been designated a Great Place to Work® Company.


Company Contact:

Alan Stewart, CFO

SoundThinking, Inc.

+1 (510) 794-3100

astewart@soundthinking.com

 

Investor Relations Contacts:

Ankit Hira

Solebury Strategic Communications for SoundThinking, Inc.

+1 (203) 546 0444

ahira@soleburystrat.com

 

 

 


SoundThinking, Inc.

Consolidated Statements of Operations

(In thousands except share and per share data)

(Unaudited)

 

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues

 

$

24,789

 

 

$

23,411

 

 

$

104,127

 

 

$

102,031

 

Costs

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

12,050

 

 

 

11,511

 

 

 

47,055

 

 

 

43,542

 

Impairment of property and equipment

 

 

124

 

 

 

193

 

 

 

434

 

 

 

605

 

Total costs

 

 

12,174

 

 

 

11,704

 

 

 

47,489

 

 

 

44,147

 

Gross profit

 

 

12,615

 

 

 

11,707

 

 

 

56,638

 

 

 

57,884

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

6,520

 

 

 

6,523

 

 

 

26,100

 

 

 

28,138

 

Research and development

 

 

3,958

 

 

 

3,484

 

 

 

15,866

 

 

 

13,925

 

General and administrative

 

 

4,469

 

 

 

5,515

 

 

 

23,207

 

 

 

23,894

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

 

 

(554

)

Restructuring expense

 

 

197

 

 

 

(10

)

 

 

197

 

 

 

336

 

Total operating expenses

 

 

15,144

 

 

 

15,512

 

 

 

65,370

 

 

 

65,739

 

Operating loss

 

 

(2,529

)

 

 

(3,805

)

 

 

(8,732

)

 

 

(7,855

)

Other income (expense), net

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

(1

)

 

 

22

 

 

 

(19

)

 

 

(154

)

Other expense, net

 

 

(157

)

 

 

(185

)

 

 

(556

)

 

 

(393

)

Total other expense, net

 

 

(158

)

 

 

(163

)

 

 

(575

)

 

 

(547

)

Loss before income taxes

 

 

(2,687

)

 

 

(3,968

)

 

 

(9,307

)

 

 

(8,402

)

Provision for income taxes

 

 

85

 

 

 

111

 

 

 

113

 

 

 

778

 

Net loss

 

$

(2,772

)

 

$

(4,079

)

 

$

(9,420

)

 

$

(9,180

)

Net loss per share, basic and diluted

 

$

(0.22

)

 

$

(0.32

)

 

$

(0.74

)

 

$

(0.72

)

Weighted-average shares used in computing net loss per share, basic and diluted

 

 

12,748,874

 

 

 

12,589,833

 

 

 

12,717,901

 

 

 

12,710,236

 

 


SoundThinking, Inc.

Consolidated Balance Sheets

(In thousands except share and per share data)

(Unaudited)

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,797

 

 

$

13,183

 

Accounts receivable and contract asset, net

 

 

28,570

 

 

 

25,464

 

Prepaid expenses and other current assets

 

 

4,225

 

 

 

4,881

 

Total current assets

 

 

48,592

 

 

 

43,528

 

Property and equipment, net

 

 

18,816

 

 

 

20,131

 

Operating lease right-of-use assets

 

 

1,904

 

 

 

1,878

 

Goodwill

 

 

34,213

 

 

 

34,213

 

Intangible assets, net

 

 

29,335

 

 

 

33,182

 

Other assets

 

 

2,894

 

 

 

3,861

 

Total assets

 

$

135,754

 

 

$

136,793

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

3,789

 

 

$

3,442

 

Accrued expenses and other current liabilities

 

 

9,578

 

 

 

10,216

 

Line of credit

 

 

4,000

 

 

 

4,000

 

Deferred revenue, short-term

 

 

40,035

 

 

 

38,401

 

Total current liabilities

 

 

57,402

 

 

 

56,059

 

Deferred revenue, long-term

 

 

3,845

 

 

 

5,832

 

Deferred tax liability

 

 

1,359

 

 

 

1,361

 

Operating lease liabilities, net of current portion

 

 

976

 

 

 

1,142

 

Total liabilities

 

 

63,582

 

 

 

64,394

 

Stockholders' equity

 

 

 

 

 

 

Common stock: $0.005 par value; 500,000,000 shares authorized;
12,825,960 and 12,634,485 shares issued and outstanding as of December 31, 2025 and 2024, respectively

 

 

64

 

 

 

64

 

Additional paid-in capital

 

 

186,115

 

 

 

177,021

 

Accumulated deficit

 

 

(113,718

)

 

 

(104,298

)

Accumulated other comprehensive loss

 

 

(289

)

 

 

(388

)

Total stockholders' equity

 

 

72,172

 

 

 

72,399

 

Total liabilities and stockholders' equity

 

$

135,754

 

 

$

136,793

 

 


FAQ

How did SoundThinking (SSTI) perform financially in full year 2025?

SoundThinking’s full year 2025 revenue increased 2% to a record $104.1 million, up from $102.0 million in 2024. However, GAAP net loss was $9.4 million and adjusted EBITDA declined to $12.6 million, reflecting margin pressure despite the revenue growth.

What were SoundThinking (SSTI) results for the fourth quarter of 2025?

In Q4 2025, SoundThinking generated $24.8 million in revenue, up 6% from $23.4 million a year earlier. GAAP net loss improved to $2.8 million, versus $4.1 million in Q4 2024, while adjusted EBITDA was $1.3 million, down from $1.7 million.

What guidance did SoundThinking (SSTI) provide for 2026 revenue and margins?

For full year 2026, SoundThinking lowered its revenue guidance to $109.0–$111.0 million, implying about 6% growth at the midpoint. The company also reduced its adjusted EBITDA margin outlook to a range of 16–18%, signaling expectations of modest but improved profitability.

How is SoundThinking’s (SSTI) annual recurring revenue expected to trend?

SoundThinking reported annual recurring revenue of $95.4 million at the start of 2026. Management expects ARR to increase to approximately $110.0 million at the beginning of 2027, reflecting anticipated growth from new and expanded customer subscription contracts over the period.

What impacted SoundThinking’s (SSTI) 2025 revenue and margins?

2025 revenue growth was constrained by the loss of about $9 million of Chicago contract revenue present in 2024 but not 2025. Gross margin declined from 57% to 54%, and adjusted EBITDA fell from $14.4 million to $12.6 million, despite slightly lower operating expenses.

What is SoundThinking’s (SSTI) balance sheet position at year-end 2025?

At December 31, 2025, SoundThinking held $15.8 million in cash and cash equivalents and had $28.6 million in accounts receivable and contract assets. Deferred revenue totaled $43.9 million, debt outstanding was $4.0 million, and approximately $36.0 million remained available on its credit facility.

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84.57M
9.55M
Software - Application
Services-prepackaged Software
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United States
FREMONT