SoundThinking (NASDAQ:SSTI) Releases Earnings Results, Misses Expectations By $0.30 EPS

SoundThinking (NASDAQ:SSTI) posted its 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. The firm had revenue of $24.18 million for the quarter, compared to analysts’ expectations of $24.27 million. SoundThinking had a negative return on equity of 12.81% and a negative net margin of 9.05%.

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 Trading Up 7.0%

NASDAQ:SSTI traded up $0.43 during trading hours on Thursday, reaching $6.57. The company had a trading volume of 149,164 shares, compared to its average volume of 156,749. The firm’s 50 day moving average price is $6.73 and its 200-day moving average price is $7.32. The firm has a market cap of $85.11 million, a price-to-earnings ratio of -8.88 and a beta of 1.17. SoundThinking has a 52 week low of $5.78 and a 52 week high of $16.92.

Insider Buying and Selling at SoundThinking

In other SoundThinking news, major shareholder Veradace Partners Lp purchased 105,880 shares of the company’s stock in a transaction dated Wednesday, February 18th. The shares were acquired at an average price of $7.14 per share, for a total transaction of $755,983.20. Following the purchase, the insider directly owned 2,008,368 shares of the company’s stock, valued at $14,339,747.52. The trade was a 5.57% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last 90 days, insiders have acquired 137,417 shares of company stock worth $979,843. Company insiders own 10.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of SSTI. State of Wyoming purchased a new position in shares of SoundThinking during the 2nd quarter worth $33,000. BNP Paribas Financial Markets boosted its stake in shares of SoundThinking by 160.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 2,740 shares of the company’s stock worth $33,000 after acquiring an additional 1,688 shares during the last quarter. Wells Fargo & Company MN boosted its stake in shares of SoundThinking by 78.1% during the 4th quarter. Wells Fargo & Company MN now owns 10,448 shares of the company’s stock worth $84,000 after acquiring an additional 4,580 shares during the last quarter. Quadrature Capital Ltd purchased a new position in shares of SoundThinking during the 4th quarter worth $87,000. Finally, Jain Global LLC purchased a new position in shares of SoundThinking during the 4th quarter worth $114,000. Hedge funds and other institutional investors own 60.74% of the company’s stock.

Analyst Ratings Changes

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

About SoundThinking

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.