SoundThinking, Inc. (SSTI) Market Cap
SoundThinking, Inc. has a market capitalization of $89.4M.
Financials based on reported quarter end 2025-12-31
Price: $6.90
▲ 0.15 (2.22%)
Market Cap: 89.38M
NASDAQ · time unavailable
CEO: Ralph A. Clark
Sector: Technology
Industry: Software - Application
IPO Date: 2017-06-07
Website: https://soundthinking.com
SoundThinking, Inc. (SSTI) - Company Information
Market Cap: 89.38M · Sector: Technology
SoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, a law enforcement search engine that enables investigators to search through criminal justice records from across jurisdictions to generate tactical leads and solve cases; CaseBuilder, an investigative management system for tracking, reporting, and collaborating on cases; ResourceRouter, a software that directs deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an advanced license plate recognition (ALPR) and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and save critical minutes for first responders to arrive. It sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
Analyst Sentiment
Based on 6 ratings
Analyst 1Y Forecast: $15.00
Average target (based on 2 sources)
Consensus Price Target
Low
$10
Median
$10
High
$10
Average
$10
Potential Upside: 44.9%
Price & Moving Averages
Related Companies in Technology
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"SSTI reported revenues of $24.79M for the year ending December 2025, with a net income loss of $2.77M and an EPS of -$0.22. The company has total assets of $135.75M and total liabilities of $63.58M, resulting in total equity of $72.17M and a net debt of -$10.82M, indicating a strong cash position. Operating cash flow stood at $6.23M, with a free cash flow of $4.87M, showing positive cash generation. However, the company's stock performance has declined significantly, with a 1-year change of -65.55%, reflecting challenging market conditions. SSTI has not paid dividends and has a price target consensus of $10, suggesting potential for recovery, although the current price is $6.50, indicating significant downside from where analysts expect it to go. The negative net income and significant price depreciation raise concerns about profitability and overall investor sentiment."
Revenue Growth
Revenue of $24.79M shows moderate growth potential, but is overshadowed by recent market losses.
Profitability
Negative net income indicates profitability challenges; further improvement needed.
Cash Flow Quality
Positive operating and free cash flow highlight decent cash generation, albeit with a loss.
Leverage & Balance Sheet
Strong equity position with negative net debt indicates good financial health.
Shareholder Returns
Significant stock decline of over 65% raises concerns; no dividends paid.
Analyst Sentiment & Valuation
Price target suggests potential upside, but current sentiment remains cautious.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management’s tone blends optimism on product momentum (Crime Tracer Gen 3 GA next week; SafePoint traction with a 26-lane Florida booking; strong retention and +70 NPS) with a clear admission that sales execution is not converting pipeline into bookings. In the prepared remarks and Q&A, the quarter’s shortfall is quantified: Q3 revenue $25.1M (-4% YoY) and adjusted EBITDA $3.5M vs $4.5M, with gross margin down to 54% from 58%. The company cut full-year 2025 revenue guidance from $111M-$113M to ~ $104M and adjusted EBITDA margin from 20%-22% to 14%-15%, driven by ~$6.4M of delayed revenue items (including Brazil tariff-related uncertainty and Puerto Rico renewal reductions). Analyst pushback focused on the mismatch between higher 2026 revenue guidance vs lower 2025 margin outlook; management responded that Chicago and the Brazil $2.5M are not in the current bridge and that they are being conservative on EBITDA timing. Overall, the optimism is real operationally, but the near-term credibility hinge is booking timing and sales pull-through.
Growth Catalysts
- Expanded deployments of core ShotSpotter technology (ShotSpotter Live launched in 2 new cities + 1 university; 2 expansions of existing customers)
- Accelerating adoption of AI-powered investigative tools
- Healthcare security traction post California AB 2,975 weapons detection mandate (automated weapons detection in general acute care and psychiatric hospitals by 03/01/2027)
- Early positive feedback for upcoming Crime Tracer Gen 3 (scheduled general availability next week)
- Data for Good initiative scaling across Miami-Dade County, Springfield IL, and San Francisco (and other cities implied by operations)
- Dronex integration progress enabling drones as first responders to ShotSpotter alerts
Business Development
- SafePoint: booked another 26-lane opportunity with a nonprofit hospital in Florida (within the past month of the call)
- Brazil: expected CapEx ShotSpotter deployment in Brazil (timing/certainty now unknown due to governmental changes/tariff-related impacts)
- Puerto Rico: ShotSpotter renewal delayed; Q3 missed renewal; also cited as a full-year revenue impact
- Uruguay: cited as a proof point for Latin America expansion; early successes; plus mention of Nidoroy, Brazil deployment
Financial Highlights
- Revenue: $25.1M in Q3 2025 vs $26.3M in Q3 2024 (-4% YoY); management cited absence of ShotSpotter renewal in Puerto Rico and delayed statewide Crime Tracer booking
- Gross profit: $13.0M (54% of revenue) vs $15.2M (58%) in Q3 2024
- Adjusted EBITDA: $3.5M vs $4.5M in Q3 2024
- GAAP net loss: approx. $2.0M, or loss of $0.16/share (basic and diluted) vs $1.4M or loss of $0.11/share prior year
- Operating expenses: $15.7M (63% of revenue) vs $16.3M (62%) prior year; sales & marketing down to $5.8M (23% of revenue) from $7.2M (27%); R&D up to $4.1M (16% of revenue) from $3.4M (13%) due to AI investments; G&A up to $5.8M (23% of revenue) from $5.7M (22%) due to SOX 404 compliance efforts
- Gross margin decline in Q&A: gross margins slipped primarily due to the delayed/impacted deals; cost of goods sold also fell (Q2 COGS $12.1M -> Q3 $11.5M) and operating expense fell (Q2 $16.7M -> Q3 $15.7M), indicating cost controls against delay risk
- Guidance cut (full-year 2025): revenue range lowered from $111M-$113M to approx. $104M (shortfall tied to delayed bookings/deployments totaling ~$6.4M expected revenue originally for 2025); adjusted EBITDA margin guidance lowered from 20%-22% to 14%-15% (explicitly includes potential tariff-change costs + AI investment/integration costs)
Capital Funding
- Cash: $11.8M at 09/30/2025 vs $9.0M at end of Q2 2025
- Debt: ~$4.0M outstanding, all on line of credit; ~$36M available on line of credit
- Share repurchases: 160,271 shares at avg $12.43 in 2025 (~$2M); YTD 225,334 shares at avg $13.15 (~$3M)
Strategy & Ops
- Sales execution/GTm reset: shifted sales organization to be more consultative and sell the full product suite rather than only ShotSpotter; also reversed earlier approach (fewer items carried per salesperson) after training burden and “didn't work out very well”
- Sales forecasting/accountability tightening: emphasized pipeline hygiene, better deal qualification, and near-term opportunity visibility
- Interim sales leadership change: former Senior VP of Sales stepping back in interim as national search runs for permanent leader
- Customer success operations: agentic AI customer success application (AgenTik AI) used to ingest/analyze internal & external data (e.g., city council minutes, local press, community sentiment) to anticipate renewal challenges and shorten response times
- Operational scale constraint admitted: previously targeted “100 square miles going live”; now expects to be “less than that this year,” implying a volume/penetration miss
Market Outlook
- Crime Tracer Gen 3: scheduled general availability next week (from Q3 2025 call date 11/12/2025)
- Full-year 2025 guidance: revenue range lowered to approx. $104M; adjusted EBITDA margin range lowered to 14%-15%
- Full-year 2026 guidance: revenue $114M-$116M; adjusted EBITDA margin 18%-20%
- Q4 sequencing expectation (Q&A): management expects Q4 to be “relatively flat”; if Q4 is flat, they expect to exceed $104M (but timing uncertainty remains on delayed deals)
Risks & Headwinds
- Sales execution/pull-through: management stated sales conversion challenge is additive to the specific delayed deals; acknowledged demand not converting into bookings at desired pace
- Temporary revenue and margin headwinds from delayed bookings/deployments totaling ~$6.4M originally expected in 2025:
- — 18 agencies within a new state: ~$2.5M revenue delayed (timing uncertain, expected to proceed near future)
- — Brazil CapEx ShotSpotter deployment: ~$2.5M originally expected in 2H 2025; now timing/certainty unknown due to governmental changes and tariff-related impacts
- — ShotSpotter renewal in Puerto Rico: $1.4M reduction due to governmental changes (expected to proceed but delayed)
- Gross margin pressure: gross margins fell in Q3 primarily due to the deals that did not close as expected
- Tariff/macro: explicit ‘tariff-related impacts in Brazil’ created timing uncertainty and is included in lowered adjusted EBITDA margin guidance via potential tariff-change costs
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the SSTI Q3 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.