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

SoundThinking (NASDAQ:SSTI) posted its quarterly earnings data on Thursday. The company reported ($0.54) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.30), FiscalAI reports. SoundThinking had a negative return on equity of 12.81% and a negative net margin of 9.05%.The company had revenue of $24.18 million for the quarter, compared to analysts’ expectations 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 7.0%

NASDAQ:SSTI traded up $0.43 during mid-day trading on Thursday, reaching $6.57. The company’s stock had a trading volume of 149,164 shares, compared to its average volume of 85,155. The company’s fifty day simple moving average is $6.70 and its two-hundred day simple moving average is $7.29. SoundThinking has a twelve month low of $5.78 and a twelve month high of $16.92.

Wall Street Analysts Forecast Growth

SSTI has been the topic of a number of research analyst reports. Wall Street Zen raised SoundThinking from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Weiss Ratings reissued 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 assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $14.00.

Insider Buying and Selling at SoundThinking

In other news, major shareholder Veradace Partners Lp acquired 105,880 shares of SoundThinking stock in a transaction dated Wednesday, February 18th. The shares were acquired at an average cost of $7.14 per share, with a total value of $755,983.20. Following the purchase, the insider directly owned 2,008,368 shares of the company’s stock, valued at approximately $14,339,747.52. This trade represents a 5.57% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Over the last quarter, insiders bought 137,417 shares of company stock valued at $979,843. Insiders own 10.40% of the company’s stock.

Hedge Funds Weigh In On SoundThinking

Several hedge funds and other institutional investors have recently modified their holdings of SSTI. Strs Ohio acquired a new position in shares of SoundThinking in the 1st quarter valued at about $127,000. Rhumbline Advisers lifted its stake in shares of SoundThinking by 6.5% in 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. Marshall Wace LLP acquired a new position in shares of SoundThinking in the 2nd quarter valued at about $245,000. Manatuck Hill Partners LLC acquired a new position in shares of SoundThinking in the 2nd quarter valued at about $402,000. Finally, Man Group plc lifted its stake in shares of SoundThinking by 13.7% in the 2nd quarter. Man Group plc now owns 38,166 shares of the company’s stock valued at $498,000 after purchasing an additional 4,588 shares in the last quarter. 60.74% of the stock is owned by institutional investors and hedge funds.

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.