As previously reported, Craig-Hallum downgraded SoundThinking (SSTI) to Hold from Buy with a $10 price target The firm notes the company delivered a wide Q3 miss while guiding down FY25. The downgrade, Craig-Hallum says, is based on several key factors, including persistent misses and guidance cuts since FY22; adjusted EBITDA has been stuck in the $14M to $16M range since FY22 despite over $20M of revenue growth; contracts on core ShotSpotter business have stalled with key extensions delayed; gross margin has fallen as cost structure has increased due to technology investments and acquisitions that have not yielded adequate returns.
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