SoundThinking Inc (SSTI)
NASDAQ:SSTI
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SoundThinking Inc
(NASDAQ:SSTI)
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Rating:50Neutral
Price Target:
$7.50
▲(8.70% Upside)
Action:Reiterated
Date:05/16/26
The score is held down primarily by deteriorating profitability and weakening revenue trends, alongside a technically weak setup. Offsetting factors include a low-leverage balance sheet, positive (though slowing) cash generation, and management’s reaffirmed guidance with cost actions—tempered by near-term margin pressure, SafePointe losses, and H2 execution/timing risk.
Positive Factors
Conservative balance sheet
Low debt and a conservatively levered balance sheet give the company financial flexibility to fund product rollouts, absorb near-term losses, and access liquidity without forcing dilutive financing. This reduces solvency risk and supports multi-quarter investments in go-to-market and R&D.
Negative Factors
Revenue plateau and margin deterioration
Sustained revenue weakness and a multi‑year swing into net losses imply operating costs currently outpace core product economics. Even with solid gross margins, persistent negative returns on equity and operating losses can erode financial flexibility and require multi-quarter execution to restore sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low debt and a conservatively levered balance sheet give the company financial flexibility to fund product rollouts, absorb near-term losses, and access liquidity without forcing dilutive financing. This reduces solvency risk and supports multi-quarter investments in go-to-market and R&D.
Read all positive factors
SoundThinking Inc (SSTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$97.28M
Dividend YieldN/A
Average Volume (3M)134.33K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-4.78%
EPS Growth-90.32%
CountryUS
Employees316
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.17
Shares Outstanding12,953,937
10 Day Avg. Volume77,425
30 Day Avg. Volume134,329
Financial Highlights & Ratios
PEG Ratio-3.91
Price to Book (P/B)1.42
Price to Sales (P/S)0.98
P/FCF Ratio21.13
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit1.71
Enterprise Value/Ebitda-12.92
Forecast
1Y Price Target
$12.40Price Target Upside79.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.68
Revenue Forecast (FY)$109.23M
SoundThinking Inc Business Overview & Revenue Model
Company Description
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 ...
How the Company Makes Money
SoundThinking primarily makes money by selling its public safety technology solutions to government and law-enforcement customers under recurring subscription/service arrangements. A core revenue stream comes from ShotSpotter, which is typically d...
SoundThinking Inc Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call presented a mix of positive strategic progress (product launches, platform integrations, notable hospital bookings, international proof points, AI initiatives, and cost actions) and clear near-term financial headwinds (Q1 revenue and margin compression, widened GAAP loss, and SafePointe-driven losses). Management reiterated full-year guidance and outlined cost savings and back-end revenue cadence to drive H2 profitability, but a number of large ARR contributors remain timing-sensitive. Overall the updates portray a company investing for longer-term platform growth while acknowledging and managing short-term profitability pressure.Positive Updates
Q1 Revenue in Line with Street; Full-Year Guidance Reaffirmed
Q1 revenue of $24.2M was essentially in line with consensus. Management reiterated full-year 2026 revenue guidance of $109M–$111M (≈5%–7% YoY growth; ≈6% at midpoint) and adjusted EBITDA margin guidance of 16%–18%.
Negative Updates
Q1 Revenue Decline Year-over-Year
Q1 2026 revenue was $24.2M vs $28.3M in Q1 2025, a decline of $4.1M or approximately -14.5% YoY. Management attributed part of the comparison to prior-year nonrecurring catch-up revenues (~$3.5M) and a Puerto Rico contract (~$0.5M) that was not renewed in the period.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Revenue in Line with Street; Full-Year Guidance Reaffirmed
Q1 revenue of $24.2M was essentially in line with consensus. Management reiterated full-year 2026 revenue guidance of $109M–$111M (≈5%–7% YoY growth; ≈6% at midpoint) and adjusted EBITDA margin guidance of 16%–18%.
Read all positive updates
Company Guidance
SoundThinking reaffirmed full-year 2026 guidance of $109–$111M in revenue (≈5–7% y/y; ~6% at midpoint), an adjusted EBITDA margin of 16–18% and an exiting ARR target of $110M (≈15% ARR growth in 2026). Management noted Q1 was seasonally the heaviest cost quarter: Q1 revenue was $24.2M (Q1 2025: $28.3M), Q1 adjusted EBITDA ≈ –$0.1M, GAAP net loss ≈ $7.0M (–$0.54/share on 12.9M shares), gross profit $11.3M (47% of revenue) vs $16.6M (59%) prior year, operating expenses $18.1M (S&M $6.5M / 27% of revenue; R&D $4.4M / 18%; G&A $6.7M / 28%). The year is described as back‑end loaded (management framed it roughly $50M in H1 and $60M in H2), expects >90% of incremental revenue above the Q1 run‑rate to flow to adjusted EBITDA, and is counting ~$2.5M of the ~$4M annualized workforce‑optimization savings toward 2026; SafePointe is an >$8M annualized drag today but is expected to reach profitability by end‑2027/early‑2028. Cash was $14.2M, deferred revenue $40.4M, and roughly $36M remains available on the line of credit with about $4M drawn.SoundThinking Inc Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 99.96M | 104.13M | 102.03M | 92.72M | 81.00M | 58.16M |
| Gross Profit | 51.30M | 56.64M | 58.49M | 52.84M | 46.78M | 32.52M |
| EBITDA | -6.79M | 560.00K | 2.60M | 9.17M | 7.79M | 4.09M |
| Net Income | -14.94M | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M |
Balance Sheet | ||||||
| Total Assets | 125.72M | 135.75M | 136.79M | 140.94M | 122.75M | 72.30M |
| Cash, Cash Equivalents and Short-Term Investments | 14.24M | 15.80M | 13.18M | 5.70M | 10.48M | 15.64M |
| Total Debt | 4.76M | 4.98M | 6.05M | 9.51M | 3.42M | 2.42M |
| Total Liabilities | 58.12M | 63.58M | 64.39M | 66.18M | 61.80M | 38.49M |
| Stockholders Equity | 67.61M | 72.17M | 72.40M | 74.76M | 60.95M | 33.81M |
Cash Flow | ||||||
| Free Cash Flow | 4.38M | 4.84M | 15.79M | 5.46M | 1.26M | 1.92M |
| Operating Cash Flow | 9.65M | 9.30M | 22.22M | 10.95M | 12.18M | 9.82M |
| Investing Cash Flow | -5.27M | -4.46M | -6.43M | -16.48M | -15.54M | -7.88M |
| Financing Cash Flow | -1.84M | -2.35M | -8.25M | 795.00K | -1.75M | -2.27M |
SoundThinking Inc Technical Analysis
Positive
6.90
Price Trends
6.72
Positive
7.07
Positive
8.51
Negative
Market Momentum
0.09
Negative
64.32
Neutral
88.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTI, the sentiment is Positive. The current price of 6.9 is above the 20-day moving average (MA) of 6.83, above the 50-day MA of 6.72, and below the 200-day MA of 8.51, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SSTI.
SoundThinking Inc Risk Analysis
SoundThinking Inc disclosed 50 risk factors in its most recent earnings report. SoundThinking Inc reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SoundThinking Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $95.95M | ― | -70.95% | ― | 11.61% | 25.96% | |
51 Neutral | $166.92M | -3.17 | 73.80% | ― | 110.30% | 57.62% | |
50 Neutral | $97.28M | -6.46 | -20.76% | ― | -4.78% | -90.32% | |
49 Neutral | $63.37M | 29.02 | 2.62% | ― | -6.00% | -82.74% | |
48 Neutral | $242.98M | -9.73 | -10.61% | ― | -9.70% | 61.30% | |
45 Neutral | $33.97M | -0.91 | -261.36% | ― | 1.87% | 46.96% |
* Technology Sector Average
SSTI
SoundThinking Inc
7.51
-8.13
-51.98%
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SoundThinking Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
SoundThinking Announces Executive Leadership Change in Investigative Solutions
Negative
Mar 11, 2026
On March 6, 2026, SoundThinking, Inc. announced that Nasim Golzadeh had submitted her resignation as Managing Director, TechnoLogic and Executive Vice President, Investigative Solutions, effective March 31, 2026. Her departure to pursue an opportu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.