SoundThinking Inc (SSTI) AI Stock Analysis

• Market Cap: $148.76M
• Dividend Yield: N/A
• Average Volume (3M): 60.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 1.47%
• EPS Growth: -430.99%
• Country: US
• Employees: 316
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -0.24
• Shares Outstanding: 12,791,251
• 10 Day Avg. Volume: 53,497
• 30 Day Avg. Volume: 60,368
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 1.55
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: 53.32
• 1Y Price Target: $20.50
• Price Target Upside: 66.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: $12.50 ▲(1.63% Upside)

SoundThinking Inc's overall stock score is driven by solid financial performance and positive corporate events. However, technical indicators and valuation metrics present challenges, with bearish trends and a negative P/E ratio. The earnings call provides a mixed outlook, highlighting both strategic growth and operational setbacks.

Positive Factors

Guidance

SoundThinking shares are trading up 11%, to $12.50, after the company reiterated its full-year guidance, implying a strong second half.

Legislation

SafePointe demand is building in the healthcare vertical, supported by California’s AB 2975 weapons-detection mandate at hospitals.

Product Development

Management highlighted a new multi-microphone sensor platform enabling perimeter-based sniper detection, as well as ShotSpotter integration with drone-as-first-responder platforms.

Negative Factors

Contract Loss

The Chicago contract was not renewed, so respective revenue is now zero going forward.

Financial Performance

SoundThinking shares traded down 8% after the company reported mixed first-quarter results and lowered adjusted EBITDA margin guidance.

Revenue Decline

Revenue declined 4% year-over-year, driven by the loss of the Chicago contract.

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 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.

How the Company Makes Money

SoundThinking Inc generates revenue through a multi-faceted model that includes software licensing, subscription services, and customized implementation projects. The company charges clients for the use of its proprietary audio analytics software on a per-license basis, providing businesses with the flexibility to scale according to their needs. Additionally, SSTI offers subscription-based services for ongoing access to updates, technical support, and new features. Significant partnerships with key players in the security and healthcare sectors enhance the company's market reach and provide additional revenue through joint ventures and collaborative projects, allowing SSTI to leverage shared resources and expertise for mutual growth.

SoundThinking Inc Financial Statement Overview

Summary

SoundThinking Inc exhibits solid revenue growth and cash flow management, but faces challenges with profitability and equity stability. Continued focus on improving margins and maintaining a balanced financial structure will be crucial for future growth.

Income Statement

SoundThinking Inc has shown a steady increase in revenue over the years, with a notable increase from 2021 to TTM (Trailing-Twelve-Months). However, the company is struggling with profitability, as indicated by negative EBIT and net income margins, particularly in the TTM period.

Balance Sheet

The company's balance sheet shows a healthy equity position with a reasonable debt-to-equity ratio. However, the recent decrease in stockholders' equity and the presence of net losses could indicate potential stability risks if not addressed.

Cash Flow

SoundThinking Inc demonstrates strong operating cash flow, which consistently covers its capital expenditures resulting in positive free cash flow. The company has maintained a stable free cash flow to net income ratio, despite net income losses, showcasing good cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.97M	102.03M	92.72M	81.00M	58.16M	45.73M
Gross Profit	59.89M	58.49M	52.84M	46.78M	32.52M	27.21M
EBITDA	3.05M	1.82M	9.17M	7.79M	2.45M	6.88M
Net Income	-7.75M	-9.18M	-2.72M	6.38M	-4.43M	1.23M
Balance Sheet
Total Assets	136.31M	136.79M	138.71M	122.75M	72.30M	66.32M
Cash, Cash Equivalents and Short-Term Investments	11.66M	13.18M	5.70M	10.48M	15.64M	16.04M
Total Debt	5.81M	6.05M	9.51M	3.42M	2.42M	945.00K
Total Liabilities	62.47M	64.39M	63.95M	61.80M	38.49M	32.02M
Stockholders Equity	73.84M	72.40M	74.76M	60.95M	33.81M	34.30M
Cash Flow
Free Cash Flow	12.01M	15.79M	5.90M	1.26M	1.92M	7.08M
Operating Cash Flow	17.10M	22.22M	10.95M	12.18M	9.82M	11.21M
Investing Cash Flow	-5.20M	-6.43M	-16.48M	-15.54M	-7.88M	-18.76M
Financing Cash Flow	-8.75M	-8.25M	795.00K	-1.75M	-2.27M	-956.00K

SoundThinking Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTI, the sentiment is Negative. The current price of 12.3 is below the 20-day moving average (MA) of 12.31, below the 50-day MA of 12.53, and below the 200-day MA of 14.18, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SSTI.

SoundThinking Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAPS	65 Neutral	$176.08M	12.95	22.69%	―	2.37%	―
SSTI	62 Neutral	$148.76M	―	-13.49%	―	1.47%	-430.99%
Sector *	61 Neutral	$35.52B	8.84	-11.06%	1.87%	8.55%	-8.14%
SMRT	58 Neutral	$267.06M	―	-25.48%	―	-28.45%	-224.48%
AEYE	55 Neutral	$157.89M	―	-68.18%	―	18.53%	-16.24%
PSQH	48 Neutral	$76.21M	―	-269.26%	―	93.83%	23.31%
MRT	46 Neutral	$188.35M	―	103.42%	―	―	―

SoundThinking Inc Corporate Events

SoundThinking Inc Extends Credit Agreement with Umpqua Bank

On August 28, 2025, SoundThinking, Inc. announced a Seventh Amendment to its Credit Agreement with Umpqua Bank, originally dated September 27, 2018. This amendment extends the maturity date from October 15, 2025, to October 15, 2027, and increases the revolving credit commitment from $25 million to $40 million, potentially enhancing the company’s financial flexibility and operational capacity.

SoundThinking Inc Holds 2025 Annual Stockholders Meeting

On June 4, 2025, SoundThinking, Inc. held its 2025 Annual Meeting of Stockholders where three key proposals were voted on. Stockholders approved the election of two Class II directors, the compensation of named executive officers, and the appointment of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. These approvals ensure continuity in leadership and financial oversight, potentially strengthening the company’s strategic direction and operational stability.