SoundThinking Inc (SSTI)
NASDAQ:SSTI
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SoundThinking Inc
(NASDAQ:SSTI)
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Rating:48Neutral
Price Target:
$6.50
▼(-5.80% Downside)
Action:ReiteratedDate:04/02/26
The score is held back primarily by deteriorating earnings quality and the sharp 2025 drop to zero operating cash flow/free cash flow, despite strong revenue growth and a low-debt balance sheet. Technicals also remain weak with the stock below major moving averages and negative MACD, while valuation is constrained by ongoing losses and no stated dividend support.
Positive Factors
Revenue growth & gross margins
Consistent top-line expansion combined with mid-50s gross margins indicates a scalable software model where incremental revenue retains meaningful profit. This supports long-term unit economics, funding for R&D and sales, and durable margin leverage as subscriptions scale.
Negative Factors
Widening net losses
Growing operating losses despite revenue gains erode shareholder returns and signal structural cost pressures below gross profit. Persistent negative margins limit the company's ability to self-fund growth and increase reliance on operational fixes or external capital over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & gross margins
Consistent top-line expansion combined with mid-50s gross margins indicates a scalable software model where incremental revenue retains meaningful profit. This supports long-term unit economics, funding for R&D and sales, and durable margin leverage as subscriptions scale.
Read all positive factors
SoundThinking Inc (SSTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.31M
Dividend YieldN/A
Average Volume (3M)134.33K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-1.83%
EPS Growth-642.89%
CountryUS
Employees316
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.22
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/Revenue0.75
Enterprise Value/Gross Profit1.39
Enterprise Value/Ebitda71.29
Forecast
1Y Price Target
$12.75Price Target Upside84.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.42
Revenue Forecast (FY)$114.32M
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:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Negative
While there were significant advancements in AI adoption, international expansion, and customer satisfaction, these were overshadowed by reduced revenue guidance, sales execution challenges, and significant contract delays.Positive Updates
AI-Powered Investigative Tools Adoption
Accelerated adoption of AI-powered investigative tools and the upcoming launch of Crime Tracer Gen 3, which integrates over 1 billion records and features voice-enabled AI chatbot capabilities.
Negative Updates
Revenue and EBITDA Guidance Reduction
Lowered full-year revenue guidance from $111-113 million to approximately $104 million and adjusted EBITDA guidance from 20-22% to 14-15% due to delays in contract bookings.
Read all updates
Q3-2025 Updates
Positive
Negative
AI-Powered Investigative Tools Adoption
Accelerated adoption of AI-powered investigative tools and the upcoming launch of Crime Tracer Gen 3, which integrates over 1 billion records and features voice-enabled AI chatbot capabilities.
Read all positive updates
Company Guidance
During SoundThinking's Third Quarter 2025 Earnings Conference Call, the company lowered its full-year revenue guidance from $111-$113 million to approximately $104 million and adjusted EBITDA guidance from 20%-22% to 14%-15%, citing delays in several large contracts. The third-quarter revenue was $25.1 million, a 4% decrease from the previous year, attributed to the absence of a ShotSpotter renewal in Puerto Rico and a delayed Crime Tracer booking. Despite these setbacks, SoundThinking highlighted encouraging developments such as expanded deployments of ShotSpotter technology, international expansion efforts, and the launch of Crime Tracer Gen 3. The company also noted strong momentum for its SafePoint technology following California's weapons detection mandate and reported a Net Promoter Score of 70, with over 90% satisfaction in key partnership areas. SoundThinking remains optimistic about its medium to long-term prospects, expecting revenue growth of $114-$116 million and an adjusted EBITDA margin of 18%-20% in 2026.SoundThinking Inc Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
78
Positive
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 104.13M | 102.03M | 92.72M | 81.00M | 58.16M |
| Gross Profit | 56.64M | 58.49M | 52.84M | 46.78M | 32.52M |
| EBITDA | 2.18M | 2.60M | 9.17M | 7.79M | 4.09M |
| Net Income | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M |
Balance Sheet | |||||
| Total Assets | 135.75M | 136.79M | 140.94M | 122.75M | 72.30M |
| Cash, Cash Equivalents and Short-Term Investments | 15.80M | 13.18M | 5.70M | 10.48M | 15.64M |
| Total Debt | 4.98M | 6.05M | 9.51M | 3.42M | 2.42M |
| Total Liabilities | 63.58M | 64.39M | 66.18M | 61.80M | 38.49M |
| Stockholders Equity | 72.17M | 72.40M | 74.76M | 60.95M | 33.81M |
Cash Flow | |||||
| Free Cash Flow | 4.84M | 15.79M | 5.46M | 1.26M | 1.92M |
| Operating Cash Flow | 9.30M | 22.22M | 10.95M | 12.18M | 9.82M |
| Investing Cash Flow | -4.46M | -6.43M | -16.48M | -15.54M | -7.88M |
| Financing Cash Flow | -2.35M | -8.25M | 795.00K | -1.75M | -2.27M |
SoundThinking Inc Technical Analysis
Neutral
6.90
Price Trends
6.89
Positive
7.22
Negative
9.32
Negative
Market Momentum
-0.05
Negative
54.05
Neutral
79.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSTI, the sentiment is Neutral. The current price of 6.9 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.89, and below the 200-day MA of 9.32, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSTI.
SoundThinking Inc Risk Analysis
SoundThinking Inc disclosed 56 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% | |
56 Neutral | $87.10M | -40.31 | -47.80% | ― | 18.57% | -2.15% | |
54 Neutral | $284.54M | -6.33 | -25.34% | ― | -24.30% | -181.62% | |
53 Neutral | $189.29M | -4.50 | 105.93% | ― | ― | ― | |
50 Neutral | $61.53M | 44.82 | 3.65% | ― | 0.59% | ― | |
48 Neutral | $87.31M | -10.87 | -12.81% | ― | -1.83% | -642.89% | |
43 Neutral | $34.65M | -1.92 | -167.16% | ― | 35.79% | 14.85% |
* Technology Sector Average
SSTI
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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.