SoundThinking Inc (SSTI)
NASDAQ:SSTI
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SoundThinking Inc
(NASDAQ:SSTI)
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Rating:49Neutral
Price Target:
$7.00
▲(9.55% Upside)
Action:ReiteratedDate:12/10/25
SoundThinking Inc's overall stock score reflects significant financial challenges, including declining revenues and profitability issues. While technical indicators suggest a bearish trend, there are some positive developments in AI adoption and international expansion. However, the negative valuation metrics and reduced guidance weigh heavily on the stock's attractiveness.
Positive Factors
Gross Margin Stability
A sustained gross margin above 50% reflects strong unit economics from software and analytics offerings. This margin buffer supports scalable deployment as revenue grows, enabling the company to absorb higher R&D and deployment costs while preserving potential operating leverage over the medium term.
Negative Factors
Declining Revenue & Profitability
Ongoing revenue declines and persistent negative profitability hinder the company's ability to scale fixed-cost investments and achieve operating leverage. If revenue contraction continues, it will constrain reinvestment capacity and prolong the path to sustainable margins and positive returns for shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross Margin Stability
A sustained gross margin above 50% reflects strong unit economics from software and analytics offerings. This margin buffer supports scalable deployment as revenue grows, enabling the company to absorb higher R&D and deployment costs while preserving potential operating leverage over the medium term.
Read all positive factors
SoundThinking Inc (SSTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.14M
Dividend YieldN/A
Average Volume (3M)171.46K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-1.83%
EPS Growth-642.89%
CountryUS
Employees316
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.22
Shares Outstanding12,698,453
10 Day Avg. Volume117,407
30 Day Avg. Volume171,456
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)2.29
Price to Sales (P/S)1.63
P/FCF Ratio10.51
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda-150.26
Forecast
1Y Price Target
$12.75Price Target Upside99.53% 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 Inc generates revenue through multiple streams, primarily by selling software licenses for its audio analytics platforms and providing subscription-based services for ongoing support and updates. Key revenue streams include direct sa...
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
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 102.75M | 102.03M | 92.72M | 81.00M | 58.16M | 45.73M |
| Gross Profit | 55.92M | 58.49M | 52.84M | 46.78M | 32.52M | 27.21M |
| EBITDA | -468.00K | 2.60M | 9.17M | 7.79M | 4.09M | 7.11M |
| Net Income | -10.73M | -9.18M | -2.72M | 6.38M | -4.43M | 1.23M |
Balance Sheet | ||||||
| Total Assets | 134.43M | 136.79M | 140.94M | 122.75M | 72.30M | 66.32M |
| Cash, Cash Equivalents and Short-Term Investments | 11.83M | 13.18M | 5.70M | 10.48M | 15.64M | 16.04M |
| Total Debt | 5.76M | 6.05M | 9.51M | 3.42M | 2.42M | 945.00K |
| Total Liabilities | 60.88M | 64.39M | 66.18M | 61.80M | 38.49M | 32.01M |
| Stockholders Equity | 73.55M | 72.40M | 74.76M | 60.95M | 33.81M | 34.30M |
Cash Flow | ||||||
| Free Cash Flow | -1.07M | 15.79M | 5.46M | 1.26M | 1.92M | 7.08M |
| Operating Cash Flow | 3.95M | 22.22M | 10.95M | 12.18M | 9.82M | 11.21M |
| Investing Cash Flow | -5.03M | -6.43M | -16.48M | -15.54M | -7.88M | -18.76M |
| Financing Cash Flow | -2.30M | -8.25M | 795.00K | -1.75M | -2.27M | -956.00K |
SoundThinking Inc Technical Analysis
Negative
6.39
Price Trends
7.10
Negative
7.36
Negative
9.92
Negative
Market Momentum
-0.21
Positive
42.21
Neutral
42.74
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 6.39 is below the 20-day moving average (MA) of 6.82, below the 50-day MA of 7.10, and below the 200-day MA of 9.92, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.21 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $71.35M | -40.31 | -47.80% | ― | 18.57% | -2.15% | |
54 Neutral | $284.49M | -6.33 | -25.34% | ― | -24.30% | -181.62% | |
50 Neutral | $96.74M | 44.82 | 3.65% | ― | 0.59% | ― | |
49 Neutral | $81.14M | -10.87 | -12.81% | ― | -1.83% | -642.89% | |
48 Neutral | $26.95M | -1.92 | -167.16% | ― | 35.79% | 14.85% | |
45 Neutral | $158.99M | -5.81 | 105.93% | ― | ― | ― |
* Technology Sector Average
SSTI
SoundThinking Inc
6.39
-10.56
-62.30%
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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.