SoundThinking Inc (SSTI) AI Stock Analysis

• Market Cap: $78.98M
• Dividend Yield: N/A
• Average Volume (3M): 154.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -1.83%
• EPS Growth: -642.89%
• Country: US
• Employees: 316
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.16
• Shares Outstanding: 12,698,453
• 10 Day Avg. Volume: 155,562
• 30 Day Avg. Volume: 154,388
• PEG Ratio: -0.08
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 10.51
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 1.44
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: -315.85
• 1Y Price Target: $15.40
• Price Target Upside: 157.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $6.00 ▲(0.33% Upside)

SoundThinking Inc's overall stock score is primarily impacted by financial performance challenges, including declining revenues and negative cash flow trends. Technical analysis indicates bearish momentum, and valuation metrics are unfavorable due to ongoing losses. While the earnings call provided some positive long-term prospects, current execution issues and reduced guidance are significant concerns.

Positive Factors

International Expansion

Expanding into international markets like Uruguay and Brazil opens new revenue streams and diversifies market risk, supporting long-term growth.

AI-Powered Tools Adoption

Adoption of AI tools like Crime Tracer Gen 3 enhances product offerings, potentially increasing market share and customer retention in the long term.

Customer Satisfaction

High customer satisfaction and retention rates indicate strong product-market fit and customer loyalty, which can drive sustained revenue growth.

Negative Factors

Revenue Decline

Declining revenue highlights challenges in maintaining sales momentum, which could impact long-term financial stability and growth prospects.

Contract Delays

Contract delays can lead to revenue shortfalls and disrupt cash flow, posing risks to the company's ability to meet financial targets and invest in growth.

Increased R&D Expenses

Rising R&D costs may pressure margins if not matched by revenue growth, potentially affecting profitability and financial flexibility.

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 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 sales to government agencies, law enforcement, and private security firms, as well as partnerships with technology providers for integrated solutions. Additionally, SSTI earns income through consulting services aimed at customizing their offerings for specific client needs and conducting training programs for end-users. Significant collaborations with municipalities and public safety organizations further enhance its market presence and contribute to its earnings.

SoundThinking Inc Financial Statement Overview

Summary

SoundThinking Inc is facing financial challenges with declining revenues and profitability issues. The income statement shows a negative revenue growth rate and ongoing losses. The balance sheet is stable with low leverage, but cash flow trends are negative, indicating cash flow management issues.

Income Statement

SoundThinking Inc's income statement shows a declining revenue trend with a negative revenue growth rate of -1.11% TTM. The company is facing profitability challenges, as evidenced by negative net profit and EBIT margins. Gross profit margin remains relatively stable at 54.43% TTM, but the negative net profit margin of -10.44% indicates ongoing losses. The company needs to address its cost structure and improve revenue generation to enhance profitability.

Balance Sheet

The balance sheet of SoundThinking Inc reflects a low debt-to-equity ratio of 0.066 TTM, indicating conservative leverage. However, the return on equity is negative at -14.58% TTM, highlighting inefficiencies in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital base, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

SoundThinking Inc's cash flow statement reveals a significant decline in free cash flow growth rate of -116.20% TTM, indicating cash flow challenges. The operating cash flow to net income ratio is low at 0.073 TTM, suggesting difficulties in converting earnings into cash. The company must focus on improving its cash flow management to support operations and future growth.

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

• Technical Analysis Sentiment: Negative
• Last Price: 5.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 5.98 is below the 20-day moving average (MA) of 7.20, below the 50-day MA of 9.68, and below the 200-day MA of 13.32, indicating a bearish trend. The MACD of -1.09 indicates Negative momentum. The RSI at 23.97 is Positive, neither overbought nor oversold. The STOCH value of 25.07 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
SMRT	62 Neutral	$317.86M	―	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPS	57 Neutral	$135.58M	11.49	18.24%	―	0.59%	―
AEYE	48 Neutral	$153.49M	―	-54.03%	―	18.57%	-2.15%
MRT	47 Neutral	$191.26M	―	―	―	―	―
SSTI	44 Neutral	$78.98M	―	-14.61%	―	-1.83%	-642.89%
PSQH	42 Neutral	$57.80M	―	-451.95%	―	35.79%	14.85%

SoundThinking Inc Corporate Events

SoundThinking’s Earnings Call: Mixed Sentiment Amid Challenges

SoundThinking, Inc.’s recent earnings call revealed a mixed sentiment, with notable advancements in AI technology and international markets being overshadowed by reduced revenue guidance and significant contract delays. While the company made strides in customer satisfaction and market expansion, challenges in sales execution and revenue shortfalls were prominent concerns.

SoundThinking, Inc. Reports Q3 2025 Financial Results

SoundThinking, Inc. is a public safety technology company that provides AI- and data-driven solutions for law enforcement and security professionals. The company is known for its SafetySmart platform, which includes products like ShotSpotter, an acoustic gunshot detection system.

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.

The most recent analyst rating on (SSTI) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on SoundThinking Inc stock, see the SSTI Stock Forecast page.