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SoundThinking Inc
(NASDAQ:SSTI)
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Rating:53Neutral
Price Target:
$8.50
▲(41.20% Upside)
Action:Reiterated
Date:09/30/26
The score is held down primarily by deteriorating operating fundamentals (declining TTM revenue, widening losses, and negative free cash flow). Technicals are supportive with price above major moving averages but are partially offset by an elevated RSI and slightly negative MACD. The earnings call added pressure via a meaningful revenue guidance cut despite cost savings and revenue visibility, while the pending acquisition is a notable positive that boosts the overall score.
Positive Factors
Recurring Revenue Visibility
Deferred revenue and committed contracts create a meaningful base of future billings, while ARR is expected to exceed $100M entering 2027. This visibility can reduce dependence on new bookings each quarter and support planning for investment, service delivery, and cash generation.
Negative Factors
Revenue Contraction and Guidance Cut
Revenue deterioration is becoming a multi-quarter execution issue: TTM growth is negative and management cut 2026 guidance by about $10M. Delayed services, slower deployments, and elongated sales cycles can defer contracted value, weaken operating leverage, and make sustainable growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Revenue Visibility
Deferred revenue and committed contracts create a meaningful base of future billings, while ARR is expected to exceed $100M entering 2027. This visibility can reduce dependence on new bookings each quarter and support planning for investment, service delivery, and cash generation.
Read all positive factors
SoundThinking Inc (SSTI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$110.69M
Dividend Yield0%
Average Volume (3M)272.52K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-5.72%
EPS Growth-60.57%
CountryUS
Employees304
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.29
Shares Outstanding13,240,512
10 Day Avg. Volume106,966
30 Day Avg. Volume272,517
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 Cap1.06
Enterprise Value/Revenue1.20
Enterprise Value/Gross Profit2.40
Enterprise Value/Ebitda-17.32
Forecast
1Y Price Target
$8.38Price Target Upside39.12% Upside
Rating ConsensusHold
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 generates revenue by selling its public safety technology and associated services to government customers (e.g., municipalities and law enforcement agencies). The company’s core revenue stream is typically structured as rec...
SoundThinking Inc Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful operational progress and cost discipline led to sequential adjusted EBITDA improvement and structural annualized savings (~$4M), strong renewal activity ($23M+ in contract value), and a strategic state-level CrimeTracer win (Texas, ~$2.5M ARR). Offsetting these positives were top-line shortfalls — Q2 revenue down ~7.7% YoY, a ~$2M first-half miss, and a full-year revenue guide lowered by ~ $10M (~9–10%) driven by delayed professional services, lumpy SafePointe go-lives, ShotSpotter sales/execution challenges and politicized decision cycles — plus a wider GAAP loss and lower adjusted EBITDA versus last year. Overall, the company emphasized cost controls and visibility (deferred revenue ~$36M, committed revenue ~$93.1M) while acknowledging execution and timing risks that pushed meaningful revenue into 2027.Positive Updates
Adjusted EBITDA Turnaround
Adjusted EBITDA improved from roughly negative $0.1M in Q1 to positive $1.2M in Q2 2026, demonstrating sequential profitability improvement despite flat revenue.
Negative Updates
Revenue Decline and Miss vs. Prior Expectations
Q2 revenue was $23.9M, down from $25.9M year-over-year (down ~7.7%). First-half 2026 revenue totaled about $48M vs. an expected ~$50M (a ~$2M shortfall).
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Turnaround
Adjusted EBITDA improved from roughly negative $0.1M in Q1 to positive $1.2M in Q2 2026, demonstrating sequential profitability improvement despite flat revenue.
Read all positive updates
Company Guidance
Management lowered full‑year 2026 revenue guidance to $99–$100 million (from a prior $109–111M outlook) after H1 revenue of roughly $48M and Q2 revenue of $23.9M; Q2 adjusted EBITDA was $1.2M (up from roughly negative $100k in Q1 but down from $3.4M in Q2 2025) while GAAP net loss was $4.8M, or $0.37 per diluted share. The company reiterated expected annualized cost savings of about $4.0M from workforce and business optimization (with ~$900k of restructuring charges in Q2), reported Q2 operating expenses of $16.2M (sales & marketing $5.9M, ~25% of revenue; R&D $4.0M, ~17% of revenue; G&A $6.3M), said operating expenses were down ~ $1.5M year‑over‑year, and guided to a full‑year adjusted EBITDA margin of 8%–9%. Visibility into future revenue remains meaningful: deferred revenue was approximately $36M, contractually committed revenue was ~$93.1M, ARR is expected to rise from $95.4M at the start of 2026 to over $100M entering 2027, and the balance sheet shows $6.4M cash, $24.5M of accounts receivable and contract assets, $4M drawn on the credit facility with about $36M available capacity. Management attributed the roughly $10M guidance reduction mainly to timing (≈70%) — including nearly $3M from TechnoLogic/NYDOC professional services delays, ~$2M from slower SafePointe go‑lives, and exclusion of an expected ~$1.5M Puerto Rico contract — with the remainder due to elongated ShotSpotter sales cycles and slower bookings.SoundThinking Inc Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
72
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 97.96M | 104.13M | 102.03M | 92.72M | 81.00M | 58.16M |
| Gross Profit | 49.04M | 56.64M | 58.49M | 52.84M | 46.78M | 32.52M |
| EBITDA | -6.80M | 560.00K | 2.60M | 9.17M | 7.79M | 4.09M |
| Net Income | -16.57M | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M |
Balance Sheet | ||||||
| Total Assets | 118.16M | 135.75M | 136.79M | 140.94M | 122.75M | 72.30M |
| Cash, Cash Equivalents and Short-Term Investments | 6.41M | 15.80M | 13.18M | 5.70M | 10.48M | 15.64M |
| Total Debt | 4.70M | 6.00M | 6.05M | 9.51M | 3.42M | 2.42M |
| Total Liabilities | 52.61M | 63.58M | 64.39M | 66.18M | 61.80M | 38.49M |
| Stockholders Equity | 65.55M | 72.17M | 72.40M | 74.76M | 60.95M | 33.81M |
Cash Flow | ||||||
| Free Cash Flow | -1.07M | 4.84M | 15.79M | 5.46M | 1.26M | 1.92M |
| Operating Cash Flow | 3.46M | 9.30M | 22.22M | 10.95M | 12.18M | 9.82M |
| Investing Cash Flow | -4.54M | -4.46M | -6.43M | -16.48M | -15.54M | -7.88M |
| Financing Cash Flow | -1.57M | -2.35M | -8.25M | 795.00K | -1.75M | -2.27M |
SoundThinking Inc Technical Analysis
Positive
6.02
Price Trends
6.83
Positive
7.52
Positive
7.28
Positive
Market Momentum
0.44
Positive
67.67
Neutral
62.22
Neutral
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 6.02 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 6.83, and below the 200-day MA of 7.28, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, 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% | |
60 Neutral | $252.64M | -7.39 | -7.84% | 1.27% | -3.87% | -946.99% | |
58 Neutral | $416.12M | 35.89 | 1.96% | ― | 13.62% | ― | |
53 Neutral | $110.69M | -6.48 | -23.77% | 0.00% | -5.72% | -60.57% | |
48 Neutral | $47.83M | 0.47 | -9.29% | ― | -3.23% | ― | |
47 Neutral | $69.33M | -0.45 | -249.64% | ― | -1.81% | 46.29% |
* Technology Sector Average
SSTI
SoundThinking Inc
8.36
-1.33
-13.73%
SCOR
comScore
3.15
-4.25
-57.43%
VERI
Veritone
0.57
-6.73
-92.19%
API
Agora
4.45
0.85
23.61%
AUUD
Auddia
0.95
-10.14
-91.42%
XPER
Xperi Inc
5.18
-1.46
-21.99%
SoundThinking Inc Corporate Events
Executive/Board ChangesDelistings and Listing ChangesM&A Transactions
SoundThinking to Be Acquired by Transom Capital Group
Positive
Sep 29, 2026
On September 28–29, 2026, SoundThinking agreed to be acquired by Transom Capital Group via a tender offer at $8.00 per share in cash plus a non-transferable contingent value right worth up to an additional $3.00 per share, implying an upfron...
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.