SoundThinking 2025 Q3 Earnings Revenue Dips, Losses Widen Significantly

SoundThinking (SSTI) reported its fiscal 2025 Q3 earnings on Nov 14, 2025, with results falling short of expectations. The company lowered full-year revenue guidance from $111–$113 million to $104 million, citing contract delays and a non-renewal in Puerto Rico. Earnings missed estimates, with a net loss of $2.04 million (41.9% wider than 2024) and EPS of -$0.16 (45.5% wider loss). The stock price declined across short-term and long-term horizons, reflecting investor skepticism.

Revenue

Total revenue fell to $25.10 million in Q3 2025, a 4.4% decline from $26.25 million in Q3 2024. The shortfall was attributed to the absence of a Puerto Rico ShotSpotter renewal and delays in a statewide CrimeTracer booking.

Earnings/Net Income

SoundThinking’s losses deepened to $0.16 per share in Q3 2025 from $0.11 per share in Q3 2024. The company reported a net loss of $-2.04 million, a 41.9% increase from the $-1.44 million loss in the prior-year period. The EPS of -$0.16 represents a 45.5% worsening in losses compared to the previous year, underscoring operational challenges.

Price Action

The stock price edged down 0.14% during the latest trading day, tumbled 12.16% during the most recent full trading week, and plummeted 40.09% month-to-date. Post-earnings, shares dipped 19.6% to $6.78 on Nov 14, reflecting heightened investor caution.

Post-Earnings Price Action Review

SoundThinking’s stock price declined sharply following the earnings report, with a 19.6% drop to $6.78 on Nov 14. The fall followed a broader trend of weakness, including a 40.09% monthly decline and a 12.16% weekly tumble. Analysts cut price targets, with Cantor Fitzgerald reducing its target to $16 and Citizens lowering theirs to $16 as well. Despite strategic initiatives like the launch of CrimeTracer Gen3 and AI advancements, near-term execution risks and guidance cuts overshadowed long-term optimism.

CEO Commentary

Ralph Clark, President and CEO

emphasized progress in core ShotSpotter deployments and AI-driven tools but acknowledged challenges. He cited the absence of a Puerto Rico renewal and delays in key contracts as primary revenue headwinds. Clark highlighted the launch of CrimeTracer Gen3 as a “quantum leap” in AI-powered law enforcement technology and noted strong customer retention (NPS of 70). However, he admitted the need for sales realignment, including interim leadership for the VP of Sales role, to address execution gaps.

Guidance

The company revised full-year 2025 revenue guidance to $104 million from $111–$113 million and adjusted EBITDA margin guidance to 14–15% from 20–22%. For 2026, management set revenue guidance at $114–$116 million and EBITDA margins of 18–20%. Forward-looking statements include:

• “We expect to fulfill delayed contracts in the near future.”

• “We guide to continued growth in AI-powered tools and healthcare security markets.”

Additional News

1. Leadership Realignment: Ralph Clark, former Senior Vice President of Sales, stepped into an interim role to stabilize the sales organization amid a national search for a permanent VP of Sales.

2. Product Launch: The company announced the beta release of CrimeTracer Gen3, integrating over 1 billion records to enhance law enforcement intelligence.

3. Guidance Cuts: SoundThinking lowered 2025 revenue and EBITDA guidance due to delays in three large contracts totaling $6.4 million, including a Puerto Rico renewal and Brazil deployments.