FREMONT, Calif., March 03, 2026 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (NASDAQ:SSTI) ("SoundThinking" or the "Company"), a leading public safety technology company, today reported financial results for the fourth quarter and fiscal year ended December 31, 2025.
Fourth Quarter 2025 Financial and Operational Highlights
Revenues increased 6% to $24.8 million, compared to $23.4 million for the same quarter of 2024.
Gross profit increased 8% to $12.6 million (51% of revenues), compared to $11.7 million (50% of revenues) for the same quarter of 2024.
GAAP net loss totaled $2.8 million, compared to GAAP net loss of $4.1 million for the same quarter of 2024.
Adjusted EBITDA1 totaled $1.3 million (5% of revenues), compared to $1.7 million (7% of revenues) for the same quarter of 2024.
Went "live" with ShotSpotter in 1 new city and 4 expansions with current customers.
1 See the section below titled "Non-GAAP Financial Measures and Key Business Metrics" for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss).
Full Year 2025 Financial and Operational Highlights
Revenues increased 2% to a record $104.1 million, compared to $102.0 million in 2024.
Gross profit decreased 2% to $56.6 million (54% of revenues), compared to $57.9 million (57% of revenues) in 2024.
GAAP net loss totaled $9.4 million, compared to GAAP net loss of $9.2 million in 2024.
Adjusted EBITDA2 totaled $12.6 million (12% of revenues), compared to $14.4 million (14% of revenues) in 2024.
Annual recurring revenue2 starting on January 1, 2026 was $95.4 million, compared to $95.6 million on January 1, 2025. Revenue retention rate2 was 99%, related to the loss of the Chicago ShotSpotter contract in 2024, compared to 105% in 2024.
Sales and marketing spend per $1.00 of new annualized contract value2 was $0.56, compared to $0.63 in 2024.
Went "live" with ShotSpotter in 10 new cities, 2 universities and 11 expansions with current customers.
2 See the section below titled "Non-GAAP Financial Measures and Key Business Metrics" for more information about Adjusted EBITDA and its reconciliation to GAAP net income (loss), annual recurring revenue, revenue retention rate and sales and marketing spend per $1.00 of new annualized contract value. Management Commentary
"2025 was a transitional year for SoundThinking," said President and CEO Ralph Clark. "Despite encountering some headwinds, we delivered record full year revenue of $104.1 million, representing a 2% increase. We accomplished that while maintaining low double digit Adjusted EBITDA margin profitability. We also continued to expand our customer footprint and strengthen the operating leverage of our platform through decisive actions to increase our investments in innovation, AI-driven capabilities, and go-to-market execution that we believe are bearing fruit."
"While the delay of a few new contracts and key contract renewals impacted results, underlying demand for our solutions remains strong and converting that demand into bookings remains a top priority. We are entering 2026 with a realigned sales organization, refreshed go-to-market strategies and healthy pipeline expansion across both existing and new markets. As we move forward, we remain focused on executing against our strategic growth priorities to enter into new vertical expansion markets, grow our recurring revenue base and improve margins to expand our leadership position as an integrated public safety technology platform. Consistent with our focus on creating value, we are also reviewing the business to identify opportunities to drive efficiencies across the organization."
"We are confident in our ability to drive growth, reduce costs and deliver increasing value for our customers and shareholders."
Fourth Quarter 2025 Financial Results
Revenues for the fourth quarter of 2025 were $24.8 million, compared to $23.4 million for the same quarter of 2024. The increase in revenue was due to new bookings partially offset by approximately $1.6 million of revenue from Chicago in the fourth quarter of 2024 that was not present in the same period in 2025.
Gross profit for the fourth quarter of 2025 was $12.6 million (51% of revenues), compared to $11.7 million (50% of revenues) for the same period in 2024.
Total operating expenses for the fourth quarter of 2025 were $15.1 million, compared to $15.5 million for the same period in 2024.
Net loss for the fourth quarter of 2025 totaled $2.8 million or $(0.22) per basic share and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding), compared to net loss of $4.1 million or $(0.32) per basic and diluted share (based on 12.6 million basic and diluted weighted-average shares outstanding), for the same period in 2024.
Adjusted EBITDA for the fourth quarter of 2025 totaled $1.3 million, compared to $1.7 million in the same period last year.
At quarter end, the Company had $15.8 million in cash and cash equivalents, $28.6 million in accounts receivable and contract assets, net, $43.9 million in deferred revenue, $4.0 million in debt outstanding, and approximately $36.0 million available on our credit facility.
Full Year 2025 Financial Results
Revenues in 2025 increased 2% to $104.1 million from $102.0 million in 2024. The increase in revenues was primarily due to new and expanding customer subscriptions partially offset by approximately $9 million of revenue from Chicago in 2024 that was not present in 2025.
Gross profit in 2025 decreased 2% to $56.6 million (54% of revenues) from $57.9 million (57% of revenues) for the same period in 2024.
Total operating expenses in 2025 decreased 1% to $65.4 million from $65.7 million in 2024.
Net loss in 2025 totaled $9.4 million or $(0.74) per basic and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding), compared to net loss in 2024 which totaled $9.2 million or $(0.72) per basic and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding).
Adjusted EBITDA for 2025 totaled $12.6 million, compared to $14.4 million in 2024.
Financial Outlook
The Company is lowering its full year 2026 revenue guidance range to $109.0 million to $111.0 million, representing 6% year-over-year growth at the midpoint. The Company is also lowering its Adjusted EBITDA margin guidance to 16% to 18% for the full year 2026. The Company expects ARR to increase from $95.4 million at the beginning of 2026 to approximately $110.0 million at the start of 2027.
The Company's financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Safe Harbor Statement" below. The Company has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses and acquisition-related expenses, including adjustments to the Company's contingent consideration obligation, which are reconciling items between Adjusted EBITDA and GAAP net income (loss). Because the Company cannot reasonably predict such items, a reconciliation to forecasted GAAP net income (loss) is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net income (loss). For more information, see "Non-GAAP Financial Measures and Key Business Metrics" below.
Conference Call
SoundThinking will hold a conference call today March 3, 2026 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions.
SoundThinking management will host the presentation, followed by a question-and-answer period. Those wishing to participate via webcast should access the call through SoundThinking's Investor Relations website at https://ir.soundthinking.com/. Those wishing to participate via telephone may dial in at 1-877-407-8029 (USA) or 1-201-689-8029 (International). The replay will be available via webcast through SoundThinking's Investor Relations website.
Non-GAAP Financial Measures and Key Business Metrics
Adjusted Net Income (Loss): Adjusted net income (loss), a non-GAAP financial measure, represents the Company's net income (loss) before acquisition-related expenses, including adjustments to the Company's contingent consideration obligation, restructuring expense and loss from disposal of fixed assets.
Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the Company's net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, restructuring costs and losses on restructuring related fixed asset disposals, stock-based compensation expense, and acquisition-related expenses, including adjustments to the Company's contingent consideration obligation. Adjusted EBITDA is a measure used by management internally to understand and evaluate the Company's core operating performance and trends across accounting periods and in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for its solutions. In particular, the exclusion of these expenses in calculating Adjusted EBITDA facilitates comparisons of the Company's operating performance on a period-to-period basis.
SoundThinking believes adjusted net income (loss) and Adjusted EBITDA also provide useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense and acquisition-related expenses because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the Company and its stockholders, rather than to address operational performance for any particular period's financial performance measures, in particular net income (loss), or its other GAAP financial results.
The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to adjusted net loss, for each of the periods indicated (in thousands, except share and per share data):
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
GAAP net loss
$
(2,772
)
$
(4,079
)
$
(9,420
)
$
(9,180
)
Less:
Restructuring expense
197
(10
)
197
336
Loss on disposal of fixed assets
—
18
—
23
Change in fair value of contingent consideration
—
—
—
(554
)
Adjusted net loss
$
(2,575
)
$
(4,071
)
$
(9,223
)
$
(9,375
)
Net loss per share, basic and diluted
$
(0.22
)
$
(0.32
)
$
(0.74
)
$
(0.72
)
Adjusted net loss per share, basic and diluted
$
(0.20
)
$
(0.32
)
$
(0.73
)
$
(0.74
)
Weighted-average shares used in computing net loss per share and adjusted net loss per share, basic and diluted
12,748,874
12,589,833
12,717,901
12,710,236
The following table presents a reconciliation of Adjusted EBITDA to GAAP net loss, the most directly comparable GAAP measure, for each of the periods indicated (in thousands):
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
