SoundThinking Inc (SSTI) News & EventsSSTINews & EventsSoundThinking Inc

Company Cuts FY26 EBITDA Margin Outlook to 8%-9%

Consensus $109.23M. Cuts FY26 adjusted EBITDA margin view to 8%-9% from 16%-18%. "Given our softer-than-expected first-half results and the timing of certain customer and procurement decisions, we believe it is prudent to revise our 2026 outlook while remaining focused on disciplined execution," added Clark. "While the near-term environment has become more challenging, our confidence in the strength of our recurring revenue base, expanding SafetySmart adoption, and long-term growth opportunity remains unchanged. We expect continued cross-sell activity, new deployments, and approximately $4 million of annualized savings from workforce and business optimization initiatives that became effective at the start of the second quarter of 2026 to support improving operational efficiency and a stronger foundation for sustainable, profitable growth. While we continue to monitor the Chicago procurement process, our long-term growth strategy and financial targets are not dependent on that opportunity."

Q2 Revenue at $23.89M, Below Expectations

Reports Q2 revenue $23.89M, consensus $25.67M. "While our second quarter results were below our expectations, we continue to believe the underlying health of the business remains strong," said President and CEO Ralph Clark. "Demand for our solutions continues to expand through new deployments and customer expansions, as customers look to consolidate critical public safety and security workflows onto a single platform."

SoundThinking Q1 Revenue $24.2M, Below Consensus

Reports Q1 revenue $24.2M, consensus $24.27M. The company said, "Our first quarter results reflect the structural shape of our year and the deliberate investments we are making to position SoundThinking for durable, profitable growth. Q1 is, by design, typically our most cost-concentrated and lightest revenue quarter of the year, with deployments, renewals, and expansions building through the year. With approximately $4 million in annualized savings we are expecting from the workforce optimization we implemented in the first quarter, we have increased visibility of our full-year framework and we expect meaningful operating leverage to emerge. We are encouraged by the momentum we are seeing across our public safety and commercial security offerings. Drone-as-first-responder integrations are now live in 16 cities, we have launched SafetySmart Field Agent - our AI-powered user experience for the SafetySmart platform - and SafePointe go-lives in healthcare are accelerating, with monthly recurring revenue more than doubling during the quarter. Supported by a strong recurring revenue base, a growing multi-product pipeline, and improving visibility as the year progresses, we remain confident in our ability to execute and drive sustainable, long-term value for shareholders."