SoundThinking Q1 revenue falls more than expected

Soundthinking

14/05/2026 21:26

Overview

US public safety tech firm's Q1 revenue fell 15%, missing analyst expectations

Company attributed lower revenue to absence of prior-year catch-up from delayed New York City Police Department contracts

Company reaffirmed FY 2026 revenue and adjusted EBITDA margin guidance

Outlook

SoundThinking reaffirms FY 2026 revenue guidance of $109.0 mln to $111.0 mln

Company reaffirms FY 2026 adjusted EBITDA margin guidance of 16% to 18%

SoundThinking expects ARR to rise from $95.4 mln at start of 2026 to $110.0 mln at start of 2027

Result Drivers

PRIOR-YEAR CATCH-UP REVENUE - Q1 2025 included $3.5 mln in catch-up revenue from delayed NYC contracts, which did not recur in Q1 2026

CONTRACT NON-RENEWAL - Q1 2025 included $0.5 mln in revenue from a Puerto Rico contract that was not renewed in Q1 2026

COST PRESSURES - Gross profit margin declined due to lower revenue volume and continued cost pressures servicing contracted customers without prior-year catch-up revenue

Company press release: ID:nGNX61kx0l

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$24.18 mln
$25.12 mln (6 Analysts)
Q1 Net Income
-$7.005 mln
Q1 Adjusted EBITDA
-$95,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for SoundThinking Inc is $12.00, about 95.4% above its May 13 closing price of $6.14

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)