SoundThinking Q2 revenue misses estimates

Soundthinking

12/08/2025 21:23

Overview

SoundThinking Q2 revenue falls 4% yr/yr, missing analyst expectations, per LSEG data

Adjusted EPS and EBITDA for Q2 miss analyst estimates, per LSEG data

Company reaffirms FY 2025 revenue guidance of $111-113 mln

Outlook

SoundThinking reaffirms FY 2025 revenue guidance of $111 mln to $113 mln

Company expects ARR to grow from $95.6 mln to $110 mln by 2026

SoundThinking reaffirms FY 2025 Adjusted EBITDA margin of 20% to 22%

Result Drivers

CHICAGO CONTRACT NON-RENEWAL - Revenue decline primarily due to non-renewal of contract with City of Chicago

MAINTENANCE COSTS - Increased maintenance costs for existing deployments impacted gross profit

AI INVESTMENTS - Investments in AI capabilities aimed at enhancing product intelligence and developer productivity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$25.90 mln
$26.30 mln (7 Analysts)
Q2 Adjusted EPS
Miss
-$0.24
-$0.11 (7 Analysts)
Q2 Net Income
-$3.12 mln
Q2 Adjusted EBITDA
Miss
$3.36 mln
$4.41 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "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 $20.00, about 44.2% above its August 11 closing price of $11.17

Press Release: ID:nGNX9S4zCt

(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.)