SoundThinking Q2 revenue misses estimates, trims 2026 outlook

Soundthinking

13/08/2026 21:22

Overview
US public safety tech firm's Q2 revenue fell 8% yr/yr, missing analyst expectations
Company cut FY 2026 revenue and adjusted EBITDA margin guidance due to slower contract renewals
Q2 results impacted by non-renewal and delays of multiple customer contracts

Outlook
SoundThinking lowers FY 2026 revenue guidance to $99.0 mln-$100.0 mln from $109.0 mln-$111.0 mln
Company lowers FY 2026 adj EBITDA margin guidance to 8%-9% from 16%-18%
SoundThinking expects ARR to exceed $100.0 mln at start of 2027, below prior $110.0 mln forecast

Result Drivers
CONTRACT NON-RENEWALS AND DELAYS - Co said revenue decline was mainly due to non-renewal or delays of renewals of contracts with multiple customers
LOWER CATCH-UP REVENUE - Co cited a $0.9 mln reduction in catch-up revenue from various customers as contributing to the revenue decline
HIGHER IT AND FACILITY COSTS - Gross profit margin fell due to lower revenue volume, including lower catch-up revenue, and an increase in information technology and facility costs

Company press release: ID:nGNX6rqhQ5

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$23.89 mln
$25.76 mln (6 Analysts)
Q2 Net Loss
 
$4.75 mln
 
Q2 Adjusted EBITDA
 
$1.15 mln
 

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 47.2% above its August 12 closing price of $8.15

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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.)