SSTI earnings analysis
What we found in SSTI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SoundThinking’s Q2 revenue of $23.889 million declined from $26 million a year earlier and missed the $25.786 million consensus estimate, while diluted EPS of $(0.37) was worse than the $(0.24) prior-year result. Gross margin fell to 48.0% from 53.3% in Q2 2025, and management continued to report ineffective disclosure controls and two unresolved material weaknesses as of June 30, 2026. The broader outlook is negative, with FY 2026 revenue guidance reduced to $99.0 million-$100.0 million from $109.0 million-$111.0 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue declined and missed estimates
- Q2 revenue was $23.889 million, down from $24 million in 2026 Q1 and $26 million in 2025 Q2. Revenue also missed the $25.786 million consensus estimate by approximately $1.897 million.
- EPS improved sequentially, missed year ago
- Diluted EPS was $(0.37), versus $(0.54) in 2026 Q1 but worse than $(0.24) in 2025 Q2 and the $(0.20) consensus estimate.
- Gross margin remained under pressure
- Gross margin was 48.0%, down from 48.4% in 2026 Q1 and 53.3% in 2025 Q2, indicating continued margin pressure.
- Control remediation continued
- Management continued remediation of two identified material weaknesses, enhancing IT general controls and controls over performance obligations, revenue timing and related disclosures.
- Market-risk profile was stable
- The company reported no material changes in market risk during the six months ended June 30, 2026 compared with the 2025 Form 10-K.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Material weaknesses remain unresolved
- Disclosure controls and procedures were concluded to be ineffective as of June 30, 2026 because of continuing material weaknesses in revenue recognition and IT general controls. The weaknesses involve performance-obligation identification, revenue timing, user access, integration monitoring and program change management.
- Revenue accounting risk persists
- Revenue-recognition control deficiencies create a risk of misstatement because controls were not adequate to ensure accurate identification of performance obligations, timing of revenue recognition and complete footnote disclosures.
- Material outlook reduction
- FY 2026 revenue guidance was lowered to $99.0 million-$100.0 million from $109.0 million-$111.0 million, while Adjusted EBITDA margin guidance fell to 8%-9% from 16%-18%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.37
- Gross margin
- 48.0%
What they said about what is next.
The filing states there were no material changes to market risk, but the associated quarterly outlook reduced FY 2026 revenue guidance to $99.0 million-$100.0 million from $109.0 million-$111.0 million and Adjusted EBITDA margin guidance to 8%-9% from 16%-18%. ARR entering 2027 is expected to exceed $100.0 million versus the prior expectation of $110.0 million.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 15, 2026
- SoundThinking, Inc. (SSTI) reported a disappointing Q1 2026 earnings with revenues of $24.2 million, reflecting a 15% decline year-over-year and missing consensus estimates by approximately $1.3 million. The company…
- 10-K · March 30, 2026
- In its 10-K filing for the year ending December 31, 2025, SoundThinking, Inc. (SSTI) reports a revenue growth of 2% year-over-year, reaching $104.1 million, driven primarily by its gunshot detection solutions. Despite a…
- 10-Q · November 13, 2025
- For Q3 2025, SoundThinking, Inc. reported a revenue of $25.1 million, reflecting a decrease of 4% from $26.3 million in Q3 2024. The company experienced a net loss of $2.0 million compared to a loss of $1.4 million in…
- 10-Q · August 13, 2025
- SoundThinking, Inc. reported a decline in Q2 revenues of 4% year-over-year, totaling $25.889 million compared to $26.960 million in Q2 2024. The company posted a larger net loss of $3.120 million compared to a loss of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing SSTI makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever