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…
Earnings analysis · 10-Q
SSTI earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.37
- Gross margin
- 48.0%
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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%.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.