SoundThinking (SSTI) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenue of $104.1 million in 2025, up 2% year-over-year, despite headwinds from contract delays and the loss of a major Chicago customer.

• Maintained double-digit adjusted EBITDA margin profitability while investing in growth initiatives, innovation, and AI-driven capabilities.

• Expanded customer footprint with ShotSpotter deployments in 10 new cities, two universities, and 11 existing customers; SafePointe bookings reached $1.6 million from 11 customers.

• Management realigned sales and go-to-market strategies for 2026, strengthening leadership and focusing on pipeline expansion and operational efficiencies.

• Ended 2025 with annual recurring revenue (ARR) of $95.4 million, targeting 15% ARR growth in 2026.

Financial highlights

• Q4 2025 revenue was $24.8 million, up 6% year-over-year; gross profit was $12.6 million (51% margin).

• Full-year 2025 revenue reached $104.1 million, a 2% increase over 2024; gross profit was $56.6 million (54% margin).

• Adjusted EBITDA for 2025 was $12.6 million (12% margin), down from $14.4 million (14% margin) in 2024.

• GAAP net loss for 2025 was $9.4 million ($0.74 per share), compared to $9.2 million ($0.72 per share) in 2024.

• Ended 2025 with $15.8 million in cash and $4.0 million in debt outstanding.

Outlook and guidance

• 2026 revenue guidance reduced to $109–$111 million (from $114–$116 million) due to delays in major contracts, representing 6% growth at midpoint.

• Adjusted EBITDA margin guidance for 2026 set at 16–18%, lowered due to contract delays and continued AI investments.

• Annual recurring revenue (ARR) expected to rise from $95.4 million at start of 2026 to ~$110.0 million at start of 2027.

• Focus areas for 2026: ARR growth, multi-product customer expansion, and operational efficiency.