SoundThinking (SSTI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $23.9 million, down 8% year-over-year, with ShotSpotter representing 64% of total revenues.

• GAAP net loss widened to $4.8 million ($0.37 per share) from $3.1 million ($0.24 per share) year-over-year; adjusted EBITDA was $1.2 million, down from $3.4 million.

• Structural cost reductions and workforce optimization are expected to yield $4 million in annualized savings.

• Multi-year contract renewals, win-backs, and new product launches reinforce customer confidence and solution stickiness.

• The company is expanding its SafetySmart platform, targeting new markets, and pursuing international growth.

Financial highlights

• Q2 2026 revenue: $23.9 million (down from $25.9 million YoY); gross profit: $11.5 million (48% margin), down from $13.8 million (53% margin).

• Adjusted EBITDA: $1.2 million (5% margin), down from $3.4 million (13% margin) YoY, but improved sequentially from Q1.

• Operating expenses reduced to $16.2 million from $16.7 million YoY, driven by cost optimization.

• Deferred revenue at quarter-end: $36 million; contractually committed revenue: $93.1 million.

• Cash and cash equivalents: $6.4 million; $4 million outstanding on credit facility; $36 million available borrowing capacity.

Outlook and guidance

• Full-year 2026 revenue guidance revised down to $99–$100 million from $109–$111 million.

• Adjusted EBITDA margin guidance lowered to 8–9% for 2026.

• ARR expected to grow from $95.4 million at start of 2026 to over $100 million entering 2027.

• Revenue and profitability expected to be back-end loaded as deployments and renewals build.

• Guidance excludes any contribution from a renewed Chicago ShotSpotter contract.