SoundThinking (SSTI) Q4 2025 earnings summary

Executive summary

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

• Expanded customer footprint with ShotSpotter deployments in 10 new cities, two universities, and 11 existing customers, while investing in innovation and AI-driven capabilities.

• Maintained double-digit adjusted EBITDA margin profitability while investing in growth initiatives and expanding product offerings.

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

• Strengthened sales leadership with key hires, including a new Senior VP of Global Sales and VP for Brazil.

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, up 2% from 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; Q4 adjusted EBITDA was $1.3 million.

• 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 two major contracts (CrimeTracer and ShotSpotter Puerto Rico).

• Targeting 15% net ARR growth in 2026, aiming for $110 million ARR by year-end.

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

• Board and management reviewing business for efficiency improvements and cost savings.