Safety tech firm SoundThinking misses Q3 revenue estimates, lowers 2025 revenue forecast

Reuters
Nov 13
Safety tech firm SoundThinking misses Q3 revenue estimates, lowers 2025 revenue forecast

Overview

  • SoundThinking Q3 revenue decreased 4% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Company repurchased 160,271 shares for $2.0 mln under existing program

Outlook

  • Company lowers full-year 2025 revenue guidance from $111.0 million to $113.0 million to approximately $104.0 million

  • SoundThinking reduces 2025 Adjusted EBITDA margin guidance to 14%-15%

  • Company anticipates renewed growth and margin expansion in 2026

Result Drivers

  • CONTRACT DELAYS - Revenue decline attributed to delays in domestic and international contracts, including ShotSpotter renewal in Puerto Rico and a statewide CrimeTracer booking

  • EXPANSION - Expanded ShotSpotter service to two new cities and one university, and expanded with two existing customers

  • AI AND SAFEPOINTE - Introduced new AI capabilities and saw SafePointe gain traction in healthcare settings

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$25.10 mln

$27.95 mln (7 Analysts)

Q3 Adjusted EPS

Miss

-$0.16

-$0.06 (7 Analysts)

Q3 EPS

-$0.16

Q3 Net Income

-$2.04 mln

Q3 Adjusted EBITDA

$3.48 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for SoundThinking Inc is $20.00, about 58.5% above its November 11 closing price of $8.31

Press Release: ID:nGNXQ73JT

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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