SoundThinking, Inc.

Revenue for Q2 2026 was $23.9 million versus $25.9 million in Q2 2025. GAAP net loss was $4.8 million, or $0.37 per diluted share, versus a GAAP net loss of $3.1 million, or $0.24 per diluted share, a year ago. Adjusted EBITDA was $1.2 million, compared with $3.4 million in the prior-year quarter. Total operating expenses were $16.2 million, down from $16.7 million last year, and operating expenses were reduced by about $1.5 million year over year. The company ended the quarter with $6.4 million in cash and cash equivalents, $24.5 million of accounts receivable and contract assets, approximately $36 million of deferred revenue, $4 million outstanding on its credit facility, and about $36 million of available borrowing capacity. For full-year 2026, management lowered revenue guidance to $99 million-$100 million and adjusted EBITDA margin guidance to 8%-9%. ARR is expected to rise from $95.4 million at the beginning of 2026 to over $100 million entering 2027.

Ralph Clark framed the quarter as a mix of progress and underperformance: the company crossed its operating leverage line, turned profitable on a leaner cost base, and secured major renewals and a Texas statewide CrimeTracer deal, but missed on top-line expectations. He emphasized that the workforce and business optimization actions are structural, with about $4 million of annualized savings expected, and said the company is being more conservative about how it models lumpy go-live timing. He also said ShotSpotter is facing a tougher political and funding environment, and that the team is working to improve sales execution and community engagement.

Alan Stewart said Q2 revenue was $23.9 million and adjusted EBITDA was $1.2 million, helped by lower operating expenses and the benefits of optimization actions. He cited about $900,000 of restructuring-related costs in the quarter, approximately $4 million of annualized savings expected, and about 28 people affected by the workforce changes. He also noted deferred revenue of about $36 million, contractually committed revenue of about $93.1 million, $6.4 million in cash, $4 million drawn on the credit facility, and roughly $36 million of available borrowing capacity. For guidance, he tied the revenue cut mainly to about $3 million from TechnoLogic timing, about $2 million from slower SafePointe deployments, and the exclusion of Puerto Rico, while keeping the expectation that ARR grows above $100 million by early 2027.

Analysts pressed management on whether ShotSpotter’s weaker performance was mostly external or a self-inflicted sales execution issue. Ralph said both were factors, citing funding delays, a canceled Cape Town tender, elongated sales cycles, and some sales hygiene/execution problems, while management also said it was bringing in outside contracting help to improve funding strategies. Questions on SafePointe focused on deployment timing; management said larger enterprise lane rollouts now take longer because of IT, construction, and site-readiness complexity. An activist-related question got a brief response: Ralph said nothing public was being discussed, but leadership is focused on getting the business back to growth and profitability.