Free cash flow has become increasingly erratic, swinging from a $12.4 million surplus in 2024Q3 to a $1.5 million deficit in 2026Q1, reflecting unstable cash generation.
| Cash from Operations | 9.65M | 9.3M | 22.22M | 10.95M | 12.18M | 9.82M | 11.21M | 13.69M | -1.39M | 3.39M | 2.26M | -3.5M |
| Operating CF Margin % | - | 8.93% | 21.78% | 11.81% | 15.04% | 16.89% | 24.51% | 33.6% | -3.99% | 14.25% | 14.55% | -29.71% |
| Operating CF Growth % | 685.99% | -58.15% | 102.9% | -10.12% | 24.05% | -12.37% | -18.13% | 1087.88% | -140.92% | 50.07% | 164.43% | - |
| Net Income | -14.94M | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M | 1.23M | 1.8M | -2.73M | -9.98M | -6.86M | -6.19M |
| Depreciation & Amortization | 9.78M | 9.85M | 10.07M | 10.64M | 9.2M | 6.83M | 5.59M | 4.98M | 3.92M | 3.12M | 2.55M | 2.26M |
| Stock-Based Compensation | 10.52M | 11.45M | 12.13M | 9.98M | 8.28M | 5.87M | 4.46M | 3.06M | 2.47M | 628K | 83K | 137K |
| Deferred Taxes | 9K | -2K | 135K | 541K | 685K | 0 | 0 | -11.88M | 0 | 5M | 551K | 107K |
| Other Non-Cash Items | 1.15M | 1.03M | 251K | -5.47M | -9.23M | 1.35M | 311K | 11.88M | 690K | 132K | 131K | 88K |
| Working Capital Changes | 3.13M | -3.6M | 8.82M | -2.02M | -3.14M | 199K | -375K | 3.85M | -5.74M | 4.49M | 5.8M | 92K |
| Change in Receivables | 7.3M | -3.73M | 5.06M | 619K | -14.53M | -3.21M | 1.95M | 1.38M | -11.22M | -1.52M | 255K | -1.84M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.38M | -1.01M | 1.29M | 959K | 219K |
| Change in Payables | -241K | -318K | 792K | 1.09M | -18K | 354K | -190K | -243K | -346K | 291K | 410K | 69K |
| Cash from Investing | -5.27M | -4.46M | -6.43M | -16.48M | -15.54M | -7.88M | -18.76M | -4.91M | -10.2M | -6.51M | -4.55M | -2.18M |
| Capital Expenditures | -5.27M | -4.45M | -6.33M | -5.05M | -10.91M | -7.84M | -4.06M | -4.91M | -8.49M | -6.51M | -4.55M | -2.18M |
| CapEx % of Revenue | 5.27% | 4.27% | 6.2% | 5.45% | 13.47% | 13.48% | 8.88% | 12.05% | 24.44% | 27.38% | 29.37% | 18.49% |
| Acquisitions | 0 | 0 | 0 | -10.99M | -4.62M | 15K | -14.63M | 0 | -1.71M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | -8K | -105K | -437K | -6K | -59K | -72K | 0 | -48K | -76K | -78K | -25K |
| Cash from Financing | -1.84M | -2.35M | -8.25M | 795K | -1.75M | -2.27M | -956K | 5.48M | 2.44M | 18.75M | 2.01M | 8.65M |
| Debt Issued (Net) | 0 | 0 | -3M | 7M | 0 | 0 | 0 | 0 | 0 | -12M | 2M | 6.94M |
| Equity Issued (Net) | -2.27M | -2.35M | -6M | -5.59M | -3.08M | -3.6M | -1.61M | 4.53M | 0 | 32.43M | 0 | 1.99M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.47M | -2.97M | -6M | -5.59M | -3.08M | -3.6M | -1.61M | -6.72M | 0 | 0 | 0 | 0 |
| Other Financing | 424K | 0 | 753K | -610K | 1.33M | 1.33M | 659K | 953K | 2.44M | -1.68M | 8K | -288K |
| Net Change in Cash | 2.58M | 2.61M | 7.48M | -4.78M | -5.16M | -407K | -8.51M | 14.27M | -9.32M | 15.7M | -259K | 2.96M |
| Free Cash Flow | 4.38M | 4.84M | 15.79M | 5.46M | 1.26M | 1.92M | 7.08M | 8.78M | -9.88M | -3.12M | -2.3M | -5.68M |
| FCF Margin % | 4.38% | 4.65% | 15.47% | 5.89% | 1.56% | 3.31% | 15.48% | 21.55% | -28.42% | -13.13% | -14.81% | -48.2% |
| FCF Growth % | -63.43% | -69.31% | 189.1% | 332.38% | -34.32% | -72.83% | -19.41% | 188.91% | -216.7% | -35.79% | 59.58% | - |
| FCF per Share | 0.34 | 0.38 | 1.24 | 0.44 | 0.10 | 0.17 | 0.60 | 0.74 | -0.93 | -0.50 | -0.36 | -0.89 |
| FCF Conversion (FCF/Net Income) | -0.29x | -0.99x | -2.42x | -4.03x | 1.91x | -2.22x | 9.15x | 7.62x | 0.51x | -0.34x | -0.33x | 0.57x |
| Interest Paid | 214K | 281K | 394K | 151K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -83K | 270K | 737K | 889K | 0 | 0 | 0 | 51K | 79K | 0 | 0 | 0 |
Municipal contract concentration risk
As reported in quarterly financial statements, SoundThinking's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching -0.03 in 2026Q1, suggesting that GAAP losses are not being fully mitigated by non-cash adjustments or efficient working capital management during this period of operational contraction.
The persistent gap between net income and operating cash flow indicates that the company's reported losses are not merely accounting artifacts but reflect genuine cash outflows. Investors should monitor whether this disconnect persists, as it suggests that the underlying business model is struggling to generate cash even before accounting for capital expenditures.
Based on the provided cash flow data, SoundThinking's free cash flow trajectory is highly erratic, swinging from a peak of $12.4 million in 2024Q3 to a deficit of $1.5 million in 2026Q1, which highlights the instability of cash generation within its current municipal-focused business model.
The inability to maintain positive free cash flow suggests that the company's operational scale is insufficient to cover its ongoing infrastructure and labor costs. This volatility may indicate that cash generation is heavily dependent on the timing of municipal contract renewals and implementation milestones rather than consistent operational performance.
According to recent filings, SoundThinking maintains a consistent capital intensity, with CapEx/Revenue ratios fluctuating between 2.7% and 8.4% over the last ten quarters, reflecting the ongoing financial burden of maintaining its proprietary acoustic sensor mesh and associated hardware infrastructure across various municipal jurisdictions.
The necessity of continuous capital investment to support the physical sensor network appears to act as a structural drag on cash flow. This capital intensity warrants further investigation, as it suggests that the company's growth is tethered to expensive physical deployments that may not be yielding sufficient incremental returns.
As evidenced by the quarterly cash flow data, working capital changes have been a primary driver of cash flow volatility, with swings ranging from a $9.4 million inflow in 2024Q3 to a $4.8 million outflow in 2025Q2, indicating significant fluctuations in the timing of municipal collections.
These large swings in working capital suggest that the company's cash position is highly sensitive to the payment cycles of its municipal clients. Such unpredictability makes it difficult to forecast future liquidity and may indicate potential challenges in managing receivables effectively within the public sector procurement environment.
Based on reported financial figures, stock-based compensation has remained a consistent expense, averaging over $2.5 million per quarter, which effectively masks the true extent of the company's cash burn by inflating non-cash expenses and complicating the assessment of operational sustainability for prospective investors.
The reliance on stock-based compensation as a significant component of the expense structure suggests that the company is using equity to preserve cash. This practice may indicate that management is attempting to mitigate the impact of operational losses on the balance sheet, though it ultimately dilutes shareholder value.
Quick answers to the most common questions about buying SSTI stock.
SoundThinking, Inc. (SSTI) generated $9.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SoundThinking, Inc. (SSTI) generated $4.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
SoundThinking, Inc. (SSTI) spent $4.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, SoundThinking, Inc. (SSTI) spent $3.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.