Revenue has stalled near $24M per quarter while gross margin compressed from 60.0% to 48.3% and the operating margin deteriorated to -19.5% in 2026Q2, indicating weakening unit economics.
SoundThinking, Inc. (SSTI) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 97.96M | 104.13M | 102.03M | 92.72M | 81M | 58.16M | 45.73M | 40.75M | 34.75M | 23.76M | 15.51M | 11.79M |
| Revenue Growth % | -5.72% | 2.05% | 10.05% | 14.46% | 39.29% | 27.16% | 12.23% | 17.26% | 46.25% | 53.24% | 31.52% | - |
| Cost of Goods Sold | 48.91M | 47.49M | 43.54M | 39.87M | 34.22M | 25.64M | 18.52M | 16.41M | 15.53M | 12.16M | 9.55M | 8.3M |
| COGS % of Revenue | - | 45.61% | 42.68% | 43.01% | 42.24% | 44.08% | 40.51% | 40.27% | 44.69% | 51.18% | 61.58% | 70.43% |
| Gross Profit | 49.04M | 56.64M | 58.49M | 52.84M | 46.78M | 32.52M | 27.21M | 24.34M | 19.22M | 11.6M | 5.96M | 3.49M |
| Gross Margin % | 50.07% | 54.39% | 57.32% | 56.99% | 57.76% | 55.92% | 59.49% | 59.73% | 55.31% | 48.82% | 38.42% | 29.57% |
| Gross Profit Growth % | - | -3.16% | 10.68% | 12.95% | 43.87% | 19.52% | 11.77% | 26.65% | 65.7% | 94.7% | 70.86% | - |
| Operating Expenses | 64.41M | 65.17M | 66.34M | 54.08M | 39.04M | 36.59M | 25.92M | 22.75M | 21.79M | 15.93M | 10.93M | 9.01M |
| OpEx % of Revenue | - | 62.59% | 65.02% | 58.33% | 48.19% | 62.91% | 56.67% | 55.82% | 62.7% | 67.05% | 70.48% | 76.39% |
| Selling, General & Admin | 47.96M | 49.31M | 52.03M | 46.72M | 38.17M | 28.22M | 20.07M | 17.4M | 16.8M | 11.77M | 6.84M | 5.65M |
| SG&A % of Revenue | - | 47.35% | 51% | 50.39% | 47.12% | 48.53% | 43.88% | 42.71% | 48.35% | 49.55% | 44.09% | 47.9% |
| Research & Development | 16.45M | 15.87M | 13.93M | 12.14M | 10.03M | 7.04M | 5.61M | 5.34M | 4.99M | 4.16M | 4.09M | 3.36M |
| R&D % of Revenue | - | 15.24% | 13.65% | 13.09% | 12.38% | 12.1% | 12.28% | 13.11% | 14.35% | 17.5% | 26.39% | 28.49% |
| Other Operating Expenses | 0 | 0 | 387K | -4.77M | -9.15M | 1.33M | 234K | 0 | 0 | 0 | -47K | -28K |
| Operating Income | -15.36M | -8.54M | -7.86M | -1.24M | 7.75M | -4.07M | 1.29M | 1.59M | -2.57M | -4.33M | -4.97M | -5.52M |
| Operating Margin % | -15.68% | -8.2% | -7.7% | -1.34% | 9.56% | -7% | 2.83% | 3.91% | -7.39% | -18.23% | -32.06% | -46.82% |
| Operating Income Growth % | - | -8.66% | -533.98% | -115.99% | 290.39% | -414.69% | -18.93% | 162.11% | 40.73% | 12.85% | 9.93% | - |
| EBITDA | -5.65M | 1.31M | 2.21M | 9.4M | 16.95M | 2.76M | 6.88M | 6.58M | 1.35M | -1.21M | -2.42M | -3.26M |
| EBITDA Margin % | -5.77% | 1.26% | 2.17% | 10.14% | 20.92% | 4.74% | 15.04% | 16.14% | 3.88% | -5.1% | -15.61% | -27.61% |
| EBITDA Growth % | -674.87% | -40.67% | -76.45% | -44.54% | 514.43% | -59.91% | 4.59% | 387.55% | 211.3% | 49.94% | 25.64% | - |
| D&A (Non-Cash Add-back) | 9.71M | 9.85M | 10.07M | 10.64M | 9.2M | 6.83M | 5.59M | 4.98M | 3.92M | 3.12M | 2.55M | 2.26M |
| EBIT | -16.51M | -9.29M | -7.47M | -1.47M | -1.41M | -2.74M | 1.53M | 1.76M | -2.57M | -4.33M | -4.97M | -5.52M |
| Net Interest Income | -71K | -19K | -154K | -48K | 45K | 38K | 113K | 440K | 82K | -1.11M | -1.32M | -643K |
| Interest Income | 4K | 0 | 0 | 0 | 45K | 38K | 113K | 440K | 0 | 0 | 0 | 0 |
| Interest Expense | 75K | 19K | 154K | 48K | 0 | 0 | 0 | 0 | 82K | 1.11M | 1.32M | 643K |
| Other Income/Expense | -1.22M | -772K | -547K | -275K | -195K | -306K | -158K | 162K | -170K | -5.49M | -1.89M | -671K |
| Pretax Income | -16.58M | -9.31M | -8.4M | -1.51M | 7.55M | -4.38M | 1.14M | 1.76M | -2.74M | -9.82M | -6.86M | -6.19M |
| Pretax Margin % | -16.93% | -8.94% | -8.23% | -1.63% | 9.32% | -7.52% | 2.48% | 4.31% | -7.88% | -41.32% | -44.24% | -52.51% |
| Income Tax | -11K | 113K | 778K | 1.2M | 1.17M | 56K | -90K | -41K | -13K | 160K | 0 | 0 |
| Effective Tax Rate % | 0.07% | -1.21% | -9.26% | -79.52% | 15.45% | -1.28% | -7.93% | -2.33% | 0.47% | -1.63% | 0% | 0% |
| Net Income | -16.57M | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M | 1.23M | 1.8M | -2.73M | -9.98M | -6.86M | -6.19M |
| Net Margin % | -16.92% | -9.05% | -9% | -2.93% | 7.88% | -7.62% | 2.68% | 4.41% | -7.84% | -42% | -44.24% | -52.51% |
| Net Income Growth % | -63.71% | -2.61% | -237.75% | -142.57% | 244.1% | -461.71% | -31.87% | 165.98% | 72.7% | -45.48% | -10.81% | - |
| Net Income (Continuing) | -16.57M | -9.42M | -9.18M | -2.72M | 6.38M | -4.43M | 1.23M | 1.8M | -2.73M | -9.98M | -6.86M | -6.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.28 | -0.74 | -0.72 | -0.22 | 0.52 | -0.38 | 0.10 | 0.15 | -0.26 | -1.61 | -1.08 | -0.97 |
| EPS Growth % | -61.25% | -2.78% | -227.27% | -142.31% | 236.84% | -480% | -33.33% | 157.69% | 83.85% | -49.07% | -11.34% | - |
| EPS (Basic) | - | -0.74 | -0.72 | -0.22 | 0.52 | -0.38 | 0.11 | 0.16 | -0.26 | -1.61 | -1.08 | -0.97 |
| Diluted Shares Outstanding | 12.94M | 12.75M | 12.71M | 12.43M | 12.32M | 11.65M | 11.73M | 11.85M | 10.57M | 6.2M | 6.37M | 6.37M |
| Basic Shares Outstanding | 12.94M | 12.75M | 12.71M | 12.35M | 12.17M | 11.65M | 11.41M | 11.3M | 10.48M | 6.2M | 6.37M | 6.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SSTI stock.
For fiscal year 2025, SoundThinking, Inc. (SSTI) reported total revenue of $104.1M. This represents a 783.1% increase compared to $11.8M in 2015.
SoundThinking, Inc. (SSTI) reported a net loss of $9.4M for the fiscal year ending 2025.
SoundThinking, Inc. (SSTI) reported an operating income of $-8.5M, resulting in an operating profit margin of -8.2%. This margin reflects the operational efficiency of the business before interest and taxes.
SoundThinking, Inc. (SSTI) generated $56.6M in gross profit for the year, representing a gross profit margin of 54.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses
Metrics are mathematically derived from official filings.
Revenue Stalled Near Quarterly Ceiling
Based on reported quarterly figures, SSTI's revenue has hovered between $23.4M and $28.3M over ten quarters, with the most recent 2026Q2 print at $23.9M down 7.7% year over year, suggesting growth has stalled.
The revenue series shows no sustained upward trajectory, with the 2025Q1 peak of $28.3M not repeated since. Year-over-year declines in the two most recent quarters point to weakening demand or slower contract renewals, which warrants further investigation. Investors should monitor whether this stagnation reflects a saturated public safety customer base or execution issues in new deployments.
Gross Margin Compression Erodes Unit Economics
According to reported income statements, SSTI's gross margin fell from roughly 60% in 2024Q2 to 48.3% in 2026Q2, a decline of more than 11 percentage points that signals eroding pricing power or rising delivery costs.
COGS has risen modestly in absolute terms while revenue has declined, compressing the gross profit base. The margin trend is more consequential than the absolute level because it reduces the cushion available to absorb fixed operating expenses. This pattern may indicate a shift toward lower-margin hardware or services mix, though the filings alone do not confirm the driver.
Negative Operating Leverage Amplifies Losses
Based on reported figures, SSTI's operating margin has moved from -1.8% in 2024Q2 to -19.5% in 2026Q2 as SG&A stayed near $12-13M per quarter while gross profit contracted, showing negative operating leverage.
SG&A has remained elevated relative to a shrinking gross profit line, so each dollar of revenue decline translates into a larger operating loss. The cost base does not appear to flex with revenue, which suggests limited near-term ability to reach breakeven without either revenue recovery or structural cost reduction. Investors should watch whether SG&A discipline emerges in coming quarters.
Stock Compensation Masks Underlying Cash Costs
As reported in financial statements, SSTI recorded stock-based compensation of $2.4M to $3.8M per quarter, equal to a meaningful share of the operating loss in recent periods and shaping how reported earnings should be interpreted.
Stock-based compensation is a non-cash expense that nonetheless dilutes shareholders and reflects a real economic cost of retaining staff. Net losses have been consistently negative across the period, so the earnings base does not rely on tax or one-time items to appear weaker or stronger. EPS volatility largely tracks operating results rather than distortive non-operating items.
Bear Case Centers on Sustained Losses
Based on the reported ten-quarter record, SSTI has posted an operating loss in every period, and the bear case would argue that the combination of falling gross margins and flat-to-declining revenue leaves no visible path to profitability.
The strongest challenge is that the business has not demonstrated operating profitability at any point in the sample, and recent gross margin compression removes the buffer that would support a turnaround. Short-sellers would likely cite the widening net margin deterioration into 2026 as evidence of structural rather than cyclical pressure. Without evidence of revenue reacceleration or SG&A reduction, the income statement does not yet support a recovery thesis.