Revenue growth has shifted into negative territory with a 14.7% year-over-year decline in 2026Q1, while gross margins have compressed to 46.6% from 60% in 2024Q2.
| Sales/Revenue | 99.96M | 104.13M | 102.03M | 92.72M | 81M | 58.16M | 45.73M | 40.75M | 34.75M | 23.76M | 15.51M | 11.79M |
| Revenue Growth % | -4.78% | 2.05% | 10.05% | 14.46% | 39.29% | 27.16% | 12.23% | 17.26% | 46.25% | 53.24% | 31.52% | - |
| Cost of Goods Sold | 48.65M | 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 | 51.3M | 56.64M | 58.49M | 52.84M | 46.78M | 32.52M | 27.21M | 24.34M | 19.22M | 11.6M | 5.96M | 3.49M |
| Gross Margin % | 51.33% | 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 | 64.96M | 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 | 48.75M | 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 | 16.21M | 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 | -13.65M | -8.54M | -7.86M | -1.24M | 7.75M | -4.07M | 1.29M | 1.59M | -2.57M | -4.33M | -4.97M | -5.52M |
| Operating Margin % | -13.66% | -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 | -6.27M | 1.31M | 2.21M | 9.4M | 16.95M | 2.76M | 6.88M | 6.58M | 1.35M | -1.21M | -2.42M | -3.26M |
| EBITDA Margin % | -6.28% | 1.26% | 2.17% | 10.14% | 20.92% | 4.74% | 15.04% | 16.14% | 3.88% | -5.1% | -15.61% | -27.61% |
| EBITDA Growth % | -281.64% | -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) | 7.38M | 9.85M | 10.07M | 10.64M | 9.2M | 6.83M | 5.59M | 4.98M | 3.92M | 3.12M | 2.55M | 2.26M |
| EBIT | -14.17M | -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 | -95K | -19K | -154K | -48K | 45K | 38K | 113K | 440K | 82K | -1.11M | -1.32M | -643K |
| Interest Income | 0 | 0 | 0 | 0 | 45K | 38K | 113K | 440K | 0 | 0 | 0 | 0 |
| Interest Expense | 95K | 19K | 154K | 48K | 0 | 0 | 0 | 0 | 82K | 1.11M | 1.32M | 643K |
| Other Income/Expense | -1.25M | -772K | -547K | -275K | -195K | -306K | -158K | 162K | -170K | -5.49M | -1.89M | -671K |
| Pretax Income | -14.9M | -9.31M | -8.4M | -1.51M | 7.55M | -4.38M | 1.14M | 1.76M | -2.74M | -9.82M | -6.86M | -6.19M |
| Pretax Margin % | -14.91% | -8.94% | -8.23% | -1.63% | 9.32% | -7.52% | 2.48% | 4.31% | -7.88% | -41.32% | -44.24% | -52.51% |
| Income Tax | 42K | 113K | 778K | 1.2M | 1.17M | 56K | -90K | -41K | -13K | 160K | 0 | 0 |
| Effective Tax Rate % | -0.28% | -1.21% | -9.26% | -79.52% | 15.45% | -1.28% | -7.93% | -2.33% | 0.47% | -1.63% | 0% | 0% |
| 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 |
| Net Margin % | -14.95% | -9.05% | -9% | -2.93% | 7.88% | -7.62% | 2.68% | 4.41% | -7.84% | -42% | -44.24% | -52.51% |
| Net Income Growth % | -92.66% | -2.61% | -237.75% | -142.57% | 244.1% | -461.71% | -31.87% | 165.98% | 72.7% | -45.48% | -10.81% | - |
| Net Income (Continuing) | -14.94M | -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) | -1.16 | -0.74 | -0.72 | -0.22 | 0.52 | -0.38 | 0.10 | 0.15 | -0.26 | -1.61 | -1.08 | -0.97 |
| EPS Growth % | -92.18% | -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 | 12.86M | 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 | 12.86M | 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 | - | - | - | - | - | - | - | - | - | - | - | - |
Municipal contract concentration risk
As reported in recent financial filings, SoundThinking's revenue growth has shifted into negative territory, with a 14.7% year-over-year decline in 2026Q1, signaling that the company's core municipal subscription model is struggling to maintain momentum amidst increasing scrutiny and potential market saturation in key urban jurisdictions.
The transition from consistent growth to contraction suggests that the company's land-and-expand strategy is hitting significant friction within its primary customer base. Investors should monitor whether this decline reflects a permanent loss of pricing power or merely the lumpy nature of municipal contract renewals and implementation delays.
Based on the company's latest income statement data, gross margins have deteriorated to 46.6% in 2026Q1, a notable decline from the 60% levels observed in 2024Q2, indicating that the cost of maintaining the physical sensor network is increasingly outpacing the revenue generated from these deployments.
This margin compression highlights the inherent difficulty in scaling a hardware-intensive service model where field maintenance and labor costs are relatively fixed. The inability to maintain higher margins suggests that the company may be facing rising operational costs that are not being offset by sufficient price increases or software-driven efficiencies.
According to quarterly income statements, SoundThinking's operating margin has plummeted to -26.1% in 2026Q1, demonstrating that the company has failed to achieve the necessary scale to leverage its high fixed-cost base, as SG&A expenses continue to consume a disproportionate share of gross profit.
The persistent negative operating income indicates that the company's current cost structure is not optimized for its existing revenue scale. Without a clear path to reducing the human-in-the-loop labor requirements, the company may continue to struggle with profitability regardless of top-line performance.
As evidenced by the provided financial data, stock-based compensation remains a significant recurring expense, reaching $2.5 million in 2026Q1, which further exacerbates the company's net losses and complicates the assessment of true operational performance for shareholders evaluating the firm's path to GAAP profitability.
The reliance on equity-based incentives in an environment of declining revenue and negative margins warrants caution, as it dilutes existing shareholders while the underlying business struggles to generate cash. Investors should scrutinize whether these compensation levels are aligned with long-term value creation or if they serve as a persistent drag on earnings.
Based on reported figures, the company's shift toward a negative net margin of 29% in 2026Q1 raises fundamental questions regarding the long-term viability of its current municipal-focused model, particularly as high-profile contract disputes threaten to erode the company's primary recurring revenue streams.
Short-sellers would likely focus on the combination of declining revenue and widening losses as evidence that the company's moat is narrowing. The risk of further municipal contract non-renewals could create a negative feedback loop that severely limits the company's ability to fund its ongoing R&D and operational requirements.
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.