Overview

* SoundThinking ( SSTI ) Q2 revenue falls 4% yr/yr, missing analyst expectations, per LSEG data

* Adjusted EPS and EBITDA for Q2 miss analyst estimates, per LSEG data

* Company reaffirms FY 2025 revenue guidance of $111-113 mln

Outlook

* SoundThinking ( SSTI ) reaffirms FY 2025 revenue guidance of $111 mln to $113 mln

* Company expects ARR to grow from $95.6 mln to $110 mln by 2026

* SoundThinking ( SSTI ) reaffirms FY 2025 Adjusted EBITDA margin of 20% to 22%

Result Drivers

* CHICAGO CONTRACT NON-RENEWAL - Revenue decline primarily due to non-renewal of contract with City of Chicago

* MAINTENANCE COSTS - Increased maintenance costs for existing deployments impacted gross profit

* AI INVESTMENTS - Investments in AI capabilities aimed at enhancing product intelligence and developer productivity

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $25.90 $26.30

Revenue mln mln (7

Analysts

)

Q2 Miss -$0.24 -$0.11

Adjusted (7

EPS Analysts

)

Q2 Net -$3.12

Income mln

Q2 Miss $3.36 $4.41

Adjusted mln mln (6

EBITDA Analysts

)

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 ( SSTI ) is $20.00, about 44.2% above its August 11 closing price of $11.17

Press Release:

(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.)