Highlights 

  • Q3 2025 revenue fell 4% year-over-year to USD 25.1 million. 
  • Adjusted EBITDA declined to USD 3.5 million from USD 4.5 million in Q3 2024. 
  • FY2025 revenue outlook revised downward to approximately USD 104 million. 

SoundThinking, Inc. (Nasdaq:SSTI), a public safety technology provider, released its financial results for the third quarter ended September 30, 2025. 

Revenuefor Q3 2025 totaled USD 25.1 million, a 4% decrease from USD 26.3 million in Q3 2024. The decline was primarily due to contract timing, including delays in several domestic and international agreements and the absence of a renewal in Puerto Rico. 

Gross profitcame in at USD 13.6 million, representing 54% of total revenue, compared to USD 15.2 million or 58% a year earlier.Operating expenseswere USD 15.7 million, in line with USD 16.3 million reported in Q3 2024, as the company continued to invest in AI-driven modeling and product enhancements. 

The company recorded a net loss of USD 2.0 million, or USD 0.16 per basic and diluted share, versus a net loss of USD 1.4 million, or USD 0.11 per share, in the same quarter last year. Adjusted EBITDA stood at USD 3.5 million, down from USD 4.5 million in Q3 2024. 

As of quarter-end, SoundThinking held USD 11.8 million in cash and cash equivalents, USD 28.5 million in accounts receivable and contract assets, USD 43.9 million in deferred revenue, and USD 4.0 million in outstanding debt. The company also reported approximately USD 36.0 million in available credit. During the quarter, SoundThinking repurchased 160,271 shares of common stock for approximately USD 2.0 million. 

Management Commentary 

“We continue to advance our mission of helping communities become safer and more resilient through data and technology,” said Ralph Clark, President and CEO. “In Q3 we expanded our ShotSpotter footprint, introduced new AI capabilities with our CrimeTracer Gen3 beta release, and saw SafePointe gain traction in healthcare settings following California’s AB 2975 mandate. Our Net Promoter Score climbed from 66 to approximately 70—firmly within the world-class category—highlighting the deep trust and satisfaction that drive our exceptional customer retention and recurring revenue base.” 

Financial Outlook 

SoundThinking has revised its FY2025 revenue forecast to approximately USD 104.0 million and lowered its AdjustedEBITDAmargin expectations to a range of 14%–15%. 

Clark stated, “We expect to deliver accelerated revenue growth and increased profitability in 2026 and beyond. Our transformation from a domestic ShotSpotter business to a global, diversified SafetySmart platform company is making substantial progress. Our long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin, while growing topline revenue at 15% per year, are intact as we remain confident in the enduring success of ShotSpotter and accelerating adoption of our broader SafetySmart platform across domestic and international markets.”