Q1 2026 SoundThinking Inc Earnings Call Transcript
Key Points
- SoundThinking Inc (SSTI) reaffirmed its full-year revenue guidance of $109 million to $111 million, indicating confidence in achieving approximately 6% year-over-year growth.
- The company reported strong customer retention and renewal performance, with a notable renewal in Cleveland, highlighting the effectiveness of their ShotSpotter technology.
- SoundThinking Inc (SSTI) is seeing significant traction with its SafePoint platform, with monthly recurring revenue more than doubling from January to March 2026.
- The company is expanding its international presence, with deployments in Montevideo, Uruguay, and Nidaroy, Brazil, serving as proof points for broader Latin American expansion.
- SoundThinking Inc (SSTI) launched SafetySmart Field Agent, an AI-powered user experience, which is in beta with more than a dozen agencies, enhancing the value of their integrated SafetySmart platform.
- Q1 revenue of $24.2 million was lower compared to $28.3 million in the first quarter of 2025, partly due to non-renewal of a Puerto Rico contract and absence of prior-year catch-up revenues.
- The company reported a negative adjusted EBITDA of approximately $100,000 for Q1 2026, compared to a positive $4.5 million in the same period last year.
- SoundThinking Inc (SSTI) is experiencing increased costs related to ongoing product development, particularly in the SafePoint platform, which is generating over $8 million in annualized losses.
- Gross profit margin decreased to 47% from 59% in the prior year period, reflecting continued costs without the benefit of prior-year catch-up revenue.
- The company anticipates higher attrition rates due to budget constraints and the expiration of ARPA funds, which could impact future renewals.
Good afternoon, and welcome to Sound Thinking's first quarter 2026 earnings conference call.
My name is LaTonya, and I'll be your operator for today's call.
Joining us are Sound Thinking CEO, Ralph Clark, and CFO, Alan Stewart. Please note that certain information discussed on the call today will include forward-looking statements for our future events and Sound Thinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions, are subject to risks, uncertainties, and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements.
Certain of these risks and uncertainties and assumptions are discussed in Sound Thinking's SEC filings, including its most recent annual report on Form 10-K and other SEC filings.
These forward-looking statements reflect management's beliefs, estimates, and predictions as of today's live broadcast, May 14, 2026, and sound thinking undertakes no obligation to revise or update any forward-looking
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