SoundThinking Inc (NASDAQ:SSTI) Misses Q2 2025 Revenue and EPS Estimates, Reaffirms Full-Year Guidance

SoundThinking Inc (NASDAQ:SSTI) reported its second-quarter 2025 financial results, missing analyst expectations on both revenue and earnings per share (EPS). The company, which provides precision-policing and security solutions, posted revenue of $25.9 million, falling short of the consensus estimate of $26.9 million. Meanwhile, its reported EPS of -$0.24 was significantly below the estimated -$0.13.

Key Financial Highlights vs. Estimates

• Revenue: $25.9M (actual) vs. $26.9M (estimated) – a 3.6% miss
• EPS: -$0.24 (actual) vs. -$0.13 (estimated) – a wider loss than expected
• Full-Year 2025 Revenue Guidance Reaffirmed: $111M–$113M (10% YoY growth at midpoint)
• Annual Recurring Revenue (ARR) Outlook: Expected to rise from $95.6M at the start of 2025 to ~$110M by early 2026

Market Reaction

Following the earnings release, SSTI’s stock saw an after-hours gain of ~2.86%, suggesting a mixed reaction from investors. While the company missed Q2 estimates, the reaffirmation of full-year guidance may have provided some reassurance. However, the stock has struggled in recent weeks, with declines of -8.1% over the past two weeks and -11.5% over the past month, reflecting broader investor caution ahead of earnings.

Press Release Takeaways

• The company maintained its full-year revenue outlook, signaling confidence in its growth trajectory despite the Q2 shortfall.
• ARR growth remains a key focus, with expectations of reaching ~$110M by early 2026, up from $95.6M at the start of 2025.
• SoundThinking’s SafetySmart platform, including ShotSpotter and other policing technologies, continues to be a core driver of its business.

Looking Ahead

Analysts estimate Q3 2025 revenue at $28.4M, with an EPS forecast of -$0.03. For the full year, sales are projected at $113.5M, slightly above the company’s guided range. The discrepancy between Q2’s miss and the reaffirmed outlook suggests that SoundThinking expects stronger performance in the latter half of the year.

For more detailed earnings estimates and historical performance, see SoundThinking’s earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.