SoundThinking(SSTI) - 2025 Q3 - Quarterly Results

Financial Performance - Revenues for Q3 2025 decreased by 4% to $25.1 million, down from $26.3 million in Q3 2024[6] - Gross profit for Q3 2025 was $13.6 million, representing 54% of revenues, compared to $15.2 million or 58% of revenues in Q3 2024[6] - GAAP net loss for Q3 2025 totaled $2.0 million, compared to a net loss of $1.4 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $3.5 million, or 14% of revenues, down from $4.5 million or 17% of revenues in Q3 2024[10] - Revenues for Q3 2025 were $25.1 million, a decrease of 4.4% compared to $26.25 million in Q3 2024[26] - Gross profit for Q3 2025 was $13.634 million, down from $15.217 million in Q3 2024, reflecting a gross margin of 54.2%[26] - Operating loss for Q3 2025 was $2.056 million, compared to a loss of $1.046 million in Q3 2024[26] - Net loss for Q3 2025 was $2.044 million, or $0.16 per share, compared to a net loss of $1.440 million, or $0.11 per share in Q3 2024[26] Guidance and Future Outlook - The company lowered its full-year 2025 revenue guidance from $111.0 million to approximately $104.0 million[13] - Adjusted EBITDA margin guidance for 2025 was also lowered from 20%-22% to 14%-15%[13] - The company expects to deliver accelerated revenue growth and increased profitability in 2026 and beyond[14] - Long-term financial targets include a gross margin of 70% and an Adjusted EBITDA margin of 40%, with a revenue growth target of 15% per year[14] Shareholder Actions - The company repurchased 160,271 shares of common stock for approximately $2.0 million during the quarter[12] Customer and Market Engagement - The company has over 300 customers and has collaborated with approximately 2,100 agencies to enhance public safety outcomes[23] - The company’s SafetySmart platform includes several advanced solutions, such as ShotSpotter and CrimeTracer, aimed at improving law enforcement efficiency[23] Workplace Culture - SoundThinking has been recognized as a Great Place to Work, indicating a positive workplace culture[23] Research and Development - Research and development expenses for Q3 2025 were $4.097 million, an increase from $3.413 million in Q3 2024[26] Assets and Liabilities - Total current assets increased to $46.103 million as of September 30, 2025, up from $43.528 million at the end of 2024[28] - Total liabilities decreased to $60.885 million as of September 30, 2025, from $64.394 million at the end of 2024[28] Customer Satisfaction - The company achieved a Net Promoter Score of approximately 70, up from 66 in the same period last year[6]