SoundThinking(US:SSTI) Globenewswireยท2025-08-12 20:05Financial Performance - Company reported second quarter 2025 revenues of $25.9 million, a decrease of 4% year-over-year from $27.0 million in the same quarter of 2024, primarily due to the non-renewal of a contract with the City of Chicago [5][6] - Gross profit for the second quarter of 2025 was $13.8 million, representing 53% of revenues, down from $16.1 million (60% of revenues) in the same period of 2024 [6] - GAAP net loss for the second quarter of 2025 totaled $3.1 million, compared to a net loss of $0.8 million for the same quarter of 2024 [9] - Adjusted EBITDA for the second quarter of 2025 was $3.4 million (13% of revenues), down from $5.1 million (19% of revenues) in the same period last year [10] Revenue Guidance and Outlook - Company reaffirmed its full-year 2025 revenue guidance range of $111.0 million to $113.0 million, indicating a 10% year-over-year growth at the midpoint [1][13] - The expectation for Annual Recurring Revenue (ARR) is to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the beginning of 2026 [1][13] - Management expressed confidence in achieving long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin while growing topline revenue at 15% per year [4][14] Strategic Initiatives - Company is focusing on scaling solutions and managing expenses to build a resilient business, particularly through investments in AI capabilities to enhance product intelligence and automate internal processes [4] - The company went live with ShotSpotter in four new cities and one new university, while also expanding with four existing customers [6] - Management emphasized the importance of client retention and expansion into new verticals as part of their strategy to maintain leadership in the public safety and security technology market [4] Shareholder Actions - Company repurchased 31,570 shares of common stock for approximately $0.5 million as part of an existing share repurchase program [12]