SoundThinking (SSTI) Reports Q2 Loss, Misses Revenue Estimates

Company Performance - SoundThinking (SSTI) reported a quarterly loss of $0.24 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, marking an earnings surprise of -166.67% [1] - The company posted revenues of $25.89 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.65%, and down from $26.96 million a year ago [2] - Over the last four quarters, SoundThinking has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Outlook - SoundThinking shares have declined approximately 14.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $27.57 million, and for the current fiscal year, it is -$0.28 on revenues of $111.01 million [7] - The estimate revisions trend for SoundThinking was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Security and Safety Services industry, to which SoundThinking belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact SoundThinking's stock performance [5]