SoundThinking, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - SoundThinking, Inc. reported a record revenue of $104.1 million for the full year 2025, marking a 2% increase from $102.0 million in 2024 [1][12] - The company updated its revenue guidance for 2026 to a range of $109.0 million to $111.0 million, indicating a projected 6% year-over-year growth at the midpoint [1][14] - Adjusted EBITDA margin guidance for 2026 was revised to a range of 16% to 18% [1][14] Full Year 2025 Financial Highlights - Total revenues for 2025 were $104.1 million, up 2% from $102.0 million in 2024, primarily driven by new and expanding customer subscriptions [12] - Gross profit decreased by 2% to $56.6 million, representing 54% of revenues, compared to 57% in 2024 [12] - The net loss for 2025 was $9.4 million, slightly higher than the $9.2 million loss in 2024 [13] - Adjusted EBITDA for 2025 totaled $12.6 million, down from $14.4 million in 2024 [13] Fourth Quarter 2025 Financial Highlights - Revenues for Q4 2025 were $24.8 million, a 6% increase from $23.4 million in Q4 2024 [7][9] - Gross profit for Q4 2025 was $12.6 million, accounting for 51% of revenues, compared to 50% in Q4 2024 [7][9] - The net loss for Q4 2025 was $2.8 million, an improvement from a $4.1 million loss in Q4 2024 [10] - Adjusted EBITDA for Q4 2025 was $1.3 million, down from $1.7 million in the same period last year [11] Operational Developments - The company went "live" with ShotSpotter in 1 new city and expanded in 4 existing customer locations during Q4 2025 [7] - For the full year, SoundThinking launched ShotSpotter in 10 new cities and 2 universities, along with 11 expansions with current customers [7] - The annual recurring revenue (ARR) at the start of 2026 was $95.4 million, with a revenue retention rate of 99% [7][12] Strategic Outlook - The company aims to enhance its customer base and improve operating leverage through increased investments in innovation and AI capabilities [6][8] - Management expressed confidence in the ability to drive growth, reduce costs, and deliver value to customers and shareholders [8]