Financial Data and Key Metrics Changes - The company's Q3 2025 revenues were $25.1 million, a 4% decrease from $26.3 million in Q3 2024, primarily due to delays in significant contracts [16][17] - Gross profit was $13.6 million, or 54% of revenue, compared to $15.2 million, or 58% of revenue in the prior year [17] - Adjusted EBITDA was $3.5 million, down from $4.5 million in Q3 2024, with a revised full-year revenue guidance lowered from $111-$113 million to approximately $104 million [15][21] Business Line Data and Key Metrics Changes - The company expanded its ShotSpotter technology into two new cities and one university, but faced challenges in converting demand into bookings [4][5] - SafePoint technology gained momentum due to California's AB 2975 mandate, with multiple pilot programs underway [9] - The upcoming launch of Crime Tracer Gen 3 is expected to enhance the company's offerings significantly [8] Market Data and Key Metrics Changes - The company reported strong customer retention, with a net promoter score (NPS) of plus 70, indicating high customer satisfaction [6] - International expansion efforts showed promise, particularly with deployments in Uruguay and Brazil [4][34] Company Strategy and Development Direction - The company is focusing on realigning its sales organization and improving sales execution to convert a strong pipeline into bookings [5][15] - Strategic initiatives include enhancing AI capabilities and expanding into healthcare security markets [7][9] - The company aims to deepen penetration into existing accounts and expand into mid-sized municipalities [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged temporary setbacks in sales execution but remains optimistic about long-term growth prospects [15][23] - The company expects to see operational improvements in Q4 2025 and into 2026, with a revenue guidance of $114-$116 million for 2026 [21][23] Other Important Information - The company repurchased 160,271 shares at an average price of $12.43, totaling approximately $2 million in Q3 2025 [20] - Deferred revenue as of September 30, 2025, was $43.9 million, consistent with the previous quarter [20] Q&A Session Summary Question: Why is the margin guidance lower for 2026 compared to 2025? - Management indicated that the lower margin guidance is due to conservatism in revenue expectations and potential delays in key contracts [25] Question: What is the expected revenue for Q4 2025? - Management expects Q4 revenue to be relatively flat compared to Q3, with ongoing delays impacting bookings [28] Question: How is the sales cycle for SafePoint compared to ShotSpotter? - The sales cycle for SafePoint is shorter, around 12 months, while ShotSpotter typically takes 12-18 months due to more complex decision-making processes [35] Question: What is the status of the Chicago Gunshot Detection RFP? - Management is optimistic about the RFP process, noting that there is a line item in the mayor's budget for gunshot detection technology [56] Question: Will there be catch-up payments for the Puerto Rico contract? - Management indicated that catch-up payments are unlikely as the service has been turned off, and costs may increase for the renewal [52][53]