SoundThinking Slashes FY26 Guidance, Misses Q2 Estimates
SSTI sits 15% above its 52-week low of $5.78.
Summary
SoundThinking cut full-year revenue guidance to $99-100M from $109-111M and slashed adjusted EBITDA margin outlook to 8-9% from 16-18%, citing customer non-renewals and a tough procurement environment. Q2 revenue fell to $23.9M from $25.9M, missing the $25.8M consensus, and the loss widened to $0.37 per share versus the $0.25 expected. The stock dropped 18% after hours to $6.80. This follows the 8-K filed earlier today and the Q1 10-Q that already showed a 15% revenue decline and material weaknesses. The guidance cut signals deeper customer churn than previously disclosed, and the ARR forecast reduction to >$100M from $110M points to continued contraction into 2027.
At the time of this announcement, SSTI was trading at $6.65 on NASDAQ in the Technology sector, with a market capitalization of approximately $107.1M. The 52-week trading range was $5.78 to $13.34. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.