SoundThinking Cuts FY2026 Guidance: Revenue Down 9%, EBITDA Margin Halved
SSTI is trading near its 52-week low of $5.78 (9.3% above the low).
Summary
SoundThinking missed Q2 expectations and slashed FY2026 revenue and profitability guidance, citing customer non-renewals and a challenging procurement environment.
Updates
· Dow Jones Newswires — The stock dropped 18% after hours to $6.80 following the guidance cut and Q2 miss.
Key Events · Earnings and Guidance · SSTI
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Q2 Revenue Declines 8%
Revenue fell to $23.9 million from $25.9 million a year ago, driven by $2.2 million in non-renewals or delayed renewals and $0.9 million in other reductions.
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Net Loss Widens
GAAP net loss was $4.8 million, or $0.37 per share, compared to a $3.1 million loss, or $0.24 per share, in Q2 2025.
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FY2026 Guidance Slashed
Revenue guidance cut to $99.0-$100.0 million from $109.0-$111.0 million; Adjusted EBITDA margin guidance cut to 8-9% from 16-18%.
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ARR Expectation Reduced
Expected ARR entering 2027 lowered to over $100.0 million from $110.0 million.
Analysis · SSTI · Technology
A significant downward revision reshapes the near-term earnings outlook. SoundThinking reported Q2 revenue down 8% and a wider net loss, then cut full-year revenue guidance by roughly $10 million and Adjusted EBITDA margin guidance from 16-18% to 8-9%. The company cites non-renewals, delayed renewals, and a tougher procurement environment. Cash has fallen to $6.4 million from $15.8 million at year-end, though $36 million remains available on its credit facility.
How filings like this one have moved
In the 30 days to Oct 1, 2026, 36.1% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.56%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SSTI was trading at $6.32 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 filing was assessed with negative market sentiment and an importance score of 8 out of 10.