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Jun 30
ShotSpotter Q2 2025 Earnings Report
ShotSpotter reported a net loss in Q2 2025 as revenue dipped due to the non-renewal of a major city contract, despite new deployments and customer expansions.
Key Takeaways
SoundThinking, Inc. (ShotSpotter) posted $25.89 million in revenue during Q2 2025, a 4% year-over-year decline attributed to the City of Chicago contract non-renewal. The company reported a net loss of $3.12 million and an Adjusted EBITDA of $3.36 million, while expanding to four new cities and one university.
Q2 revenue fell to $25.89 million, down from $26.96 million in Q2 2024 due to contract loss.
Net loss widened to $3.12 million compared to $0.75 million in the prior-year period.
Company went live in 4 new cities and 1 university, and expanded with 4 existing customers.
Adjusted EBITDA totaled $3.36 million; reaffirmed full-year ARR goal of $110 million by 2026.
ShotSpotter
ShotSpotter
Forward Guidance
The company reaffirmed its 2025 revenue guidance of $111–113 million and expects ARR to reach $110 million by the start of 2026, supported by ongoing customer growth and product investments.
Positive Outlook
- Reaffirmed FY2025 revenue guidance of $111–113 million.
- Maintains strong Adjusted EBITDA margin guidance of 20–22%.
- ARR projected to grow from $95.6M to $110M by early 2026.
- Investing in AI to improve platform scalability and product capabilities.
- New sublicensing contract with NYPD expected in Q3 2025.
Challenges Ahead
- Lost $2.8 million in revenue due to Chicago contract termination.
- Gross margin declined to 53% due to additional maintenance and licensing costs.
- Net loss widened significantly YoY.
- Adjusted EBITDA down from $5.1M to $3.36M YoY.
- Some AI-related investments not yet revenue-generating.