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Sep 30
ShotSpotter Q3 2025 Earnings Report
SoundThinking, Inc. reported its third quarter 2025 financial results, with revenues decreasing by 4% year-over-year and a GAAP net loss of $2.0 million.
Key Takeaways
SoundThinking, Inc. experienced a challenging third quarter in 2025, with revenues declining by 4% to $25.1 million, primarily due to contract delays. The company reported a GAAP net loss of $2.0 million and a decrease in Adjusted EBITDA to $3.5 million. Despite these setbacks, the company expanded its ShotSpotter footprint and saw its Net Promoter Score improve, indicating strong customer satisfaction.
Revenues for Q3 2025 decreased by 4% to $25.1 million compared to $26.3 million in Q3 2024, mainly due to contract delays.
The company reported a GAAP net loss of $2.0 million, an increase from a net loss of $1.4 million in the same quarter last year.
Adjusted EBITDA for the quarter was $3.5 million, down from $4.5 million in Q3 2024.
SoundThinking expanded its ShotSpotter presence by going live in two new cities and one new university, and expanded with two existing customers, while also improving its Net Promoter Score to approximately 70.
ShotSpotter
ShotSpotter
Forward Guidance
SoundThinking, Inc. has lowered its full-year 2025 revenue guidance to approximately $104.0 million and its Adjusted EBITDA margin guidance to 14% to 15%, citing contract delays. However, the company anticipates accelerated revenue growth and increased profitability in 2026 and beyond, driven by its transformation into a global, diversified SafetySmart platform company.
Positive Outlook
- Expects accelerated revenue growth in 2026 and beyond.
- Anticipates increased profitability in 2026 and beyond.
- Long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin remain intact.
- Confident in growing top-line revenue at 15% per year in the long term.
- Foresees accelerating adoption of the SafetySmart platform across domestic and international markets.
Challenges Ahead
- Lowered full-year 2025 revenue guidance from $111.0-$113.0 million to approximately $104.0 million.
- Lowered Adjusted EBITDA margin guidance range from 20%-22% to 14%-15% for full-year 2025.
- Near-term revenues were delayed by the timing of domestic contracts.
- An international contract also experienced delays, impacting current quarter revenues.
- The company has not reconciled its Adjusted EBITDA outlook to GAAP net income (loss) due to uncertainty and variability of certain items.