Revenue: As of FY2026 Q1, the actual value is USD 24.18 M, missing the estimate of USD 24.27 M.EPS: As of FY2026 Q1, the actual value is USD -0.54, missing the estimate of USD -0.2667.EBIT: As of FY2026 Q1, the actual value is USD -7 M.SoundThinking, Inc. operates as a single reportable segment, with the Chief Executive Officer reviewing financial information and allocating resources on a consolidated basis.<h4>Segment Revenue</h4><ul><li>Total Revenues: Total revenues for SoundThinking, Inc. were $24.2 million for the three months ended March 31, 2026, marking a 15% decrease from $28.3 million in the same period of 2025.<ul><li>ShotSpotter Revenue: ShotSpotter revenue constituted approximately 67% of total revenues in Q1 2026, an increase from 58% in Q1 2025.</li><li>Customer Concentration: The City of New York accounted for 27% of total revenues in Q1 2026, which is a decrease from 37% in Q1 2025.</li><li>Geographic Revenue (United States): Revenues generated within the United States (including Puerto Rico and the U.S. Virgin Islands) were $23.4 million in Q1 2026 and $27.6 million in Q1 2025, representing 97% of total revenues for both periods.</li><li>Service Type Revenue: Monthly subscription, maintenance, and support services generated $24.0 million in Q1 2026, compared to $28.0 million in Q1 2025. Professional software development services generated $0.2 million in Q1 2026, compared to $0.3 million in Q1 2025.</li><li>Catch-up Revenue: Catch-up revenue was $0.1 million in Q1 2026, a significant decrease from $3.5 million in Q1 2025, which included two three-year contract renewals with the New York City Police Department.</li></ul></li></ul><h4>Operational Metrics</h4><ul><li>Net Loss: SoundThinking, Inc. reported a net loss of -$7.0 million in Q1 2026, compared to a net loss of -$1.5 million in Q1 2025.</li><li>Gross Profit: Gross profit was $11.3 million in Q1 2026, a -32% decrease from $16.6 million in Q1 2025.</li><li>Gross Margin: Gross margin was 47% in Q1 2026, down from 59% in Q1 2025.</li><li>Operating Loss: Operating loss increased to -$6.9 million in Q1 2026 from -$1.2 million in Q1 2025, representing a 469% increase.</li><li>Operating Margin: Operating margin was -28% in Q1 2026, compared to -4% in Q1 2025.</li><li>Cost of Revenues: Cost of revenues increased by 7% to $12.5 million in Q1 2026 from $11.7 million in Q1 2025.</li><li>Impairment of Property and Equipment: Impairment of property and equipment significantly increased to $0.4 million in Q1 2026 from $37 thousand in Q1 2025, a 1076% increase.</li><li>Sales and Marketing Expense: Sales and marketing expense decreased by -10% to $6.5 million in Q1 2026 from $7.3 million in Q1 2025, primarily due to decreased commission expense related to brokerage services for the NYPD contract.</li><li>Research and Development Expense: Research and development expense increased by 8% to $4.4 million in Q1 2026 from $4.1 million in Q1 2025, driven by increased headcount expense for product innovation and platform enhancements.</li><li>General and Administrative Expense: General and administrative expense increased by 3% to $6.7 million in Q1 2026 from $6.5 million in Q1 2025, mainly due to an increase in legal fees, partially offset by a decrease in stock-based compensation expense.</li><li>Restructuring Expense: A restructuring expense of $0.5 million was incurred in Q1 2026 due to a workforce reduction affecting approximately 15 employees, with no such expense in Q1 2025.</li><li>Net New “Go-Live” Cities and Universities: SoundThinking, Inc. reported -6 net new “go-live” cities and universities in Q1 2026, compared to 4 in Q1 2025, reflecting one new city and one new customer but also customer cancellations.</li></ul><h4>Cash Flow</h4><ul><li>Operating Activities: Net cash provided by operating activities was $0.2 million in Q1 2026, an increase from net cash used in operating activities of -$0.1 million in Q1 2025. This improvement was primarily due to a decrease in accounts receivable collections and prepaid assets, offset by changes in deferred revenue, accrued expenses, and accounts payable.</li><li>Investing Activities: Net cash used in investing activities was -$1.7 million in Q1 2026, compared to -$0.9 million in Q1 2025, primarily driven by investments in property and equipment for customer solutions.</li><li>Financing Activities: Net cash provided by financing activities was $6 thousand in Q1 2026, compared to net cash used of -$0.5 million in Q1 2025, which included stock repurchases.</li></ul><h4>Unique Metrics</h4><ul><li>Deferred Revenue: The ending balance of deferred revenue was $40.4 million as of March 31, 2026, compared to $45.4 million as of March 31, 2025. New billings contributed $19.9 million in Q1 2026, down from $28.8 million in Q1 2025.</li><li>Remaining Performance Obligations: Total remaining performance obligations for contractually committed revenues were $93.1 million as of March 31, 2026.</li><li>Line of Credit: SoundThinking, Inc. had $4.0 million outstanding on its line of credit and $36.0 million of available borrowing capacity under its revolving credit facility as of March 31, 2026.</li><li>Stock Repurchase Program: As of March 31, 2026, $10.5 million remained available under the 2022 Repurchase Program, with no share repurchases during Q1 2026.</li></ul><h4>Future Outlook and Strategy</h4>SoundThinking, Inc. plans to grow its business by increasing its customer base, expanding existing customer coverage, and growing internationally, focusing on market acceptance of outdoor gunshot detection solutions and new security solutions. The company aims to introduce new products like ResourceRouter, CrimeTracer, and SafePointe, and acquire intellectual property, leveraging its installed base of police departments for cross-selling opportunities. Additionally, SoundThinking, Inc. intends to expand into new markets such as healthcare and casinos, while acknowledging challenges in international expansion due to regulatory complexities and longer sales cycles.

SoundThinking | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 24.18 M