Overview

• US public safety tech firm's Q1 revenue fell 15%, missing analyst expectations

• Company attributed lower revenue to absence of prior-year catch-up from delayed New York City Police Department contracts

• Company reaffirmed FY 2026 revenue and adjusted EBITDA margin guidance

Outlook

• SoundThinking reaffirms FY 2026 revenue guidance of $109.0 mln to $111.0 mln

• Company reaffirms FY 2026 adjusted EBITDA margin guidance of 16% to 18%

• SoundThinking expects ARR to rise from $95.4 mln at start of 2026 to $110.0 mln at start of 2027

Result Drivers

• PRIOR-YEAR CATCH-UP REVENUE - Q1 2025 included $3.5 mln in catch-up revenue from delayed NYC contracts, which did not recur in Q1 2026

• CONTRACT NON-RENEWAL - Q1 2025 included $0.5 mln in revenue from a Puerto Rico contract that was not renewed in Q1 2026

• COST PRESSURES - Gross profit margin declined due to lower revenue volume and continued cost pressures servicing contracted customers without prior-year catch-up revenue

Company press release: ID:nGNX61kx0l

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$24.18 mln	$25.12 mln (6 Analysts)
Q1 Net Income		-$7.005 mln
Q1 Adjusted EBITDA		-$95,000

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for SoundThinking Inc is $12.00, about 95.4% above its May 13 closing price of $6.14

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