SoundThinking (SSTI) has just closed out FY 2025 with fourth quarter revenue of US$24.8 million and a basic EPS loss of US$0.22, capping a trailing twelve month run of US$104.1 million in revenue and a total EPS loss of US$0.74. Over the past year, the company has reported quarterly revenue between US$24.8 million and US$28.3 million, while quarterly basic EPS has ranged from a loss of US$0.12 to US$0.25. This sets up a results season in which investors may pay less attention to changes in revenue and focus more on how efficiently that revenue is being converted into margins and cash flow.

See our full analysis for SoundThinking.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the stories investors already tell about SoundThinking, and where the fresh data pushes back on those narratives.

Losses Of US$9.4 Million On US$104.1 Million TTM Revenue

• Over the last twelve months, SoundThinking generated US$104.1 million in revenue and reported a net loss of US$9.4 million, with basic EPS of US$0.74 loss.
• Bulls point to expanding use cases and AI driven products as a way to eventually improve these loss figures, but the current numbers still show pressure:
  • The bullish view talks about potential future margin expansion and higher contract values. However, trailing twelve month net income remains at a US$9.4 million loss and EPS loss sits at US$0.74.
  • Analysts in the bullish camp work with revenue growth assumptions above the 5.5% rate seen over the last year, so today’s modest growth and ongoing losses require confidence that future execution will differ from recent history.

Bulls argue that this earnings base could be a springboard if contracts scale and margins improve, yet the current loss profile gives important context before you read their full case in 🐂 SoundThinking Bull Case

5.5% Revenue Growth Versus 10.2% Market Benchmark

• Revenue grew 5.5% over the last year, which trails the 10.2% rate cited for the broader US market, while the latest quarter showed US$24.8 million compared with US$23.4 million in the same quarter a year earlier.
• Bears argue that reliance on municipal budgets and contract timing keeps growth uneven, and the current figures leave room for that cautious view:
  • The 5.5% revenue growth rate is lower than the 10.2% wider market reference. This lines up with concerns about exposure to budget cycles and procurement delays in areas like Chicago and Puerto Rico.
  • With quarterly revenue over the past year ranging between US$24.8 million and US$28.3 million and net income staying negative each time, bears see limited evidence in these numbers that growth is outpacing the pressure from contracts rolling off or taking longer to close.

If you are weighing those revenue trends against the contract risks bears highlight, their full case on funding cycles and competition is laid out in 🐻 SoundThinking Bear Case

Cheap 0.8x P/S Against DCF Fair Value Of US$19.44

• SoundThinking trades on a P/S of 0.8x versus a reported US software peer average of 3.3x, and the DCF fair value cited in the data is US$19.44 compared with a current share price of US$6.35.
• Consensus narrative highlights this gap as a possible opportunity, but the earnings profile in the same data keeps the debate very balanced:
  • On one side, the P/S discount and DCF fair value of US$19.44 both sit well above the current US$6.35 price. This fits the view that the market is heavily discounting the company’s future cash flow potential.
  • On the other side, losses have widened at an annualized 48.1% rate over five years and analysts still expect the company to remain unprofitable over the next three years, so the low multiple is paired with a track record of negative earnings rather than strong profitability.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for SoundThinking on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of risks and potential rewards feels finely balanced, take a closer look at the numbers yourself and move quickly to form your own view, starting with 2 key rewards and 1 important warning sign.

Explore Alternatives

SoundThinking is still reporting losses on US$104.1 million in revenue. Its revenue growth trails the 10.2% market reference, and the P/S discount is accompanied by ongoing negative earnings.

If those risks feel a bit heavy, you can quickly compare them with 75 resilient stocks with low risk scores that focus on more resilient businesses, so you are not relying on a single turnaround story.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.