SoundThinking Cuts 2026 Guidance to $109–111M While Targeting 15% ARR Growth
SoundThinking closed 2025 with $95.4M ARR and delivered Q4 revenue of $24.8M, up 6% year-over-year, driving record full-year revenue of $104.1M (+2%) and $12.6M in adjusted EBITDA. Management cut 2026 revenue guidance to $109–111M and trimmed adjusted EBITDA margin to 16–18%, targeting ~15% net ARR growth to ~$110M by 2027.
1. Q4 and Full-Year 2025 Financial Results
SoundThinking reported Q4 revenue of $24.8M, a 6% increase year-over-year, and record full-year revenue of $104.1M, up 2% from 2024. The company achieved $12.6M in adjusted EBITDA, incurred a GAAP net loss of $9.4M, held $15.8M in cash, and repurchased roughly $3M of shares during 2025.
2. ARR Performance and 2026 Outlook
The company exited 2025 with $95.4M of ARR and expects net ARR growth of approximately 15% ($14.6M) in 2026 after $3.1M of attrition, aiming to reach around $110M ARR by the start of 2027.
3. Product Bookings and Guidance Drivers
Management trimmed 2026 revenue guidance to $109–111M and lowered adjusted EBITDA margin to 16–18% due to delays in CrimeTracer and Puerto Rico bookings and increased AI investment. Key growth drivers include an estimated $8.3M ARR from ShotSpotter, $4M from SafePointe, $1.5M from PlateRanger, and $3.1M from CrimeTracer deployments.
4. Efficiency Review and Investment Initiatives
The board initiated an efficiency review to identify cost-saving measures across the 300+ employee organization while maintaining double-digit adjusted EBITDA margins. The company continues to invest in AI-driven algorithms and multi-product adoption to support long-term growth and operational efficiency.