SoundThinking Logs Record $104.1M 2025 Revenue, Lowers 2026 Guidance to $109–$111M
SoundThinking delivered record 2025 revenue of $104.1M, a 2% increase, and secured $1.6M in SafePoint bookings from 11 customers while maintaining a 99% retention rate. It cut 2026 revenue guidance to $109M–$111M and forecasts $3M ARR attrition, partly from ShotSpotter budget challenges.
1. Record 2025 Financial Performance
SoundThinking achieved record full-year revenue of $104.1 million, up 2% from 2024, and maintained a 99% revenue retention rate despite a major contract non-renewal. Adjusted EBITDA declined to $1.3 million from $1.7 million, and GAAP net loss widened slightly to $9.4 million.
2. SafePoint and Service Expansion
The company expanded its ShotSpotter service into 10 new cities and two universities while deepening relationships with 11 existing municipalities. Its SafePoint weapons detection business generated $1.6 million in bookings from 11 customers and is expected to add $4 million in annual recurring revenue in 2026.
3. 2026 Guidance Revision and ARR Attrition
Management trimmed full-year 2026 revenue guidance from a prior range of $114 million–$116 million to $109 million–$111 million, citing delays in expected bookings and deployments. The firm anticipates approximately $3 million in ARR attrition next year, with half to two-thirds stemming from ShotSpotter customers facing budget constraints.
4. Strategic Investments and Deployment Delays
SoundThinking is investing in artificial intelligence initiatives and has added leadership to strengthen sales execution. However, it faces delays in key deployments, including a Crime Tracer rollout in a new state and a ShotSpotter renewal in Puerto Rico.