SoundThinking's Q3 revenue flat ahead of merger with Transom
SSTI•SoundThinking reported Q3 revenue of $25.01 million, nearly matching the $25.02 million consensus estimate, while its net loss widened to $8.47 million from $2.0 million a year earlier. The company expects to close its Transom acquisition in Q4 2026, subject to customary conditions.
1. Quarterly results
SoundThinking's third-quarter revenue was flat year over year at $25.01 million, slightly below analysts' $25.02 million estimate. Its net loss widened to $8.47 million from $2.0 million a year earlier, while adjusted EBITDA was $2.21 million.
2. Merger outlook
The company expects to close its previously announced acquisition of Transom in Q4 2026, subject to customary conditions. SoundThinking said it will not provide forward-looking guidance because of the pending acquisition and does not expect to provide guidance for future quarters.
3. Revenue and costs
SoundThinking said revenue declined mainly because multiple customers did not renew contracts or delayed renewals. New bookings, expansions with existing customers and catch-up revenue partly offset the decline. Operating expenses increased due to acquisition-related costs and higher sales and marketing expenses.
