SoundThinking Reports Q3 2025 Revenue Decline and Increased Net Loss

SoundThinking, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a decrease in revenue and an increase in net loss compared to the same periods in 2024. For the three months ended September 30, 2025, the company generated revenues of $25.1 million, a 4% decline from $26.3 million in the prior year. The nine-month revenue figures showed a slight increase to $79.3 million from $78.6 million, marking a 1% rise. The net loss for the third quarter was $2.0 million, compared to a loss of $1.4 million in the same quarter of 2024, while the nine-month net loss increased to $6.6 million from $5.1 million.

The company's financial performance was impacted by several factors, including a significant contract with the City of Chicago that was not renewed, which contributed to a revenue drop of approximately $2.8 million in the third quarter. However, new bookings and expansions with existing customers partially offset this decline, contributing $1.7 million in revenue. The cost of revenues increased by 9% for the nine-month period, primarily due to higher IT costs associated with enhancing AI capabilities and maintenance expenses.

Strategically, SoundThinking has focused on expanding its product offerings and customer base. The company introduced its SafetySmart™ platform, which includes several data-driven tools aimed at improving public safety outcomes. As of September 30, 2025, the company had approximately 337 customers and had worked with around 2,100 agencies. The flagship product, ShotSpotter®, was deployed in 178 cities and 22 universities, while the company also expanded its international presence, with revenues from customers in the Bahamas, South Africa, and South America.

Operationally, SoundThinking's employee headcount remained stable, with no significant changes reported during the quarter. The company continues to invest in research and development to enhance its product offerings, particularly in AI and data analytics. Despite the challenges faced, including a complex sales cycle and budget constraints among customers, SoundThinking remains committed to its growth strategy, which includes expanding into new markets and introducing innovative solutions. The company anticipates that revenues from ShotSpotter will continue to represent a significant portion of its overall revenue in the near future.

Looking ahead, SoundThinking aims to leverage its existing customer relationships and expand its product suite to drive future growth. The company is also exploring opportunities in new markets, particularly in response to regulatory changes that mandate enhanced security measures, such as the California AB 2975 legislation requiring automated weapons detection systems in hospitals by 2027. While the company faces challenges, including potential delays in contract approvals and the need for additional capital, it believes that its strategic initiatives will position it for long-term success.