SoundThinking Reports 8% Revenue Decline and Increased Net Loss in Q2 2026

SoundThinking, Inc. reported a decline in financial performance for the second quarter of 2026, with revenues of $23.9 million, down 8% from $25.9 million in the same period last year. For the first half of 2026, revenues totaled $48.1 million, an 11% decrease from $54.2 million in the first half of 2025. The company attributed this decline primarily to non-renewals and delays in contract renewals with multiple customers, which accounted for approximately $2.7 million in lost revenue. The City of New York remained the largest customer, contributing 27% of total revenues for both the second quarter and the first half of 2026.

The company's net loss for the second quarter was $4.8 million, compared to a loss of $3.1 million in the same quarter of 2025. For the first half of 2026, the net loss increased to $11.8 million from $4.6 million in the prior year. The increase in losses was attributed to higher operating expenses, including a restructuring charge of $0.5 million related to a workforce reduction aimed at optimizing resource allocation. Total operating expenses for the second quarter were $16.2 million, slightly down from $16.7 million in the previous year, while the first half saw a marginal decrease to $34.3 million from $34.5 million.

In terms of operational metrics, SoundThinking had approximately 314 customers as of June 30, 2026, and had deployed its flagship product, ShotSpotter, across 171 cities and 21 universities. The company also reported a total of 365 SafePointe lanes under contract. However, the net new "go-live" cities and universities were limited to one in the second quarter, reflecting challenges in customer retention and expansion. The company continues to focus on enhancing its product offerings, including the introduction of CrimeTracer and SafePointe, which are expected to contribute to future growth.

Looking ahead, SoundThinking aims to expand its customer base and enhance the coverage of its solutions, particularly in international markets. The company is investing in research and development to improve its product offerings and is exploring strategic partnerships to facilitate growth. However, challenges remain, including the complexity of government contracting processes and potential budget constraints faced by customers. The company believes that its existing cash reserves, along with available credit facilities, will be sufficient to meet its operational needs for the next 12 months, although it may seek additional capital to support future growth initiatives.