ShotSpotter, Inc. Aktienkurs
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📘 Marktkapitalisierung
📈 Was ist das?
Die Marktkapitalisierung zeigt, wie viel ein Unternehmen laut Börse aktuell wert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft Unternehmen in Größenklassen (Large, Mid, Small Cap) einzuordnen und gibt Hinweise auf Marktmacht und Stabilität.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Große Unternehmen gelten als stabiler, zahlen oft Dividenden, wachsen aber langsamer.
- Kleine Firmen können stärker wachsen, sind aber schwankungsanfälliger.
- Die Marktkapitalisierung ist ein guter Indikator für Unternehmensgröße, aber kein Maß für Unter- oder Überbewertung.
📘 Enterprise Value (Unternehmenswert)
📈 Was ist das?
Der Enterprise Value (EV) zeigt, was ein Unternehmen tatsächlich kostet, wenn man es komplett übernehmen würde – inklusive Schulden und abzüglich Cash.
🧮 Wie wird es berechnet?
(= Marktkapitalisierung + Nettoverschuldung)
🏛️ Wofür ist es wichtig?
Der EV ist eine realistischere Bewertungsbasis als die Marktkapitalisierung, da er die Kapitalstruktur berücksichtigt. Er ist Grundlage für Kennzahlen wie EV/FCF oder EV/Sales.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Der Enterprise Value zeigt, was ein Unternehmen tatsächlich wert ist – unabhängig davon, wie es finanziert ist.
- Er ist besonders wichtig für professionelle Investoren, da er eine objektivere Grundlage für Bewertungsvergleiche bietet als die Marktkapitalisierung allein.
- Ein Unternehmen mit hoher Verschuldung erscheint im EV teurer, eines mit viel Cash günstiger – auch wenn sie an der Börse gleich viel wert sind.
📘 Nettoverschuldung
📈 Was ist das?
Die Nettoverschuldung zeigt, wie viele Schulden nach Abzug des verfügbaren Cashs tatsächlich verbleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie zeigt, wie stark ein Unternehmen von Fremdkapital abhängig ist – und wie gut es in der Lage ist, seine Schulden kurzfristig zu bedienen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine niedrige oder negative Nettoverschuldung bedeutet hohe finanzielle Stabilität.
- Unternehmen mit viel Cash und geringer Verschuldung sind besser gerüstet für Krisen.
- Eine hohe Nettoverschuldung erhöht das Risiko – besonders bei steigenden Zinsen oder konjunkturellen Schwächen.
📘 Cash
📈 Was ist das?
Der Cashbestand zeigt, wie viele liquide Mittel einem Unternehmen sofort zur Verfügung stehen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Er gibt Auskunft über die finanzielle Flexibilität: Ein hoher Cashbestand ermöglicht Investitionen, Rückkäufe oder Krisenresistenz.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Cashbestand zeigt finanzielle Stärke und Handlungsspielraum.
- Cash kann für Investitionen, Schuldentilgung oder Aktienrückkäufe genutzt werden.
- Allerdings: Zu viel ungenutztes Kapital kann auch auf mangelnde Investitionsideen hinweisen.
📘 Anzahl ausstehender Aktien
📈 Was ist das?
Die Anzahl ausstehender Aktien gibt an, wie viele Aktien eines Unternehmens aktuell im Umlauf sind und von Investoren gehalten werden.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie ist die Grundlage für viele Kennzahlen wie Gewinn je Aktie (EPS), Marktkapitalisierung oder KGV.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Je weniger Aktien im Umlauf sind, desto höher fällt z. B. der Gewinn je Aktie aus – wichtig für Bewertung und Dividendenrendite.
- Aktienrückkäufe verringern die Anzahl ausstehender Aktien – und steigern den Wert je Aktie.
- Kapitalerhöhungen haben den gegenteiligen Effekt: mehr Aktien → Verwässerung der bestehenden Anteile.
📘 Kurs-Gewinn-Verhältnis (KGV)
📈 Was ist das?
Das KGV zeigt, wie oft der Gewinn pro Aktie im aktuellen Aktienkurs enthalten ist – also wie „teuer“ eine Aktie im Verhältnis zum Gewinn ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KGV gehört zu den bekanntesten Bewertungskennzahlen. Es hilft Anlegern einzuschätzen, ob eine Aktie im Vergleich zu ihrem Gewinn eher günstig oder teuer erscheint.
🧮 Berechnung
📊 KGV (TTM) = bezogen auf den Gewinn der letzten 12 Monate (Trailing Twelve Months):🎯 Was bedeutet das für Anleger?
- Ein niedriges KGV kann auf eine günstige Bewertung hindeuten – oder auf Probleme im Geschäftsmodell.
- Ein hohes KGV kann Wachstumserwartungen widerspiegeln – oder eine überbewertete Aktie.
📘 Kurs-Umsatz-Verhältnis (KUV)
📈 Was ist das?
Das KUV zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen – unabhängig vom Gewinn.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KUV ist besonders bei wachstumsstarken oder noch nicht profitablen Unternehmen hilfreich. Es zeigt, wie hoch der Umsatz an der Börse bewertet wird.
🧮 Berechnung
Marktkapitalisierung = 72,01 Mio. $ | Umsatz (TTM) = 97,96 Mio. $
Marktkapitalisierung = 72,01 Mio. $ | Umsatz erwartet = 101,36 Mio. $
🎯 Was bedeutet das für Anleger?
- Ein niedriges KUV kann auf Unterbewertung hindeuten – oder auf schwache Margen.
- Ein hohes KUV kann hohe Erwartungen widerspiegeln – oder übermäßigen Optimismus.
- Besonders sinnvoll bei Wachstumsunternehmen, bei denen der Gewinn oder Free Cashflow (noch) keine Aussagekraft hat.
📘 Unternehmenswert zu Umsatz (EV/Sales)
📈 Was ist das?
EV/Sales zeigt, wie viel Anleger für 1 € Umsatz eines Unternehmens zahlen, wenn man auch Schulden und Cash berücksichtigt – es ist eine kapitalstrukturbereinigte Version des KUV.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl eignet sich besonders für den Vergleich von Unternehmen mit unterschiedlicher Verschuldung – sie zeigt, wie teuer ein Unternehmen tatsächlich im Verhältnis zum Umsatz ist.
🧮 Berechnung
Enterprise Value = 69,53 Mio. $ | Umsatz (TTM) = 97,96 Mio. $
Enterprise Value = 69,53 Mio. $ | Umsatz erwartet = 101,36 Mio. $
🎯 Was bedeutet das für Anleger?
- EV/Sales ist neutral gegenüber der Kapitalstruktur und eignet sich gut für Unternehmensvergleiche.
- Ein niedriges Verhältnis kann auf eine günstig bewertete Aktie hindeuten – ein hohes Verhältnis auf hohe Erwartungen oder Überbewertung.
- Besonders nützlich bei wachstumsstarken, noch nicht profitablen Firmen.
📘 Unternehmenswert zu Free Cashflow (EV/FCF)
📈 Was ist das?
EV/FCF zeigt, wie viele Jahre es dauern würde, bis ein Unternehmen seinen Unternehmenswert durch freien Cashflow „zurückverdient”.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Unternehmen auf Basis ihrer tatsächlichen Cash-Erträge zu bewerten – unabhängig von Bilanzierungsregeln oder buchhalterischem Gewinn.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriges EV/FCF deutet auf eine günstige Bewertung bei starker Cashgenerierung hin.
- Ein hohes EV/FCF kann entweder auf Optimismus oder auf temporär schwachen Cashflow hindeuten.
- Besonders hilfreich bei reifen, profitablen Unternehmen mit stabilen Cashflows.
📘 Kurs-Buchwert-Verhältnis (KBV)
📈 Was ist das?
Das KBV zeigt, wie hoch der Marktwert eines Unternehmens im Verhältnis zu seinem bilanziellen Eigenkapital ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Das KBV ist besonders bei Substanzwerten (z. B. Banken, Industrie) relevant. Es hilft Anlegern zu erkennen, ob ein Unternehmen unter oder über seinem buchhalterischen Vermögen bewertet ist.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein KBV unter 1 kann auf Unterbewertung oder schwache Rentabilität hindeuten.
- Ein KBV über 1 zeigt, dass der Markt dem Unternehmen Mehrwert über den Buchwert hinaus zuschreibt (z. B. Marken, Patente, Wachstum).
- Das KBV eignet sich besonders gut für Unternehmen mit stabilen, materiellen Vermögenswerten.
📘 Eigenkapitalquote
📈 Was ist das?
Die Eigenkapitalquote zeigt, wie hoch der Anteil des Eigenkapitals an der Bilanzsumme eines Unternehmens ist – also wie stark es sich aus eigenen Mitteln finanziert.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Eine hohe Eigenkapitalquote steht für finanzielle Stabilität, Krisenfestigkeit und gute Bonität. Sie ist besonders relevant bei der Beurteilung der Verschuldung.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalquote signalisiert finanzielle Stabilität – besonders in Krisenzeiten.
- Ein niedriger Wert kann auf ein höheres Risiko oder eine aggressive Verschuldung hinweisen.
- Wichtig: Die Eigenkapitalquote sollte immer gemeinsam mit der Eigenkapitalrendite betrachtet werden. Nur so lässt sich beurteilen, ob ein Unternehmen nicht nur solide, sondern auch effizient wirtschaftet.
📘 Eigenkapitalrendite (ROE)
📈 Was ist das?
Die Eigenkapitalrendite zeigt, wie effizient ein Unternehmen mit dem Kapital seiner Aktionäre arbeitet – also wie viel Gewinn es pro Euro Eigenkapital erwirtschaftet.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Eigenkapitalrendite ist eine zentrale Rentabilitätskennzahl. Sie hilft Anlegern zu erkennen, ob das Unternehmen eine attraktive Verzinsung auf das eingesetzte Eigenkapital erwirtschaftet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Eigenkapitalrendite spricht für ein starkes, effizientes Geschäftsmodell.
- Besonders interessant ist sie bei kapitalintensiven Firmen oder solchen mit hoher Eigenkapitalquote.
- Wichtig: Ein sehr hoher ROE kann auch auf hohe Schulden hinweisen – daher sollte sie immer im Kontext mit der Eigenkapitalquote betrachtet werden.
📘 Return on Capital Employed (ROCE)
📈 Was ist das?
ROCE misst die Gesamtrentabilität eines Unternehmens – also wie effizient es das eingesetzte Kapital (Eigen- und Fremdkapital) zur Gewinnerzielung nutzt.
🧮 Wie wird es berechnet?
Das eingesetzte Kapital ist das gesamte betriebsnotwendige Kapital, unabhängig von der Finanzierungsquelle.
🏛️ Wofür ist es wichtig?
ROCE eignet sich besonders gut für den Vergleich unterschiedlich finanzierter Unternehmen. Es zeigt, wie effektiv ein Unternehmen Kapital investiert – unabhängig von der Kapitalstruktur.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher ROCE zeigt, dass ein Unternehmen sein Kapital effizient einsetzt – unabhängig davon, ob es durch Eigen- oder Fremdkapital finanziert ist.
- Je höher der ROCE im Vergleich zu ähnlichen Unternehmen, desto mehr Wert schafft das Unternehmen mit seinem investierten Kapital.
- Besonders wichtig ist der ROCE bei Firmen mit hohen Investitionen – z. B. in Industrie, Energie oder Infrastruktur.
📘 Return on Invested Capital (ROIC)
📈 Was ist das?
ROIC zeigt, wie effizient ein Unternehmen das Kapital investiert, das langfristig im operativen Geschäft gebunden ist – unabhängig davon, ob es aus Eigen- oder Fremdkapital stammt.
🧮 Wie wird es berechnet?
- NOPAT = „Net Operating Profit After Taxes“
- Investiertes Kapital = operatives Vermögen abzüglich nicht-verzinster Schulden
🏛️ Wofür ist es wichtig?
ROIC ist eine der präzisesten Kennzahlen zur Bewertung der Kapitalrendite – besonders im Vergleich zur Eigenkapitalrendite, weil es Verzerrungen durch Schulden vermeidet. Er zeigt, ob ein Unternehmen Mehrwert für alle Kapitalgeber schafft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher ROIC zeigt, wie gut ein Unternehmen mit dem tatsächlich investierten (betriebsnotwendigen) Kapital wirtschaftet.
- Im Unterschied zu ROCE wird nur Kapital betrachtet, das wirklich zur Finanzierung operativer Aktivitäten dient – und verzinst werden muss.
- Besonders hilfreich, um die Kapitalrendite von Unternehmen mit viel „überschüssigem“ Kapital oder zinsfreien Verbindlichkeiten realistisch zu vergleichen.
📘 Verschuldungsgrad (Leverage Ratio)
📈 Was ist das?
Der Verschuldungsgrad zeigt, wie stark ein Unternehmen durch verzinsliche Schulden (z. B. Kredite und Anleihen) im Verhältnis zum Eigenkapital finanziert ist.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Kennzahl hilft, das finanzielle Risiko und die Abhängigkeit von Fremdkapital zu beurteilen. Ein hoher Verschuldungsgrad kann die Eigenkapitalrendite steigern – birgt aber auch erhöhte Risiken bei Zinsanstiegen oder Liquiditätsengpässen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Verschuldungsgrad steht für finanzielle Stabilität und Unabhängigkeit.
- Ein hoher Wert kann auf erhöhte Risiken hinweisen – insbesondere bei schwankenden Zinsen oder konjunkturellen Schwächen.
- Wichtig: Immer im Kontext zur Branche und Kapitalintensität bewerten.
📘 Umsatz
📈 Was ist das?
Der Umsatz zeigt, wie viel ein Unternehmen insgesamt mit seinen Produkten und Dienstleistungen verdient – also den Bruttoerlös vor Abzug von Kosten.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Umsatz ist eine der zentralen Kennzahlen zur Einschätzung der Unternehmensgröße, Marktstellung und Wachstumskraft.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein wachsender Umsatz zeigt eine steigende Nachfrage und kann ein guter Frühindikator für Gewinnsteigerungen sein.
- Vergleiche von aktuellem und erwartetem Umsatz geben Hinweise auf das Marktumfeld und Analystenerwartungen.
- Wichtig: Starker Umsatz allein genügt nicht – auch Margen und Profitabilität zählen.
📘 EBITDA
📈 Was ist das?
EBITDA steht für „Earnings Before Interest, Taxes, Depreciation and Amortization“ – also Gewinn vor Zinsen, Steuern und Abschreibungen. Es zeigt das operative Ergebnis eines Unternehmens, bereinigt um bilanztechnische und finanzierungsbedingte Effekte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBITDA ist eine verbreitete Kennzahl zur Beurteilung der operativen Leistungsfähigkeit – insbesondere bei kapitalintensiven Unternehmen oder im internationalen Vergleich.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes oder wachsendes EBITDA spricht für starke operative Erträge – unabhängig von Bilanzierung oder Steuerlast.
- EBITDA ist besonders nützlich, um Unternehmen branchenübergreifend zu vergleichen.
- Wichtig: EBITDA ist keine offizielle Gewinnkennzahl – Abschreibungen und Finanzierungskosten werden ausgeklammert.
📘 EBIT
📈 Was ist das?
EBIT steht für „Earnings Before Interest and Taxes“ – also Gewinn vor Zinsen und Steuern. Es zeigt das operative Ergebnis eines Unternehmens nach Abschreibungen, aber vor Finanzierungs- und Steueraufwand.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
EBIT ist eine zentrale Kennzahl zur Beurteilung der Profitabilität aus dem Kerngeschäft – unabhängig von Kapitalstruktur oder Steuersystem.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hohes EBIT deutet auf ein profitables Kerngeschäft hin – vor Zinslasten oder steuerlichen Effekten.
- Es erlaubt objektivere Vergleiche zwischen Unternehmen mit unterschiedlicher Finanzierung.
- Im Vergleich mit EBITDA zeigt EBIT bereits den Einfluss von Abschreibungen auf das operative Ergebnis.
📘 Nettogewinn
📈 Was ist das?
Der Nettogewinn ist der verbleibende Jahresüberschuss (oder -fehlbetrag) eines Unternehmens – nach Abzug aller Kosten, Steuern, Zinsen und Abschreibungen
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der Nettogewinn ist die zentrale Erfolgskennzahl – er zeigt, wie profitabel ein Unternehmen nach allen Kosten tatsächlich arbeitet.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein steigender Nettogewinn zeigt, dass das Unternehmen effizient wirtschaftet – trotz aller Kosten.
- Die Entwicklung des Gewinns beeinflusst z. B. direkt das KGV und weitere Kennzahlen.
- Im Zeitverlauf lässt sich ablesen, wie stabil und profitabel ein Geschäftsmodell wirklich ist.
📘 Free Cashflow (FCF)
📈 Was ist das?
Der Free Cashflow gibt Aufschluss über die echte finanzielle Stärke eines Unternehmens – unabhängig von Bilanzierungsregeln. Er zeigt, wie viel Spielraum für Dividenden, Aktienrückkäufe oder Schuldenabbau besteht.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow bedeutet, dass ein Unternehmen echte Finanzkraft besitzt – unabhängig vom bilanzierten Gewinn.
- Er ist oft die solideste Grundlage für nachhaltige Dividenden und Aktienrückkäufe.
- Sinkender FCF kann ein Warnsignal sein – auch wenn der Gewinn stabil aussieht.
📘 Umsatzwachstum
📈 Was ist das?
Das Umsatzwachstum zeigt, wie stark sich die Erlöse eines Unternehmens im Vergleich zum Vorjahr verändert haben – tatsächlich (TTM) und auf Prognosebasis (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (Umsatz erwartet ÷ Umsatz Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein wachsender Umsatz ist ein zentrales Signal für steigende Nachfrage, Geschäftsausweitung und Marktanteilsgewinne – besonders bei Wachstumsunternehmen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachstum ist der Motor langfristiger Wertsteigerung – besonders bei Technologie- und Wachstumsaktien.
- Wichtig ist nicht nur das aktuelle Wachstum, sondern auch dessen Nachhaltigkeit.
- Prognosen zeigen, ob Analysten weiteres Potenzial erwarten – oder eine Verlangsamung.
📘 EBITDA-Wachstum
📈 Was ist das?
Das EBITDA-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens vor Zinsen, Steuern und Abschreibungen im Vergleich zum Vorjahr gestiegen oder gesunken ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBITDA ÷ EBITDA Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Ein steigendes EBITDA ist ein Zeichen für verbesserte operative Ertragskraft – unabhängig von Finanzierungsstruktur oder Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Starkes EBITDA-Wachstum signalisiert operative Effizienz und Skalierung – besonders relevant in Wachstumsphasen.
- EBITDA-Wachstum ist ein Frühindikator für Margen- und Gewinnentwicklung – sollte aber stets im Zusammenhang mit Umsatz und EBIT betrachtet werden.
📘 EBIT Wachstum
📈 Was ist das?
Das EBIT-Wachstum zeigt, wie stark das operative Ergebnis eines Unternehmens (nach Abschreibungen, aber vor Zinsen und Steuern) im Vergleich zum Vorjahr gewachsen ist.
🧮 Wie wird es berechnet?
Erwartet = (erwartetes EBIT ÷ EBIT Vorjahr − 1) × 100
Erwartetes Wachstum basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Das EBIT-Wachstum ist ein direkter Indikator für die wirtschaftliche Entwicklung des operativen Geschäfts – unter Berücksichtigung der Kapitalintensität (Abschreibungen).
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Steigendes EBIT signalisiert wachsende operative Rentabilität – auch unter Berücksichtigung von Abschreibungen.
- Das EBIT-Wachstum ist ein wichtiges Maß zur Beurteilung von Geschäftsmodellen mit hohen Investitionskosten.
- Im Zusammenspiel mit Umsatz- und EBITDA-Wachstum ergibt sich ein umfassendes Bild zur operativen Entwicklung.
📘 Nettogewinn-Wachstum
📈 Was ist das?
Das Nettogewinn-Wachstum zeigt, wie stark der Jahresüberschuss eines Unternehmens gegenüber dem Vorjahr gestiegen oder gesunken ist – sowohl tatsächlich (TTM) als auch auf Basis von Prognosen (erwartet).
🧮 Wie wird es berechnet?
Erwartet = (erwarteter Nettogewinn ÷ Nettogewinn Vorjahr − 1) × 100
Der erwartete Wert basiert auf Analystenschätzungen für das laufende Geschäftsjahr.
🏛️ Wofür ist es wichtig?
Der Gewinn ist die entscheidende Ergebnisgröße für ein Unternehmen. Ein wachsender Nettogewinn deutet auf steigende Effizienz, stabile Kostenkontrolle und nachhaltige Ertragskraft hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Wachsender Nettogewinn stärkt die Bewertung, Dividendenfähigkeit und Kursfantasie.
- Stagnierender oder rückläufiger Gewinn trotz Umsatzwachstum kann auf Margendruck hinweisen.
📘 Free Cashflow-Wachstum
📈 Was ist das?
Das Free-Cashflow-Wachstum zeigt, wie sich der freie Mittelzufluss eines Unternehmens im Vergleich zum Vorjahr verändert hat – also der Betrag, der nach allen operativen Ausgaben und Investitionen übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Free Cashflow ist der echte, verfügbare Geldzufluss. Wachstum in diesem Bereich ist ein Zeichen für finanzielle Stärke und steigende Flexibilität bei Dividenden, Rückkäufen oder Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Sinkender Free Cashflow kann auf steigende Investitionen, höhere Kosten oder stagnierende operative Erträge hindeuten.
- Besonders bei Dividendenwerten ist das FCF-Wachstum wichtig – denn Dividenden werden letztlich aus dem verfügbaren Cash gezahlt.
- Ein negativer Trend sollte genauer analysiert werden – er ist nicht zwangsläufig schlecht, aber potenziell ein Warnsignal.
📘 Bruttomarge
📈 Was ist das?
Die Bruttomarge zeigt, wie viel vom Umsatz nach Abzug der direkten Herstellungskosten (Material, Produktion) als Bruttogewinn übrig bleibt – also der „Rohgewinn“ eines Unternehmens.
🧮 Wie wird es berechnet?
Auch: Bruttomarge = Bruttogewinn ÷ Umsatz × 100
🏛️ Wofür ist es wichtig?
Die Bruttomarge gibt Aufschluss über die Profitabilität eines Produkts oder Geschäftsmodells vor Fixkosten, Steuern und Zinsen. Sie zeigt, wie effizient ein Unternehmen produzieren oder einkaufen kann.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Bruttomarge deutet auf starke Preissetzungsmacht und effiziente Herstellung hin.
- Sinkende Bruttomargen können auf Kostensteigerungen oder Preisdruck hindeuten.
- Besonders im Vergleich zu Wettbewerbern liefert die Bruttomarge wertvolle Einblicke in die Geschäftsqualität.
📘 EBITDA-Marge
📈 Was ist das?
Die EBITDA-Marge zeigt, wie viel vom Umsatz als operativer Gewinn vor Zinsen, Steuern und Abschreibungen (EBITDA) übrig bleibt. Sie misst die operative Effizienz – ohne Verzerrungen durch Finanzierung oder Buchwerte.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBITDA-Marge hilft zu verstehen, wie viel operativer Gewinn ein Unternehmen aus jedem Euro Umsatz erzielt – unabhängig von Kapitalstruktur oder steuerlichem Umfeld.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBITDA-Marge zeigt starke operative Ertragskraft – unabhängig von Bilanzierungseffekten.
- Die Marge ermöglicht gute Vergleiche zwischen Unternehmen und Branchen.
- Ein stabiler oder wachsender Wert kann auf effiziente Kostenkontrolle und Skalierbarkeit hindeuten.
📘 EBIT-Marge
📈 Was ist das?
Die EBIT-Marge zeigt, wie viel Prozent des Umsatzes als operativer Gewinn nach Abschreibungen, aber vor Zinsen und Steuern übrig bleiben.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die EBIT-Marge misst die operative Ertragskraft eines Unternehmens unter Berücksichtigung der Kapitalintensität (z. B. Maschinen, Anlagen). Sie eignet sich gut zum Vergleich von Geschäftsmodellen mit unterschiedlich hohen Abschreibungen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe EBIT-Marge zeigt, dass ein Unternehmen auch nach Abschreibungen effizient arbeitet.
- Sie ist besonders relevant in kapitalintensiven Branchen.
- Langfristig stabile oder steigende Margen sind ein Zeichen wirtschaftlicher Stärke und Preissetzungsmacht.
📘 Nettomarge
📈 Was ist das?
Die Nettomarge zeigt, wie viel vom Umsatz am Ende als „Reingewinn“ übrig bleibt – also nach Abzug aller Kosten, Zinsen, Steuern und Abschreibungen.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Die Nettomarge gibt an, wie effizient ein Unternehmen über alle Stufen hinweg wirtschaftet. Sie zeigt, wie viel Gewinn tatsächlich je Euro Umsatz übrig bleibt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Nettomarge zeigt, dass ein Unternehmen nicht nur operativ stark ist, sondern auch seine Finanzierung und Steuerbelastung im Griff hat.
- Vergleiche mit Wettbewerbern geben Einblicke in die wirtschaftliche Qualität.
- Sinkende Nettomargen trotz Umsatzwachstum können ein Warnsignal sein – etwa für steigende Kosten oder sinkende Effizienz.
📘 Free Cashflow Marge
📈 Was ist das?
Die Free-Cashflow-Marge zeigt, wie viel vom Umsatz nach Abzug aller operativen Ausgaben und Investitionen tatsächlich als freier Mittelzufluss übrig bleibt.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Diese Marge misst die echte Liquidität, die ein Unternehmen erwirtschaftet – unabhängig von Bilanzierungsregeln oder Abschreibungen. Sie ist besonders relevant für Dividenden, Rückkäufe und Investitionen.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Eine hohe Free-Cashflow-Marge zeigt, dass ein Unternehmen nachhaltig liquide Mittel erwirtschaftet.
- Sie ist ein starkes Signal für finanzielle Stabilität und Ausschüttungspotenzial.
- Wichtig ist der langfristige Trend – sinkende Werte können auf steigende Investitionen oder rückläufige operative Effizienz hindeuten.
📘 Ergebnis je Aktie (EPS)
📈 Was ist das?
Das Ergebnis je Aktie (EPS) zeigt, wie viel Gewinn auf eine einzelne Aktie entfällt – und ist eine der wichtigsten Kennzahlen zur Bewertung von Unternehmen.
🧮 Wie wird es berechnet?
Die verwässerte Aktienanzahl berücksichtigt auch potenzielle neue Aktien, etwa durch Optionen, Wandelanleihen oder andere Umtauschrechte.
🏛️ Wofür ist es wichtig?
EPS bildet die Basis für viele Bewertungskennzahlen wie KGV, PEG oder Payout Ratio. Es macht den Gewinn für Aktionäre vergleichbar – unabhängig von der Unternehmensgröße.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- EPS hilft, die Profitabilität pro Aktie zu erfassen – und ist besonders wichtig im Zeitvergleich oder im Vergleich mit Analystenschätzungen.
- Steigendes EPS kann ein Zeichen für stabiles Wachstum oder Aktienrückkäufe sein.
- Wichtig: Verwende verwässertes EPS für realistische Bewertungen – besonders bei stark aktienbasierten Vergütungssystemen.
📘 Free Cashflow je Aktie (FCF je Aktie)
📈 Was ist das?
Der Free Cashflow je Aktie zeigt, wie viel freier Mittelzufluss einem Unternehmen pro Aktie zur Verfügung steht – nach Investitionen, aber vor Dividenden oder Schuldentilgung.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Der FCF je Aktie zeigt, wie viel liquide Mittel pro Aktie tatsächlich im Unternehmen verbleiben – wichtig für Dividenden, Aktienrückkäufe oder Schuldentilgung. Im Gegensatz zum Gewinn ist er schwerer manipulierbar und daher besonders aussagekräftig.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Free Cashflow je Aktie ist ein Zeichen für hohe finanzielle Flexibilität.
- Er zeigt, wie viel Kapital ein Unternehmen effektiv einsetzen oder ausschütten kann.
- Besonders relevant für dividendenstarke Unternehmen oder solche mit starker Kapitalrendite.
📘 Short Interest
📈 Was ist das?
Short Interest zeigt, wie viele Aktien eines Unternehmens aktuell leerverkauft wurden – also von Investoren geliehen und verkauft, in der Erwartung fallender Kurse.
🧮 Wie wird es berechnet?
Der Wert zeigt den Anteil der Aktien, der aktuell auf fallende Kurse spekuliert wird.
🏛️ Wofür ist es wichtig?
Short Interest dient als Stimmungsindikator: Ein hoher Wert deutet auf Skepsis oder negative Erwartungen gegenüber dem Unternehmen hin – kann aber auch zu einem „Short Squeeze“ führen, wenn der Kurs plötzlich steigt.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein niedriger Short Interest deutet auf Vertrauen in das Unternehmen hin.
- Ein hoher Wert kann ein Warnsignal sein – oder eine Chance, wenn sich die Stimmung dreht.
- Besonders spannend in volatilen Märkten oder vor wichtigen Quartalszahlen.
📘 Employees
📈 Was ist das?
Die Mitarbeiteranzahl zeigt, wie viele Personen ein Unternehmen weltweit beschäftigt – ein Indikator für Größe, Struktur und Geschäftsmodell.
🧮 Wie wird es berechnet?
🏛️ Wofür ist es wichtig?
Sie hilft bei der Einschätzung von Skaleneffekten, Effizienz und Personalkosten. Zusammen mit Umsatz und Gewinn lassen sich Kennzahlen wie Produktivität je Mitarbeiter ableiten.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Viele Mitarbeiter bedeuten große operative Komplexität – aber auch hohes Umsatzpotenzial.
- Produktivität je Mitarbeiter ist ein wichtiger Indikator für Effizienz.
- Besonders spannend bei stark wachsenden Tech- oder Industrieunternehmen.
📘 Umsatz je Mitarbeiter
📈 Was ist das?
Der Umsatz je Mitarbeiter zeigt, wie viel Erlös ein Unternehmen durchschnittlich pro Beschäftigtem erwirtschaftet – eine Kennzahl für Effizienz und Produktivität.
🧮 Wie wird es berechnet?
Die Mitarbeiterzahl stammt in der Regel aus dem letzten verfügbaren Jahresbericht.
🏛️ Wofür ist es wichtig?
Diese Kennzahl hilft, Geschäftsmodelle zu vergleichen – insbesondere zwischen arbeitsintensiven und technologiegetriebenen Unternehmen. Ein hoher Wert deutet auf Automatisierung, Effizienz oder hohen Wertschöpfungsanteil hin.
🧮 Berechnung
🎯 Was bedeutet das für Anleger?
- Ein hoher Umsatz je Mitarbeiter spricht für ein skalierbares und margenstarkes Geschäftsmodell.
- Ein niedriger Wert kann auf arbeitsintensive Prozesse oder geringere Wertschöpfung hinweisen.
- Besonders hilfreich beim Vergleich von Tech- vs. Industrieunternehmen.
ShotSpotter, Inc. Aktie Analyse
Analystenmeinungen
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12 Analysten haben eine ShotSpotter, Inc. Prognose abgegeben:
ShotSpotter, Inc. Events
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ShotSpotter, Inc. — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon, and welcome to SoundThinking Second Quarter 2026 Earnings Conference Call. My name is Clio, and I will be your operator for today's call. Joining us are SoundThinking CEO, Ralph Clark; and CFO, Alan Stewart. Please note that certain information discussed on today's call will include forward-looking statements for future events and sound thinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions and they are subject to risks and uncertainties and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by these statements.
Certain of these risks, uncertainties and assumptions are discussed in SoundThinking's SEC filings, including its most recent annual report on Form 10-K and other SEC filings. These forward-looking statements reflect management's beliefs, estimates and predictions as the date of this live broadcast, August 13, 2026, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.
In addition, our comments on the call today contain references to non-GAAP financial measures, such as adjusted EBITDA and key business metrics such as annual reoccurring revenue. Non-GAAP measures should be reviewed in addition to, and not as alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly compatible GAAP measures as well as definitions of the key business metrics, referenced and management, reasons for including the non-GAAP measures and key business metrics referenced may be found in the press release.
Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at ir.soundthinking.com. With that, I will now turn the call over to Ralph.
Good afternoon, and thank you for joining us. I want to start today's call in an unusual place by going back to last quarter's call. In Q1, we discussed several strategic initiatives that we believe would shape our year. I want to review those strategic initiatives and share where we delivered and where we fell short and more importantly, what we are doing on a go-forward basis. .
Let's start on where we delivered. I told you our year had structural shape and that Q1 sat low our operating leverage line and that Q2 through Q4 would sit above it with incremental revenue converting to adjusted EBITDA. Despite sequential flattish revenue growth, we crossed that line in Q2. Adjusted EBITDA moved from roughly negative $100,000 in the first quarter to a positive $1.2 million in the second quarter.
We've been aggressively applying AI across our own operations, and that is a meaningful part of why we believe the workforce and business optimization initiatives we actioned this year from which we expect approximately $4 million of annualized savings is structural rather than a onetime cut. This was not a headcount reduction dressed up as strategy. we believe it is a lower, more scalable cost base that lets us intentionally reduce our expense burn going forward while protecting the investments that drive growth.
Our cost discipline can cushion the profitability impact of a lighter top line. We believe it is a durable advantage, not a one-quarter maneuver. Revenue retention continues to be a business model differentiator for us as we drive revenue renewals to protect the revenue growth gains. We closed more than $23 million in total contract value across several multiyear renewals. A 5-year ShotSpotter renewal with Albuquerque covering approximately 42 square miles, 3-year ShotSpotter renewals with Wester Massachusetts, Richland County, South Carolina, MACI Georgia, Peoria, Illinois; and a 2-year crime tracer renewal with the Massachusetts state police.
Additionally, we saw a key ShotSpotter renewal in Fayetteville, North Carolina funded through 2029 as a part of the city's $324 million fiscal 2027 budget. Further, we also secured a modest term by critically important 9-month extension of our 38 square mile Detroit deployment to bridge them to and through their RFP process, which is expected to conclude early 2027.
The number and quality of these multiyear renewals speaks to the stickiness of our solutions and the high confidence and satisfaction our customers have in our capabilities. We also saw 2 key ShotSpotter winbacks recently with Erie, Pennsylvania and Cambridge, Massachusetts. Here's deployment lapsed in January due to funding challenges However, our customer and their local civic leadership were motivated and successful in securing outside funding to come back online with 6 miles, which we're targeting for later this month.
As for Cambridge, this is a win back that was unfortunately driven by tragedy. When Cambridge City Council decided to withdraw from the Boston 5 coverage area against the protest of Cambridge leases leadership, their allocated coverage model was quickly absorbed into the larger Boston Vibe coverage area, making it a commercial neutral impact for us.
But within 3 weeks of this withdrawal, another City employee by the name of Xavier Batista was shot and found dead and estimated hour plus after his shooting. Xavier was a father of Fiance, a son and a beloved friend who deserve more than the bleed out without first responders even knowing that he was shot and wounded and therefore, they were unable to render potentially life-saving assistance.
The response from his family and the broader community was swift, along with local and even national attention, including but not limited to, editorials from the Boston Globe, the Boston Herald as well as the editorial board of the Washington Post, all quoting the wisdom of voluntarily and intentionally taking this potentially life-saving technology offline. This forceful public response, which by all accounts led to the City Council to reverse its decision and reinstate ShotSpotter for an initial 90-day reevaluation period was both encouraging and correct in our view for our part in being a good corporate partner in citizen and also playing homage to Xavier's legacy.
We are investing in restoring the ShotSpotter coverage had no cost to the city of Cambridge during this period. Lastly, we discussed in last quarter's earnings call and in pending large state Prime tracer deal that, in my words, was no more than 30 to 45 days from being papered. I'm pleased to report that crime tracer deal is now fully executed as a new multiyear contract worth approximately $2.5 million in annual recurring revenue for the Texas Anti-gang program, which is also known as TAG, which has regional Texas anti gang centers across the state.
These multi-agency hubs are funded through the public safety office within the office of the Texas Governor and coordinated alongside the Texas Department of Public Safety, DPS. We're very excited to share more in the future with respect to the use case and strategic implications for what is now our fourth prime tracer state level deal beyond Tennessee, Massachusetts and Utah and now includes the great state of Texas.
We believe once we can demonstrate early success that this can potentially expand to triple the footprint beyond the initial user base of this current Phase 1 deployment. We cannot underestimate the value of our over 1 billion proprietary seeds records and documents combined with our recent significant investments in user interface and artificial intelligence enhancements and features which we believe makes Crime tracers a unique solution.
Now for the more difficult review of where we came up short. We had long held and even reaffirmed the view that on a topline revenue basis, we expect a roughly $50 million in GAAP revenue in the first half of 2026 and $60 million in the second half of 2026. We came in at about $48 million in revenue in the first half with a Q2 revenue attainment of $23.9 million, a near miss, but a miss nevertheless, and should be counted as one.
Most of the $2 million shortfall can be attributed to some renewal timing and professional service project delays from technologic and NYC Department of Corrections. These delays in projects are solely customer-oriented and because they are already booked and budgeted, it is not a revenue loss, but is effectively a revenue pushout into 2027.
Our second half $60 million revenue expectation was tied to our full year revenue guidance range of $109 million to $111 million, which we are now revising to $99 million to $100 million. We had expected to recapture the Puerto Rico ShotSpotter contract in the second half as we did with the Texas Fannie GaN contract, but now that recapture has been pushed out of our 2026 plan entirely.
We are now pivoting from engaging exclusively with the state of Puerto Rico, where our project is delayed along with several other post-hurricane initiatives toward another procurement avenue in order to get something across the line sooner. This restart effectively puts us on a different deal clock post 2026. The rest of the second half reduction comes from our 2 growth engines, and I want to be precise about which problem is which, because they are not the same problem.
The first is SafePointe, and here the issue is cadence, not demand. Our SafePointe bookings remain strong and our hospital pipeline continues to build, but SafePointe revenues recognized as systems go live, and go-lives are inherently lumpy, especially as we begin to implement double-digit lane deployment within the enterprise. These deployments depend on customer side facility readiness, construction, door schedules, credentialing and the sequencing of multisite rollouts much which sits beyond our control.
Several go-lives we had modeled for the back half have moved by a quarter or 2 on to customer time lines. which pushes the associated revenue, though not the underlying bookings into 2027. The booked ARR is still intact and growing. What has shifted is the timing of when it converts to recognize revenue. I'm not troubled by SafePointe's trajectory. We're simply not going to model lumpy go-live cadence as though it were linear and our revised guidance reflects that discipline.
The second driver, and frankly, the more disappointing one is ShotSpotter and here we will not hide behind cadence because this quarter, it was both bookings and go-lives that came in well below our expectations. Some of this is explainable. The wind down of ARPA, the slower flow of federal budget dollars to municipalities has delayed funding that several new and expansion deployments we're counting on, but that would be too easy and not fully honest to lay it all on federal timing.
The fuller truth is that ShotSpotter sales cycles are elongating at the same time, our sales team is underperforming. Deals that historically closed within a predictable window are now moving through more stakeholders, more budget scrutiny, in an environment where gunshot detection has become more public and more politicized, decisions requiring much longer deliberations before achieve our counsel will commit.
That's real, and our revised full year guidance now reflects a more conservative view of how quickly that pipeline converts and our ability to measurably grow qualified pipeline, we do not believe that it reflects any erosion of underlying if latent demand. The win backs I described in Erie and Cambridge, the strength of our renewals and the momentum of positive sentiment we are seeing in places like Chicago, which I'll discuss next, all point to the same direction. When communities weigh the true cost of going without this technology, they want it or they want it back. Our job now is to underwrite a longer sales cycle, honestly, keep proving the operational value that ultimately decides these deals and convert that demand is funding and political time lines catch up.
Before I turn it over to Alan, let me summarize recent developments in Chicago since our last earnings call. First, while there has been no definitive award on the city of Chicago Zikos gunshot detection RFP published in February of 2025, there has been public inquiry and discussions between the City Council through hearings held by the Public Safety Committee and the Chief Procurement Officer on the status of the RFP.
The upshot is that the process is still ongoing and resides with the Chief Procurement Officer. When asked specifically about the timing of a final decision, the formal response was that it could possibly take all the way up to February 2027. While the timing is not like what we had hoped for given earlier public commentary, we were nevertheless pleased to see the city's apparent commitment to see the process through to its conclusion/award.
We remain positive about our submission and track record and respectful of the process. In other key developments, the City Council was successful in adding a nonbinding referendum to the November ballot, putting forward the question directly to voters on bringing gunshot detection back to Chicago. Referendums are notoriously difficult to add to the ballot in Chicago as there are only 3 slots available in many competing candidates for those 3 slots. It therefore speaks to the importance of the technology in the City Council's resolve to keep gunshot detection front and center of a public discourse.
If the referendum tracks the recent public holding responses we expect to see continued strong support, especially in those neighborhoods that have been dealing with ongoing persistent gun fire.
Lastly, the Chicago Mayor election is coming out as fast in 2027. And declarations are being made and campaigning has ensued. Approximately 9 candidates have declared in 4 of those 9 have publicly included bringing back gunshot detection to the city of Chicago as a part of their policy platform including the 2 presumed front runners, Susanna Mendoza and AlexiGenolius.
The active campaigning in debate, combined with a nonbinding referendum in November and the outstanding RFP gives us increasing confidence and we will have more clarity about the future of gunshot detection in Chicago early next year, if not sooner. I'll now turn it over to Alan to walk you through the financials. Alan, over to you.
Thank you, Ralph, and good afternoon, everyone. Revenue for the second quarter was $23.9 million compared to $25.9 million in the prior year period. Total operating expenses were $16.2 million compared with $16.7 million in the prior year quarter. During the quarter, we continued executing on the workforce and business optimization initiatives announced earlier this year. .
While approximately $900,000 of restructuring-related costs were recognized during the period, we remain on track to achieve approximately $4 million of annualized savings. These actions improve our visibility into the margin profile of the business while preserving our ability to invest in key growth initiatives across the Safety Smart platform, AI capabilities and commercial security opportunities.
GAAP net loss for the quarter was $4.8 million or $0.37 per diluted share compared with a GAAP net loss of $3.1 million or $0.24 per diluted share in the prior year period. Adjusted EBITDA was $1.2 million compared with $3.4 million in the second quarter of 2025. Despite a lower year-over-year revenue comparison, we generated positive adjusted EBITDA and reduced operating expenses by approximately $1.5 million compared to the second quarter of 2025, reflecting the benefits of our workforce optimization and broader cost management initiatives.
These actions are helping us preserve investment in innovation and growth opportunities. As we move through the remainder of 2026, we expect these structural cost reductions to support stronger adjusted EBITDA performance and contribute meaningfully to margin expansion. As a reminder, adjusted EBITDA, a non-GAAP financial measure is calculated by taking our GAAP net income or loss and adjusting our interest income, income taxes, depreciation, amortization and impairment restructuring and related expenses and stock-based compensation expenses.
Importantly, while we have experienced a slight decline in revenue from recent quarters, we continued to make meaningful progress on managing costs of our business. Adjusted EBITDA improvement on a sequential basis as the benefits of our workforce and business optimization initiatives and disciplined expense management begin to flow through the P&L.
As a result, we are entering the second half of the year with a leaner cost structure, improved operating leverage and greater confidence in our ability to expand margins as our annual recurring revenue, or ARR, converts to revenue and deployments accelerated. Total operating expenses were $16.2 million compared to $16.7 million in the second quarter of 2025. The year-over-year decrease was primarily driven by reduced sales and marketing costs partially offset by increased AI research and development investments and restructuring charges related to the workforce and business optimization initiatives we announced earlier this year.
Breaking down our operating expenses. Sales and marketing expense was $5.9 million compared to $6.5 million in the prior year quarter, reflecting disciplined spending while maintaining support for our strategic growth initiatives. Sales and marketing expenses represented approximately 25% of revenue during the quarter. R&D expense was $4 million compared to $3.7 million in the prior year period. Our continued investments reflects ongoing development across the Safety Smart platform including AI-enabled innovations such as Safety Smart field agent as well as enhancements designed to support future platform expansion and deeper customer engagement.
R&D spending represents approximately 17% of revenue during the quarter. G&A expense was $6.3 million compared to $6.5 million in the second quarter of 2025. The decrease was primarily driven by our ongoing cost optimization initiatives. In the near term, we expect our G&A expenses to be relatively flat as compared to fiscal year 2025. More broadly, we continue to evaluate opportunities to improve efficiency across the organization while we remain focused on our core growth initiatives.
We believe the actions taken during the first half of the year have established a more scalable operating model and enables profitability to improve faster than revenue growth as we continue executing against our ARR objectives. Deferred revenue as of June 30, 2026, was approximately $36 million. In addition, we ended the quarter with approximately $93.1 million of contractually committed revenue providing strong visibility into future revenue and reinforcing the recurring nature of our business model.
We ended the quarter with $6.4 million in cash and cash equivalents $24.5 million of accounts receivable and contract assets and approximately $36 million of deferred revenue and $4 million outstanding on our credit facility. We also have approximately $36 million of available borrowing capacity under our facility. Our balance sheet continues to provide us with the flexibility to invest in our strategic priorities while supporting the growth opportunities we see across both public safety and commercial security markets.
Now turning to our guidance for the full year 2026. I -- we are reducing our full year revenue to between $99 million and $100 million, primarily due to delays related to professional services related to our technologic Solutions division which reduced our expected revenue by almost $3 million. While our pipeline is strong in SafePointe, the deployment is slower than expected, reducing our expected revenue by another $2 million.
As Ralph mentioned, until the Puerto Rico contract gets resolved, we have excluded that from our guidance as well, which originally represented almost $1.5 million in our original guidance. The remaining revenue guidance reduction is related to slower expected sales growth and deployment delays for other booked contracts that are not gone, but are moving to 2027.
As our revenue growth drives most of our adjusted EBITDA growth, we are also reducing our full year 2026 adjusted EBITDA margin guidance to a range of 8% to 9%. We continue to expect ARR to increase from $95.4 million at the beginning of 2026 to over $100 million entering 2027.
As a reminder, revenue and profitability are back-end loaded as deployments, renewals and expansions built throughout the year. Our outlook continues to assume no contribution from our renewed Chicago ShotSpotter contract. We remain confident in the underlying strength of our business and our ability to execute against our long-term growth strategy. Overall, our second quarter results reflect the impact of softer-than-expected first half results, our outlook remains positive.
Our recurring revenue base, ARR growth trajectory and improving expense structure provide confidence in our ability to deliver stronger financial performance. With that, we're now happy to open the call for questions. Operator, will you please open the call for Q&A.
[Operator Instructions]
Our first question comes from Richard Baldry with ROTH Capital Partners.
2. Question Answer
When you look specifically into the ShotSpotter segment, you talked a bit about it, it sounds like there's some sales execution issues part of it tied to this sales cycle length. How much of the improvement that you need to do there, do you think is within your control? And how much of it is sort of external? Is there anything sales turnover or management led? Or is it majority of it an externality?
Yes. Thanks for that question, Richard. This is Ralph. Can you hear me okay? .
Yes.
So I don't know that I can put a percentage base on it. I think both factors are contributing to what we're seeing in the second half. I will say there's a number of transactions that have been frankly, kind of sitting on the bubble that have not been able to either convert to a booking or have that booking go live. So for example, I'll just point out a couple of transactions. We had a 10 square mile deal that, frankly, we closed in Q4 and last year that has yet to go live as an example.
We've had another transaction we name this particular customer. Cape Town where we effectively were awarded the tender, but due to some political moves there in South Africa, Cape Town, in particular, they basically canceled the tender post awarding it to us.
And that was considerable amount of revenue and ARR. We basically had to kind of take out of our plan I do think there is some, there are some issues around kind of the funding environment with the reduction in ARPU funds being available. We're trying to address some of that by hiring an outside contracting resource to work with customers on developing funding strategies to keep the process moving forward. But frankly, I think there are some sales hygiene and sales execution issues that could help us convert faster. And that's a bit of a frustrating issue for us.
So we're looking into that and have a number of levers that we're going to be pulling to help accelerate the conversion of deals that are out there kind of getting them from interest to bookings to go live to reaccelerate our ShotSpotter growth. But for the second half, we want to be very conservative about how we're thinking about the revenue contribution from the ShotSpotter for 2026.
And then for my follow-up, first half $48 million to do $99 million to $100 million, you've got to do $51 million, $52 million, obviously, is easy math. So how much of that do you have visibility contracted already 1 versus go get or some sort of turns oriented, just sort of trying to get some confidence in that second half step-up to revenues.
Sure. Very appropriate. I'll answer and then Alan jump in and adding correct as appropriate. So a fairly significant lever for us is what we expect to get on the booked and already budgeted professional services line for technologic as well as our New York City Department of Corrections. We had a bit of a bulbus kind of going on there in the first half where they -- we're basically cutting over some major systems and have to basically absorb that before they're ready to kind of reengage and going forward with some additional projects.
So I think we have pretty good visibility into that kind of lumpy revenue that can help us get to the $99 million to $100 million in guidance. We also have a pretty nice pipeline of over 100 of lanes that are in flight. These are deals that have already been booked. They are in various stages of going live with SafePointe. And on an ARR basis, that represents more than $2 million in ARR.
So to the extent that we can convert at least 30% of that $2 million, that gives us a pretty good deal of confidence that we can get to where we need to get to the number. And then with respect to ShotSpotter, I think we've been fairly conservative in terms of looking at basically 7 go-lives. There's probably about 15 or so deals that are either booked or soon to be booked and we're counting on about 7 of those to go live. In fact, 1 of them is a city that we've already deployed the technology on it's a Midwestern city.
They were supposed to go live before the World Cup. But due to the complexity of getting the drawdowns from the federal government on funding, they've been stalled. And so the minute that, that funding becomes released, we can effectively flip the switch and go-live revenue on a revenue basis. So we're expecting that to be a part of those kind of 7 go-live projects as a part 300, 400 plus additional revenue we expect to get from ShotSpotter.
So I would say we have fairly good visibility that we want to give ourselves the space to hit the number so that we can kind of focus on growing the business and addressing some of the sales execution issues that we have domestically. Did that answer your question, Alan, did I get anything wrong or...
No, I think you answered it appropriately. .
Thank you. Our next question is from Trevor Walsh with Citizens.
All maybe to start off, Ralph, you mentioned with respect to SafePointe, that just overall deployment and operationalizing of lanes is kind of holding back the revenue kind of picture there. Has there been a fundamental change recently that's just slowing things down? Or was this sort of a known I guess, dynamic, I suppose, but when you kind of first did the acquisition and brought them kind of within the SoundThinking family -- or just I guess a little bit more color on kind of why that's happening now or if that's just the nature of the business for them.
Yes, sure. So I'll answer the question operationally and then Alan can talk about the kind of GAAP revenue flip over that we did. So operationally, what we're finding is as we've kind of gone from kind of 1 to 2 lanes per enterprise to like 10 to 20 lanes per enterprise, it's just a completely different cadence. There's a lot more, I would say, kind of structure and I won't say resistance, but there's a lot more structure dealing with IT organization when they're talking about giving us access to their networks, doing physical construction or whatever, we're finding that that's a lot more involved than, say, maybe a year ago when we were lighting up maybe 1 or 2 lanes per enterprise. So the deals have gotten bigger. And as a result, the go-live cadence has become a little bit more elongated as we're dealing with very mature structure. This is the way we do things type of IT organizations that we're having to interface with.
Yes. This is Alan. Just 1 thing to add. I think Ralph is absolutely correct. If you think about it, we had almost 90 new lanes booked in the second quarter. But when you have that many, it takes you longer to deploy and 1 of the things that we have learned very much in the last 2 years is the deployment and making them the product to perform as the customer expects and we expect sometimes takes a little longer to do. .
So that's basically why things are getting delayed a little bit, more bookings, strong pipeline, but it's taken us longer to get to deployed in a way that we feel comfortable about the performance and the customers are happy.
Got it. Okay. That's helpful perspective. Alan, maybe I'll stick with you, if that's okay. With -- you kind of gave some color in your prepared remarks around why, how you got to the guidance, top line lowering down? I think you called out $1.5 million from Puerto Rico and then $2 million, give or take, from SafePointe, correct me if those numbers are incorrect.
But -- and then the balance of that was coming from just general deal slowdowns or just a more broad kind of designation. So I guess for that latter part, is that remaining portion tag to very specific deals? Or are you just trying to do your best sort of over under around odds of just kind of what's left in the pipeline and just seeing how deals generally are tracking? Or again, if it's a little bit more 1, 2, 3 type of deal that's kind of driving that further number. Does that make sense?
No, it does. And thank you for asking that question. I think it's really important when you look at the amount of our guidance of docks about $10 million. The good news is about 70% of that is really due to timing. It's not due to contracts that were locked, it's timing related to delivering some of those professional services in New York City and Department of Correction which, as Ralph mentioned, will start in the second half of the year. And all of those SafePointe lanes that we booked, that's significant as well.
I don't know, $2 million, that might shift into '27 as well. So when you start adding those up, out of that $10 million reduction, about 70% of that didn't go away. It just shifted to the right. We are expecting that we're going to get some of that in the second half of this year, but the majority of that will probably shift into 2027. But just as Ralph also said, 70% there, the other 30% is the slightly slower in terms of the actual sales movement that we've had, new bookings. That was the other portion of that reduction that we thought was appropriate to make sure that we were honest about that and make sure we're giving you numbers that we can hit.
Our next question comes from Eric Martinuzzi with Lake Street.
Yes. It looks like you're pretty aggressive on the workforce optimization. Can you quantify the number of heads or the percentage reduction, the steps you took at the beginning of Q2?
Sure. This is Alan, and Ralph, you could add it correct. There were about 28 people that we took a look at in terms of what things that we had to change. And I think that was appropriate for us to do, but not just personnel, I think ultimately, we also had some changes in terms of some marketing plans and programs and some other expense reductions that we knew we could achieve. .
Got you. And then earlier in the year, there was an activist effort by a pretty substantial shareholder. It was around the topic of a change in board seats. And I don't know what other discussions were held, but I was just wondering if there's any update there. We've had -- we're now declining revenues for 3 of the last 4 quarters have things like strategic alternatives been discussed besides board changes and other actions that this activist might have entertained?
Yes. This is Ralph. I'll answer that question. So not that we would be talking about publicly at this point in time. But I would say that everyone is keenly focused on working with the senior leadership team to get this train back on the track and being a kind of growth and profitability story. So there's a lot of work to do, and everyone is committed to getting it done.
Is there another question there? .
[Operator Instructions]
Our next question comes from Jeremy Hamblin with Craig-Hallum
So you noted that sales cycles have become elongated. And I wanted to get your assessment in terms of there's been quite a bit of noise around tools similar to ShotSpotter. I know there was a on the John Oliver Show last week tonight, they had a segment the other week that really was about ALPR, but it did include ShotSpotter in there. And some of the pushback communities have had on these things. Do you feel like the environment is creating the sales cycles as much as things like ARPA funding and so forth? Or how do you assess that?
I mean, you've been at it for well over a decade. But how would you compare, you've always had political pushback from elements out there. But how does that compare today? And do you think that, that is impacting some of the sales cycle?
Yes. Thanks for that question, Jeremy. And this is Ralph. And I think on a qualitative basis, we're definitely feeling a different type of scrutiny that we hadn't really felt before and we obviously listened in on a lot of city council meetings on renewals as well as kind of new opportunities. And I think the Cambridge one is actually pretty instructive in terms of like who's showing up and what their messaging is. And unfortunately, we're finding that we're kind of getting wrapped up in the kind of ALPR debate and controversy that's going on. We're kind of getting wrapped into that. That was really what the John Oliver story was about, attack really was on automated license plate reader technology. And then we just kind of got swept in there as a part of the overall kind of Uber surveillance thing inappropriately, by the way, from our point of view. .
We're also seeing, frankly, that people are trying to tie us to immigration enforcement, which is really quite interesting. If you listen in on a number of these city council meetings, again, I'll just kind of go back to Cambridge A large part of the attack vector was really about sending police into these communities where potentially their vulnerable populations could be at risk from a deportation immigration enforcement point of view, which is kind of an interesting line of attack.
But I guess, the opposition to law enforcement doing their job they'll take any kind of tool or vector available to them to kind of help make their case. So it's definitely having an impact. We're trying to address that by being not completely 100% law enforcement centric but kind of fanning out and making sure that we have strong city council support educating city council members and the like. We have a whole community engagement team on our customer success organization that's doing some really phenomenal work directly engaging the community in different nonprofit organizations that are all kind of built around violence prevention and getting them on site with us. We're doing a lot of work with civil rights organizations and the like.
And so we're seeing some good progress. We're having some really good conversations, but it's definitely stretching out the process because it's politically charged to make a decision to go forward with ShotSpotter or CSA gunshot detection. And now we're seeing the counter where there are some consequences with making the decision not to go for it because the impact is real. And unfortunately, we saw that in the case of Mr. Xavier Batista.
So I wanted to ask a question, I think, for Alan here. In terms of your adjusted EBITDA guide for the year, I wanted to get a sense for the range that you were including for stock-based comp for this year? And then what would your -- obviously, you're not hitting your initial targets. I don't know how much that's impacting your SBC. But what would your normalize? Or what was your kind of start of your target? What's -- what are those 2 differences numbers?
Yes. Thank you for that question, Jeremy. And I think it's important for us to -- if we just take a look at our stock-based comp, Q2 of $25 million was $3.8 million, right? Q2 of '26 was only $2.4 million. So we reduced that by $1.4 million. So our stock-based comp is going down for the year. We expect it to be certainly lower than we had in '25. So I think that's 1 of the things that is important. I think the other thing you should look at is our revenue was basically flat from Q1 to Q2. And yet our adjusted EBITDA improved by $1.3 million, realizing that our allocations of the expense reductions didn't start till Q2, you can see that, that already increased that even with revenue being flat by $1.3 million. So we do expect that our stock-based comp is probably going to be about $10.4 million for the year, significantly lower than last year.
And I would also say that as our revenue does go up, and were for us to hit that guidance, it has to go up to $48 million to closer to $52 million, that adds $4 million, most of that's going to be flowing down to the bottom line. So that increases it as well as the cost reductions that we've had. So we feel pretty confident about how we're going to get to that percentage for adjusted EBITDA.
This now concludes our question-and-answer session. I would like to turn the floor back over to Ralph for closing comments.
Great. Thank you very much. So let me close where I began, and that's really with accountability. This certainly wasn't a part that we wanted at the top line and certainly not what we expected in the second half, and we're not going to pretend otherwise. But on the good news front, the core has turned profitable on a leaner base. Our renewal and retention wall has held firm, and we did win our 4 statewide crime tracer deal. And all of this was accomplished on top of a leaner, more profitable company. We believe we've reset the number to something that we can meet and possibly beat. And I'd ask you to measure our progress based on getting to those numbers. And most importantly, let's not lose thread of why we do this. Every renewal, every city, every hospital lane that's in a place where someone is feeling safer because of what we build. We know that we're making a difference. And so I want to thank our team for all the work that they do and also thank all of you for your support. And with that, I think we'll conclude the call.
Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a wonderful day.
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ShotSpotter, Inc. — Shareholder/Analyst Call - SoundThinking, Inc.
1. Management Discussion
Hello, and welcome to the Annual Meeting of Stockholders of SoundThinking, Inc. Please note that today's meeting is being recorded. [Operator Instructions]
It is now my pleasure to turn today's meeting over to Deborah Grant, our Chair of the Board. Ms. Grant, the floor is yours.
Good morning. My name is Deborah Grant, and I'm the Chair of the Board of Directors of SoundThinking, Inc. I'm happy to welcome you to the SoundThinking 2026 Annual Stockholders Meeting. As you know, we are hosting our annual meeting through a virtual online platform hosted by Computershare, and this meeting is being recorded.
Before I call this meeting to order, I'd like to introduce you to the other members of the SoundThinking Board who are with us today. Ralph A. Clark, William J. Bratton, Burton Goldfield, Roberta Jacobson, Marc Morial and Ruby Sharma.
Also present at today's meeting are representatives of Baker Tilly US, LLP, the company's independent registered public accounting firm; Cooley LLP, the company's outside legal counsel; and Computershare Trust Company, the inspection of elections for this meeting.
In order to provide for the orderly conduct of this annual meeting, we intend to conduct this meeting in accordance with the rules of conduct available for your review by clicking on the Documents link near the top right of the webcast portal.
The meeting will now officially come to order. We will proceed with the formal business of the meeting as set forth in your notice of annual meeting and proxy statement. We will respond to appropriate questions about the proposals being voted on today after all of the proposals have been presented as time permits.
Mr. Stewart, as Secretary of the meeting, will you please report on the mailing of the notice of the meeting and the stockholders' list?
I have an affidavit certifying that on or about April 22, 2026, a notice of Annual Meeting of Stockholders of the company was deposited in the United States mail to stockholders of record at the close of business on April 9, 2026.
At this time, I'd like to introduce Jennifer Lippoldt, a representative of Computershare Trust Company, North America, who is present virtually. I am appointing Ms. Lippoldt to act as Inspector of Elections at this meeting. Ms. Lippoldt has taken and subscribed the customary oath of office to execute her duties with strict impartiality. We will file this oath with the records of the meeting. Her function is to decide upon the qualification of voters, accept their votes, and when balloting on all matters is completed, to tally the final votes.
Will the Secretary please report at this time with respect to the existence of a quorum?
On the record date of April 9, 2026, there were 12,953,937 shares of common stock outstanding and entitled to vote at this meeting.
I have been informed by the Inspector of Election that the proxies have been received for a majority of the outstanding voting power of all shares of common stock entitled to vote at this meeting. This constitutes a quorum for the meeting today, and we may now carry out the official business of the meeting.
We will now proceed with the formal business of this meeting.
Will the secretary please open the polls for voting?
The time is now 9:04 Pacific Time on Wednesday, June 3, 2026, and the polls are now open for voting on all matters to be presented. There are 3 proposals to be considered by the stockholders at this meeting.
The first item of business is the election of 3 Class III directors to serve until the 2029 annual meeting and until their successors are elected or sooner until the director's death, resignation or removal. The nominees for Class III Director are: Ralph A. Clark, Marc Morial, and Ruby Sharma.
The second item of business today is the advisory vote on the executive compensation of the company's named executive officers as described in the proxy statement.
The third item of business today is the ratification of the appointment by the Audit Committee of the Board of Baker Tilly US, LLP as the independent registered public accounting firm of the company for the fiscal year ending December 31, 2026.
That was the final proposal for today's meeting.
I will now address any questions that were properly submitted by our stockholders that are germane to this meeting.
Please note that our discussion today may include forward-looking statements, and our actual results may differ materially from those discussed here. Additional information concerning factors that could cause such a difference can be found in our most recently filed annual report on Form 10-K.
Are there any questions on any of the proposals? There are no questions.
The Secretary will describe the voting procedures.
Voting today is by proxy and electronic ballot. Each share of common stock is entitled to 1 vote. Any stockholder who has not voted who wishes to change his or her vote may do so by clicking on the Cast Your Vote link located on the left-hand center of the webcast portal and following the instructions provided. Stockholders who have submitted proxies or have previously voted via the Internet or by phone and who do not wish to change your vote do not need to take further action. Their votes will be counted automatically. If you wish to vote your shares online, please do so now. The polls will be closing shortly. The Inspector of Election will not accept any votes once the polls close.
[Voting]
The time is now 9:10 a.m. Pacific Time, and the polls are now closed for voting.
May we have the results of the voting?
The report of the Inspector of Election covering the proposals presented at this meeting is as follows: The proposal to elect Ralph A. Clark, Marc Morial and Ruby Sharma as Class III directors of the company is carried.
The resolution concerning the advisory vote on the executive compensation of the company's named executive officers is approved.
The appointment of Baker Tilly US, LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2026, is ratified.
We expect to report the final voting results of today's meeting on a current report on Form 8-K to be filed with the SEC within 4 business days after the end of this meeting.
This concludes the formal portion of today's meeting, and the annual meeting is now adjourned.
Thank you again for your attendance at today's meeting and for your continued support of SoundThinking.
This concludes the meeting. You may now disconnect. Have a pleasant day.
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ShotSpotter, Inc. — Q1 2026 Earnings Call
1. Management Discussion
Good afternoon, and welcome to SoundThinking's First Quarter 2026 Earnings Conference Call. My name is Latanya, and I'll be your operator for today's call. Joining us are SoundThinking's CEO, Ralph Clark; and CFO, Alan Stewart. Please note that certain information discussed on the call today will include forward-looking statements for our future events and SoundThinking's business strategy and future financial and operating performance.
These forward-looking statements are only predictions, are subject to risks, uncertainties and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements. Certain of these risks and uncertainties and assumptions are discussed in SoundThinking's SEC filings, including its most recent annual report on Form 10-K and other SEC filings.
These forward-looking statements reflect management's beliefs, estimates and predictions as of today's live broadcast, May 14, 2026, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.
In addition, our comments on the call today contain references to non-GAAP financial measures such as adjusted EBITDA and key business metrics such as annual recurring revenue. Non-GAAP measures should be viewed in addition to and not as an alternative for company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as definitions of the key business metrics referenced and management's reasons for including the non-GAAP measures and key business metrics referenced by be found in the press release.
Finally, I would like to remind everyone that this call will be recorded and made available for replay via the link in the Investor Relations section of the company's website at ir.soundthinking.com.
With that, I will now turn the call over to Ralph. Please proceed.
Good afternoon, and thank you for joining SoundThinking's Q1 2026 Earnings Call. I'll start by providing some high-level commentary on our financial results, share updates on our strategic investments and growth initiatives and frame how we're thinking about the year. Alan will then walk through the financials in greater detail, after which we'll be happy to take your questions.
Let me start with the headline numbers. Q1 revenue was $24.2 million, essentially in line with consensus. Q1 adjusted EBITDA was approximately negative $100,000. We are reaffirming our full year guidance of $109 million to $111 million in revenue, representing approximately 6% year-over-year growth at the midpoint and an adjusted EBITDA margin guidance of 16% to 18% and exiting ARR of $110 million, representing 15% growth in 2026.
Let me give you some high-level commentary on the structural shape of our year because once it becomes clear, the math becomes fairly straightforward. Q1 is by design and by calendar, our most cost-heavy quarter and our lightest revenue quarter. Annual costs concentrate in Q1 such as audit fees, proxy and shareholder meeting costs, year-end legal and tax work. These items are largely absorbed in Q1 every year and do not repeat in subsequent quarters.
At the same time, our revenue is back-end loaded as deployments, renewals and expansions build throughout the year. Our business has substantial operating leverage as quarterly revenue scales above our cost run rate. Once we're past our cost base in any given quarter, we expect incremental revenue contributes disproportionately to adjusted EBITDA.
Q1 sits below that point and Q2 through Q4 are above it. Combined with approximately $4 million of annual savings expected from the workforce optimization we executed effective April 1, we believe we have clear line of sight to our full year adjusted EBITDA guidance. Alan will walk through the detailed bridge in his section. Let me share some updates on our strategic execution, which gives us confidence in the second half ramp and what reflects the deeper transformation underway in our business as we continue to evolve into a broader public safety technology company.
In Q1, we took ShotSpotter mileage live across 7 customer accounts, added 50 PlateRanger cameras on our LPR platform and went live with 85 lanes of SafePointe. Customer health and retention remain a real strength of our business and the trust we've built over time continues to be reflected in our Net Promoter Score in the world-class category and our renewal performance, which is currently ahead of plan.
I want to highlight one renewal in particular, Cleveland. Over the last several months, there was significant public commentary in the trade press, in local city deliberations and even some investor conversations suggesting that we were at risk of losing Cleveland to a newer entrant in our category. The narrative was that the contract was slated to be a competitive loss.
I'm pleased to share that the Cleveland renewal is in process and that Mayor Bibb and the city's public safety leadership have publicly touted the technology and specifically credited ShotSpotter's contribution in Cleveland's 80% homicide solve rate. I want to be direct about what Cleveland represents because it speaks to a broader competitive dynamic that I know is on investors' minds.
Anyone can promise gunshot detection in a pitch deck. The category has been around long enough that the marketing materials have started to converge. Same buzzwords, same accuracy claims, same talking points. But running an acoustic detection system that actually works across 1,000-plus square miles of dense, noisy urban environments with sub-meter precision and conditions ranging from fireworks to construction noise to weather with audio data that withstands real-world scrutiny, that's an entirely different proposition from describing it on a slide.
And that is where the moat is. 25 years of ground truth physical data, accuracy performance that has been independently validated at 97% in 2024 against a 90% contractual standard and deployment tested integration depth that newer entrants are now only learning they need.
When agencies move from the marketing to the operational reality, what they tend to find is that there is only really just us. Cleveland is a clear data point on that. Performance decides these deals, not narrative and not pitch decks. With respect to deep operational integration, our efforts complementing drone as first responders is another area where we're seeing meaningful traction, and it's a natural fit with ShotSpotter.
We now have 16 cities live with ShotSpotter-to-drone integrations across Skydio and BRINC. The cadence has accelerated. Las Vegas, Pittsburgh, Suffolk County, Monmouth County, West Palm Beach, Fresno, Tampa and Virginia Beach all came online within the last 2 months. In Albuquerque, a ShotSpotter trigger drone arrived on scene and observed a subject actively firing a weapon, relaying that to responding officers in real time.
In a separate incident, the drone located a gunshot wound victim. That's the kind of operational outcome our customers are realizing today. The strategic point is that these aren't simple ShotSpotter-to-drone alert handoffs. They're integrations into the operational fabric of how an agency responds. Physical AI at work in the real world. That's what creates durable value for our customers, and that's what's made the SafetySmart Platform increasingly difficult to replace.
Last week, we launched SafetySmart Field Agent, an AI-powered user experience within our SafetySmart platform. It is now in beta with more than a dozen ShotSpotter agencies. Broader availability is targeted for later this summer. With SafetySmart Field Agent, a police chief, an investigator, a crime analyst or even a city council member can ask questions in plain English and get back what they need, an insight, a chart, a map or a briefing-ready summary.
How much gunfire has occurred near our public schools this year? What are the emerging hotspots? Create a command staff briefing for this month's trends. Until now, getting these types of answers required an analyst, a query language and a dashboard. Field agents puts that capability directly in the hands of any authorized user with a question. And let me say why this is a meaningful step forward for us.
Field Agent works across all SafetySmart data sources, gunfire data from ShotSpotter, crime data from ResourceRouter, license plate reads from PlateRanger through one unified experience. That's something we believe only we can deliver because only we have this breadth of public safety data running on a single platform. It's our integrated SafetySmart platform showing up in a real day-to-day customer experience.
And it's a tangible expression of the physical AI moat thesis that SoundThinking exemplifies. AI value is only as good as the data foundation underneath it, and ours is genuinely broad, genuinely unique, represented by 25 years of ground truth acoustic detection data across 1,000-plus square miles of deployment that we believe no competitor can replicate.
SafetySmart Field Agent is our second AI-driven user experience following CrimeTracer Gen 3, which we launched last fall and the next step in a broader rollout of AI capabilities across the SafetySmart Platform. We also continue to make innovation progress on our SoundThinking [ glass ] initiatives, including our sniper threat detection solution targeted at critical infrastructure. We have demonstrated early technical success in the perimeter protection use case that is relevant to the substation utility market.
We look forward to sharing more as we gain commercial traction. Internationally, we continue to see growing interest in acoustic gunshot detection as global markets mature in their approach to public safety infrastructure. Our deployments in Montevideo, Uruguay and Niterói, Brazil have served as compelling proof points for broader Latin American expansion.
We're building pipeline in these and additional markets in the region, driven by our recently hired in-country sales executive, Bruno Bolorino. We view international as a multiyear expansion runway for the core platform, and we're investing deliberately to capture it. Our SafePointe pipeline and go-live momentum through Q1 has been particularly encouraging. Monthly recurring revenue more than doubled from January to March of this year as Moffitt, Morgan State and other key go-lives came online, and we're entering Q2 at a meaningful higher run rate.
In addition, earlier this week, we executed a 3-year $3.2 million booking, representing over $1 million of ARR from a top 5 major hospital chain for all of their hospitals in just one of the states and where they have operations. In addition, we anticipate closing a 15-lane 3-year $1 million-plus booking for $300,000 plus of ARR with a clinic in the Northeast. These 2 transactions are important validation points of our health care security focus and a meaningful proof point for the SafePointe addressable market in the hospital vertical.
The health care opportunity is substantial. As we've discussed on prior calls, California's AB 2975 will require weapon detection capabilities across more than 400 hospitals by March 2027, and that's just one mandate in one state. The broader health care market is moving in the same direction as systems prioritize patient and staff safety.
Across the portfolio, what we're seeing is consistent. Customers are choosing platforms over point solutions. Our SafetySmart platform, ShotSpotter, PlateRanger, CrimeTracer, ResourceRouter, CaseBuilder and SafePointe, now all augmented by Field Agent and our deep DFR integrations give agencies an integrated approach to public safety that we believe no point solution competitor can match. The trust that drives our world-class customer retention is what allows us to keep deepening that platform and the data foundation we've built over 25 years, and that's what makes our AI investments compound rather than commoditize.
Before Alan walks through the financials, I want to add some strategic context on how we think about our capital allocation strategy. At a high level, you would see that SoundThinking today is 2 very distinct businesses at very different stages of development in our broader transformation into a vertical physical AI company. Our core public safety platform, ShotSpotter, CrimeTracer, PlateRanger, ResourceRouter and CaseBuilder is a modestly growing but profitable business generating strong adjusted EBITDA and free cash flow beyond what we're showing today on a consolidated basis.
SafePointe, on the other hand, is an early stage but rapidly growing business in which we are deliberately investing in today in order to capture what we believe is a category-defining opportunity in physical AI security. The blended adjusted EBITDA profile you see at the consolidated level reflects that deliberate capital allocation choice. Alan will provide additional color on the magnitude and the path and time line for the SafePointe breakeven.
So stepping back, revenue tracked at consensus, Q1 adjusted EBITDA reflects the structural shape of our year, our customer momentum across retention, SafePointe acceleration and our investments in innovation like our SafetySmart Field Agent and growing DFR integration reinforces our conviction. The underlying strength of our business remains intact and the differentiated platform we've built grounded in trust, performance and 25 years of physical AI data, we believe, positions us well for the rest of 2026 and beyond. I'll now turn the call over to Alan to discuss our financial results for the first quarter and our outlook for the full year 2026 in greater detail.
Then we'll be happy to take your questions. Okay, Alan, over to you.
Thank you, Ralph. Good afternoon, everyone. Revenues in the first quarter were $24.2 million compared to $28.3 million in the first quarter of 2025. As a reminder, first quarter of 2025 included approximately $0.5 million of revenue related to our Puerto Rico ShotSpotter contract where it has not yet been renewed as well as the nonrecurring impact of approximately $3.5 million in prior year catch-up revenues related to the 2 3-year renewals of our large contracts with NYPD.
Gross profit was $11.3 million or 47% of revenue compared to $16.6 million or 59% of revenue in the prior year period. The decrease in gross margin reflects the continued costs related to servicing existing and new customers without the benefit of the catch-up revenue recognized in the prior year quarter. Our adjusted EBITDA was approximately negative $100,000 compared to a positive $4.5 million in the first quarter of 2025. It's important to highlight that our first quarter adjusted EBITDA was impacted by costs associated with ongoing product development, most notably in SafePointe, which is currently generating over $8 million of annualized losses as we invest ahead of expected revenue.
Absent these investments, adjusted EBITDA would have increased year-over-year in the first quarter, underscoring the continued improvements in our core business. We are deliberately making these investments based on what we're seeing in customer demand, pipeline growth, contract size and long-term margin opportunity, and we expect this pressure to moderate as these programs mature and begin contributing more meaningfully to profitability.
In fact, given the large SafePointe pipeline and expected growth, we expect that product group to achieve profitability at the end of 2027 or early in 2028. As a reminder, adjusted EBITDA, a non-GAAP financial measure is calculated by taking our GAAP net income or loss and adjusting out interest income, income taxes, depreciation, amortization and impairment, restructuring costs and losses, including related fixed asset disposals, stock-based compensation expenses and acquisition-related expenses, including adjustments to our contingent consideration obligations.
Our operating expenses were $18.1 million compared to $17.8 million in the first quarter of 2025. Operating expenses remained relatively consistent year-over-year, reflecting higher employee-related compensation costs and restructuring charges, partially offset by reduced sales and marketing spend.
Breaking down our expenses, sales and marketing expense in the first quarter was $6.5 million or approximately 27% of total revenue compared to $7.3 million or 26% of total revenue in the prior year period. Our R&D expenses were $4.4 million or approximately 18% of total revenue compared to $4.1 million or 14% of total revenue in the prior year period, reflecting continued investment in product innovation, AI-driven capabilities and platform enhancements.
G&A expenses for the quarter were $6.7 million or approximately 28% of total revenue compared to $6.5 million or 23% of total revenue in the prior year period. We expect our G&A expenses to grow more slowly than revenue over time as we scale the business.
Our GAAP net loss was approximately $7 million or $0.54 per basic and diluted share for the quarter based on 12.9 million basic and diluted weighted average shares outstanding. This compares to a GAAP net loss of $1.5 million or $0.12 per basic and diluted share based on 12.6 million basic and diluted weighted average shares outstanding in the prior year period. The increased loss was driven primarily by the absence of prior year catch-up revenue, restructuring-related charges and continued investment in our platform.
Deferred revenue as of March 31, 2026, was $40.4 million compared to $43.9 million at December 31, 2025, reflecting normal contract receivable variability and revenue recognition during the quarter. We ended the quarter with $14.2 million in cash and cash equivalents compared to $15.8 million at the end of 2025. Currently, we have approximately $36 million available on our line of credit as we have approximately $4 million in debt outstanding, all on our line of credit.
Now turning to guidance for the full year 2026. We are reiterating our full year revenue guidance range of $109 million to $111 million, which represents approximately 5% to 7% year-over-year growth. We are also reiterating our full year 2026 adjusted EBITDA margin guidance range of 16% to 18%. We expect to achieve this adjusted EBITDA range through 3 primary things. First, Q1 is historically our most expensive OpEx quarter of the year, so we expect our quarterly OpEx costs to go down.
In addition, our recent cost reductions should add an additional $2.5 million for the remainder of the year. And lastly, we believe that over 90% of new revenue growth beyond our Q1 revenue run rate will flow directly towards adjusted EBITDA. Our guidance reflects the structural shape of the year that Ralph discussed earlier. As a reminder, revenue and profitability are back-end loaded as deployments, renewals and expansions build throughout the year.
Our outlook reflects the investments we are making in SafePointe, AI-driven capabilities, platform innovation as well as the benefit of approximately $4 million in annualized cost savings from our workforce and business optimization actions that became effective at the start of the second quarter. As we move through the balance of 2026, we expect improved revenue scale and operating leverage to drive a materially stronger profitability profile in the second half of the year.
We are confident in our ability to execute against our full year framework and remain focused on disciplined cost management while continuing to invest in long-term growth opportunities. Overall, we're pleased with the progress we've made on each of our strategic initiatives and operational performance of the business.
With that, we're now happy to open the call for questions. Operator, will you please open the line for Q&A?
[Operator Instructions] The first question comes from Richard Baldry with ROTH Capital.
2. Question Answer
Could you talk about the visibility you have into the growth for the balance of the year, sort of how much is signed but needs to be deployed versus what's the go get that you'd have to sign and be able to deploy intra-year?
Do you want to take that, Alan? Or do you want to address it?
Sure. No, I can go ahead and start. I think at this point, although Q1 was a little slow in certain areas like our ShotSpotter sales, I would say that we are ahead of schedule in several other ones and certainly will be by the end of the first half of the year. You heard Ralph mention about the 2 new SafePointe contracts that got signed literally this week, one which was $3.2 million and another one, which is over $1 million, adding about $1.4 million per year.
If you recall from our last call, we said we were going to add about $4 million in ARR for SafePointe alone. When we're getting large contracts like that, that add 70 new lanes and literally both of those just signed this week, it's showing a lot of positive activity there. Ralph also mentioned the other things that we're adding like the 50 PlateRanger cameras that we've got as well as the other solutions that we're feeling quite positive about.
Internationally, although things are a little slower right now for the first half of the year, we still -- are still expecting the top line revenue to be able to be hit based on what we're seeing in the pipelines right now. Ralph, you may have additional comments as well.
Yes. I think I would just add, and I agree with everything that Alan said. I think as we had commented earlier, we feel really good about hitting $50 million or so for the first half. We've acknowledged that our structure of our year is going to be more back-end loaded. So the way to think about at least the revenue coming on board is $50 million in the first half and then $60 million in the second half of the year.
And a big portion of that growth in the second half, as we talked about previously, are 2 very large deals that are multimillion dollar deals, one with a large statewide or semi-state-wide CrimeTracer deal of about $2.5 million. And then we're expecting the recapture of Puerto Rico, which can add another $2.7 million of ARR. And of course, how they convert to revenue is pretty much time sensitive. So we're looking to get those closed early in the second half of the year in order for it to contribute to the revenue escalation we expect for 2026.
And if you look at the 2 hospital deals, one is a $3 million deal, one is $1 million, let's call it. So there's a pretty big gap between those 2. How typical are either end of that? Or is that both ends of what an average deal should look like? How do we think about that versus the 400-hospital opportunity in California?
Yes. So yes, that's a good call out, Rich. So I would say we're so early in the process. I don't know that I'm ready to define what the cadence of deals look like. What I can say is the pipeline is growing very, very quickly. We're hyper focused on casinos and health care. We're building momentum in health care as we get more customers that are positive references for us. There's one state -- excuse me, the one larger deal, the $3 million-plus deal that we talked about is basically consolidating SafePointe across all the hospitals they have in one particular state.
This particular hospital chain has presence in multiple states. So that's just a big opportunity in and of itself. And that -- again, that's all prior to 2975. So I think our expectation is we're going to see a mix of deals from 10 lanes to 50-lane type of opportunities as we saw in this large case. And then we're going to see expansion start to play in this thing, too, as people standardize on our solutions after they have deployed in just a percent of their hospital. So we're really encouraged about SafePointe in the hospital and casino vertical.
One last for me. When you look at the $8 million sort of drag from SafePointe right now, how much of that is in the sales and marketing really sort of going demand driving side of the table versus ongoing product development or back office?
Yes, that's a great question. And if you think about it, the $8 million, by the way, is what we expect to have the negative adjusted EBITDA for '26. In '25, it was actually over $9 million. So we're already improving. But I would say, if you want to break it out between the different categories, out of that total loss, our revenue is going to go from somewhere around $3.6 million last year to north of $6.5 million this year.
We do believe that the cost of goods sold, which does have a lot of personnel cost in it, is going to go from about $8 million last year to maybe about $9 million. We don't need to add a lot more there as we're adding over $3 million in revenue. And the actual OpEx goes from about $7 million to close to $9 million. So as revenue goes up by $3 million and the other stuff only goes up by $2 million, that $9 million loss goes down to $8 million loss. So it really is a mix of different ones.
Specifically your question about sales and marketing, we really only had 1 person in the sales and marketing group last year for SafePointe, we now have 4. And we think we're fully staffed to be able to hit those numbers. And as the pipeline continues to build and we see large contracts like this, it's proving itself that what we're expecting can happen is actually happening.
The next question comes from Trevor Walsh with Citizens.
Ralph, maybe I'll start with you on more platform product level questions. For the DFR commentary and the integrations you got with, I think, the 16 cities on that front, I see how that can definitely be making ShotSpotter sticky there. Can you walk us through or talk about how that's maybe creating actual like kind of additional, like not just keeping of revenue, but getting more revenue as those integrations and that particular use case comes about?
Yes, that's a fair call out. I think I'm not being an incredibly greedy person. I think the right way to think about our drone or DFR integrations is to think more about adding value to customers and being more embedded in their operational fabric about how they respond to the ShotSpotter alert. So the net result or net benefit to us beyond adding value to our customers and integrating with their operational fabric is really around retention and stickiness.
And I think that has to be the focus for us for right now. We're not looking to add on additional revenues or whatever. I think our focus is much more on how to add value around ShotSpotter to our customers in terms of how they respond to ShotSpotter alerts. So frankly, we'll probably be investing more. So like right now, I would describe our DFR integrations as kind of Level 1 DFR integrations where we're basically sending a digital alert that can be consumed by DFR, sending them to a lat/long opportunity.
What would be really interesting is to make those integrations bidirectional. So we would love to, in terms of Phase 2, be thinking about how we can get once the eyes are on target, getting that visual back incorporated into a ShotSpotter alert and have it all be combined into one data package, which then, frankly, could go to our CrimeTracer solution, right, and then combined with LPR, then goes to CaseBuilder for case management stuff. I mean, you see some really existing opportunities.
So I think our focus is really about how to be more valuable to customers, and we'll get the proper benefit that we need to get in terms of retention. That's where the focus is, not in terms of revenue enhancement. Did that answer your question?
Yes, absolutely. That's great color. I appreciate it. Maybe switching over to the Field Agent piece and kind of AI empowerment within the platform. Is that just being offered for free as core service? Or do customers have to own a certain set of products to kind of turn that on? How is that from just a kind of a deployment/kind of [ saleable ] item looking like?
Yes. Thanks for that question as well. So again, I think Phase 1, very similar to my response to the DFR integrations. We're looking just to roll that out to add value and stickiness. I think the more individuals that we can get interacting with the data, the more valuable it becomes frankly, we can have these briefing packages prepared for city councils. Again, it's really around adding value to customers and improving stickiness.
I think going forward, we're going to continue to invest in this area. And I think the Field Agent can be something that goes across the platform, not just for ShotSpotter, but for kind of LPR with PlateRanger, also CrimeTracer, CaseBuilder, et cetera. There's a lot of really interesting possibilities there. This is about a data game for us and capturing the data and building the physical AI moat that comes along with the data.
Got it. Perfect. Maybe just one more -- one last one for me for you, Alan. Can you just help me understand, I guess, maybe first talk a little bit about the workforce optimization. Was that kind of broad-based across business functions as that took effect? And then I think you had called out in your remarks that there's $4 million in annual savings specific to that workforce optimization. But then when you were kind of rolling through your points around adjusted EBITDA, there was cost reductions of $2.5 million in savings for the year. So the -- I guess, for the balance of the year.
I don't know if that's the same as the workforce optimization or related but separate. So if you could maybe just again, give us a sense of what the workforce, like the kind of qualitative piece was and then the bridge in terms of how that's kind of going to affect EBITDA for the year, that would be terrific, if that makes sense.
Yes. Absolutely. Great question. Thank you for asking that. So we did -- it was about 20 people that were part of our reduction, but it wasn't just people. We had some other reductions we had in terms of things, some meetings that we were no longer going to have like the all-hands meeting, we definitely decided we didn't need that. We had some marketing changes. So in terms of the total $4 million, that is over a year. So it basically took effect April 1.
So the first quarter of that, you would expect to be somewhere between $500,000 and maybe as high as $700,000. So that $2.5 million that I mentioned in my script is probably $500,000 to $700,000 in the first or the second quarter of the year and then approximately $1 million in Q3 and approximately $1 million in Q4. That's how you get to the $2.5 million, might even be a little higher than that.
The savings will continue, though, because it is 12 months of savings where we get the $4 million savings. So we will continue to have that. All of that's going to help us in terms of reducing our total cost and increasing our adjusted EBITDA. But in order to get to the guidance that we talked about in terms of 17%, we're only counting $2.5 million of that towards the increase to be able to get to that -- to the guidance.
The next question comes from Michael Latimore with Northland Capital.
Just a couple of questions on, I guess, SafePointe to start. Nice wins there, it sounds like. Can you just talk about why you win -- you won those deals? And then within the hospitals, are they being used kind of at the front door in the emergency room? Or like how extensively are they being used?
So this is Ralph. I'll start and Alan jump in and add -- and complement. But I think the wins are for hospitals, the focus that a hospital has is how to provide some level of security without having a checkpoint and frustrating the free, I would say, kind of ingress, egress of individuals coming in and out of the hospital. We hear a lot when we talk to hospitals about the patient experience and the visitor experience being very important.
They want a dignified experience and having people to be almost effectively criminalized by going through a checkpoint, yielding -- having to discard themselves of keys, laptops and the like is just a negative. And frankly, it creates a security risk profile in terms of a soft target as people kind of aggregate around going one by one through a checkpoint. We address that very nicely with our very unique [indiscernible] setup where we're not having an active sensor solution, it's passive sensors. It's very discreet, not very noticeable, very wide lanes.
So people can go in and out. And we're specifying a very low false positive rate. So think in terms of kind of low single-digit false positive rate because you are going to have false positives in these kind of situations, which is considerably lower false positive rate than some of our competitors have and still having a very effective true positive rate in terms of capturing a number of weapons that are coming through.
So the balance is there, and it's prioritized for us at least in a hospital environment, where we would not play very well, frankly, and we're rooting other folks on in this environment. If you go to an arena or go to a stadium, I think people are kind of conditioned to have more of a TSA experience. And so our uniqueness doesn't play as effectively there. And so we're ceding those kind of opportunities to folks that have checkpoints.
But we want to really own the hospital vertical and casino vertical that has the same type of requirements. Casinos don't want to slow people down from getting into casino and having a good time and perhaps losing a little bit of money. So that's where we're going to focus, and we think we have a competitive advantage in those particular environments. And I think with respect to the lanes that people are deploying in hospitals, it's across the board. It's visitor lanes, emergency lanes, some employee entrances are also being covered by our solution.
And is the -- you mentioned casinos and health care as key verticals, I guess, is health care the prominent one? And are you seeing a pickup in California given this legislation?
Yes. This is Alan. I'll go ahead and say we do have hospitals in California. We haven't really seen them specifically tied to the Assembly Bill 2975, which we've talked about for the last couple of quarters, which is requiring about 400 hospitals in California to have a weapon detection solution. We believe that some of the hospitals that we're doing right now are just getting ahead of that.
In terms of actual casinos, we're seeing casino expansions as well. We've got casinos now expanding in Illinois, in Alabama. Those have been in the last couple of quarters. elsewhere as well. I mean even as you heard Ralph talk about Morgan State, which is a university. So it isn't necessarily a focus area for us, but they basically came to us and they also deployed ShotSpotter as well. So we are seeing about half of our customers are in the hospitals, maybe a little north of 50% and then about half are in the casinos with a small percentage, the delta would be for other things.
Okay. And then in terms of the ARR growth for the year, it sounds like you're expecting roughly $3 million to come from SafePointe. Can you provide any detail on kind of the major other categories that would drive that $15 million?
Yes. This is Alan. We're expecting actually about $4 million in SafePointe, and we believe we'll be over $2 million by the end of the first half of the year or certainly close to that. So well on our way with the SafePointe. We did say that we're going to have about $7.3 million in ARR for ShotSpotter, of which $2.7 million of that is getting Puerto Rico back online.
So out of that $7.3 million, $2.7 million is Puerto Rico, that leaves about $5.6 million left. That would include both domestic lanes and international lanes. So if you think international's maybe $1 million of that, which would be really just 2 new products -- projects for us, which we believe we can get that leaves the domestic down to about $4.6 million.
So you have to have somewhere around 60 to 70 new lanes domestically. That's less than we've done in past years, and we believe that -- and certainly hope that we can get there from that. The other products that we have are relatively smaller in terms of the ARR. We do expect that the PlateRanger is going to be somewhere around -- maybe around $1.5 million in terms of new ARR, which will give us approximately $800,000 to $900,000 in actual GAAP revenue versus 0 from last year.
So that's nice growth. And then the balance of the rest relatively small. I should say CrimeTracer, it adds about $3.2 million of that. So that's the delta. $2.5 million of that is the large new state that Ralph mentioned. So out of the $3.2 million, $2.5 million comes there, that only adds another $600,000 in other CrimeTracer new customers.
[Operator Instructions] The next question comes from Eric Martinuzzi with Lake Street.
I wanted to follow up on the 2 significant contract delays, the Puerto Rico and the state CrimeTracer. Just the fact that they are such needle movers for you all in the second half of the year, curious to know where are they in the kind of renew approval process? Is this -- the ball is in their court and we're waiting for them to get back to us? Or is there a time line and they're hitting their time lines as far as internal approvals, and that's why we've got them teed up for the second half?
Yes. So this is Ralph. I'll start and then Alan jump in as appropriate. With respect to the CrimeTracer deal, I would say we're literally exchanging paper with the entities. And so that's really quite encouraging. In fact, I was really hoping we were going to be able to be more specific actually on this call.
So I think our large CrimeTracer deal is probably no more than 30 to 45 days away from getting paper is my hope. We were actually as a team down in a particular state meeting with the governor's office around this. We got the contracting vehicle. I think we've pretty much agreed on all the language. And as I said, we're literally swapping paper back and forth. Puerto Rico is still positively engaged. I would say that, that is as far along as CrimeTracer, although there's still very positive engagement down there. There have been some moves, I would say, organizationally and politically that are net positive for us, but that one is still -- there's still some work that needs to be done with respect to Puerto Rico.
Okay. And then the other thing that you guys have over the past couple of years -- actually, I guess, since the Chicago nonrenewal, you had put in place procedures to get ahead of renewals, whether it's proactively reaching out even at the council member level to demonstrate the efficacy and the power of the ShotSpotter system. Any changes in how you're approaching that process and any significant renewals that we should be aware of here in the next 6 months?
Go ahead, Ralph.
No. Go ahead, Alan. sorry.
No, I was going to say that we are being very proactive about this. The guidance that we have given for the year has higher attrition than we have in the past, primarily related to budgets and no longer having ARPA funds that cities or states are even allowed to use. So we do expect attrition to be a little higher, which is causing us to spend more time and maybe going to our customers a little earlier than we would have in the past.
So it is something that we are doing very aggressively. I wouldn't say the process has changed too much other than we are trying to get some potential funding sources for them in some cases that we haven't necessarily done aggressively in the past, if the customer tells us in advance that they're having challenges. So I would say that would be the only thing that's really different in terms of how we're doing it.
In terms of large renewals that we are expecting, we have Detroit, which is a large customer has over 30 miles. We've already submitted our proposal with an RFP that they put out. That should hopefully get awarded in the next couple of months.
We do have another one in Suffolk County. That is a very interesting customer for us because we were with them before and then they ultimately canceled their 7 miles that they had and then renewed and went above 20 miles. So that's one. It's a little later in the second half of this year, but something that we're focused on. Other than that, our larger customers like Albuquerque, fully supportive of us, have expanded by 4x. There aren't a lot of other ones other than Puerto Rico that are, I would say, are large enough to be concerning.
Thank you. At this time, I would like to turn the call back over to Mr. Ralph Clark for closing comments.
Great. Thank you, operator. So thank you all for joining us today, and thank you for your thoughtful questions. As you can tell, we're pretty excited about the trajectory of our business and feel as though we have very clear line of sight around our reaffirmed guidance. So we're looking forward to updating you on our progress in the next quarterly call. And of course, if you have any additional questions, feel free to reach out to Alan or myself, and we'd be happy to engage.
Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.
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ShotSpotter, Inc. — Q4 2025 Earnings Call
1. Management Discussion
Good afternoon, and welcome to SoundThinking's Fourth Quarter and Full Year 2025 Earnings Conference Call. My name is Diego, and I will be your operator for today's call. Joining us are SoundThinking CEO, Ralph Clark; and CFO, Alan Stewart.
Please note that certain information discussed on the call today will include forward-looking statements for our future events and SoundThinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks and uncertainties that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements. Certain of these risks, uncertainties and assumptions are discussed in SoundThinking's SEC filings, including its most recent annual report on Form 10-K and other SEC filings. These forward-looking statements reflect management's beliefs, estimates and predictions as of the date of this live broadcast, March 3, 2026, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.
In addition, our comments on the call today contain references to non-GAAP financial measures, such as adjusted EBITDA and key business metrics such as annual recurring revenue. Non-GAAP measures should be viewed in addition to and not as an alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as definitions of the key business metrics referenced and management's reasons for including the non-GAAP measures and key business metrics referenced may be found in the press release.
Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at ir.soundthinking.com.
With that, I'll now turn the call over to Ralph.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. I'll begin with high-level commentary on the quarter and the year, along with an update on our near-term outlook and strategic progress. Alan will then walk through the financials in more detail and provide guidance before we open up the line for questions.
Let me start with some important context. The overall market for public safety solutions is constructive and growing. I'm incredibly proud of our team for executing through some of the headwinds we had countered in 2025. Despite some of those challenges, we delivered record full year revenue of $104.1 million, representing a 2% increase over 2024. We accomplished that while maintaining double-digit adjusted EBITDA margin profitability and while importantly, making critical growth investments that we believe position us for the future.
We went live with ShotSpotter in 10 new cities, 2 universities and expanded with 11 current customers in 2025. Additionally, we saw solid acceleration of our SafePointe business with $1.6 million of bookings from 11 customers, which we anticipate taking live in the first half of this year. We're exiting 2025 with ARR of $95.4 million, and we believe we're positioned to grow that ARR base by approximately 15% or $14.6 million, net of approximately $3.1 million of ARR attrition in 2026. This puts us on path to enter 2027 with $110 million of ARR. I'll walk you through the expected ARR build toward the end of my commentary, but we'll highlight now that while corresponding GAAP revenue should ultimately follow that ARR growth is expected to lag because a meaningful portion of our ARR bookings are expected in the second half of the year.
Let me step back and frame what we're building here at SoundThinking and why we're so confident in our future within the public safety and security SaaS market. A big part of what we do is deploy connected physical infrastructure, acoustic sensors for gunshot detection through ShotSpotter, visual sensors for vehicle intelligence through PlateRanger and passive magnetic fuel centers for concealed weapon detection through SafePointe. These devices operate in the real world generating missing critical data.
What differentiates us is the unique data we are able to capture at the physical layer and the AI-based algorithms we apply against that data. Our models detect, validate and publish actionable signals, gunshots, vehicles of interest, conceal weapons while filtering out the noise in real time and at scale.
While we've been working on innovating and improving our ShotSpotter solution for decades, we become more intentional recently to apply our prior learnings with new data aggregation and AI tools to our other connected device solutions. Strategically, these solutions become embedded infrastructure for our customers. As we deploy more devices, we aggregate more data, which improves our AI models and increases value over time. Because our alerts are integrated directly into customer workflows from dispatch to investigation to emerging tools like drones as first responders, our system becomes operationally embedded. This creates meaningful switching friction and drive strong retention. The result is a durable recurring revenue base that is both profitable today and we believe will compound over the long term and create real long-term value.
Our 2026 ARR growth is expected to come primarily from 4 major solutions comprising the SafetySmart platform. First, ShotSpotter, which is our flagship offering and is still the leading acoustic gunshot detection solution in the market. We currently serve over 170 customers comprising over 1,100 square miles and exited 2025 with $67.6 million of ARR. We believe we can add approximately $8.3 million of additional ARR, including the $2.7 million of ARR recapture of the Puerto Rico plus approximately $5.6 million of ARR other new domestic and international customers, including expansions.
This ARR growth does not include Chicago or any ARR from our recently launched perimeter-based sniper solution which is focused on critical infrastructure protection of utility substations and corporate campuses with the potential to cover U.S. [indiscernible] and forward operating base deployments. We believe these opportunities represent additional upside.
Second, we are very pleased with the market reception of our CrimeTracer Gen 3 solution launched late last year at ICP. CrimeTracer is a highly differentiated data aggregation business, representing over 1 billion [indiscernible] seizures records, combined with Thomson Reuters [indiscernible]. That scale and breadth of data create a powerful foundation for investigative intelligence. With Gen 3, we're applying generative AI into that data environment to enable investigators and analysts to find what they're looking for more naturally surface relevant connections that result in investigative leads faster and help deliver justice to victims of crime.
We're very excited about local law enforcement cross-jurisdictional task force collaborations to address gang violence and organized retail theft rings. PrimeTracer exited 2025 and with $8.1 million of ARR, and we estimate that we will add approximately another $3.1 million of ARR, including the $2.5 million of ARR from the execution of CrimeTracer across approximately 18 agencies within a new state, which has been delayed, but which we believe will happen no later than Q3 of this year.
Third, our Connected Vehicle Intelligence ALPR solution PlateRanger, which is powered by our partnership with Rekor is gaining solid traction following its launch last year. Given the recent controversy around a certain LPR vendor that has received a lot of well-documented attention, we believe this opens up a significant opportunity for new entrants like ourselves who take security and data governance as first principles versus an afterthought. We are modestly targeting $1.5 million of new ARR from PlateRanger this year.
And last but not least, SafePointe, we continue to see strong momentum as we believe the market is recognizing that SafePointe is just not another weapon detection system, but that it is a fundamentally different architecture. Unlike legacy checkpoint-based systems that rely on active screening and create friction, SafePointe operates passively and discretely in the natural flow of ingress and egress, leveraging advanced sensor fusion and AI to detect conceal weapons without slowing people down. We believe that frictionless experience helps drive higher adoption, stronger customer satisfaction, enhanced visitor dignity and real operational scalability.
We're in the early innings here as leveraging passive sensor weapons detection by harnessing advanced AI capabilities is new and innovative. As we refine deployments and expand our sales capacity, we believe SafePointe is uniquely positioned at the intersection of physical security and AI in what we call Physical World AI. We are encouraged by the tight product market that demonstrated with Q4 2025 bookings of approximately $800,000 across 6 customers that all have the capacity for potential expansion. Our model estimates that SafePointe to contribute another $4 million of ARR in 2026. The balance of our overall ARR increase will come from our other products.
An important element in our ability to deliver on our growth strategy is having the right team in place. To that end, we've taken steps to bolster our sales execution capabilities by adding several new leaders with proven experience scaling successful go-to-market functions and driving durable profitable growth. We've welcomed [ Kirk Arthur ] as our new Senior VP of Global Sales. Kirk brings a unique combination of commercial GovTech sales leadership he honed at Microsoft combined with his executive leadership roles in public safety at the U.S. Secret Service. We are thrilled to have him join our leadership team.
It's important to note that we operated at less than our full potential in 2025 without a permanent Senior VP of Global Sales. So Kirk's arrival is a meaningful step forward in strengthening execution, accountability and pipeline discipline across the organization.
In addition, [ Manuel Neylan ] has joined us as VP of Sales and the sales leader for our SafePointe business. Manny has a long and successful career of bringing new innovative security solutions to market. We now have a fully built-out SafePointe sales team in place, which is something we did not have in place a year ago.
Lastly, we've added [ Bruna Bolarino ] as Vice President in Brazil to help expand and accelerate our momentum in that key market. Importantly, Kurt's leadership also frees up Gary Bunyard who did an outstanding job serving as Interim Senior VP of Sales for Q4 2025. He will now be able to focus on key large strategic opportunities including pursuing the contract renewal with Puerto Rico, advancing a significant SafePointe potential opportunity with a global top 5 health care system and potentially engaging Chicago based on their RFP response.
And speaking of Chicago, as we previously shared, the formal evaluation process has been completed, and we believe the recommendation has been transmitted to the appropriate procurement channels. At this stage, the matter sits with the city's administrative process. We remain confident in the strength of our response and the technical, operational and financial merits of our proposal. Importantly, we believe nothing about the underlying need for [indiscernible] gunshot detection technology has changed given the formal line item budget approval for gunshot detection. We continue to be respectful while the formal RFP is active. And while timing is ultimately outside of our control, we believe the fundamentals of performance outcomes and officer safety speak for themselves. We are in a wait-and-see posture.
On New York, we are pleased to see that the recently released fiscal year 2027 budget framework leaves our current 3-year agreement with NYPD fully intact. There were no proposed reductions, no carve-outs, no structural changes to the program. ShotSpotter remains embedded in the city's public safety architecture and it grows as NYPD integrate ShotSpotter with drones' first responders and crime gun intelligence. This is notable. New York is one of the most scrutinized policing environments in the world, and if there were any operational concerns, budget pressures or appetite for change, we believe you would see it reflected here first. Instead, what you see is continuity.
Our system continues to do what it is designed to do, which is to provide rapid, actionable intelligence to officers in the field. The city's budget signals a steady support from our perspective that there is nothing unusual to interpret here. This is simply the steady execution of a long-standing partnership.
Now to guidance. We know from experience that recognized GAAP revenue timing can fluctuate based on procurement cycles, deployment schedules, the cadence of bookings and the budget headwinds, which is why we're adjusting our full year revenue guidance to $109 million to $111 million. But to be clear, we believe annual recurring revenue reflects the 2026 inflection point and underlying compounding economic engine of our business.
As we move into 2026, there are 3 items of focus for us: first, anticipated ARR growth, approximately 15% growth in our net ARR reflects expanding adoption and renewed momentum; second, introducing customers to more solutions within our platform and focused integration with complementary solutions. Multiproduct customers represent a larger opportunity than a single product deployment. We're increasingly leading with workflow outcomes, not point solutions.
Third, operating discipline, we're investing where the returns are strongest, particularly in growth areas like SafePointe and operational levers made possible by Agentic AI capabilities. As we continue to allocate resources toward our highest return opportunities, we're also focused on ensuring the organization is operating as effectively as possible. In that context, the Board and management team are undertaking a review of the business to identify opportunities to drive efficiency across the organization. Our objective is to create shareholder value and ensure the company is well positioned in any market environment. We will provide updates as the review progresses.
I'll now hand it over to Alan to talk about the numbers. Alan, over to you.
Thank you, Ralph, and good afternoon, everyone. In spite of the challenges mentioned by Ralph, our 2025 results had many positives. Our financial performance reflects the success of our ongoing strategic initiatives, the growth of our largest products and operational efficiency measures, which supports our commitment to deliver value to our shareholders.
In the fourth quarter, revenues were $24.8 million, representing a 6% increase over the prior year period. Gross profit was $12.6 million or 51% of revenue versus $11.7 million or 50% of revenue for the prior year period. Our adjusted EBITDA was $1.3 million compared to $1.7 million in the prior year period. Our adjusted EBITDA decrease was directly related to the delayed contracts from an anticipated deployment of PrimeTracer in a new state and our ShotSpotter renewal in Puerto Rico.
As a reminder, adjusted EBITDA, a non-GAAP financial measure, is calculated by taking our GAAP net income or loss and adjusting of interest income or expense, income taxes, depreciation, amortization and impairment, restructuring costs and losses, including related fixed asset disposals, stock-based compensation expenses and acquisition-related expenses, including adjustments to our contingent consideration obligations.
Our operating expenses were $15.1 million or 61% of revenue versus $15.5 million or 66% of revenue in the prior year period. Breaking down our expenses. Sales and marketing expense in the fourth quarter was $6.5 million or 26% of total revenue compared to $6.5 million or 28% of total revenue in the prior year period. Our R&D expenses were $4 million or 16% of total revenue compared to $3.5 million or 15% of total revenue in the prior year period. G&A expenses for the quarter were $4.5 million or 18% of total revenue compared to $5.5 million or 24% of total revenue for the prior year period.
Our GAAP net loss was approximately $2.8 million or a loss of $0.22 per basic and diluted shares for the quarter based on 12.7 million basic and diluted weighted average shares outstanding. This compares to a net loss of $4.1 million or $0.32 per basic and diluted share based on 12.6 million basic and diluted weighted overtures outstanding for the prior year period.
Turning to our full year 2025 results. Revenues were a record $104.1 million, representing a 2% increase over the $102 million achieved in 2024. It should be noted that 2024 included approximately $9 million of revenue related to Chicago that was not renewed, but replaced by growth of other product sales across the company. The Chicago revenue reduction also affected all 2025 profitability measures.
Gross profit was $56.6 million or 54% of revenue versus $57.9 million or 57% of revenue for the prior year. Our adjusted EBITDA was $12.6 million compared to the $14.4 million we achieved in the prior year. Operating expenses decreased 1% to $65.4 million or 63% of revenue versus $65.7 million or 64% of revenue in 2024.
Breaking down our expenses. Sales and marketing expense in 2025 was $26.1 million or 25% of total revenue compared to $28.1 million or 28% of total revenue in the prior year. Our R&D expenses were $15.9 million or 15% of total revenue compared to $13.9 million or 14% of total revenue in the prior year. G&A expenses for the year were $23.2 million or 22% of total revenue compared to $23.9 million or 23% of total revenue for the prior year. As a reminder, we expect our G&A expenses to grow less than our revenue on a percentage basis as our company grows.
Our GAAP net loss was approximately $9.4 million or a loss of $0.74 per basic and diluted shares for the year based on 12.7 million basic and diluted weighted average shares outstanding. This compares to a net loss of $9.2 million or $0.72 per basic and diluted shares based on 12.7 million basic and diluted weighted average shares outstanding for the prior year period.
Deferred revenue as of December 31, 2025, was $43.9 million, in line compared to the $43.9 million at the end of third quarter 2025. Revenue retention rate for 2025 achieved 99%, reduced due to the nonrenewal of our Chicago ShotSpotter contract at the end of 2024. Our sales and marketing spend per dollar of new annualized contract value was $0.56 compared to $0.63 in 2024.
We ended the year with $15.8 million in cash and cash equivalents versus $11.8 million at the end of the third quarter of 2025. We repurchased 225,334 of our shares at an average price of $13.15 for approximately $3 million throughout 2025. Our current cash balance is greater than $16 million even after paying our annual company cash bonuses in February. Currently, we have approximately $36 million available on our line of credit as we have approximately $4 million in debt outstanding, all on our line of credit.
Now turning to our guidance for the full year of 2026. We are reducing our full year revenue guidance range from $114 million to $116 million to $109 million to $111 million. This decrease is primarily attributable to delays in the 2 expected bookings and deployments which the timing of closure is still unknown, so we thought it was appropriate to reduce the revenue expansion until they are executed. The first relates to CrimeTracer, we had anticipated execution across approximately 18 agencies within a new state, representing approximately $2.5 million in revenue. While this deployment has been delayed, we remain confident it will proceed in the near future.
The second relates to our ShotSpotter renewal in Puerto Rico. When executed this contract is expected to add approximately $2.7 million in ARR. But similar to the CrimeTracer wallet in the new state will not [indiscernible] the timing of the contract execution. In total, these 2 items represent over $5 million in revenue that was originally expected to be recognized in 2025 and throughout 2026. Even if recognition of revenue is delayed, provided these contracts are executed in 2026, they should significantly increase our ARR at the end of the year. It's also important to note that approximately 70% of the revenue related to these 2 items mentioned above, will flow through to adjusted EBITDA.
While we believe these are temporary setbacks, we remain optimistic about the long-term value of these potential contracts and our ability to execute well as when they get booked. We continue to monitor these developments closely. We are reducing our full year adjusted EBITDA margin guidance range from 18% to 20% to 16% to 18% to take into account the delay of these large contract executions as well as the investments that we continue to make in our AI modeling and tools that we are incorporating in our products and our internal operational use.
As we look to 2026, we remain focused on execution and long-term value creation. We are encouraged by our pipeline visibility for the rest of 2026, the strong renewal rate of our customer base, expanding strategic partnerships and integrations, increasing momentum into 2026 and our ability to generate consistent cash flow while investing for future accelerated growth. Overall, we're pleased with the progress we've made on each of our strategic initiatives and operational performance of the business.
With that, we're now happy to open the call for questions. Operator, will you please open the line for the Q&A.
[Operator Instructions] Your first question comes from Alex Latimore with Northland Capital Markets.
2. Question Answer
Alex Latimore here on for Mike Latimore. I appreciate the color in the quarter here, the ARR breakdown is very helpful for me. I had one question here on SafePointe. Can you discuss which verticals are currently most prominent in the pipeline for SafePointe?
Yes. Thank you for that question. Can you hear me okay?
Yes.
Yes. Great. Yes, this is Ralph. I would say that the primary vertical for us where we've had a lot of success has been the health care vertical because they really do value the passive nature of our weapon detection system that allows for full ingress and egress without having a checkpoint or any kind of friction. So that is really the vertical that we're leaning in on most. Although we do have some other opportunities in other verticals and corporate verticals as an example.
Awesome. Thanks, Ralph. Also I was curious on the status of your case builder deployment, I believe, in the NYPD corrections department. If you can give any insights there, that would be very helpful.
Great. Yes, this is Ralph again. Thank you for that question. So we're continuing to make really good progress in lighting up new applications to support new use cases at the New York City Department of Corrections deployment. We also have a fairly significant Department of Corrections deployment in [ Orleans Parish ] as well. So that's moving along very nicely for us.
Awesome. And then one final question. What level of attrition are you assuming for ShotSpotter this year?
Yes. So this is Alan. I'll go ahead and -- I mean at this point, we're expecting a total ARR attrition of about $3 million, as Ralph mentioned. We would expect that probably 1/2 to 2/3 of that would be related to ShotSpotter, only because we're getting ready for continued customer having some budget challenges. So far, we've been working through most of those and getting positive results, but it is best for us to be appropriate for a larger portion of that to come from budget issues.
Your next question comes from Trevor Walsh with Citizens.
Ralph, maybe for you. Can you elaborate a little bit more on the comments you made at the end of your prepared remarks around the Board review? Is it essentially just sort of taking a closer look at cost-saving measures and kind of where you guys can be more efficient from that perspective? Maybe just give a little bit more detail there, that would be great.
Yes. I think it's a good governance practice to have the Board kind of engage with the senior leadership team to really kind of pressure tests. Are we appropriately looking at opportunities to drive greater efficiencies. We're now over 300-plus employee organizations. We've made some critical investments in AI. We're seeing some positive benefits from agentic AI and think that, that's going to drive a lot more productivity. And I think the Board is appropriately engaged with us to see if there's more that can be gained from that. So more to come. It's still in the very early stages, but more to come. Just know that we're going to be putting our heads together and seeing -- and asking the question, can we do things more efficiently?
Got it. Okay. Great. And maybe just staying with you, and then I've got one last follow-up for Alan. I think there was a new disclosure or at least kind of a new theme around the use case for sniper kind of gunshot detection in a, I guess, embassy or more foreign deployed type of environment. Just curious if that commentary is related to kind of actual opportunities that are in flight? And that would seem -- obviously, you've got some international type of capabilities around ShotSpotter proper. So I'm wondering, are you just essentially pairing that use case with the boots on the ground go-to market-wise that are already doing that international business? Or is this kind of -- will this be a new motion with bodies that will kind of have -- from a head count perspective to kind of fully pursue that opportunity?
Sure. Yes. I mean so great question. So just to step back for everyone that may not have kind of caught that the way that you caught it. We did. We continue to innovate around our ShotSpotter technology solution. The team did a really good job developing a new use case, a new technology architecture that now allows us to do kind of perimeter-based sniper based types of gunshot detection. And principally, what that means is, we're not just relying on [ muzzle blast ], but we're also relying on supersonic snap of a bullet kind of passing by a sensor where you can co-locate the sensor along with the intended target.
Our initial thoughts are to focus on utility substations. We know that those utility substations have been subject to be attacked as a part of kind of bringing down the electric grid. So having a perimeter-based solution kind of around protecting that substation so that a substation utility firm can be notified if someone was firing inside that perimeter into the substation seems like a natural use case.
We're doing this through SoundThinking labs. We're not expecting or don't have any revenue allocated to this, although we are aggressively looking and resourcing ourselves with a little bit of sales motion to go get some early trial customers within the substation utility market.
In terms of foreign operating basis and embassies, that would be kind of a next layer type of thing. That's not our primary focus right now. Our primary focus is to get this up and running and deployed with a couple of utility companies this year and see where it goes from there.
Got it. Super helpful. Alan, last one for you. I'm just trying to bridge some of the comments that you both made specific to SafePointe. I think you had said there was $1.5 million in bookings, either in the quarter or maybe that was for the full year for SafePointe. But then you -- I think, expect $4 million in total for net new in fiscal '26. So I guess a 2-part question. Can you just help me bridge the $1.6 billion actually in bookings that you said, is that -- what -- I guess, what was the average duration around that contract? I'm just trying to understand kind of what does that look from an ARR perspective in '25 kind of moving to the potential for $4 million in '26. Does that make sense, Alan?
It does. No, it's perfect [indiscernible] a great question. I think the biggest thing to take away is, if you look at what we do for the entire year versus how things are ramping up and what we did with the $800,000 in Q4, you can see the things that we have done investing appropriately in the product and how we're selling it. And we'll be adding more capability in terms of the sales team as well, where that $800,000 in Q4, we are expecting to be similar or greater as we go into each quarter in '26. So in terms of adding $4 million ARR, we feel pretty confident about that.
And as Ralph mentioned earlier, our -- over half of our customers are in the health care sector. And many of those are already saying, okay, we really like what you're doing. We're going to expand to this. Some of those health care agencies have not just like 10 or 20 hospitals, some of them have like 100. So we're very -- feeling very positive about what we're doing in terms of setting expectations of the customer in terms of improving the product deployment. And although it does take some time to deploy those once we book them, we believe that we'll be able to hit the ARR increase that we have talked about in the script.
Your next question comes from [indiscernible] with Lake Street Capital Markets.
Wondering if you could comment on how things have changed with sales reps only selling the ShotSpotter or the PlateRanger rather than the whole platform at once?
So this is Ralph. Thank you for that question. I'll start and Alan jump in and add in [indiscernible] as appropriate. I think the first thing I would state is that we have a specialized dedicated team to essentially sell SafePointe. It's comprised and led by Manny, who I recently -- I just mentioned on the call here, joined us as our VP of Sales for SafePointe. Currently, he has 3 direct sales executives reporting to him along with a presales engineer. So it's a very tight focused unit of many leading for individuals to go drive a SafePointe business, which is very security-oriented.
When you go to our public safety side of the business, it gets a little bit more complex, but I'll try to simplify it by stating that we have a number of field sales territory reps that are responsible for selling the full product suite. And increasingly, you're going to see us tighten that up with the bundle. So think in terms of ShotSpotter bundle with PlateRanger or PlateRanger bundle with CrimeTracer. They basically own geographies, and they're developing new relationships with new customers as well as having conversations about expanding our footprint with an existing customer relationships.
On top of those folks, we have an overlay organization, and that's where we have a little bit more specialization with respect to the solution. So you find someone that is really, really smart about CrimeTracer as an example or a CaseBuilder or ShotSpotter or PlateRanger. So that's kind of the overlay organization that works collaboratively with our field sales organization. And that's all kind of led by our new Senior VP of Global Sales, Kirk Arthur, who just joined us. He also has some ops capability in his organization as well. These are the folks that are primarily responsible for renewal activities and proposal developments when we're responding to RFPs and the like. And he works collaboratively with our customer success organization, which is led by our Senior VP, Larry, who is leading the customer success organization.
That was really helpful. And then so switching to the International segment. How did that trend in the quarter? And then can you comment at all on what you expect the international revenue to grow in 2026?
Sure. This is Alan. I'll go ahead and start, and Ralph can add or correct as well. Although things did go a little slower than we thought in '25, it has picked up. We have several things that we are expecting in '26. But by the end of the year, there will probably be 3 new deployments in 3 separate countries. So we are deployed in all 3 of those right now. So it is a big expansion that we're expecting, but also very positive in terms of what we're doing. It's also why we hired a new sales VP directly in Brazil. Brazil is a very large potential customer and country for us that has a lot of gun violence. And we're doing quite well in the Niteroi deployment there. Uruguay has already expanded once, and we are expecting possibly another one and then some more deployment in South Africa.
And your next question comes from Jeremy Hamblin with Craig-Hallum.
I just want to start by kind of reconciling Q4 a little bit. The EBITDA came in quite a bit below the guidance issued in November. And just wanted to understand was that -- it looks like maybe gross margins were light of expectations, but you also did cut pretty aggressively in G&A. So I wanted to marry where the kind of the $2.5 million discrepancy lay. And then in thinking about the improvement for 2026, you've got about a $6 million revenue improvement, but almost $5 million improvement in EBITDA. So just to understand the drivers of that.
Sure. This is Alan. And how -- I'll give you, I think, some of the focus areas, I think might be important to understand. We had expected to get Puerto Rico and the new CrimeTracer deal earlier than we have, that would have included -- been included a portion of that in Q4 that did not happen. I would say the other thing, though, that when we look at things across the board, you have some costs certainly maybe related to stock-based comp and things like that, that ultimately affect our adjusted EBITDA. And you can see that our stock-based comp actually went down, right, from that as well as going down in the actual OpEx. I mean, G&A went from $5.5 million in Q4 last year, down to $4.4 million, this year, $4.5 million, so $1 million less. We are doing more things, we believe, to be appropriate in terms of how we're spending to make sure that we're doing the investment the right way, which is what Ralph answered in one of the earlier questions about things that we evaluate on how we're doing them.
So I think how does that go and look into '26? What you could expect is similar things for us in terms of looking at ways where we can be more efficient. And hopefully, as we're seeing like SafePointe itself specifically increase and ShotSpotter possibly increase in [indiscernible] versus last year. You'll see the revenue going up without the OpEx actually going up too much other than what we've already mentioned. So hopefully, that answers your question, Jeremy, not sure.
Yes, that's helpful. And then -- so G&A, should we be thinking about that as something that may be closer to flat on a year-over-year basis as you make kind of some decisions around kind of what you need to drive the organization? Or -- because presumably, the $4.5 million in Q4 is a bit of a depressed level. As you noted, maybe [ SBC ] got reversed or certainly it was lighter than normal. But just wanted to see if you could maybe clarify that a little bit as we think to '26.
Yes. No, that's also a great follow-up question. And I would just kind of talk about years like in '24, our G&A was $24 million, in '25 it was down to $23.2 million. I would expect that it may be slightly higher than 23.2% as we go into '26 as revenue grows. But possibly not much at all. We are expecting G&A to grow less than a percentage of revenue. So our goal would be to control as many things as we can. Sometimes there's things we can't control like legal costs, et cetera. But other than that, things that we can control should keep our G&A relatively flat.
Got it. And then I wanted to follow up on PlateRanger. So you noted fairly significant events that are occurring in the ALPR space. It seems like there's tremendous opportunity out there to potentially gain some contracts. We've seen some other firms that have already flipped contracts. But wanted to understand progress that you're making with that product line and just how far down the line you are with potential deals that you might be able to win, whether they're new deals for municipalities that don't have this type of service already or potentially win that you might be able to take away from the vendor?
Sure. This is Alan. I'll go ahead and start and Ralph can add or correct as well. The good news is we had several pilots going into or starting the second half of last year. We've already converted 5 of those to actual customers, which is good. We've got another probably 4 or 5 that we're looking at and working on them to convert them to actually customer contracts. So from a revenue perspective, having no revenue at all really in '25, we believe we can get that $1.5 million in ARR by the end of the year. The sooner we can get those converted, the higher the revenue will be.
Thank you, and we have reached the end of the question-and-answer session. I will now turn the call back over to Ralph Clark for closing remarks.
Great. Thank you very much, and thank you, everyone, for joining us today. I want to express my sincere gratitude to our shareholders for your continued support as we've navigated through what this was a fairly transformative year. Your partnership has been instrumental in enabling us to make the strategic investments and organizational assets position us so well for future growth. The trust that you place in our team and our vision to become the leading public safety technology partner for communities and enterprises nationwide drives us forward. To our clients, I also want to say thank you for choosing SoundThinking as your strategic partner in public safety and security operations.
SoundThinking remains committed to making community safer through technology, transparency and innovation that address real-world public safety challenges. As we look ahead into 2026, I'm energized by the opportunities before us and confident in our ability to deliver on our commitments to deliver shareholder value. So thank you all, and have a great evening.
Thank you. And this concludes today's call. [indiscernible] you may disconnect. Have a good day.
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ShotSpotter, Inc. — Q3 2025 Earnings Call
1. Management Discussion
Good afternoon, and welcome to SoundThinking's Third Quarter 2025 Earnings Conference Call. My name is John, and I'll be your operator for today's call.
Joining us from SoundThinking are CEO, Ralph Clark; and CFO, Alan Stewart.
Please note that certain information discussed on the call today will include forward-looking statements for our future events and SoundThinking's business strategy and future financial and operating performance. These forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict and may cause actual results to differ materially from those stated or implied by those statements.
Certain of these risks, uncertainties and assumptions are discussed in Sound thinking's SEC filings, including its most recent annual report on Form 10-K and other SEC filings. These forward-looking statements reflect management's beliefs, estimates and predictions as of the date of this live broadcast, November 12, 2025, and SoundThinking undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this call.
In addition, our comments on the call today contain references to non-GAAP financial measures, such as adjusted EBITDA and key business metrics such as annual recurring revenue. Non-GAAP measures should be viewed in addition to and not as an alternative for the company's reported GAAP results. A reconciliation of these non-GAAP measures to their most directly comparable GAAP measures as well as definitions of the key business metrics reference and management's reasons for including the non-GAAP measures and key business metrics referenced may be found in the press release.
And finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at ir.soundthinking.com.
And with that, I'll now turn the call over to Ralph. Thank you, Ralph. You may begin.
Good afternoon, and thank you for joining SoundThinking's Q3 2025 Earnings Call. I will start by providing some high-level commentary on our financial results and then share exciting updates about our strategic investment and growth initiatives. .
Our key highlights for this quarter include expanded deployments of our core ShotSpotter technology, accelerating adoption of our AI-powered investigative tools and growing traction in the health care security market following California's AB 2975 weapons detection mandate.
We've also seen meaningful progress in our international expansion efforts with our Uruguay deployment serving as a compelling proof point for broader Latin American market opportunities.
Our third quarter revenues were lower than we had expected at $25.1 million due to the absence of our ShotSpotter renewal in Puerto Rico and the delay of a statewide CrimeTracer booking we had targeted to close early in the quarter. During the third quarter, we took ShotSpotter Live in 2 new cities, 1 university, along with 2 expansions of existing customers.
And while our pipeline continues to expand, reflecting healthy demand across both existing and new markets, we are not where we need to be in terms of sales execution. Converting that demand into bookings remains a top priority. We've already begun realigning our sales organization, refreshing our go-to-market playbook and tightening accountability around forecasting and conversion metrics.
To ensure sales leadership continuity, we've asked our former Senior Vice President of Sales to step back in on an interim basis as we launch a national search for a permanent leader. These steps are delivered necessary and they're designed to translate a strong pipeline into sustained predictable growth.
Early indicators give us confidence that changes are taking hold. We're seeing stronger pipeline hygiene, better deal qualification and clear visibility into near-term opportunities across ShotSpotter, SafePointe and CrimeTracer. Just as importantly, the field and customer success teams are much more aligned around a unified sales motion that emphasizes value realization and renewal momentum.
We expect these operational improvements to drive more consistent conversion as we move through Q4 and into 2026. We are seeing very encouraging signs in customer health and retention. Retention is coming in better than expected this quarter and year, and that's not luck. It's a direct result of being intentional around customer success, engagement and measurable satisfaction.
Our latest Net Promoter survey produced an NPS score of plus 70, up 4 points from last year with over 90% satisfaction in critical partnership areas like data and analytics, customer success and technical support. Those numbers speak for themselves. Our customers trust us. They see SoundThinking not just as a technology vendor, but as a mission-critical partner helping them save lives, build community confidence and deliver results they can defend publicly.
That trust is also being strengthened by how we're using a agentic AI inside the business. We're not experimenting with AI for headlines. We're using it in practical, measurable ways. We've built an agentic customer success application that ingests and analyzes a wide range of internal and external data sources, everything from city council meeting minutes and local press coverage to community sentiment.
This helps us anticipate what our customers are dealing with, politically, socially and operationally and allows our customer success team to get ahead of issues before they become renewal challenges. In simple terms, AI is helping us move from reactive to proactive partnership, is shortening response times, improving renewal predictability and deepening alignment with each city's local context.
That's the kind of disciplined innovation we're known for, practical, ethical and measurable. It's one more way that we're differentiating SoundThinking as a trusted, data-driven partner delivering real-world impact and sustained loyalty over time.
Looking at our strategic initiatives and key developments during Q3 2025, I'm excited to share several significant milestones that underscores our position as a leading integrated public safety technology platform. First, let me highlight a major product advancement with the upcoming launch of CrimeTracer Gen3 scheduled for general availability next week.
This next-generation investigative platform represents a quantum leap and AI-powered law enforcement technology, integrating over 1 billion law enforcement and public records and documents across 2,000-plus agencies. The platform's revolutionary features include voice-enabled AI chatbot capabilities for natural language searches, AI document summarization that condenses lengthy reports into actionable insights and enhance case folder functionality that creates a centralized collaborative workspace for investigations.
Early customer feedback has been exceptionally positive with agencies particularly excited about the platform's ability to transform fragmented data systems into unified actionable intelligence. SafePointe continues to gain tremendous momentum following California's AB 2975 mandate, which requires automated weapon detection systems in all general acute care and psychiatric hospitals by March 1, 2027.
This legislation has created a substantial addressable market opportunity, and we're seeing accelerated interest in our SafePointe weapons detection technology as a result. We've been actively supporting hospitals through the compliance planning process, providing comprehensive risk assessment frameworks and implementation road maps.
The response has been also overwhelmingly positive with multiple pilot programs already underway and a robust pipeline of opportunities develop as hospitals prepare for the 2027 deadline. And we recently successfully booked another 26-lane opportunity with a nonprofit hospital in Florida just this past month, demonstrating the strong product market that our SafePointe solution represents.
Our data for good initiative has expanded significantly and is now actively operating across multiple cities, including Miami-Dade County, Springfield, Illinois and San Francisco. This program enables secure sharing of gunfire and crime data with community violence intervention groups, public health departments and local nonprofits, addressing a critical gap where up to 80% of gunfire incidents go unreported to 911.
This program has been instrumental in building community trust and demonstrating our commitment to holistic public safety solutions that extend beyond traditional law enforcement applications. Our data for good platform is a perfect extension to our work in New York City and complement Mayor-elect Mandani's vision on elevating community response, including community violence interruption resources to bring to bear in New York City.
On the drone-as-first responder integration front, we've made solid progress partnering with several drone providers as we enable drones as first responder capabilities in response to ShotSpotter alerts. The integration ensures that drones can be automatically dispatched to the exact location of a gunfire incident delivering real-time aerial intelligence to officers on the ground such as identifying victims who need an EMS intervention along with providing valuable situational awareness to arriving officers.
We've seen the real-world impact firsthand with a recent incident in Pueblo, Colorado, where a ShotSpotter alert initiated a drone response that led to the quick recovery of shell casings that were still warm enough to be seen thermally. The combination of ShotSpotter and drones extends the value of ShotSpotter by delivering a powerful use case to demanded by forward-leading law enforcement agencies.
Our plate Ranger ALTR technology, a partnership we began about a year ago now, has already evolved beyond simple license plate recognition to become a comprehensive vehicle intelligence platform. Enhanced features include a smartphone-based plate capture for mobile deployments, interdiction analytics that identify suspicious movement patterns and retrospective the search capabilities that enable investigators to track vehicle histories across multiple jurisdictions.
When integrated with CrimeTracer, this creates a powerful investigative workflow that can uncover criminal networks and accelerate case resolution.
Let me close by addressing the status of the Chicago gunshot detection RFP, which we bid on in April. Since our last earnings call, we have participated in a live fire demonstration in early September for the shortlisted RFP respondents. This is a great opportunity to put an exclamation point on what we believe was a strong RFP response that perfectly matches our demonstrated capabilities with the technical and operational needs of the city of Chicago, as reflected in their published RFP.
In addition, we are pleased to note the subject of acoustic gunshot detection was actively discussed over 2 days during the recent Chicago budget hearings. Superintend once again publicly reaffirmed his support for any technology and tools that enhance CPG's ability to respond to gunfire incidents.
It was also highlighted that a specific line item is included in the Mayor's budget proposal for 2026 for gunfire detection technology and follow-on remarks confirmed that the RFP process is coming to a conclusion.
As we focus on closing 2025 with growing momentum into 2026, we'll continue to focus on driving deeper penetration into existing customer accounts, expanding to midsize and smaller municipalities growing non-ShotSpotter Safety Smart recurring software revenue and delivering operational leverage as we scale. As a result of our temporary sales execution challenges and resulting sales motion headwinds that have unexpectedly impacted a few but consequently large contracts being pushed out, we are lowering our full year revenue guidance range from $111 million to $113 million to approximately $104 million and lowering our adjusted EBITDA guidance range from 20% to 22% to 14% to 15%.
Alan will review this in greater detail, but we still remain confident in our medium- to long-term prospects as we transition through what has been a challenging second half of 2025.
I'll now turn the call over to Alan to discuss our financial results for the third quarter of 2025 as well as guidance for the full year 2025 in greater detail, then we'll be happy to take your questions.
Thank you, Ralph, and good afternoon, everyone. As Ralph mentioned, our third quarter 2025 results are behind our expectations due to delays in several large contracts that we had hoped to have completed prior to the end of the quarter.
That said, our cash generation, positive adjusted EBITDA and continued growth in all of our products reflects our ongoing strategic initiatives, operational efficiency measures and our commitment to delivering value to our shareholders.
Revenues were $25.1 million, representing a 4% decrease from the $26.3 million in the third quarter of 2024. It is worth noting that our 2024 third quarter revenue included approximately $2.8 million related to the City of Chicago.
Gross profit was $13.6 million or 54% of revenue compared to $15.2 million or 58% of revenue for the prior year period. Our adjusted EBITDA was $3.5 million compared to $4.5 million in the third quarter of 2024. As a reminder, adjusted EBITDA, a non-GAAP financial measure, is calculated by taking our GAAP net income or loss and adjusting out interest income or expense; income taxes; depreciation, amortization and impairment; restructuring costs and losses including unrelated fixed asset disposals, stock-based compensation expenses and adjustments to our contingent consideration obligations.
Our operating expenses were $15.7 million or 63% of revenues, down from the $16.3 million or 62% of revenues in the third quarter of 2024. Our operating expenses for the third quarter declined both -- from both the third quarter of 2024 and was also lower than Q2 of 2025, even as we invest in AI modeling and tools to enhance the capabilities of our platform product solutions.
As a reminder, we expect operating expenses will continue to grow less than the revenue growth rate even with our additional costs.
Breaking down our expenses. Sales and marketing expenses in the third quarter were reduced to $5.8 million or 23% of total revenue compared to $7.2 million or 27% of total revenue in the prior year period.
Our R&D expenses were $4.1 million or 16% of total revenue compared to $3.4 million or 13% of total revenue in the prior year period, reflecting our increased expenses related to our AI investments.
G&A expenses for the quarter were $5.8 million or 23% of total revenue compared to $5.7 million or 22% of total revenue for the prior year period. G&A expenses increased primarily related to the additional internal and external efforts associated with compliance with our SOX 404B requirements. As a reminder, we expect our G&A expenses to grow less than our revenue on a percentage basis as our company grows.
Our GAAP net loss was approximately $2 million or a loss of $0.16 for basic and diluted share for the quarter based on 12.8 million basic and diluted weighted average shares outstanding. This compares to a net loss of $1.4 million or a loss of $0.11 per basic and diluted share based on 12.7 million basic and diluted weighted average shares outstanding for the prior year period.
Deferred revenue as of September 30, 2025, was largely in line at $43.9 million compared to $43.5 million at the end of Q2 of 2025. We ended the third quarter with $11.8 million in cash and cash equivalents compared to $9 million at the end of Q2 2025.
We repurchased 160,271 of our shares at an average price of $12.43 for approximately $2 million in the third quarter of 2025. On a year-to-date basis, we have repurchased 225,334 of our shares at an average share price of $13.15 for approximately $3 million.
Currently, we have approximately $36 million available on our line of credit, as we only have approximately $4 million in debt outstanding, all of which is on our line of credit.
As we close 2025, we remain focused on execution and long-term value creation. We are encouraged by our pipeline visibility for the rest of 2025, a strong renewal rate of our customer base, expanding strategic partnerships and integrations increasing momentum into 2026 and our ability to generate consistent cash flow while investing for future accelerated growth.
Now turning to the guidance for full year 2025. We are reducing our full year revenue guidance range from $111 million to $113 million to approximately $104 million. This shortfall is primarily attributed to delays in 3 expected bookings and deployments.
The first relates to CrimeTracer. We had anticipated execution across approximately 18 agencies within a new state, representing approximately $2.5 million in revenue. While this deployment has been delayed, we remain confident it will proceed in the near future.
The second relates to an expected CapEx ShotSpotter deployment in Brazil. This initiative was expected to contribute another $2.5 million in the second half of the year. However, due to recent governmental changes and tariff-related impacts in Brazil, the timing and certainty of this deployment are unknown at this point.
The third factor relates to our ShotSpotter renewal in Puerto Rico. We saw a $1.4 million reduction here again due to governmental changes. But similar to CrimeTracer rollout in the new state, we expect this to move forward, although on a delayed basis.
In total, these 3 items represent approximately $6.4 million in revenue that was originally expected to be recognized in 2025. It's also important to note that approximately 70% of the revenue related to the 3 items mentioned above would have flowed through to our adjusted EBITDA, which means we would have been at or near our original adjusted EBITDA percentage guidance.
While we believe these are temporary setbacks, we remain optimistic about the long-term value of these potential contracts and our ability to execute well on the ones that get booked. We continue to monitor these developments closely, and we'll provide updates as visibility improves.
We are now lowering our full year 2025 adjusted EBITDA margin guidance range from 20% to 22% to 14% to 15%, which also takes into account potential costs associated with tariff changes and the investments we are making in AI modeling and tools that we are incorporating in our products and our internal operational use.
Now turning to our guidance for the full year 2026. We are expecting our growth to continue into 2026 and are setting our 2026 revenue guidance range from $114 million to $116 million. We are setting our full year 2026 adjusted EBITDA margin guidance range from 18% to 20%.
Overall, we remain optimistic with the progress we have made on each of our strategic initiatives and operational performance of the business. And with that, we're now happy to answer your questions. Operator, will you please open the line for Q&A.
[Operator Instructions] And the first question comes from the line of Richard Baldry with ROTH Capital Partners.
2. Question Answer
Just looking from a high level, if your '26 revenue guidance is about $2 million above what had been your guidance for '25, I'm sort of perplexed that the margin guidance is lower than what you would have expected in '25, you're about 2 points below. So can you talk about sort of what the changes are there? Is it revenue mix, gross margin mix or something else?
Yes. So this is Alan. It's a great question, Rich. I think at this point, when we look at the revenue guidance, there's a couple of things that are not in there at all. One in Chicago, the other one is that the $2.5 million in Brazil CapEx. If either of those come in, then not only revenue would go up, but the adjusted EBITDA on a percentage basis would go up as well. I think we're just trying to be more perhaps conservative in terms of where we expect that adjusted EBITDA to be.
And the implied revenue guidance for the fourth quarter would be sort of down from where you were in the third quarter. With sort of the delays that you had, I would have thought some of that would have come in and you'd see a pretty good sequential bump. So is there something else missing from the December quarter causing that?
Yes, this is Alan, again. And I think at this point, we expect it to be relatively flat. And if it is flat, then we would exceed the $104 million. The reason, again, because we do not expect some of these delays in Q3, I think we're trying to be appropriate in the fact that we're still working on some of these delays. And although we know they're going to come in, we just don't know when the timing, particularly the large CrimeTracer deal, $2.5 million, in Puerto Rico.
Although making progress on both of those, the timing is a bit unknown at this point. So we'd rather make sure that we can set a number that we can meet for sure.
I guess, can you then maybe talk about tying together the inability to close on what you thought was on the time frames and you're desire now to change your leadership in the sales side. Do you think there's some new methods of things you can put in to improve that process? Do you think you have to wait until someone permanently news in there? Or do you think that under the interim leadership, you can sort of scrub that better?
Yes. So this is Ralph. I think we're pretty encouraged by the recent changes that we're seeing. And let me just state that. First and foremost, we're incredibly constructive about the medium- to long-term opportunities in our business. And I think when we look back to our sales execution or pull-through conversion of a very strong pipeline, it was that we made some changes. Organizationally, we changed the playbook. And frankly, we kind of took our eye off the ball on, I'll call it, the point execution with respect to ShotSpotter.
We're asking our sales organization to be much more consultative in trying to sell the full product suite to customers. And where we saw the uplift in our solutions beyond ShotSpotter, we're frankly going into brand new buying centers. So we're trying to be super intentional kind of going back to our original playbook, being a little bit less perhaps consultative, focusing more on the point solutions and letting those opportunities kind of pull us through into those opportunities as opposed to trying to pitch the entire product suite when there might just be an interest in ShotSpotter, for an example, and changing the organization as well.
So earlier this year, we're asking -- we had more salespeople carrying more things in their bag. They had to get trained up on it, and it just didn't work out very well. So now we're kind of going back to say, okay, fewer things in the bag, focusing on those opportunities and let those opportunities kind of pull through as they naturally should and being a lot more intentional around, I'll call it, kind of sales force, hygiene and forecasting.
So we're still early on in the process. We're encouraged about some of the recent changes that we're seeing, and we're going to be working on this through the remainder of the year and early next year, and at the same time, look at bringing on a new permanent Senior VP of Sales. But we're incredibly grateful for Gary to come back in to this role and help ride the ship so that we can finish out the year on a pretty decent basis.
And switch gears away from sort of the government-centric stuff to the SafePointe more commercial area. Can you talk about the magnitude of pipeline there? Maybe broadly speaking, how much that could move the dial on growth rates, revenues in '26 or forward to sort of get a gauge for how much of that can offset sort of some of the challenges on the other side?
I'll try to say this, and hopefully, I won't sound too giddy, but we're incredibly excited about the opportunity in SafePointe, particularly around the hospital vertical. It just has extraordinarily strong product market fit. And you'll notice over the past couple of quarters, we've announced some fairly substantial deals with SafePointe there were in the kind of $400,000, $500,000-plus types of bookings.
And we're seeing a lot of those opportunities kind of line up for us. So although I won't give you a specific number, I would say that we're incredibly constructive around the growing pipeline, our ability to execute to that growing pipeline. We don't have a sales motion problem in SafePointe at all.
I think that's a business that's going to be fairly substantial for us over the medium to long term. And again, we're even seeing traction outside of California AB 2975. So when that thing begins to kick in, that's going to be a real, we believe, significant tailwind for that business.
And the next question comes from the line of Mike Latimore with Northland Capital Markets.
This is [indiscernible] for Michael Latimore. A couple of questions. One, how many enterprise security deals are in the pipeline for the gunshot detection technology?
We'll have to circle back -- this is Ralph. We'll circle back to you. That's a really good question. I don't have the number off the top of my head, but it's a fairly good strong list of, I would say, new customer opportunities for gunshot detection.
You're saying gunshot detection, I presume. I heard gunshot detection as opposed to weapons detection, but we have a strong pipeline of new customers as well as some expansions that are on the books that we're having some good conversations around and not to be discounted as the unlock we expect to see internationally, where we have a fairly strong, I would say, pricing leverage internationally.
And we're seeing some early successes in Uruguay, as we spoke about earlier, along with our more recent deployment in Niteroi, Brazil. And I think the Brazilian opportunity specifically is something we're incredibly excited about.
Okay. Sure on [indiscernible] back on this question. What percent of the pipeline is that, I mean, okay, maybe we can discuss that later. But how are the sales cycle for SafePointe changed now versus a couple of quarters ago?
Yes. So the thing that we see around -- this is Ralph again, that we see around the sales cadence with SafePointe versus traditional ShotSpotter, those deals appear to be happening on a much faster cycle time. I think the sales cycle time we can think about with respect to SafePointe is more in the kind of 12-month category, whereas ShotSpotter is kind of 12 to 18 months.
And the reasons for that are pretty logical when you step back and think about it, when you're dealing with SafePointe, you're typically dealing with commercial enterprises; in our particular case, hospitals and casinos is a great example. So they operate in a very different fashion.
When you're talking about ShotSpotter, the sales process becomes a lot more complicated because you have buying centers, which are the police departments, you have decision makers that need to weigh in that represent elected officials and elected officials aren't necessarily driven by ROI stuff, they're driven by sometimes optics and politics a little bit, as we know from our experience, funding sources come in from different places.
So we're in a position where we basically have to weave all those things together without alienating anybody in the process and going through city council meetings where communities can appropriately weigh in and the like. So that's just a much more complicated process. But I will say, and it's important to note, offsetting that longer sales cycle is the stickiness that we have been able to appreciate and take advantage of over on that acoustic gunshot detection side. Those customers tend to stay with us a very long time, I think, in terms of decades.
And the next question comes from the line of Trevor Walsh with Citizens.
Great. Maybe, Ralph, just to kind of dig in a little bit more on some of the comments that you made around the go-to-market changes. It just seems a little bit reactionary to the 3 deals, specifically, that you mentioned as affecting kind of where the results came in on the top line for the quarter and in the guide, which have the -- each of those have their own intricacies and kind of special, I guess, cases.
So are you seeing something else, I guess, in terms of execution more broadly that's leading to these changes? It just seems like these deals, again, are a little bit more specific and wouldn't necessarily need to have a complete reworking of the sales team for just that how around delay. So can you maybe just -- what is the kind of more going on there?
No, I appreciate you asking that question, Trevor, because maybe I wasn't clear about that. The sales conversion challenge I'm talking about are additive to the 3 deals that Alan spoke about. Those -- it's kind of apples and oranges. So yes, even with those sales deals that Alan spoke about, we still have to recognize or acknowledge that we have some sales execution challenges that we're addressing. So that was something on the edge. So additive to the 3 deals. .
So not a part of the 3 deals. So sales execution bit doesn't have anything to do with our large CapEx deal in Brazil, doesn't have anything really to do with our CrimeTracer deal in the kind of quasi state that we're talking about.
And of course, the Puerto Rico renewal is the Puerto Rico renewal, that has nothing to do with the way we were kind of organized from a sales point of view or what our playbook is. I think when you step back and look at the thing that the bit that I was talking about is really around we would expect it have been -- I personally expect it to be much further along, I would say, on the ShotSpotter domestic side outside of those 3 deals.
So I think we had spoke earlier about trying to get to like a 100 square miles going live. We're going to be less than that this year, and that has a revenue impact.
Got it. Okay.
Did that answer your question?
Yes, absolutely. Super helpful. Yes. Okay. So maybe just another follow-up, a different topic. When you -- on the commentary in your prepared remarks for integration with DFR initiatives, can you just maybe give us a flavor -- you might not have hard stats, but just what -- how much of that is current ShotSpotter customers and then versus maybe influencing the pipeline of those new customers that you spoke about with DFR that they're working on in tandem? And like how much of that, I guess, influencing more of that new customer pipeline as far as customer wanting to integrate with their DFR initiatives kind of at the same time, that makes sense?
Yes, that's a great question. I'll do my best to answer it. Let me first say that, we have a history of integrating with systems outside of ShotSpotter. So the DFR happens to be the s*** thing today. But for years, we've been integrating with real-time prime centers. We've been integrating with LCR. We've been integrating with fixed cameras as well. ShotSpotter alert goes off to be able to pan, tilt and tune a camera to that specific location has been a game-changer, and it's really a 1 plus 1 equals 3.
Frankly, a DFR is just a new version of that. So instead of sending an alert to a fixed camera, we're now essentially setting into a mobile camera, and we're taking a, I'll call it, an open standard approach here. We'll integrate with anybody that the customer has as a part of their DFR platform. We'll send them a digital alert and allow them to direct that DFR response to that specific
The incident I spoke about earlier, and we have experience with all the major drone platforms today, the 1 in Pueblo, California, I think, was a Brink DFR platform. If you went to ICP, you would have seen a bird stock in our booth and we work with others as well. So we're completely agnostic because I think it's all about making the customer win and helping them be more effective.
Great. Terrific. Appreciate the color there. And maybe just 1 final 1 for you, Alan. Can you just explain or is there any added comments around kind of why the gross margins broadly just slipped a little bit in the quarter? I'm wondering if it's specifically related to the 3 deals that were expected or if there was something else kind of that work?
That's a great question. I think the gross margins did go down related to the deals, that is basically the primary reason. But I would also -- if you take a look, although the gross margin went down, the cost of goods sold also went down because we are controlling our costs appropriately. It went down from $12.1 million in Q2, down to $11.5 million in Q3. So if we see things reduce a little bit in revenue, we are doing everything we can to adjust the costs related to that.
So you not only saw that in cost of goods sold going down, but the same thing in the total operating expense going down from $16.7 million in Q2, down to $15.7 million in Q3. So we're being very intentional when we see things get a little bit delayed and what we can do from an operating or other cost basis to improve the ultimate bottom line.
And the next question comes from the line of Max Michaelis with Lake Street Capital Markets.
First one for me, just around 2025 and 2026 guide. I know you have previously given sort of an ARR outlook. I was wondering if that $110 million, what that stands at now for the projected end of 2025 ARR? And I was also wondering if you could provide any color around 2026 ARR expectations?
Yes. So this is Alan. We generally give the ARR guidance in our Q4 earnings reports, so that will be in February. So we intend to do the same thing, again, coming into '26. And if you think about it, 1 of the main reasons for that is just 2 of the large projects that we're talking about, $2.5 million for CrimeTracer and Puerto Rico to be $2.8 million, that moves that a lot. So we need to make sure that we get an accurate number, and we'll know more of that by the time we do our Q4 earnings report.
Okay. And then I was just wondering if you could just help clear up some confusion I have around the CrimeTracer and the delays around that. I'm pretty sure in a few questions ago, you said didn't really have anything to do with the go-to-market strategy and some of the reworking that you've done with the sales team. But -- so can you kind of help me understand sort of the pain points around that deal and the main cause of that delay?
Yes. So this is Ralph, I'll answer it and Alan jump in and add and correct as appropriate. But -- this is basically a quasi-state level deal. We have some experiences with this with respect to CrimeTracer. These are very, very large transactions, not at the local agency level but more at the state level.
So when we first acquired the company, we closed Tennessee, that was a 7-figure deal. Then, I think, 18 months later, we closed a very large transaction with the state of Massachusetts. Recently, we closed a deal with Utah. There's another state that we're not naming right now, but it's not the entire state, it's a number of agencies within this very large state that we're looking to close a deal.
And it's essentially like burning a lot of caps into the process here because you have kind of one funder basically and kind of one buyer, but there's a number of agencies that are participating around this particular acquisition. And I think I'll just say we were recently spending some time kind of walking the halls of the state capital here meeting with a number of Senator and representatives within this particular state to reaffirm their support for the solution.
The funding is there, so that's incredibly positive. We just have to kind of work through the, I'll call it, the bureaucracy of getting a deal done because this isn't a muscle that gets used a lot in terms of having more than 10 agencies all work together and collaborate together and agree on the same terms and conditions to get a deal done. So just has just taken a long time. And so that's where that is. I don't know, Alan, do you -- would you add any additional color?
Yes. This is Alan, the only thing I would add is this is something that they want very much and have wanted. We thought actually we were going to close this around Q2. This particular state had some other costs that came in that had them take a look at some of their priorities. We're still a very, very high priority to get this contract done and when I say very high, unlike the top 2 priorities for this entire state that they're dealing with these types of things. So we expect it to happen, it's just being a little delayed.
[Operator Instructions] And the next question comes from the line of Jeremy Hamblin with Craig-Hallum Capital.
Sorry to harp on this, but I want to come back to the guidance change. And it looks like about an $8 million change in revs, but also about an $8 million change in EBITDA. And understand the 3 key contracts that didn't come through from a timing perspective. But even if we're thinking about a kind of 70% flow-through, I wanted to just understand what else creates kind of that spec function gap to the roughly $8 million reduction in EBITDA? Is that just R&D costs are a bit higher or color that you might be able to share on that?
Yes. Thanks, Jeremy. This is Alan answering the question. I think part of it is, if you look at the actual profitability that we thought we were going to get with those, Puerto Rico is already deployed, right? So the actual cost turned that back on. Almost 100% of that revenue goes to the bottom line.
The CrimeTracer deal is the actual gross margins that we produce with that when we go live in a larger deal like this are significantly high. And then the CapEx deal was something that this is like $2.5 million, which otherwise would have been a 5-year $500,000 services deal, and you know our gross margins internationally are significantly higher, and we would have gotten most of that money to the bottom line because we would have been actually selling them some of the sensors. So the revenue itself comes with a very very high adjusted EBITDA that we would have expected to come to the bottom line.
Okay. Got it. I wanted to touch on Puerto Rico a bit more. As you noted, kind of prior customer kind of in a halted period and just in terms of you have the infrastructure deployed, I know this -- the process of getting it extended has dragged on here. But in terms of how you would expect that let's just assume that you get that back turned on in 2026, would there be a catch-up payment that would occur?
And let's just say it doesn't happen in Q4, but it does in Q1, would you receive kind of back revenues for the second half of '25 that we're missing? Or how do you expect us -- or how do you think that that's going to get treated as you go through this process?
This is Alan. I'll answer then Ralph can add or correct. At this point and what we have historically seen with Puerto Rico is they do not backdate to an earlier date based on when we get the actual contract signed. So we really cannot expect that.
But I would say the second point here is the cost to them is going to be going up. So basically -- because some of these things are costing us some time and money as well, it is likely that they're going to have to pay a little bit more to get the same solution.
Yes, Alan, if I could just add something. What makes Puerto Rico a little bit different than other customers is other customers might be delayed in getting the renewal that they intend on doing. We know they're going to do it. They have a history of doing it.
So we won't turn the system off for them. We've turned the system off of Puerto Rico. So they're not getting any alerts right now. And that's another reason why they would not be backdating -- or excuse me, we wouldn't not have any catch-up revenues in the situation because they're not receiving the service as of the end of Q2.
That's helpful color. And then just switching gears, I want to come back to Chicago, exciting potential there. And I know this has been really elongated process with twist and turns. In terms of the engagement that you have is -- presumably a potential decision is getting made. I assume that you're not actively engaged with the Mayor's office, given that kind of status.
But do you have a sense for where you think there might be a resolution on whether or not this moves forward? I mean are you thinking by next spring that you'll have an answer? And if we don't have an answer by then, it's not happening?
Yes. So I think something is definitely happening. And I think we were quite encouraged to see that during the budget discussions, there was specific commentary Q&A going back and forth that determined a couple of things.
One, we determined that there is a line item in the budget in the Mayor's budget for acoustic gunshot detection technology. So that's encouraging, I think. There is also a lot of discussion about the need for this type of first responder or acoustic gunshot detection technology to be lit up as quickly as possible.
And during the course of 2 days of discussions it was acknowledged by an executive within the Mayor's organization that they have fairly much completed the work on determining their recommendation for the vendor. And now that has to go through the process of going through the chief procurement officers and then being presented to the Mayor when the -- excuse me, not the Mayor specifically, but the Mayor's office signs off on it and it moves forward.
And they suggested in a couple of different testimonies that we're coming close to the conclusion. And then lastly, the most important thing for me or anybody really around wanting to be involved with Chicago and helping them create safer spaces for the communities in Chicago, it was really nice to see reaffirm publicly when asked the question directly about his feelings about -- he was asking about ShotSpotter, but is answer was he is in very strong favor of any tools and/or technology that can help them do a better job responding to gun violence. So he's not backing away from that. So all those things are pretty encouraging. And now we wait.
Great. Last one for me. Just in terms of the platform growing, having a lot more services that you're offering between crime tracer and the base SSTI ALPR capability, et cetera. In terms of thinking about your R&D spend, right, which has picked up this year and wanted to get a sense for, is that something where as these services have more AI tools you're likely having to hire some more engineers to support that. Should we expect similar growth next year in terms of what your R&D budget looks like?
Yes. This is Alan. I'll answer and then Ralph can correct. I think at this point, and we've been talking about this for a year, we went into the year fully expecting to spend a significant amount more in all the AI initiatives, which goes into the R&D aspect. Specifically, you can also know about how we just released the CrimeTracer Gen3, that is a very great upgrade for us in that particular product that requires some of our AI and other R&D personnel.
And also what we are doing in terms of SafePointe is continuing to improve the algorithms, literally month by month, the product improvement is occurring, and that's because we're investing in the improvements, not just the algorithms and software side of things, but other aspects of the actual SafePointe product as well. But those require personnel either in the AI algorithms or in the R&D for the complete product development.
So the second question...
Yes. No, and you should just add like the AWS spend with the running the algorithms on some of these specialized processors and the opportunity we have to maybe in-source that on-prem and be able to save some money and still be able to do the work that we're doing with AI.
Yes, it's a great addition. I mean, at this point, we are spending more on personnel, but also our costs related to that are in the millions at this point. And we do believe that we can do some of that internally and save some money. So your other question was, do we expect to continue to have R&D go up year-over-year? It may go up a bit, but we think it's going to go up far lower than the actual revenue that it's producing.
There are no further questions at this time. I now would like to turn the floor back over to Ralph Clark for any closing comments.
Great. Thanks a lot, John. I want to thank everyone for joining us today. Your engagement and thoughtful questions really do demonstrate the strong interest you have in our strategic vision and the market opportunities we're pursuing. And I also want to take a moment to thank my leadership colleagues and work employees colleagues for their strong dedication and hard work.
And certainly, none of this would be possible or meaningful if it wasn't for the work that we're doing with customers and our community partners, and we do value their continued trust and collaboration. We're going to continue to remain committed to making communities safer through technology, transparency and innovation that address real-world public safety challenges.
And we're going to focus on executing our strategic vision and delivering shareholder value. And thank you all very much and looking forward to some of the one-on-one discussions we're going to have here in a bit. Have a good evening, everyone.
And thank you, ladies and gentlemen. That does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.
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Der Bruttoertrag gibt an, wie viel vom Umsatz nach Abzug der direkten Herstellkosten im Unternehmen verbleibt. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der Bruttomarge (engl. Gross Margin).
Brutto Marge einfach erklärtVertriebs- und Verwaltungskosten
Die Vertriebs- & Verwaltungskosten (engl. Selling, General & Administrative expenses, kurz SG&A) beinhalten alle Aufwände für Marketing und den Verkauf sowie die allgemeine Verwaltung des Unternehmens.
Forschungs- und Entwicklungskosten
Die Forschungs- und Entwicklungskosten (engl. research & development costs, kurz R&D) geben Auskunft darüber, wie viel das Unternehmen in die Forschung und die Entwicklung seiner Produkte investiert. Vor allem prozentual vom Umsatz und im Vergleich zu direkten Wettbewerbern sind die Kosten interessant.
EBITDA
Das EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) ist der Gewinn des Unternehmens vor Zinsen, Steuern und Abschreibungen. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von der EBITDA-Marge.
Abschreibungen
Abschreibungen stellen Wertminderungen von Vermögensgegenständen des Unternehmens dar (z.B. durch Abnutzung von Maschinen).
EBIT (Operatives Ergebnis)
Das EBIT (engl. Earnings Before Interest and Taxes) ist der Gewinn des Unternehmens vor Zinsen und Steuern, das auch als operatives Ergebnis bezeichnet wird. Berechnet man den prozentualen Anteil vom Umsatz, spricht man von
der EBIT-Marge.
Nettogewinn
Der Nettogewinn stellt den Gewinn oder Verlust nach Abzug aller Kosten dar.
Nettogewinn einfach erklärtaktien.guide Premium
| Jun '26 |
+/-
%
|
||
| Umsatz | 98 98 |
6 %
6 %
100 %
|
|
| - Direkte Kosten | 48 48 |
4 %
4 %
49 %
|
|
| Bruttoertrag | 50 50 |
13 %
13 %
51 %
|
|
| - Vertriebs- und Verwaltungskosten | 48 48 |
7 %
7 %
49 %
|
|
| - Forschungs- und Entwicklungskosten | 16 16 |
12 %
12 %
17 %
|
|
| EBITDA | -4,75 -4,75 |
468 %
468 %
-5 %
|
|
| - Abschreibungen | 9,71 9,71 |
3 %
3 %
10 %
|
|
| EBIT (Operatives Ergebnis) EBIT | -14 -14 |
66 %
66 %
-15 %
|
|
| Nettogewinn | -17 -17 |
64 %
64 %
-17 %
|
|
Angaben in Millionen USD.
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| Hauptsitz | USA |
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