One-glance verdict
Within fair range
$9.22 our estimate vs market $8.32
Wall Street consensus: $8.84 (-4.1% lower than our fair-value estimate)
10% below our estimate
Fundamentals snapshot
SoundThinking, Inc.
SSTI · NCM · Technology · Software - Application
Current price
$8.32
52-week range
$5.42 - $10.03
Market cap
$110.16M
Balance sheet
Healthy
-449.21x Concerning
Net cash $972.00K. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -23.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -1.7% to -19.0% over 3 years.
What this company does
SoundThinking, Inc.
SoundThinking provides technology like ShotSpotter to help law enforcement detect gunshots and analyze crime data, making communities safer. Their main money comes from selling these services to government agencies and campuses, which matters because it shows how much these groups rely on their tools to do their jobs better.
How the company got here
SoundThinking, Inc., formerly known as ShotSpotter, Inc., has a history rooted in developing technology to enhance public safety. Founded in 1996, the company's journey began with a focus on acoustic gunshot detection. A significant turning point was the evolution from just gunshot detection to a broader suite of data-driven solutions for law enforcement and civic leaders. This expansion, marked by a name change to SoundThinking in April 2023, reflects its ambition to offer a more comprehensive approach to safety and security beyond its initial core product.
What it actually does
SoundThinking provides technology and services aimed at improving public safety and law enforcement effectiveness. Think of it as a company that offers digital tools to help police and security teams understand and respond to crime more efficiently. Their solutions use data and artificial intelligence to detect incidents, manage investigations, and optimize resource deployment, ultimately helping to make communities safer.
SafetySmart Platform
The SafetySmart Platform is SoundThinking's flagship offering, acting as a central hub for its various public safety tools. This platform includes solutions like ShotSpotter, which uses acoustic sensors to detect and locate outdoor gunshots, alerting authorities in real-time. It also incorporates CrimeTracer for managing and analyzing crime data across different jurisdictions, CaseBuilder for streamlining investigative case management, and ResourceRouter to help deploy police and anti-violence resources more effectively. This integrated approach aims to provide a comprehensive view of safety issues and facilitate quicker, more informed responses.
ShotSpotter (Gunshot Detection)
This is the company's foundational product, designed to detect, locate, and alert authorities to outdoor gunfire incidents. It uses a network of acoustic sensors placed in specific areas to identify the sound of gunshots. When a shot is detected, the system pinpoints its location and immediately notifies law enforcement, helping them respond faster to potential crime scenes. This service is particularly valuable in urban environments where gun violence is a concern, aiming to reduce response times and gather critical information for investigations.
Data and Intelligence Solutions
Beyond gunshot detection, SoundThinking offers advanced data and intelligence platforms that help law enforcement agencies analyze crime patterns and solve cases. Tools like CrimeTracer allow investigators and analysts to search through vast amounts of criminal justice records, identify connections, and generate leads using AI-assisted features. PlateRanger, powered by Rekor, adds another layer by providing automatic license plate recognition to identify vehicles of interest. These solutions transform raw data into actionable intelligence, empowering police to work more proactively and efficiently.
What management is betting on now
SoundThinking's management is focused on expanding its reach beyond traditional law enforcement into other areas needing enhanced security, such as universities and corporate campuses with its ShotSpotter for Campus and Corporate offerings. They are also emphasizing the integration of their various data-driven tools into the comprehensive SafetySmart platform to offer a more holistic public safety solution. The strategy involves leveraging AI and data analytics to provide deeper insights and more effective resource management for their clients, aiming to become an indispensable partner in public safety.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$12.44M
FY2024 Q4
$-2.22M
FY2025 Q1
$-1.04M
FY2025 Q2
$-2.66M
FY2025 Q3
$4.87M
FY2025 Q4
$3.69M
FY2026 Q1
$-1.52M
FY2026 Q2
$-8.11M
Revenue
$23.89M
Net income
$-4.75M
Diluted EPS
-0.37
Operating cash flow
$-7.47M
Free cash flow
$-8.11M
Fetching…
Sources
Revenue
$24.18M
Net income
$-7.00M
Diluted EPS
-0.54
Operating cash flow
$207.00K
Free cash flow
$-1.52M
Fetching…
Sources
Revenue
$24.79M
Net income
$-2.77M
Diluted EPS
-0.22
Operating cash flow
$4.49M
Free cash flow
$3.69M
Fetching…
Sources
Revenue
$25.10M
Net income
$-2.04M
Diluted EPS
-0.16
Operating cash flow
$6.23M
Free cash flow
$4.87M
Fetching…
Sources
Revenue
$25.89M
Net income
$-3.12M
Diluted EPS
-0.24
Operating cash flow
$-1.28M
Free cash flow
$-2.66M
Fetching…
Sources
Revenue
$28.35M
Net income
$-1.48M
Diluted EPS
-0.12
Operating cash flow
$-141.00K
Free cash flow
$-1.04M
Fetching…
Sources
Revenue
$23.41M
Net income
$-4.08M
Diluted EPS
-0.32
Operating cash flow
$-859.00K
Free cash flow
$-2.22M
Fetching…
Sources
Revenue
$26.25M
Net income
$-1.44M
Diluted EPS
-0.11
Operating cash flow
$13.69M
Free cash flow
$12.44M
Fetching…
Sources
Is it cheap or expensive?
Fair value $9.22 vs current price $8.32
Wall Street consensus is the average analyst price target: $8.84 (-4.1% lower than our fair-value estimate).
Our most-likely fair value is $9.22 a share — about 10.8% away from today's price of $8.32, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $972,000 - more cash than debt. Interest coverage -449.2x.
Net debt
$-972.00K
Interest coverage
-449.21x
SoundThinking, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
SSTI
BASELINE
SoundThinking, Inc.
Total debt $5.51M Interest coverage -449.21x This is the baseline the peer rows are being compared against.
Total debt $1.85B Interest coverage -0.66x Neither company has much profit cushion over interest right now.
Total debt $9.62B Interest coverage 8.22x This peer still has a real interest-payment cushion, while SSTI does not.
Total debt $26.55M Interest coverage -11.33x Neither company has much profit cushion over interest right now.
Total debt $23.23M Interest coverage 127.11x This peer still has a real interest-payment cushion, while SSTI does not.
Total debt $436.00K Interest coverage -1,926.43x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SSTI
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -23.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -1.7% to -19.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-43.79x
P/B
1.67x
P/S
1.12x
EV/EBITDA
-22.85x
PEG ratio
0.95x
Profitability
How much profit each dollar creates
Gross margin
51.0%
Operating margin
-19.0%
Net margin
-16.9%
ROE
-23.7%
ROA
-7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.08x
Current ratio
0.74x
Quick ratio
0.65x
Total debt
$5.51M
Total cash
$6.48M
Growth
How the business has been compounding
Revenue TTM
$97.96M
Revenue 5Y CAGR
15.7%
EPS TTM
-1.29
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$3.46M
Free CF TTM
$4.85M
FCF margin
5.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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