SSTI

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management achieved positive adjusted EBITDA of $1.2 million in Q2 despite flat sequential revenue, signaling a successful shift toward structural operating leverage. The company implemented workforce and business optimization initiatives expected to yield $4 million in annualized savings, utilizing AI to create a more scalable cost base. Revenue retention remains a core differentiator, highlighted by $23 million in total contract value across multi-year renewals in cities like Albuquerque and Fayetteville. A significant $2.5 million ARR CrimeTracer contract was secured with the Texas Anti-Gang Program, marking the company's fourth statewide deployment and providing a template for future expansion. Management attributed the Q2 revenue miss to customer-oriented timing delays in professional services for TechnoLogic Solutions and the New York City Department of Correction. ShotSpotter sales cycles are elongating due to increased political scrutiny, more stakeholders in the decision process, and the wind-down of federal ARPA funding. SafePointe bookings remain strong, but revenue recognition is being impacted by 'lumpy' go-live cadences as enterprise deployments scale to double-digit lanes requiring complex IT and facility readiness. Full-year 2026 revenue guidance was lowered to $99 million–$100 million to reflect a more conservative view of pipeline conversion and the removal of the Puerto Rico contract. Management expects adjusted EBITDA margins of 8%-9% for the full year, supported by structural cost reductions that cushion the impact of a lighter top line. The company assumes no contribution from a Chicago renewal in its 2026 guidance but expressed confidence due to a pending RFP and a non-binding public referendum in November. Guidance for the second half assumes approximately seven ShotSpotter go-lives and the conversion of a portion of the $2 million SafePointe ARR currently in the implementation pipeline. Annual Recurring Revenue (ARR) is projected to grow from $95.4 million at the start of the year to over $100 million entering 2027. The Puerto Rico ShotSpotter contract recapture was pushed out of the 2026 plan entirely due to post-hurricane initiative delays at the state level. A significant tender award in Cape Town, South Africa, was canceled post-award due to local political shifts, resulting in a loss of expected revenue and ARR. Management acknowledged domestic sales execution issues and 'sales hygiene' problems, prompting the hiring of outside resources to assist customers with funding strategies. The company recognized $900,000 in restructuring-related costs during Q2 as part of its broader business optimization efforts. Management admitted to internal 'sales hygiene' issues and is pulling multiple levers to accelerate the conversion of interest into bookings. External factors include the reduction of ARPA funds and political volatility, such as the canceled Cape Town tender. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Confidence is driven by booked professional services for NYC and a pipeline of over 100 SafePointe lanes already in flight. ShotSpotter guidance is now based on a conservative estimate of seven go-lives, including one 'flip-the-switch' deployment stalled only by federal funding drawdowns. Moving from 1-2 lanes to 10-20 lanes per enterprise has introduced more complex IT network and physical construction requirements. Management noted that while bookings are high, the time to make the product perform to customer expectations has elongated. Management noted ShotSpotter is being 'inappropriately' wrapped into broader debates regarding ALPR technology and immigration enforcement. The company is countering this by engaging community organizations and civil rights groups to demonstrate the technology's life-saving value. Stock-based compensation is expected to be approximately $10.4 million for the year, a significant decrease from 2025 levels. Management expects most incremental revenue in the second half to flow directly to the bottom line due to the leaner cost structure.

This article first appeared on GuruFocus. Revenue: $23.9 million in Q2 2026, down from $25.9 million in the prior year period. GAAP Net Loss: $4.8 million, or $0.37 per diluted share, compared to a net loss of $3.1 million, or $0.24 per diluted share, in Q2 2025. Adjusted EBITDA: Positive $1.2 million, compared to $3.4 million in the second quarter of 2025. Operating Expenses: $16.2 million, down from $16.7 million in the prior year quarter. Sales and Marketing Expense: $5.9 million, compared to $6.5 million in the prior year quarter, representing approximately 25% of revenue. R&D Expense: $4.0 million, compared to $3.7 million in the prior year period, representing approximately 17% of revenue. G&A Expense: $6.3 million, compared to $6.5 million in Q2 2025. Deferred Revenue: Approximately $36 million as of June 30, 2026. Contractually Committed Revenue: Approximately $93.1 million at quarter end. Cash and Cash Equivalents: $6.4 million at the end of the quarter. Accounts Receivable and Contract Assets: $24.5 million. Credit Facility: $4 million outstanding, with approximately $36 million of available borrowing capacity. Full Year 2026 Revenue Guidance: Revised to between $99 million and $100 million. Full Year 2026 Adjusted EBITDA Margin Guidance: Revised to a range of 8% to 9%. Annual Recurring Revenue (ARR): Expected to increase from $95.4 million at the beginning of 2026 to over $100 million entering 2027. Warning! GuruFocus has detected 4 Warning Signs with SSTI. Is SSTI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adjusted EBITDA turned positive at $1.2 million in Q2 2026, up from roughly negative $100,000 in Q1, demonstrating improved operating leverage. Executed workforce and business optimization initiatives expected to deliver approximately $4 million in annualized savings, creating a more scalable cost structure. Strong revenue retention with over $23 million in total contract value from multiyear renewals, including a five-year ShotSpotter renewal with Albuquerque and a two-year CrimeTracer renewal with Massachusetts State Police. Secured a new multiyear CrimeTracer contract worth approximately $2.5 million in annual recurring revenue with the Texas Anti-Gang (TAG) program, marking the fourth statewide deal. Won back ShotSpotter contracts in Erie, Pennsylvania, and Cambridge, Massachusetts, demonstrating the technology's value and customer demand. Ended the quarter with approximately $93.1 million in contractually committed revenue, providing strong visibility into future revenue. Reduced operating expenses by approximately $1.5 million year-over-year in Q2, reflecting disciplined cost management. Continued investment in AI and R&D, including Safety Smart Field Agent, to enhance platform capabilities and drive future growth. SafePointe bookings remain strong with over 100 lanes in flight, representing more than $2 million in ARR, indicating robust demand. Chicago RFP process remains ongoing with potential for a decision by early 2027, and multiple mayoral candidates have included bringing back gunshot detection in their platforms. Q2 2026 revenue of $23.9 million fell short of expectations, contributing to a $2 million shortfall in first-half revenue versus guidance. Reduced full-year 2026 revenue guidance to $99-$100 million from $109-$111 million due to delays and slower sales growth. ShotSpotter bookings and go-lives came in well below expectations, with sales cycles elongating and sales team underperformance. Puerto Rico ShotSpotter contract recapture has been pushed out of 2026 entirely, requiring a pivot to a different procurement avenue. SafePointe revenue recognition is delayed due to lumpy go-live cadence, with several deployments moving into 2027. Adjusted EBITDA margin guidance reduced to 8%-9% for full-year 2026, reflecting lower revenue expectations. GAAP net loss widened to $4.8 million in Q2 2026 from $3.1 million in the prior year period. Political and public scrutiny, including negative media coverage and opposition in city council meetings, is elongating sales cycles for ShotSpotter. Federal funding delays, including the wind-down of ARPA, have slowed new and expansion deployments. The company faces execution challenges in converting pipeline to bookings and go-lives, with some deals like Cape Town being cancelled post-award. Q: How much of the improvement needed in the ShotSpotter segment is within the company's control versus external factors, and are there sales execution issues?A: Ralph Clark (CEO) stated that both internal and external factors are contributing to the slowdown. He cited specific examples like a 10-square-mile deal closed in Q4 that has yet to go live and the cancellation of a large Cape Town tender post-award due to political moves. He acknowledged that while the reduction in ARPA funding is a factor, there are also "sales hygiene and sales execution issues" that the company is addressing by hiring an outside contracting resource to help customers with funding strategies and pulling other levers to accelerate deal conversion. Q: Can you provide more color on the breakdown of the full-year guidance reduction and how much of it is due to timing versus lost business?A: Alan Stewart (CFO) explained that of the roughly $10 million reduction in guidance, about 70% is due to timing, not lost contracts. This includes delays in professional services for Technologic and the NYC Department of Corrections, as well as SafePointe lane deployments shifting into 2027. The remaining 30% is attributed to slower new bookings, which the company felt was important to reflect honestly in the revised guidance. Q: Has there been a fundamental change slowing down SafePointe deployments, or is this the nature of the business?A: Ralph Clark (CEO) explained that as they move from 1-2 lanes per enterprise to 10-20 lanes, the deployment cadence is inherently different. They are now dealing with more mature IT organizations, physical construction, and network access requirements, which elongates the go-live process. Alan Stewart (CFO) added that while they booked almost 90 new lanes in Q2, deploying them to meet both company and customer performance standards takes longer, causing delays. Q: Can you quantify the headcount reduction from the workforce optimization initiatives?A: Alan Stewart (CFO) confirmed that approximately 28 people were affected by the workforce optimization. He clarified that the initiative also included changes to marketing plans and programs and other expense reductions, not just personnel cuts. Q: Is the current political and media environment, such as the John Oliver segment on ALPR, impacting sales cycles more than funding issues?A: Ralph Clark (CEO) confirmed that the company is facing a different type of scrutiny, often being inappropriately grouped with ALPR and immigration enforcement debates. He noted that opposition groups are using these vectors to delay decisions, which is stretching out the sales process. However, he highlighted that the company is seeing a counter-effect, where communities face real consequences of going without the technology, as seen in the Cambridge win-back, which is driving positive sentiment. Q: What is the expected stock-based compensation for the year, and how will the company achieve its adjusted EBITDA margin guidance?A: Alan Stewart (CFO) stated that stock-based compensation is expected to be around $10.4 million for the year, significantly lower than last year. He explained that with revenue expected to increase from $48 million in the first half to roughly $52 million in the second half, most of that incremental revenue will flow to the bottom line. Combined with the cost reductions already implemented, this gives the company confidence in achieving the 8% to 9% adjusted EBITDA margin guidance. Q: Is there any update on the activist shareholder situation and discussions around strategic alternatives?A: Ralph Clark (CEO) declined to comment publicly on specific discussions but stated that everyone is "keenly focused on working with the senior leadership team to get this train back on the track" and committed to becoming a growth and profitability story. Q: How much of the second-half revenue target is already contracted versus needing new business, and what gives you confidence in the step-up?A: Ralph Clark (CEO) highlighted several levers providing visibility, including booked professional services for Technologic and NYC DOC, a pipeline of over 100 SafePointe lanes representing over $2 million in ARR, and a conservative estimate of seven ShotSpotter go-lives out of roughly 15 booked or soon-to-be-booked deals. He noted that some of these, like a Midwestern city deployment, are ready to go live as soon as federal funding is released. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in SoundThinking, Inc.? Here are five stocks we like better. Revenue and guidance declined: Second-quarter revenue fell to $23.9 million from $25.9 million, while the company lowered 2026 revenue guidance to $99 million–$100 million from $109 million–$111 million due to delayed deployments, project timing and slower ShotSpotter sales conversions. Profitability improved sequentially but remains pressured: SoundThinking reported a $4.8 million GAAP net loss, while adjusted EBITDA was positive $1.2 million. Workforce optimization and AI initiatives are expected to generate about $4 million in annualized savings, though full-year adjusted EBITDA margin guidance was reduced to 8%–9%. Customer retention and CrimeTracer growth provided offsets: The company secured more than $23 million in multi-year renewals and signed a Texas Anti-Gang Program CrimeTracer contract worth approximately $2.5 million in annual recurring revenue, despite funding challenges and slower ShotSpotter sales execution. SoundThinking (NASDAQ:SSTI) reported second-quarter 2026 revenue of $23.9 million, down from $25.9 million a year earlier, while lowering its full-year revenue outlook as deployment delays, project timing and slower ShotSpotter sales conversion weighed on its expectations. The company recorded a GAAP net loss of $4.8 million, or $0.37 per diluted share, compared with a net loss of $3.1 million, or $0.24 per diluted share, in the prior-year quarter. Adjusted EBITDA, a non-GAAP measure, was positive $1.2 million, compared with $3.4 million a year earlier and an approximately $100,000 loss in the first quarter. → Lumentum Just Delivered the AI Growth Investors Wanted CEO Ralph Clark said the sequential improvement in adjusted EBITDA reflected the company’s workforce and business optimization actions, including increased use of artificial intelligence across internal operations. SoundThinking expects the initiatives to produce approximately $4 million in annualized savings, although it recorded about $900,000 in restructuring-related costs during the quarter. SoundThinking reduced its 2026 revenue guidance to $99 million to $100 million from its prior range of $109 million to $111 million. The company had generated about $48 million in revenue during the first half and now expects a second-half step-up, though management characterized the outlook as more conservative given longer sales cycles and delayed deployments. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal CFO Alan Stewart said nearly $3 million of the reduced outlook stemmed from delays in professional-services work at TechnoLogic Solutions and with the New York City Department of Correction. Those projects are booked and budgeted but are expected to shift primarily into 2027 rather than represent lost revenue. The company also reduced expected 2026 revenue by about $2 million because SafePointe deployments have taken longer than anticipated. SoundThinking said SafePointe bookings and its hospital pipeline remain strong, but revenue is recognized when systems go live. Larger enterprise deployments involving 10 to 20 lanes require coordination with customer construction schedules, credentialing, IT networks and multi-site rollout plans. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Management also removed an expected Puerto Rico ShotSpotter contract recapture, previously worth nearly $1.5 million in the outlook, from its 2026 guidance. Clark said the company is pursuing another procurement path as the state-level project has been delayed alongside other post-hurricane initiatives. SoundThinking reduced its full-year adjusted EBITDA margin guidance to 8% to 9%, reflecting the lower revenue outlook. It continues to expect annual recurring revenue to rise from $95.4 million at the start of 2026 to more than $100 million entering 2027. Clark said ShotSpotter was the more disappointing component of the quarter, with both bookings and go-lives below expectations. He cited the wind-down of American Rescue Plan Act funding, slower federal funding flows to municipalities, more budget scrutiny and increasingly politicized local decisions surrounding gunshot-detection technology. “ShotSpotter sales cycles are elongating at the same time our sales team is underperforming,” Clark said. He told analysts the company sees both external factors and internal sales-execution issues, including “sales hygiene” that could help improve deal conversion. Clark pointed to a 10-square-mile deal signed in the fourth quarter of 2025 that has not yet gone live, as well as a Cape Town opportunity that was canceled after SoundThinking had been awarded the tender because of political developments in South Africa. The company is also using an outside contracting resource to help customers develop funding strategies. Despite those challenges, management emphasized renewal activity and customer retention. During the period, SoundThinking closed more than $23 million in total contract value across multi-year renewals, including a five-year ShotSpotter renewal in Albuquerque and renewals in Worcester, Massachusetts; Richland County, South Carolina; Macon-Bibb, Georgia; Peoria, Illinois; and Fayetteville, North Carolina. SoundThinking secured a two-year CrimeTracer renewal with Massachusetts State Police. Detroit extended its 38-square-mile ShotSpotter deployment for nine months while it proceeds through an RFP process expected to conclude in early 2027. Erie, Pennsylvania, returned as a customer after its prior deployment lapsed because of funding challenges, with a six-square-mile deployment targeted for later in August. Cambridge, Massachusetts, reinstated ShotSpotter for an initial 90-day evaluation period after previously withdrawing from the Boston-area coverage arrangement. SoundThinking said it would restore coverage at no cost during that period. The company also announced a new multi-year CrimeTracer contract with the Texas Anti-Gang Program, or TAG, valued at approximately $2.5 million in annual recurring revenue. The Texas agreement is SoundThinking’s fourth statewide CrimeTracer deal, following Tennessee, Massachusetts and Utah. Clark said the phase-one deployment could potentially expand to triple its initial user footprint if it demonstrates early success. In Chicago, Clark said the city’s Acoustic Gunshot Detection RFP, issued in February 2025, remains ongoing and could extend as late as February 2027. SoundThinking’s guidance assumes no contribution from a renewed Chicago ShotSpotter contract. The company noted that Chicago’s City Council added a nonbinding referendum to the November ballot asking voters about bringing gunshot detection back to the city. Clark also said four of approximately nine declared mayoral candidates have publicly included restoring gunshot detection in their policy platforms. Total operating expenses were $16.2 million, down from $16.7 million a year earlier. Sales and marketing expense declined to $5.9 million from $6.5 million, while research and development expense rose to $4 million from $3.7 million as the company invested in SafetySmart platform enhancements and AI-enabled products such as SafetySmart Field Agent. As of June 30, SoundThinking had $6.4 million in cash and cash equivalents, $24.5 million in accounts receivable and contract assets, approximately $36 million in deferred revenue, and $4 million outstanding on its credit facility. The company said it had about $36 million of remaining borrowing capacity and $93.1 million of contractually committed revenue. Clark said management had reset its targets to a level it believes the company can achieve. “Our renewal and retention wall has held firm, and we did win our fourth statewide CrimeTracer deal,” he said, adding that SoundThinking is focused on returning to growth while maintaining a leaner operating base. SoundThinking, Inc, a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SoundThinking Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Company Revises FY 2026 Revenue Guidance Range to $99.0 Million to $100.0 Million Compared to Previous Guidance of $109.0 Million to $111.0 Million and Revises FY 2026 Adjusted EBITDA Margin Guidance Range to 8% to 9% Compared to Previous Guidance of 16% to 18% Company Revises Expectation for ARR1 to Increase from $95.4 Million at the Beginning of 2026 to Over $100.0 Million at the Beginning of 2027 Compared to Previous Expectation of $110.0 Million FREMONT, Calif., Aug. 13, 2026 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology company, today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial and Operational Highlights Revenues decreased 8% to $23.9 million, compared to $25.9 million for the same quarter of 2025. Gross profit decreased 16% to $11.5 million (48% of revenues), compared to $13.8 million (53% of revenues) for the same quarter of 2025. GAAP net loss totaled $4.8 million, compared to GAAP net loss of $3.1 million for the same quarter of 2025. Adjusted EBITDA1 totaled $1.2 million (5% of revenues), compared to $3.4 million (13% of revenues) for the same quarter of 2025. Went “live” in one new city and expanded with three existing customers. 1 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net loss and more information about Annual Recurring Revenue (ARR). Management Commentary “While our second quarter results were below our expectations, we continue to believe the underlying health of the business remains strong,” said President and CEO Ralph Clark. “Demand for our solutions continues to expand through new deployments and customer expansions, as customers look to consolidate critical public safety and security workflows onto a single platform.” “At the same time, we are updating our full-year outlook to reflect the timing and pace of several opportunities, as well as a more challenging macro and procurement environment. We now expect full-year 2026 revenue of $99.0 million to $100.0 million, Adjusted EBITDA margin of 8% to 9%, and ARR of over $100.0 million entering 2027.” “We remain encouraged by our long-term growth opportunities across public safety and commercial security. Our investments across our technology platform, AI capabilities, go-to-market organization and expanding product portfolio are creating opportunities to deepen customer relationships and expand wallet share over time. We are seeing steady momentum across drone-as-first-responder deployments, SafetySmart Field Agent and SafePointe, where our healthcare pipeline continues to build. Combined with our workforce and business optimization initiatives, these efforts are designed to improve operating leverage, expand profitability and create long-term shareholder value as we convert our pipeline into ARR growth.” Second Quarter 2026 Financial Results Revenues for the second quarter of 2026 were $23.9 million, compared to $25.9 million for the same quarter of 2025. The decrease in revenues was primarily attributable to a reduction in revenue of approximately $2.2 million resulting from the non-renewal or delays of renewals of our contracts with multiple customers, as well as $0.9 million of other reductions primarily related to a reduction of catch-up revenue from various customers. This decrease was partially offset by $1.1 million in new bookings and expansions with existing customers. Gross profit for the second quarter of 2026 was $11.5 million (48% of revenues), compared to $13.8 million (53% of revenues) for the same period in 2025 reflecting lower revenue volume including lower catch-up revenue and an increase in information technology and facility costs. Total operating expenses for the second quarter of 2026 were $16.2 million, compared to $16.7 million for the same period in 2025. The decrease was primarily due to reduced sales and marketing expenses, partially offset by increased AI research and development investments and restructuring and related charges related to the workforce and business optimization initiatives we announced earlier this year and increased legal expenses. Net loss for the second quarter of 2026 totaled $4.8 million or $(0.37) per basic and diluted share (based on 13.1 million basic and diluted weighted-average shares outstanding), compared to net loss of $3.1 million or $(0.24) per basic and diluted share (based on 12.7 million basic and diluted weighted-average shares outstanding), for the same period in 2025. Adjusted EBITDA for the second quarter of 2026 totaled $1.2 million, compared to $3.4 million in the same period last year. At quarter end, the company had $6.4 million in cash and cash equivalents, $24.5 million in accounts receivable and contract assets, net, $36 million in deferred revenue, $4.0 million in debt and approximately $36.0 million available on its credit facility. Financial Outlook The company revised its full-year 2026 revenue guidance range to $99.0 million to $100.0 million compared to previous guidance of $109.0 million to $111.0 million. The company also revised its full-year 2026 Adjusted EBITDA margin guidance range to 8% to 9% compared to previous guidance of 16% to 18%. The company also revised its expectation for ARR to increase from $95.4 million at the beginning of 2026 to over $100.0 million compared to previous guidance of $110.0 million at the start of 2027. “Given our softer-than-expected first-half results and the timing of certain customer and procurement decisions, we believe it is prudent to revise our 2026 outlook while remaining focused on disciplined execution,” added Mr. Clark. “While the near-term environment has become more challenging, our confidence in the strength of our recurring revenue base, expanding SafetySmart adoption, and long-term growth opportunity remains unchanged. We expect continued cross-sell activity, new deployments, and approximately $4 million of annualized savings from workforce and business optimization initiatives that became effective at the start of the second quarter of 2026 to support improving operational efficiency and a stronger foundation for sustainable, profitable growth. While we continue to monitor the Chicago procurement process, our long-term growth strategy and financial targets are not dependent on that opportunity.” The company’s financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. The company has not reconciled its Adjusted EBITDA outlook to GAAP net loss due to the uncertainty and variability of interest income (expense), income taxes, depreciation, amortization and impairment, restructuring and related expenses and stock-based compensation expenses, which are reconciling items between Adjusted EBITDA and GAAP net loss. Because the company cannot reasonably predict such items, a reconciliation to forecasted GAAP net loss is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net loss. For more information, see “Non-GAAP Financial Measures and Key Business Metrics” below. Conference Call SoundThinking will hold a conference call today August 13, 2026 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions. SoundThinking management will host the presentation, followed by a question-and-answer period. Those wishing to participate via webcast should access the call through SoundThinking’s Investor Relations website at https://ir.soundthinking.com/. Those wishing to participate via telephone may dial in at 1-877-407-8029 (USA) or 1-201-689-8029 (International). The replay will be available via webcast through SoundThinking’s Investor Relations website. Non-GAAP Financial Measures and Key Business Metrics Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the company’s net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, restructuring and related expense and stock-based compensation expense. Adjusted EBITDA is a measure used by management internally to understand and evaluate the company’s core operating performance and trends across accounting periods and in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for its solutions. In particular, the exclusion of these expenses in calculating Adjusted EBITDA facilitates comparisons of the company’s operating performance on a period-to-period basis. SoundThinking believes Adjusted EBITDA also provides useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the company and its stockholders, rather than to address operational performance for any particular period’s financial performance measures, in particular net loss, or its other GAAP financial results. The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for each of the periods indicated (in thousands): Annual Recurring Revenue (ARR): ARR is calculated for a year based on the expected GAAP revenue for the year from contracts that are in effect on January 1st of such year, assuming all such contracts that are due for renewal during the year renew as expected on or near their renewal date, and including contracts executed during the year after January 1st, but for which GAAP revenue recognition starts January 1st of the year. ARR is used by management internally to provide a clearer picture of its sustainable revenue base. SoundThinking believes ARR provides useful information to investors and others in understanding and evaluating growth of its recurring services because recurring revenue is particularly relevant for businesses operating under a subscription model, where customer retention and contract renewals play a significant role in long-term financial performance. Forward-Looking Statements This press release and earnings call referencing this press release contains "forward-looking statements" within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the company’s guidance for revenue and Adjusted EBITDA for 2026, the company's expectations for the increase in its ARR, its long-term financial targets, the company’s growth opportunities ahead, ability to drive profitable growth and build upon existing contracts and partnerships, including in the United States and internationally, the company’s expectation of annualized savings from its workforce and business optimization, the company’s expectations for meaningful operating leverage, operating momentum, sales pipeline, the outcome of the Chicago gunshot detection RFP process and expanding adoption of the company’s solutions, including continued cross-sell activity and new deployments. Words such as "expect," "anticipate," "should," "believe," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company’s control. The company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the company’s ability to enter into new contracts or renew its contracts with key customers and the timing of such entry or renewal; the company’s ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the company’s ability to maintain and increase sales, including sales of the company’s newer product lines and through expansion into new vertical markets; the availability of funding for the company’s customers to purchase the company’s solutions; the complexity, expense and time associated with contracting with government entities; the company’s ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the potential effects of negative publicity; the company’s ability to sell its solutions into international and other new markets; the lengthy sales cycle for the company’s solutions; changes in federal funding available to support local law enforcement; the company’s ability to deploy and deliver its solutions; the company’s ability to maintain and enhance its brand; and the company’s ability to address the business and other impacts and uncertainties associated with macroeconomic factors, including tariffs and trade measures, as well as other risk factors included in the company’s most recent annual report on Form 10-K and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this press release and the earnings call referencing this press release as a result of new information, future events or changes in its expectations. About SoundThinking, Inc. SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by more than 300 customers and has worked with approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmartTM platform includes ShotSpotter®, the leading acoustic gunshot detection system; CrimeTracerTM, the leading law enforcement search engine; CaseBuilderTM, a one-stop investigation management system; ResourceRouterTM, software that directs patrol and community anti-violence resources to help maximize their impact; PlateRanger powered by Rekor, a leading ALPR solution; Field Agent, an AI layer that transforms public safety data into actionable intelligence; and SafePointe®, an AI-based weapons detection system. SoundThinking has been designated a Great Place to Work® company. Company Contact: Alan Stewart, CFOSoundThinking, Inc. +1 (510) 794-3100 [email protected] Investor Relations Contacts: Ankit HiraSolebury Strategic Communications for SoundThinking, Inc.+1 (203) 546 [email protected]

Revenues Decreased 15% to $24.2 Million, as Q1 2025 included Revenue of Approximately $3.5 million From Renewal of Two Delayed Contracts with the New York City Police Department Company Reaffirms FY 2026 Revenue Guidance Range of $109.0 Million to $111.0 Million, Representing Approximately 6% Year-Over-Year Growth at the Midpoint, and Reaffirms FY 2026 Adjusted EBITDA Margin Guidance Range of 16% to 18% Company Reaffirms Expectation for ARR1 to Increase from $95.4 Million at the Beginning of 2026 to Approximately $110.0 Million at the Beginning of 2027 FREMONT, Calif., May 14, 2026 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology company, today reported financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial and Operational Highlights Revenues decreased 15% to $24.2 million, compared to $28.3 million for the same quarter of 2025. Gross profit decreased 32% to $11.3 million (47% of revenues), compared to $16.6 million (59% of revenues) for the same quarter of 2025. GAAP net loss totaled $7.0 million, compared to GAAP net loss of $1.5 million for the same quarter of 2025. Adjusted EBITDA1 totaled negative $0.1 million (0% of revenues), compared to $4.5 million (16% of revenues) for the same quarter of 2025. Went “live” in one new city and one new customer. 1 See the section below titled “Non-GAAP Financial Measures and Key Business Metrics” for more information about Adjusted EBITDA and its reconciliation to GAAP net loss and more information about Annual Recurring Revenue (ARR). Management Commentary “Our first quarter results reflect the structural shape of our year and the deliberate investments we are making to position SoundThinking for durable, profitable growth,” said President and CEO Ralph Clark. “Q1 is, by design, typically our most cost-concentrated and lightest revenue quarter of the year, with deployments, renewals, and expansions building through the year. With approximately $4 million in annualized savings we are expecting from the workforce optimization we implemented in the first quarter, we have increased visibility of our full-year framework and we expect meaningful operating leverage to emerge.” “We are encouraged by the momentum we are seeing across our public safety and commercial security offerings. Drone-as-first-responder integrations are now live in 16 cities, we have launched SafetySmart™ Field Agent — our AI-powered user experience for the SafetySmart™ platform — and SafePointe® go-lives in healthcare are accelerating, with monthly recurring revenue more than doubling during the quarter. Supported by a strong recurring revenue base, a growing multi-product pipeline, and improving visibility as the year progresses, we remain confident in our ability to execute and drive sustainable, long-term value for shareholders.” First Quarter 2026 Financial Results Revenues for the first quarter of 2026 were $24.2 million, compared to $28.3 million for the same quarter of 2025. The decrease in revenues was primarily due to approximately $3.5 million in catch-up revenue in 2025 from the renewal of two delayed contracts with the New York City Police Department and $0.5 million in revenue related to our ShotSpotter contract with Puerto Rico in the first quarter of 2025, which has not currently been renewed. Gross profit for the first quarter of 2026 was $11.3 million (47% of revenues), compared to $16.6 million (59% of revenues) for the same period in 2025 reflecting lower revenue volume and continued cost pressures related to servicing contracted customers without the benefit of catch-up revenue recognized in the first quarter of 2025. Total operating expenses for the first quarter of 2026 were $18.1 million, compared to $17.8 million for the same period in 2025. Operating expenses remained consistent with the prior year due to higher employee-related compensation and restructuring charges, partially offset by reduced sales and marketing expenses. Net loss for the first quarter of 2026 totaled $7.0 million or $(0.54) per basic and diluted share (based on 12.9 million basic and diluted weighted-average shares outstanding), compared to 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), for the same period in 2025. Adjusted EBITDA for the first quarter of 2026 totaled negative $0.1 million, compared to $4.5 million in the same period last year. At quarter end, the company had $14.2 million in cash and cash equivalents, $21.9 million in accounts receivable and contract assets, net, $40.4 million in deferred revenue, $4.0 million in debt and approximately $36.0 million available on its credit facility. Financial Outlook The company reaffirmed its full-year 2026 revenue guidance range of $109.0 million to $111.0 million, representing approximately 6% year-over-year growth at the midpoint. The company reaffirmed its Adjusted EBITDA margin guidance range of 16% to 18% for the full year 2026. The company also reaffirmed its expectation for ARR to increase from $95.4 million at the beginning of 2026 to approximately $110.0 million at the start of 2027. “We are reaffirming our full-year outlook and believe we are well positioned to deliver improved performance as we move through 2026, even without a ShotSpotter contract renewal in Chicago,” added Mr. Clark. “We await the outcome of the current gunshot detection RFP process that remains underway, and believe our submission represents a comprehensive and compelling proposal. Our long-term financial targets of 70% gross margin and 40% Adjusted EBITDA margin do not include Chicago, as we remain confident in the enduring success of ShotSpotter and accelerating adoption of our broader SafetySmart platform.” The company’s financial outlook statements are based on current expectations. The preceding statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. The company has not reconciled its Adjusted EBITDA outlook to GAAP net loss due to the uncertainty and variability of interest income (expense), income taxes, depreciation and amortization, stock-based compensation expenses, and any acquisition-related expenses, which are reconciling items between Adjusted EBITDA and GAAP net loss. Because the company cannot reasonably predict such items, a reconciliation to forecasted GAAP net loss is not available without unreasonable effort. Such items could have a significant impact on the calculation of GAAP net loss. For more information, see “Non-GAAP Financial Measures and Key Business Metrics” below. Conference Call SoundThinking will hold a conference call today May 14, 2026 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on business conditions. SoundThinking management will host the presentation, followed by a question-and-answer period. Those wishing to participate via webcast should access the call through SoundThinking’s Investor Relations website at https://ir.soundthinking.com/. Those wishing to participate via telephone may dial in at 1-877-407-8029 (USA) or 1-201-689-8029 (International). The replay will be available via webcast through SoundThinking’s Investor Relations website. Non-GAAP Financial Measures and Key Business Metrics Adjusted EBITDA: Adjusted EBITDA, a non-GAAP financial measure, represents the company’s net income (loss) before interest (income) expense, income taxes, depreciation, amortization and impairment, restructuring and related expense and stock-based compensation expense. Adjusted EBITDA is a measure used by management internally to understand and evaluate the company’s core operating performance and trends across accounting periods and in connection with developing future operating plans, making strategic decisions regarding the allocation of capital and considering initiatives focused on cultivating new markets for its solutions. In particular, the exclusion of these expenses in calculating Adjusted EBITDA facilitates comparisons of the company’s operating performance on a period-to-period basis. SoundThinking believes Adjusted EBITDA also provides useful information to investors and others in understanding and evaluating its operating results in the same manner as its management and board of directors. For example, SoundThinking adjusts EBITDA for stock-based compensation expense because such expenses often vary for reasons that are generally unrelated to financial and operational performance in a particular period. Stock-based compensation is utilized by SoundThinking to attract and retain employees with a goal of long-term retention and the alignment of employee interests with those of the company and its stockholders, rather than to address operational performance for any particular period’s financial performance measures, in particular net loss, or its other GAAP financial results. The following table presents a reconciliation of GAAP net loss, the most directly comparable GAAP measure, to Adjusted EBITDA for each of the periods indicated (in thousands): Annual Recurring Revenue (ARR): ARR is calculated for a year based on the expected GAAP revenue for the year from contracts that are in effect on January 1st of such year, assuming all such contracts that are due for renewal during the year renew as expected on or near their renewal date, and including contracts executed during the year after January 1st, but for which GAAP revenue recognition starts January 1st of the year. ARR is used by management internally to provide a clearer picture of its sustainable revenue base. SoundThinking believes ARR provides useful information to investors and others in understanding and evaluating growth of its recurring services because recurring revenue is particularly relevant for businesses operating under a subscription model, where customer retention and contract renewals play a significant role in long-term financial performance. Forward-Looking Statements This press release and earnings call referencing this press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding the company’s guidance for revenue and Adjusted EBITDA for 2026, the company's expectations for the increase in its ARR, its long-term financial targets, the company’s growth opportunities ahead, ability to drive profitable growth and build upon existing contracts and partnerships, including in the United States and internationally, the company’s expectation of annualized savings from its workforce optimization, the company’s expectations for meaningful operating leverage, operating momentum, sales pipeline, the outcome of the Chicago gunshot detection RFP process, the enduring success of ShotSpotter and accelerating adoption of the company’s SafetySmart platform. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company’s control. The company’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: the company’s ability to enter into new contracts or renew its contracts with key customers and the timing of such entry or renewal; the company’s ability to successfully negotiate and execute contracts with new and existing customers in a timely manner, if at all; the company’s ability to maintain and increase sales, including sales of the company’s newer product lines and through expansion into new vertical markets; the availability of funding for the company’s customers to purchase the company’s solutions; the complexity, expense and time associated with contracting with government entities; the company’s ability to maintain and expand coverage of existing public safety customer accounts and further penetrate the public safety market; the potential effects of negative publicity; the company’s ability to sell its solutions into international and other new markets; the lengthy sales cycle for the company’s solutions; changes in federal funding available to support local law enforcement; the company’s ability to deploy and deliver its solutions; the company’s ability to maintain and enhance its brand; and the company’s ability to address the business and other impacts and uncertainties associated with macroeconomic factors, including tariffs and trade measures, as well as other risk factors included in the company’s most recent annual report on Form 10-K and other SEC filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this press release and the earnings call referencing this press release as a result of new information, future events or changes in its expectations. About SoundThinking, Inc. SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by more than 300 customers and has worked with approximately 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmart™ platform includes ShotSpotter®, the leading acoustic gunshot detection system; CrimeTracer™, the leading law enforcement search engine; CaseBuilder™, a one-stop investigation management system; ResourceRouter™, software that directs patrol and community anti-violence resources to help maximize their impact; SafePointe®, an AI-based weapons detection system; and PlateRanger powered by Rekor, a leading ALPR solution. SoundThinking has been designated a Great Place to Work® company. Company Contact: Alan Stewart, CFO SoundThinking, Inc. +1 (510) 794-3100 [email protected] Investor Relations Contacts: Ankit Hira Solebury Strategic Communications for SoundThinking, Inc. +1 (203) 546 0444 [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Q1 performance was characterized by a structural concentration of annual costs and seasonally lighter revenue, which management expects to reverse as deployments and renewals build through the year. The Cleveland renewal serves as a critical competitive proof point, with management asserting that operational reality and 25 years of ground truth data create a moat that marketing-led competitors cannot replicate. Strategic transformation is accelerating through the integration of ShotSpotter with Drone as First Responders (DFR), deepening the technology's role in the operational fabric of public safety agencies. The launch of SafetySmart Field Agent represents a pivot toward AI-driven user experiences, allowing non-technical users to query unified data across gunfire, crime, and license plate recognition sources. Management is executing a bifurcated capital allocation strategy, utilizing cash flow from the mature public safety platform to fund aggressive growth investments in the SafePointe physical AI security business. International expansion is being treated as a multi-year runway, with recent hires and proof points in Latin America establishing a foundation for broader regional growth. Full-year revenue guidance of $109 million to $111 million assumes a back-end loaded year, with approximately $60 million in revenue expected in the second half. Adjusted EBITDA margin targets of 16% to 18% are supported by $4 million in annualized savings from a workforce optimization effective April 1, 2026. The second-half ramp is dependent on closing two large deals: a $2.5 million statewide CrimeTracer contract and the $2.7 million ARR recapture of the Puerto Rico contract. SafePointe is projected to reach profitability by late 2027 or early 2028 as it scales toward a target of $4 million in new ARR for the current year. Management anticipates over 90% of new revenue growth beyond the Q1 run rate will flow directly to adjusted EBITDA due to substantial operating leverage. A workforce optimization involving approximately 20 positions and reduced marketing spend was implemented to align the cost base with long-term profitability goals. SafePointe currently generates over $8 million in annualized losses, reflecting a deliberate choice to invest ahead of revenue in the healthcare and casino verticals. The 2026 guidance incorporates higher projected attrition rates compared to historical norms, primarily due to the expiration of municipal ARPA funding. Q1 gross margins of 47% were impacted by the absence of $3.5 million in non-recurring catch-up revenue from the prior year's NYPD renewals. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is currently exchanging paper on the $2.5 million CrimeTracer deal and expects a signature within 30 to 45 days. The Puerto Rico contract recapture remains positively engaged but requires more work due to organizational and political shifts in the region. Recent wins include a $3.2 million booking with a top-five hospital chain, validating the passive sensor approach for high-traffic environments. California's AB 2975 mandate is expected to drive demand across 400 hospitals, though current wins are largely from early adopters moving ahead of the 2027 deadline. The primary objective of DFR integration is enhancing customer retention and stickiness rather than immediate revenue generation. Future phases will focus on bidirectional data flow, incorporating drone visual data back into the ShotSpotter and CrimeTracer alert packages.

This article first appeared on GuruFocus. Q1 Revenue: $24.2 million, compared to $28.3 million in Q1 2025. Adjusted EBITDA: Approximately negative $100,000, compared to positive $4.5 million in Q1 2025. Gross Profit: $11.3 million, or 47% of revenue, compared to $16.6 million, or 59% of revenue, in Q1 2025. Operating Expenses: $18.1 million, compared to $17.8 million in Q1 2025. Net Loss: Approximately $7 million or $0.54 per share, compared to a net loss of $1.5 million or $0.12 per share in Q1 2025. Deferred Revenue: $40.4 million as of March 31, 2026, compared to $43.9 million at December 31, 2025. Cash and Cash Equivalents: $14.2 million, compared to $15.8 million at the end of 2025. Full-Year Revenue Guidance: $109 million to $111 million, representing 5% to 7% year-over-year growth. Full-Year Adjusted EBITDA Margin Guidance: 16% to 18%. Warning! GuruFocus has detected 4 Warning Signs with SSTI. Is SSTI fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SoundThinking Inc (NASDAQ:SSTI) reaffirmed its full-year revenue guidance of $109 million to $111 million, indicating confidence in achieving approximately 6% year-over-year growth. The company reported strong customer retention and renewal performance, with a notable renewal in Cleveland, highlighting the effectiveness of their ShotSpotter technology. SoundThinking Inc (NASDAQ:SSTI) is seeing significant traction with its SafePoint platform, with monthly recurring revenue more than doubling from January to March 2026. The company is expanding its international presence, with deployments in Montevideo, Uruguay, and Nidaroy, Brazil, serving as proof points for broader Latin American expansion. SoundThinking Inc (NASDAQ:SSTI) launched SafetySmart Field Agent, an AI-powered user experience, which is in beta with more than a dozen agencies, enhancing the value of their integrated SafetySmart platform. Q1 revenue of $24.2 million was lower compared to $28.3 million in the first quarter of 2025, partly due to non-renewal of a Puerto Rico contract and absence of prior-year catch-up revenues. The company reported a negative adjusted EBITDA of approximately $100,000 for Q1 2026, compared to a positive $4.5 million in the same period last year. SoundThinking Inc (NASDAQ:SSTI) is experiencing increased costs related to ongoing product development, particularly in the SafePoint platform, which is generating over $8 million in annualized losses. Gross profit margin decreased to 47% from 59% in the prior year period, reflecting continued costs without the benefit of prior-year catch-up revenue. The company anticipates higher attrition rates due to budget constraints and the expiration of ARPA funds, which could impact future renewals. Q: Could you talk about the visibility you have in the growth for the balance of the year? How much is signed that needs to be deployed versus what go-get that you'd have to sign and be able to deploy intra-year? A: Alan Stewart, CFO, explained that while Q1 was slow in some areas, they are ahead of schedule in others, particularly with new SafePoint contracts. They expect to hit their top-line revenue targets based on current pipelines. Ralph Clark, CEO, added that they anticipate $50 million in revenue for the first half and $60 million for the second half, driven by large deals like a statewide Crime Tracer deal and the recapture of Puerto Rico. Q: Regarding the two hospital deals, one's a $3 million deal, one's a million, how typical are either end of that or is that both ends of what an average deal should look like? A: Ralph Clark, CEO, mentioned that they are still early in the process and the pipeline is growing quickly. They are focusing on casinos and healthcare, with deals ranging from 10 to 50 lanes. The larger $3 million deal consolidates SafePoint across all hospitals in one state for a particular chain, indicating significant opportunities. Q: When you look at the $8 million sort of drag from SafePoint right now, how much of that is in the sales and marketing versus ongoing product development or back office? A: Alan Stewart, CFO, explained that the $8 million loss is expected to improve from $9 million last year. Revenue is projected to increase significantly, with cost of goods sold and operating expenses rising modestly. They have expanded their sales and marketing team from one to four people, which is expected to support pipeline growth and large contracts. Q: For the DFR commentary and the integration with 16 cities, how is that creating additional revenue as those integrations come about? A: Ralph Clark, CEO, stated that the focus is on adding value and embedding ShotSpotter into the operational fabric of customer responses, enhancing retention and stickiness rather than directly increasing revenue. Future plans include making integrations bi-directional to further enhance value. Q: Can you provide details on the workforce optimization and how it affects EBITDA for the year? A: Alan Stewart, CFO, explained that the workforce optimization involved reducing about 20 positions and other cost-saving measures, resulting in $4 million in annual savings. For 2026, they expect $2.5 million in savings to contribute to adjusted EBITDA, with the full $4 million impacting future financials. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 14, 2026 at 4:30 p.m. ET Chief Executive Officer — Ralph Clark Chief Financial Officer — Alan Stewart Ralph Clark: 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. Alan Stewart: 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: [Operator Instructions] The first question comes from Richard Baldry with ROTH Capital. Richard Baldry: 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? Ralph Clark: Do you want to take that, Alan? Or do you want to address it? Alan Stewart: 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. Ralph Clark: 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. Richard Baldry: 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? Ralph Clark: 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. Richard Baldry: 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? Alan Stewart: 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. Operator: The next question comes from Trevor Walsh with Citizens. Trevor Walsh: 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? Ralph Clark: 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? Trevor Walsh: 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? Ralph Clark: 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. Trevor Walsh: 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. Alan Stewart: 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. Operator: The next question comes from Michael Latimore with Northland Capital. Mike Latimore: 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? Ralph Clark: 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. Mike Latimore: 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? Alan Stewart: 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. Mike Latimore: 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? Alan Stewart: 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: [Operator Instructions] The next question comes from Eric Martinuzzi with Lake Street. Eric Martinuzzi: 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? Ralph Clark: 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. Eric Martinuzzi: 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? Alan Stewart: Go ahead, Ralph. Ralph Clark: No. Go ahead, Alan. sorry. Alan Stewart: 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. Operator: Thank you. At this time, I would like to turn the call back over to Mr. Ralph Clark for closing comments. Ralph Clark: 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. Operator: 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. Before you buy stock in SoundThinking, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundThinking wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. SoundThinking (SSTI) Q1 2026 Earnings Transcript was originally published by The Motley Fool