SoundThinking, Inc. (SSTI) Stock Forecast & Price Target

SoundThinking is attractive because its core public safety platforms remain deeply embedded in police workflows, creating high switching costs and supporting a recurring revenue base. The company is also showing improving operating leverage, with adjusted EBITDA turning positive at $1.2M in 2Q versus about -$100K in 1Q, while opex fell to $16.2M and workforce actions are expected to yield about $4M in annualized savings. Despite softer new bookings, it closed more than $23M of TCV across multi-year renewals and still has a clear catalyst in the Chicago ShotSpotter opportunity, which could add roughly $10M of ARR and about $2M of annual EBITDA if won.

SoundThinking is facing deteriorating fundamentals as 2Q26 revenue fell 8% year over year to $23.9M and adjusted EBITDA of $1.2M missed expectations, while management cut FY26 revenue guidance to $99M-$100M and margin guidance to 8%-9%. Its core ShotSpotter business is showing stagnant coverage, longer sales cycles, weaker bookings and go-lives, and the newer growth bets—CrimeTracer, PlateRanger, and SafePointe—have not yet created meaningful top-line momentum. With cash and equivalents down to $6.4M from $15.8M and costly litigation still a drag, the company has limited financial flexibility to absorb execution missteps or fund growth initiatives.