SoundThinking, Inc. reported its financial results for the second quarter ended June 30, 2025, on August 12, 2025. Revenues for the quarter were $25.9 million, a 4% decrease from $27.0 million in the same period of 2024. This decline was primarily attributed to a $2.8 million reduction from the non-renewal of the contract with the City of Chicago, partially offset by $1.9 million in new bookings and expansions.
Gross profit for Q2 2025 was $13.8 million, or 53% of revenues, down from 60% in Q2 2024. This reduction was due to increased maintenance costs for existing ShotSpotter deployments and expenses related to NYPD software licensing not yet offset by anticipated sublicensing revenue. The company reported a net loss of $3.1 million, or $(0.24) per basic and diluted share, compared to a net loss of $0.8 million in Q2 2024.
Adjusted EBITDA for the second quarter totaled $3.4 million, a decrease from $5.1 million in the prior-year period. This lower Adjusted EBITDA was primarily due to the delayed software sublicensing contract with the NYPD, increased cost of revenue related to maintenance activities, and investments in enhancing AI capabilities. The company repurchased 31,570 shares for approximately $0.5 million under its share repurchase program.
Despite the revenue dip, SoundThinking reaffirmed its full-year 2025 revenue guidance range of $111.0 million to $113.0 million, representing 10% year-over-year growth at the midpoint. The company also reaffirmed its Adjusted EBITDA margin guidance range of 20% to 22% for the full year 2025. Management reiterated its expectation for Annual Recurring Revenue (ARR) to increase from $95.6 million at the beginning of 2025 to approximately $110.0 million at the start of 2026.
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