SoundThinking, Inc. Q4 FY2025 earnings call

• Overall market for public safety solutions is constructive and growing. Delivered record full-year revenue. Maintained double digit adjusted EBITDA margin profitability. Made critical growth investments. - ShotSpotter went live in 10 new cities, two universities, and expanded with 11 current customers in 2025. - SafePoint had strong momentum with $1.6 million of bookings from 11 customers anticipated to take live in first half of 2026. - Added several new leaders to bolster sales execution capabilities, including Kirk Arthur as Senior VP of Global Sales, Manuel Nyland as VP of sales for SafePoint, and Bruna Bolorino in Brazil. - Chicago formal evaluation process completed with recommendation transmitted, matter with city's administrative process. New York budget framework leaves current three-year agreement with NYPD fully intact.

Full-year revenue was $104.1 million, a 2% increase over 2024. ShotSpotter exited 2025 with $67.6 million of ARR. Crime Tracer exited 2025 with $8.1 million of ARR. Plate Ranger modestly targeting $1.5 million of new ARR. SafePoint had Q4 2025 bookings of approximately $800,000 across six customers and could contribute another $4 million of ARR in 2026.

• Reduced full-year revenue guidance range from $114 to $116 million to $109 to $111 million due to delays in Crime Tracer deployment in a new state and ShotSpotter renewal in Puerto Rico. - Reduced full-year adjusted EBITDA margin guidance range from 18 to 20% to 16 to 18% due to delay of large contract executions and investments in AI modeling and tools. - Anticipated 15% growth in net ARR, focus on introducing customers to more solutions within platform and operating discipline.

Q: Discuss which verticals are currently most prominent in the pipeline for SafePoint?

A: Primary vertical is healthcare as they value passive nature of SafePoint's weapons detection system.

Q: Status of case builder deployment in NYPD corrections department?

A: Continuing to make good progress in lighting up new applications for NYPD corrections department deployment and have significant deployment in Orleans Parish.

Q: Level of attrition assuming for ShotSpotter this year?

A: Expect total ARR attrition of about $3 million, with half to two-thirds related to ShotSpotter due to customer budget challenges.

Q: Elaborate on board review around cost-saving measures?

A: Board engaging with senior leadership team to pressure test opportunities to drive greater efficiencies, still in early stages.

Q: Commentary on sniper gunshot detection use case?

A: Focus on perimeter-based, sniper-based types of gunshot detection initially for utility substations, with forward operating bases and embassies as next layer.

Q: Bridge SafePoint bookings and ARR for 2026?

A: $800,000 in Q4 2025 bookings, expecting similar or greater in each quarter of 2026, confident of adding $4 million of ARR with many healthcare agencies having potential for expansion.

Q: Comment on sales reps selling whole platform vs specialized?

A: Have specialized team for SafePoint, field sales territory reps for full product suite with overlay organization for solution specialization.

Q: Trend and expectation for international segment?

A: Slower in 2025 but picked up, expecting three new deployments in three separate countries in 2026, hired sales VP in Brazil.

Q: Reconcile Q4 EBITDA below expectation and improvement for 2026?

A: Delays in Puerto Rico and crime tracer deal not included in Q4, G&A cut, expecting similar efficiency evaluations in 2026 with revenue increase and OPEX control.

Q: Progress with Plate Ranger product line?

A: Several pilots, converted five to customers, working on four or five more, targeting $1.5 million of new ARR by end of 2026.