SoundThinking Q3 2026: Deal Costs Drive a Steep EPS Miss
As seen on the 24/7 Wall St. homepage on November 12, 2026.
The quarter's loss is mostly deal math: $5.13 million of expenses tied to the pending Transom Capital buyout at $8.00 per share in cash plus a CVR worth up to $3.00 more. Guidance is withdrawn and there will be no earnings calls, so the tender sets the stock from here.
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SoundThinking reported a Q3 2026 GAAP loss of $0.64 per share, missing expectations. The gap is almost entirely explained by acquisition-related expenses tied to the pending Transom Capital buyout, along with property and equipment impairment and restructuring charges.
Revenue of $25.01 million came in essentially flat year over year and in line with estimates, so the top line held up. Non-renewals and delayed contract renewals trimmed revenue, partially offset by new bookings and expansions with existing customers.
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Gross margin compressed to 48% from 54% a year earlier, hurt by lower revenue volume, reduced catch-up revenue, and higher IT and facility costs. The GAAP net loss widened and adjusted EBITDA fell from the prior-year period.
The Transom transaction calls for affiliates of Transom Capital Group to take SoundThinking private for $8.00 per share in cash plus a contingent value right worth up to $3.00 per share. SoundThinking has withdrawn all forward-looking guidance and will not host earnings calls for Q3 2026 or any future quarter. The tender offer now sets the stock's ceiling.
Mentioned: SSTI