Aug 13, 2026 earnings call — Full-year guidance revised, focus on renewals and cost cuts
Company revised full-year revenue guidance to $99 million to $100 million.
Revenue $0.0B (est $0.0B) · EPS $-0.37 (est $-0.25) · Next-quarter revenue outlook $0.1B–$0.1B
Key quotes
"We closed more than $23 million in total contract value across several multi-year renewals."
"While approximately $900,000 of restructuring related costs were recognized during the period, we remain on track to achieve approximately $4 million of annualized savings."
"The second driver, and frankly, the more disappointing one, is ShotSpotter, and here we will not hide behind cadence because this quarter it was both bookings and go-lives that came in well below our expectations."
Analyst Q&A 4
ShotSpotter sales and H2 revenue visibility
Q (Richard Baldry · Roth Capital Partners): He asked how much of ShotSpotter's sales problems are within the company's control versus external factors. He also asked how much of the second-half revenue step-up is already booked versus still needs to be won.
A: Management said both internal sales execution and external forces are contributing. They gave examples: a 10-sq mi deal closed in Q4 has not gone live, Cape Town canceled a tender after award, and reduced ARPA funding is a factor; they are hiring an outside contracting resource to help funding and have levers to accelerate conversions but are being conservative for 2026. They also said they have visibility from professional services and NYC DOC, over 100 lanes in flight representing more than $2 million in ARR, and are counting on about seven ShotSpotter go-lives from roughly 15 deals.
"I do think there are some issues around the funding environment with the reduction in ARPA funds being available." — Ralph Clark (CEO)
SafePointe deployment delays and guidance cut
Q (Trevor Walsh · Citizens): He asked whether SafePointe's slower deployments are a new change or just the business as it scaled. He also asked whether the guidance reduction is due to specific deals or more general pipeline timing.
A: Management said deployments slowed because customers are now deploying 10 to 20 lanes per enterprise, which requires more IT coordination and takes longer; they booked almost 90 new lanes in Q2 and larger deployments need more time to meet performance expectations. On guidance, Alan said the about $10 million reduction is mostly timing: about 70% shifted right (professional services, NYC DOC, and possibly $2 million of SafePointe moving into 2027) and about 30% reflects slightly slower new bookings.
"So, when you start adding those up, out of that $10 million reduction, about 70% of that didn't go away." — Alan Stewart (CFO)
Workforce cuts and activist update
Q (Eric Martinuzzi · Lake Street): He asked how many people were affected by the workforce optimization and whether there is any update on activist-led strategic alternatives or board changes.
A: Alan said about 28 people were impacted and they also cut some marketing plans and other expenses. Ralph said there are no strategic alternatives they would discuss publicly now and that everyone is focused on working with senior leadership to return to growth and profitability.
"There were about 28 people that we took a look at in terms of what things that we had to change." — Alan Stewart (CFO)
Political pushback and stock-based comp
Q (Jeremy Hamblin · Craig-Hallum): He asked whether political/public pushback (ALPR debate, media coverage) is lengthening sales cycles. He also asked for the stock-based compensation level included in the adjusted EBITDA guide and how it changed from the start of the year.
A: Ralph said they are feeling new scrutiny and are sometimes being swept into the broader ALPR and surveillance debate, which stretches politically charged decisions; they are doing community engagement and civil-rights outreach to address concerns. Alan said stock-based comp fell from $3.8 million in Q2 2025 to $2.4 million in Q2 2026 (down $1.4 million), they expect stock-based comp of about $10.4 million for the year which is significantly lower than last year, and that revenue rising from 48 to closer to 52 would add about $4 million largely to the bottom line.
"We do expect that our stock-based comp is probably going to be about $10.4 million for the year, significantly lower than last year." — Alan Stewart (CFO)