SoundThinking, Inc. — Earnings Quality Grade F
SSTI · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 12 days
AR growth 19.5% exceeds revenue growth 2.1%
Revenue 2.1%, CFFO -58.1%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth -30.7% vs revenue 2.1%. Normal
SG&A/Gross Profit = 87.1%, exceeds 70%
Gross margin 54.4%, change -2.3pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF $0.0B, FCF/NI = -0.51
Accruals ratio = -13.8%. Low accruals
Cash $0.0B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.1B = 88% of equity. Over 50%
Debt/EBITDA = 10.7x (>4x). Interest coverage = -449.2x (<2x). Financial stress
Other assets -29.6% vs revenue 2.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.95 (< -2.22). Unlikely manipulator
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25