What SoundThinking, Inc. told the SEC could break it.

SoundThinking's largest customer, the City of New York, was 29% of 2025 revenue, and its revenue is concentrated in a small number of large government contracts; the City of Chicago's 2024 non-renewal (was ~10%) shows the volatility this creates.

“For the year ended December 31, 2025, our largest customer, the City of New York, accounted for 29% of our revenues.”

Many standardized components used broadly in SoundThinking's sensors are manufactured in significant quantities in concentrated geographic regions, particularly Greater China, exposing its supply chain to regional crises and trade measures.

“many of our standardized components used broadly in our sensors are manufactured in significant quantities in concentrated geographic regions, particularly 53 in Greater China.”

Increased U.S. tariffs on components exported from China raise SoundThinking's cost of revenues (and tariff-related impacts already delayed its Brazil deployment), with further hardware/infrastructure tariffs threatening costs and supply.

“As a result, increased tariffs placed on components exported from China by the U.S. government will increase our costs of revenues.”

SoundThinking's proprietary ShotSpotter sensors are produced by a single contract manufacturer with no long-term contract (purchase-order basis), and many key sensor components come from limited or sole sources with long lead times — a sharp single-source production risk.

“we use a single manufacturer, with which we have no long-term contract and from which we purchase on a purchase-order basis, to produce our proprietary ShotSpotter sensors.”