Sonos Stock Earnings Reports

Sonos reported a better-than-expected Q3: revenue $345M (above guidance), adjusted EBITDA $36M (at high end of guidance), gross margin ~43–45%, and sequential net cash improvement to $254M. Management highlighted a leadership transition with Tom Conrad now CEO and a renewed focus on Sonos as a software-enabled hardware platform — emphasizing software upgrades, improved core experience, and a product cadence of roughly two hardware introductions per year (with more new product activity expected in H2 FY2026). The company has materially reduced operating expenses (non-GAAP OpEx down ~15% YoY; normalized down ~23%) via restructuring and cost optimization, which helped drive profitability despite top-line declines. A key near-term headwind is new U.S. tariff rates on Vietnam and Malaysia manufacturing; Sonos expects to raise prices on certain products later this year and has modeled tariff impacts in guidance. Q4 guidance: revenue $260M–$290M (up 2% to 14% YoY), GAAP gross margin 42%–44%, non-GAAP gross margin 43.7%–45.5%, adjusted EBITDA (Q4) between -$10M and $14M; full-year adjusted EBITDA expected $116M–$140M (up 8%–30% YoY). Liquidity: $254M net cash, $53M marketable securities, $100M undrawn revolver; share repurchases paused ( ~$150M remaining authorization). Management reiterated long-term opportunity to grow household penetration and monetize the installed base via software and platform features, while they navigate tariffs, pricing adjustments, and a cyclical consumer audio market.