Sonos Stock Earnings Reports

Sonos reported Q1 FY2026 revenue of $546M, slightly down year-over-year (-1%) but above guidance midpoint, with GAAP gross profit dollars up 5% and adjusted EBITDA rising 45% to $132M (24.2% margin). Management attributes improved profitability to >$100M in run-rate savings, pricing/tariff mitigation, FX tailwinds, and cost actions despite memory cost pressure. Product strategy centers on a “system” approach—driving repeat purchase and higher lifetime value via product innovation (including the recently announced Amp Multi for installers), improved software/reliability, sustained marketing under new CMO Colleen DeCourcy, geographic expansion, and exploration of AI-enabled experiences. Q2 revenue guide is $250M–$280M (midpoint ~$265M, up ~2% YoY at midpoint); first-half revenue guide is $796M–$826M (flat at midpoint). Q2 gross margin expected 44%–46% (non-GAAP ~220 bps higher than GAAP); Q2 adjusted EBITDA expected between –$18M and $10M, implying H1 adjusted EBITDA up ~42% YoY. Balance sheet: net cash $363M, $157M FCF in Q1, $25M share repurchases in Q1 with $105M remaining authorization, and inventory down 11% YoY. Management expects growth acceleration in H2 driven by new product launches (AMP Multi and additional products) and continued improvements in system reliability and marketing execution.