The earnings call reflects a company that is successfully navigating operational efficiencies and cost reductions while facing headwinds from tariff challenges and a cyclical downturn in market demand. Sonos' brand strength and leadership in wireless home audio, along with strategic software enhancements, are positive indicators, but are tempered by revenue declines and external market challenges.

Company Guidance -

Q4 2025

During the Sonos Third Quarter Fiscal 2025 Conference Call, the company provided several key metrics and guidance for the future. Sonos reported a Q3 revenue of $345 million, exceeding the high end of their guidance range, with a year-over-year decline of 13% versus the anticipated 22% to 14% decline. Gross margin was 43.4%, while non-GAAP gross margin stood at 44.7%. Operating expenses decreased by 15% year-over-year, with non-GAAP operating expenses at $131 million. Adjusted EBITDA was $36 million, aligning with the upper end of the guidance range. For Q4, Sonos projects revenue between $260 million and $290 million, an increase of 2% to 14% year-over-year, and expects GAAP gross margin to range from 42% to 44%. The company anticipates tariff expenses of $5 million impacting gross margin by 180 basis points. Q4 adjusted EBITDA is expected to range from minus $10 million to positive $14 million. Sonos emphasized its focus on software to enhance product value and plans for price increases due to rising tariff costs, while maintaining a strong emphasis on operational efficiency to drive profitability.

Revenue and Adjusted EBITDA Exceed Expectations

Q3 revenue of $345 million was above the high end of guidance, with adjusted EBITDA positive at $36 million, at the high end of the guidance range due to higher revenue and lower operating expenses.

Operational Cost Reductions

GAAP operating expenses were $153 million, down 15% year-over-year. Non-GAAP operating expenses of $131 million were also down 15% year-over-year, driven by various cost optimization efforts.

Brand and Market Leadership

Sonos solidified its position as the #1 home theater brand in the U.S., with strong installer and channel partnerships.

AI and Software Feature Enhancements

New AI-powered voice enhancement features and software upgrades were delivered, enhancing product value over time.

Sonos (SONO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SONO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 12, 2025	2025 (Q4)	-0.34 / -	-0.44	―	―	―
Aug 06, 2025	2025 (Q3)	-0.10 / -0.03	0.03	-200.00% (-0.06)
May 07, 2025	2025 (Q2)	-0.44 / -0.58	-0.56	-3.57% (-0.02)
Feb 06, 2025	2025 (Q1)	0.17 / 0.40	0.64	-37.50% (-0.24)
Nov 13, 2024	2024 (Q4)	-0.40 / -0.44	-0.25	-76.00% (-0.19)
Aug 07, 2024	2024 (Q3)	0.03 / 0.03	-0.18	116.67% (+0.21)
May 07, 2024	2024 (Q2)	-0.46 / -0.56	-0.24	-133.33% (-0.32)
Feb 06, 2024	2024 (Q1)	0.42 / 0.64	0.57	12.28% (+0.07)
Nov 15, 2023	2023 (Q4)	-0.18 / -0.25	-0.5	50.00% (+0.25)
Aug 09, 2023	2023 (Q3)	-0.20 / -0.18	0	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

SONO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	$11.04	$10.97	-0.63%
May 07, 2025	$8.97	$9.84	+9.70%
Feb 06, 2025	$14.26	$15.00	+5.19%
Nov 13, 2024	$14.08	$13.75	-2.34%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.