Revenue Growth
In Q4, Sonos grew revenues by 13% year-over-year, reaching $288 million, which was near the high end of their guidance range.
Strong Performance in EMEA and Growth Markets
EMEA experienced strong double-digit growth, and growth markets more than doubled in Q4, contributing over 1/4 of the overall Q4 growth rate.
Improved Gross Margin
Q4 GAAP gross margin was 43.7%, and non-GAAP gross margin was 45.1%, both at the high end of the guidance range, with improvements of nearly 340 and 400 basis points respectively from the previous year.
Positive Adjusted EBITDA
Q4 adjusted EBITDA was positive $6 million, a $29 million improvement year-over-year due to higher revenue, better gross margin, and lower operating expenses.
Strong Share Repurchase Activity
In fiscal 2025, Sonos spent $81 million to repurchase 5.7 million shares, reducing their share count by 1.3% in Q4 alone.
Growth in Installed Base
The installed base grew by 5% to 17.1 million households, with devices per average household increasing to 3.13.