The earnings call highlighted positive aspects such as revenue growth, improved EBITDA, and effective cost management, as well as strategic moves to mitigate tariff impacts. However, significant challenges remain, including expected revenue decline in Q3, rising tariff expenses, and negative free cash flow. Overall, there is a balanced view of achievements and challenges.

Company Guidance

During the Sonos Second Quarter Fiscal 2025 Conference Call, the company provided guidance reflecting a strong performance and strategic adjustments. Revenue for Q2 was $260 million, showing a 3% year-over-year increase, primarily driven by the success of the Arc Ultra and a pricing strategy for the Era 100. Adjusted EBITDA improved by $33 million compared to the previous year. The company reported a GAAP gross margin of 43.7% and a non-GAAP gross margin of 47.1%. Operating expenses decreased significantly, with non-GAAP operating expenses down 14% year-over-year. Sonos also highlighted its effective cost optimization and restructuring efforts, resulting in reduced operating expenses and improved margins. Looking ahead, Sonos anticipates Q3 revenue in the range of $310 million to $340 million, with a GAAP gross margin of 43% to 45% and non-GAAP gross margin of 45.2% to 47%. The company is actively managing its exposure to tariffs by relocating the majority of its US-bound production to Vietnam and Malaysia and is evaluating pricing and promotional strategies to optimize gross profit dollars. Additionally, Sonos increased its annualized run rate savings target for both GAAP and non-GAAP operating expenses, projecting significant reductions from fiscal 2024 levels.

Revenue Growth

Sonos achieved a 3% year-over-year increase in revenue, reaching $260 million, driven by home theater strength and successful targeted promotions.

Adjusted EBITDA Improvement

Adjusted EBITDA improved by $33 million compared to the previous year, driven by strong gross margin and disciplined execution on restructuring.

Non-GAAP Operating Expenses Reduction

Non-GAAP operating expenses decreased by 14% year-over-year, reflecting cost optimization efforts and restructuring.

Patent Power Recognition

Sonos was ranked fourth in patent power for consumer electronics by IEEE Spectrum, highlighting its innovation capabilities.

Tariff Mitigation Strategies

Sonos moved the majority of its US-bound production out of China, reducing exposure to tariffs. They are also accelerating production in Vietnam and Malaysia.

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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

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SONO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2025	2025 (Q3)	-0.25 / -	0.03	―	―	―
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	―
May 10, 2023	2023 (Q2)	-0.24 / -0.24	0.06	-500.00% (-0.30)

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

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SONO Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 07, 2025	$8.97	―	―
Feb 06, 2025	$14.26	$15.00	+5.19%
Nov 13, 2024	$14.08	$13.75	-2.34%
Aug 07, 2024	$11.97	$11.78	-1.59%

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.

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