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Sonos
(NASDAQ:SONO)
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Rating:54Neutral
Price Target:
$16.00
▲(8.92% Upside)
Action:Reiterated
Date:08/06/26
SONO scores below average primarily due to weakened TTM cash flow and continued net losses despite improving operating profitability and a low-leverage balance sheet. Technical indicators are moderately supportive, but valuation remains challenged by negative earnings and no dividend support. The latest earnings call adds cautious optimism on revenue/EBITDA progress, tempered by significant memory-cost pressure and near-term margin uncertainty.
Positive Factors
Low leverage / strong liquidity
Sonos' low leverage and meaningful cash/marketable securities provide durable financial flexibility for a consumer electronics company. This supports R&D, product launches, buybacks, and working-capital needs through cyclical demand, reducing refinancing and solvency risk over the medium term.
Negative Factors
Weakened cash generation
A sharp deterioration in operating cash flow and slightly negative free cash flow reduces Sonos' buffer for investments or unexpected costs. Persistently weak cash conversion can constrain product development, margin recovery initiatives, and capital returns until working-capital or profitability normalizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong liquidity
Sonos' low leverage and meaningful cash/marketable securities provide durable financial flexibility for a consumer electronics company. This supports R&D, product launches, buybacks, and working-capital needs through cyclical demand, reducing refinancing and solvency risk over the medium term.
Read all positive factors
Sonos Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Sonos is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Sonos is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySonos (SONO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth5.64%
EPS GrowthN/A
CountryUS
Employees1,404
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.31
Shares Outstanding118,293,976
10 Day Avg. Volume2,179,237
30 Day Avg. Volume2,206,921
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)5.20
Price to Sales (P/S)1.28
P/FCF Ratio17.08
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$19.50Price Target Upside32.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.39
Revenue Forecast (FY)$1.53B
Sonos Business Overview & Revenue Model
Company Description
Globally, Sonos, Inc., along with its affiliates, focuses on the creation, production, and distribution of advanced multi-room sound systems. Its portfolio encompasses wireless loudspeakers, home cinema setups, various system components, and assoc...
How the Company Makes Money
Sonos primarily makes money by selling its hardware audio products directly to consumers and through retail and e-commerce channel partners; this hardware sales revenue is the company’s main revenue stream. Its product portfolio spans categories s...
Sonos Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call presented clear operational and financial momentum: revenue growth, expanding gross profit dollars, improved adjusted EBITDA and meaningful product and platform progress (new product launches, app redesign, Amp Multi, and a sizable installed base). However, that progress is tempered by a pronounced and near-term industry-wide memory cost headwind that materially reduced margin and profitability in Q3 and is expected to deepen in Q4 and into fiscal 2027. Management emphasized mitigation plans (supply, cost, efficiency, pricing), a disciplined cost base, and confidence in longer-term margin recovery by 2028. On balance the positives (revenue acceleration, margin resilience excluding tariff timing, cash generation, buybacks, product momentum) outweigh the near-term negatives, though the memory-cost uncertainty is a significant risk to near-term margin visibility.Positive Updates
Revenue Growth
Q3 revenue of $375 million, up 9% year-over-year and near the high end of guidance.
Negative Updates
Memory Cost Headwind
Higher memory costs reduced Q3 adjusted EBITDA by approximately $14 million (about a 380 basis-point gross margin impact year-over-year); Q4 memory headwind expected to be ~$35 million (about a 1,000 basis-point impact) and fiscal 2026 full-year memory pressure expected at ~$58 million (~370 bps).
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Q3 revenue of $375 million, up 9% year-over-year and near the high end of guidance.
Read all positive updates
Company Guidance
Sonos guided Q4 revenue of $325–$355M (up 13–23% Y/Y, +18% at midpoint), noting the 14‑week period adds ~ $24M of sales (~8 points of growth) so ex‑week growth is 4–15% (10% midpoint); Q4 GAAP gross margin is guided to 39–41% (non‑GAAP ~120 bps higher) and incorporates announced tariffs (Malaysia 10%, Vietnam 12.5%), while higher memory prices are expected to be a ~$35M headwind to Q4 gross profit (≈1,000 bps impact, ~600 bps worse than Q3). Q4 GAAP operating expenses are expected to be $160–$170M (non‑GAAP ~ $20M lower; the extra week adds ≈$5M of non‑GAAP OpEx), producing adjusted EBITDA of negative $11M to +$18M (midpoint +$3M) with memory pressure reducing adjusted EBITDA by $35M (ex‑memory midpoint would imply ~$38M vs $6M last year). For fiscal 2026 the company sees revenue up 6–8% (4–6% excl the 53rd week), GAAP gross margin excluding tariff refunds of ~44.1% (up 40 bps) while absorbing ~$58M of memory costs (~370 bps), and adjusted EBITDA of $181M (+37% Y/Y, 11.7% margin)—or $239M (15.5% margin) excluding memory headwinds—with mitigation actions expected to drive roughly a 500‑bp annualized improvement into fiscal 2027 (phasing in over the year).Sonos Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
73
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.44B | 1.52B | 1.66B | 1.75B | 1.72B |
| Gross Profit | 693.21M | 630.53M | 689.37M | 716.49M | 796.37M | 809.99M |
| EBITDA | 119.36M | 12.29M | 25.67M | 54.10M | 107.79M | 191.40M |
| Net Income | -37.86M | -61.14M | -38.15M | -10.27M | 67.38M | 158.59M |
Balance Sheet | ||||||
| Total Assets | 882.12M | 823.28M | 916.31M | 1.00B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 261.03M | 227.53M | 221.16M | 220.23M | 274.86M | 640.10M |
| Total Debt | 50.19M | 59.62M | 64.14M | 56.11M | 36.13M | 44.68M |
| Total Liabilities | 478.59M | 468.05M | 487.69M | 483.58M | 627.88M | 569.76M |
| Stockholders Equity | 403.53M | 355.23M | 428.62M | 518.66M | 560.51M | 569.04M |
Cash Flow | ||||||
| Free Cash Flow | 125.15M | 108.19M | 134.66M | 50.12M | -74.48M | 207.69M |
| Operating Cash Flow | 147.09M | 136.87M | 189.91M | 100.41M | -28.26M | 253.23M |
| Investing Cash Flow | -23.31M | -29.52M | -105.24M | -50.29M | -172.63M | -45.53M |
| Financing Cash Flow | -117.01M | -102.34M | -137.31M | -108.59M | -150.26M | 24.97M |
Sonos Technical Analysis
Negative
14.69
Price Trends
14.95
Positive
14.85
Positive
15.48
Negative
Market Momentum
0.16
Positive
48.11
Neutral
25.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONO, the sentiment is Negative. The current price of 14.69 is below the 20-day moving average (MA) of 15.75, below the 50-day MA of 14.95, and below the 200-day MA of 15.48, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 25.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONO.
Sonos Risk Analysis
Sonos disclosed 40 risk factors in its most recent earnings report. Sonos reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sonos Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.53T | 35.43 | 137.18% | 0.32% | 14.24% | 32.57% | |
63 Neutral | $143.54B | -104.52 | -2.74% | 0.76% | -1.74% | -118.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $225.48M | -68.24 | -2.96% | ― | -17.54% | -118.65% | |
54 Neutral | $1.82B | -49.71 | -9.55% | ― | 5.64% | ― | |
48 Neutral | $33.13M | -29.99 | -3.62% | ― | 3.28% | -44.36% | |
45 Neutral | $56.82M | -3.82 | -10.51% | ― | -17.87% | 7.41% |
* Technology Sector Average
SONO
Sonos
15.29
1.65
12.10%
AAPL
Apple
309.90
81.43
35.64%
KOSS
Koss
3.45
-3.06
-47.00%
TBCH
Turtle Beach
12.85
-2.59
-16.77%
SONY
Sony Group
24.05
-3.14
-11.54%
UEIC
Universal Electronics
4.37
-0.53
-10.89%
Sonos Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sonos Announces Board Expansion and CFO Retirement Plans
Neutral
Jul 29, 2026
On July 28, 2026, Sonos expanded its board of directors from ten to eleven members and appointed investor Chris Shackelton as a Class II director, with his term running through the 2029 annual meeting. Shackelton, co-founder and managing partner o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.