Sonos Inc (SONO)
NASDAQ:SONO
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Sonos
(NASDAQ:SONO)
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Rating:57Neutral
Price Target:
$14.50
▲(11.80% Upside)
Action:ReiteratedDate:03/12/26
The score reflects a fundamentally mixed picture: steep TTM revenue decline and net losses temper otherwise solid balance-sheet leverage and strong recent free cash flow. Technicals remain notably weak (below key moving averages with negative MACD), while valuation is supportive via a low P/E. The latest earnings call improves the outlook through margin/EBITDA progress and disciplined cost actions, but sustained growth remains contingent on successful product ramps and managing tariff/memory-cost pressures.
Positive Factors
Balance Sheet Strength
Low leverage and modest absolute debt provide Sonos durable financial flexibility to fund product development, marketing, and strategic initiatives without reliance on external financing. This structural strength supports multi-quarter execution, buybacks, and resilience through industry cycles.
Negative Factors
Sharp Revenue Decline & Losses
A substantial TTM revenue decline and ongoing net losses signal persistent demand or pricing pressure that impairs long-term profitability. Without sustained top-line recovery, margins and return on invested capital may remain depressed, constraining strategic investments and equity value creation.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Low leverage and modest absolute debt provide Sonos durable financial flexibility to fund product development, marketing, and strategic initiatives without reliance on external financing. This structural strength supports multi-quarter execution, buybacks, and resilience through industry cycles.
Read all positive factors
Sonos (SONO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)5.8
Beta (1Y)1.48
Revenue Growth-4.93%
EPS Growth-59.17%
CountryUS
Employees1,708
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)0.75
Shares Outstanding120,872,660
10 Day Avg. Volume1,022,397
30 Day Avg. Volume1,332,913
Financial Highlights & Ratios
PEG Ratio-0.47
Price to Book (P/B)5.20
Price to Sales (P/S)1.28
P/FCF Ratio17.08
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit2.05
Enterprise Value/Ebitda18.90
Forecast
1Y Price Target
$18.00Price Target Upside38.78% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.11
Revenue Forecast (FY)$1.47B
Sonos Business Overview & Revenue Model
Company Description
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers...
How the Company Makes Money
Sonos primarily makes money by selling hardware audio products directly to consumers and through third-party retail and distribution partners. Revenue is largely generated from the sale of connected speakers (including portable models), home theat...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The earnings call conveyed solid operational and financial progress: meaningful margin expansion, strong adjusted EBITDA growth, cash generation, inventory reduction, and concrete product and go-to-market initiatives (Arrow 100 traction and AMP Multi). However, top-line recovery remains modest (Q1 revenue down 1%), international markets lag, and industry headwinds (tariffs, memory inflation) plus near-term operating seasonality introduce execution risk. Management communicated confidence and a clear multi-dimensional growth strategy, but the company’s return to durable top-line growth is still contingent on successful product ramps and mitigation of supply/cost pressures.Positive Updates
Q1 Revenue Above Guidance Midpoint
Q1 revenue of $546 million came in above the midpoint of guidance, with overall revenue down only 1% year-over-year but beating expectations for the quarter.
Negative Updates
Overall Revenue Still Slightly Down
Despite beating guidance midpoint, total Q1 revenue declined 1% year-over-year, indicating top-line recovery is still nascent and dependent on future product ramps.
Read all updates
Q1-2026 Updates
Positive
Negative
Q1 Revenue Above Guidance Midpoint
Q1 revenue of $546 million came in above the midpoint of guidance, with overall revenue down only 1% year-over-year but beating expectations for the quarter.
Read all positive updates
Company Guidance
Sonos guided Q2 revenue of $250–$280 million (down 4% to up 8% YoY, up 2% at the midpoint), noting Q2 does not include AMP Multi, and expects combined Q1+Q2 revenue of $796–$826 million (flat YoY at the midpoint). For Q2 it expects GAAP gross margin of 44%–46% with non‑GAAP gross margin roughly 220 bps higher (the midpoint implies a ~130 bps YoY GAAP margin improvement and gross‑profit‑dollar growth), Q2 GAAP operating expenses of $150–$160 million (down ~11% at the midpoint) with non‑GAAP OpEx about $16 million lower, and Q2 adjusted EBITDA of negative $18 million to positive $10 million — implying first‑half adjusted EBITDA of $128 million (up 42% YoY and ~470 bps of margin expansion at the midpoint); on a first‑half basis the midpoint guidance implies roughly $308 million GAAP OpEx (down ~16% YoY) and ~$276 million non‑GAAP OpEx (down ~9% YoY).Sonos Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.44B | 1.52B | 1.66B | 1.75B | 1.72B |
| Gross Profit | 642.58M | 630.53M | 689.37M | 716.49M | 796.37M | 809.99M |
| EBITDA | 69.56M | 12.29M | 25.67M | 54.10M | 107.79M | 191.40M |
| Net Income | -17.58M | -61.14M | -38.15M | -10.27M | 67.38M | 158.59M |
Balance Sheet | ||||||
| Total Assets | 947.88M | 823.28M | 916.31M | 1.00B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 363.49M | 227.53M | 221.16M | 220.23M | 274.86M | 640.10M |
| Total Debt | 59.22M | 59.62M | 64.14M | 56.11M | 36.13M | 44.68M |
| Total Liabilities | 504.55M | 468.05M | 487.69M | 483.58M | 627.88M | 569.76M |
| Stockholders Equity | 443.33M | 355.23M | 428.62M | 518.66M | 560.51M | 569.04M |
Cash Flow | ||||||
| Free Cash Flow | 122.47M | 108.19M | 134.66M | 50.12M | -74.48M | 207.69M |
| Operating Cash Flow | 144.00M | 136.87M | 189.91M | 100.41M | -28.26M | 253.23M |
| Investing Cash Flow | -24.25M | -29.52M | -105.24M | -50.29M | -172.63M | -45.53M |
| Financing Cash Flow | -91.97M | -102.34M | -137.31M | -108.59M | -150.26M | 24.97M |
Sonos Technical Analysis
Negative
12.97
Price Trends
14.53
Negative
15.95
Negative
14.96
Negative
Market Momentum
-0.36
Negative
39.16
Neutral
45.19
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 12.97 is below the 20-day moving average (MA) of 13.32, below the 50-day MA of 14.53, and below the 200-day MA of 14.96, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 39.16 is Neutral, neither overbought nor oversold. The STOCH value of 45.19 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $202.86M | 18.07 | 13.20% | ― | 6.43% | 196.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $1.57B | 5.81 | -4.45% | ― | -4.93% | -59.17% | |
55 Neutral | $53.36M | -2.56 | -12.50% | ― | 2.35% | 18.83% | |
50 Neutral | $36.54M | -17.32 | -2.85% | ― | 11.58% | 81.08% | |
48 Neutral | $187.65M | -0.67 | -17.94% | ― | 13.27% | -66.48% | |
45 Neutral | $123.43M | -2.39 | -102.47% | ― | -27.37% | 70.46% |
* Technology Sector Average
SONO
Sonos
12.97
4.97
62.13%
GPRO
GoPro
0.77
0.27
54.95%
KOSS
Koss
3.86
-0.60
-13.45%
TBCH
Turtle Beach
10.35
-1.20
-10.35%
UEIC
Universal Electronics
4.23
-0.75
-15.06%
ZEPP
Zepp Health
13.06
10.74
462.93%
Sonos Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Sonos Shareholders Approve Governance Changes and Director Slate
Positive
Mar 11, 2026
At its March 5, 2026 annual meeting, Sonos stockholders voted with high turnout, representing about 88.7% of eligible shares, to elect three Class II directors to three-year terms and to ratify KPMG LLP as the independent auditor for the fiscal ye...
Business Operations and StrategyExecutive/Board Changes
Sonos Strengthens Board to Support Platform-Driven Strategy
Positive
Jan 12, 2026
On January 12, 2026, Sonos expanded its board of directors from eight to ten members and appointed Carmine Arabia, Mandy Fields and Joe Kennedy as independent directors, with staggered terms ending at the 2026, 2027 and 2028 annual meetings of sto...
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.