Sonos (SONO) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: -4.93%
• EPS Growth: -59.17%
• Country: US
• Employees: 1,708
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.31
• Shares Outstanding: 120,872,660
• 10 Day Avg. Volume: 1,263,627
• 30 Day Avg. Volume: 1,138,483
• PEG Ratio: -0.47
• Price to Book (P/B): 5.20
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 17.08
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.12
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: 108.35
• 1Y Price Target: $19.67
• Price Target Upside: 37.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $1.47B

• Rating: 51 Neutral
• Price Target: $14.50 ▲(1.05% Upside)

The score is weighed down primarily by weak profitability (negative margins/ROE) and bearish technical signals (below key moving averages with negative MACD). These are partially offset by solid operating cash generation, improved quarterly execution and guidance versus expectations, and a stable balance sheet with low leverage.

Positive Factors

Installed base expansion

Growing installed base and higher devices-per-household deepen ecosystem engagement, increasing replacement and upgrade cycles and supporting long-term hardware and service revenue. This network of 17.1M households enhances customer retention and cross-sell durability.

Operating cash generation

Consistent operating cash generation provides durable financial flexibility to fund R&D, marketing and strategic initiatives without reliance on external financing. Strong cash flow supports capital allocation options like buybacks and cushions cyclical hardware demand swings.

Board strengthening for platform strategy

Adding directors experienced in global hardware operations and platform scaling improves governance and strategic execution. This bolsters Sonos's shift toward a Sonos System platform, aiding long-term product integration, partnerships and execution of growth priorities.

Negative Factors

Negative profitability and ROE

Persistent negative margins and ROE indicate Sonos struggles to convert revenue into shareholder returns. Over months this limits reinvestment capacity, reduces resilience to competitive pressure, and raises the bar to achieve sustainable profitability at scale.

Declining free cash flow growth

Negative free cash flow growth constrains long-term investment in products, marketing and platform development. If the trend persists, it can force trade-offs between growth initiatives and capital returns, weakening execution of strategic priorities over the medium term.

Tariff-driven margin pressure

Sustained tariff exposure materially reduces gross margin and pricing flexibility, pressuring profit sustainability. Overcoming this requires costly supply-chain changes or higher prices, which can impair competitiveness and long-run margin recovery if trade barriers persist.

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, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.

How the Company Makes Money

Sonos generates revenue through the sale of its audio hardware products, which include smart speakers, soundbars, and accessories. A significant portion of its earnings comes from direct-to-consumer sales via its website and retail partners. Additionally, Sonos offers subscription-based services that enhance its product functionality, though hardware sales remain the primary revenue driver. The company has also formed strategic partnerships with various streaming services, which not only broaden its ecosystem but also promote its devices as preferred options for users of those services. These partnerships help to increase brand visibility and consumer adoption, contributing positively to its overall revenue growth.

Sonos Financial Statement Overview

Summary

Mixed fundamentals: strong recent revenue growth and solid operating cash generation, but profitability remains weak with negative margins and negative ROE. Balance sheet leverage appears conservative, helping stability, yet declining free-cash-flow growth is a concern.

Income Statement

Sonos has shown a mixed performance in its income statement. The company experienced a significant revenue growth of 24.92% in the latest period, indicating strong sales momentum. However, profitability remains a concern with negative net profit margins and EBIT margins, reflecting ongoing operational challenges. The gross profit margin is relatively stable, but the negative EBITDA margin highlights inefficiencies in cost management.

Balance Sheet

The balance sheet of Sonos reveals moderate financial stability. The debt-to-equity ratio is low, suggesting conservative leverage and a manageable debt load. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is reasonable, showing a solid capital structure, but the negative ROE is a concern for long-term profitability.

Cash Flow

Sonos's cash flow statement shows some positive aspects. The operating cash flow is strong relative to net income, indicating good cash generation from operations. However, the free cash flow growth has been negative in the latest period, which could impact future investments. The free cash flow to net income ratio is not available, but the overall cash flow position suggests a need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.44B	1.44B	1.52B	1.66B	1.75B	1.72B
Gross Profit	630.53M	630.53M	689.37M	716.49M	796.37M	809.99M
EBITDA	14.89M	12.29M	25.67M	54.10M	107.79M	191.40M
Net Income	-61.14M	-61.14M	-38.15M	-10.27M	67.38M	158.59M
Balance Sheet
Total Assets	823.28M	823.28M	916.31M	1.00B	1.19B	1.14B
Cash, Cash Equivalents and Short-Term Investments	227.53M	227.53M	221.16M	220.23M	274.86M	640.10M
Total Debt	53.29M	53.29M	64.14M	56.11M	36.13M	44.68M
Total Liabilities	468.05M	468.05M	487.69M	483.58M	627.88M	569.76M
Stockholders Equity	355.23M	355.23M	428.62M	518.66M	560.51M	569.04M
Cash Flow
Free Cash Flow	108.19M	108.19M	134.66M	50.12M	-74.48M	207.69M
Operating Cash Flow	136.87M	136.87M	189.91M	100.41M	-28.26M	253.23M
Investing Cash Flow	-29.52M	-29.52M	-105.24M	-50.29M	-172.63M	-45.53M
Financing Cash Flow	-102.34M	-102.34M	-137.31M	-108.59M	-150.26M	24.97M

Sonos Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 14.35 is below the 20-day moving average (MA) of 15.94, below the 50-day MA of 17.24, and above the 200-day MA of 13.85, indicating a neutral trend. The MACD of -0.84 indicates Positive momentum. The RSI at 24.08 is Positive, neither overbought nor oversold. The STOCH value of 8.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONO.

Sonos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	64 Neutral	$230.96M	13.86	17.19%	―	6.43%	196.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	51 Neutral	$1.73B	-27.38	-15.60%	―	-4.93%	-59.17%
UEIC	48 Neutral	$52.80M	-2.36	-14.35%	―	2.35%	18.83%
ZEPP	48 Neutral	$258.91M	-4.38	-24.39%	―	13.27%	-66.48%
GPRO	47 Neutral	$188.35M	-1.49	-91.95%	―	-27.37%	70.46%
KOSS	46 Neutral	$40.95M	-46.66	-0.69%	―	11.58%	81.08%

Sonos Corporate Events

Sonos Strengthens Board to Support Platform-Driven Strategy

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 stockholders respectively, and standard non-employee director compensation and indemnification agreements. The new appointments bring deep experience in global hardware operations, consumer brand-focused financial leadership, and scaling category-defining consumer technology platforms, bolstering governance as Sonos sharpens a platform-driven strategy centered on the Sonos System, aims to deepen engagement across more than 17 million households and 53 million connected devices, and executes its growth priorities in fiscal 2026 and beyond.

The most recent analyst rating on (SONO) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Sonos stock, see the SONO Stock Forecast page.