Sonos (SONO) AI Stock Analysis

• Market Cap: $1.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.83M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -5.24%
• EPS Growth: -67.92%
• Country: US
• Employees: 1,708
• Sector: Technology
• Sector Strength: 94
• Industry: Consumer Electronics
• EPS (TTM): -0.03
• Shares Outstanding: 120,880,280
• 10 Day Avg. Volume: 2,389,385
• 30 Day Avg. Volume: 1,826,454
• PEG Ratio: -0.14
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 11.12
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 1.69
• Enterprise Value/Ebitda: -436.13
• 1Y Price Target: $13.77
• Price Target Upside: 25.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 62 Neutral
• Price Target: $11.50 ▲(4.83% Upside)

Sonos' overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. However, strong cash flow management and recent operational efficiencies provide some resilience. The technical analysis suggests moderate short-term bullish momentum, while the earnings call and corporate events highlight strategic initiatives and leadership changes that could support future growth.

Positive Factors

Gross Margins

Sonos is outperforming gross margins through thoughtful inventory management and mix, achieving impressive gross margin outperformance this quarter.

Market Share

Sonos is gaining market share, most notably within the home theater market, driven by the strength in Arc Ultra.

Negative Factors

Total Addressable Market

Topline concerns persist with a declining total addressable market and pricing pressure from competitors.

Sonos Business Overview & Revenue Model

Company Description

Sonos, Inc. is a leading consumer electronics company that specializes in designing and manufacturing smart speakers and audio components for home entertainment systems. The company is known for its innovative wireless audio technology that allows users to stream music and other audio content seamlessly in high-quality sound throughout their homes. Sonos operates in the consumer electronics sector, focusing on delivering premium sound experiences through its range of products, including speakers, soundbars, and home theater systems.

How the Company Makes Money

Sonos generates revenue primarily through the sale of its audio products, which include wireless speakers, soundbars, and home theater systems. The company markets its products directly to consumers via its online platform and through various retail partners, including electronic stores, department stores, and specialty retailers. Sonos also partners with streaming service providers to integrate their platforms into its devices, enhancing the overall user experience and encouraging product adoption. Additionally, the company leverages its brand reputation for high-quality sound and design to maintain premium pricing on its products, contributing significantly to its earnings. Sonos continually invests in research and development to innovate and expand its product offerings, which helps drive sales and supports its revenue growth.

Sonos Financial Statement Overview

Summary

Sonos faces challenges with declining revenue and profitability, reflected in negative net income and EBIT margins. The balance sheet remains stable with moderate leverage, but negative ROE highlights inefficiencies. Strong operating cash flow and positive free cash flow demonstrate resilience in cash management, which is crucial for navigating current financial pressures.

Income Statement

Sonos has experienced declining revenue over the past few years with TTM revenue of $1.46 billion, down from $1.75 billion in 2022. The gross profit margin has decreased slightly, indicating some pressure on cost efficiency. The company has been operating at a net loss recently, with TTM net income at -$69.29 million, compared to a profit in 2021. EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

Sonos maintains a moderate debt-to-equity ratio with TTM total debt at $63.03 million and stockholders' equity of $382.86 million. The equity ratio is relatively stable at 48.34%, suggesting a solid equity base. However, the return on equity is negative due to net losses, indicating ineffective use of equity capital.

Cash Flow

Despite net losses, Sonos generated positive operating cash flow of $122.26 million TTM. Free cash flow has decreased but remains positive at $64.61 million. The free cash flow to net income ratio is favorable, indicating effective cash management despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.52B	1.66B	1.75B	1.72B	1.33B
Gross Profit	649.67M	689.37M	716.49M	796.37M	809.99M	571.96M
EBITDA	-2.52M	25.67M	54.10M	107.79M	191.40M	17.83M
Net Income	-69.29M	-38.15M	-10.27M	67.38M	158.59M	-20.11M
Balance Sheet
Total Assets	792.18M	916.31M	1.00B	1.19B	1.14B	816.05M
Cash, Cash Equivalents and Short-Term Investments	223.51M	221.16M	220.23M	274.86M	640.10M	407.10M
Total Debt	63.03M	64.14M	56.11M	36.13M	44.68M	86.19M
Total Liabilities	409.32M	487.69M	483.58M	627.88M	569.76M	518.21M
Stockholders Equity	382.86M	428.62M	518.66M	560.51M	569.04M	297.84M
Cash Flow
Free Cash Flow	64.61M	134.66M	50.12M	-74.48M	207.69M	128.95M
Operating Cash Flow	122.26M	189.91M	100.41M	-28.26M	253.23M	161.99M
Investing Cash Flow	-60.86M	-105.24M	-50.29M	-172.63M	-45.53M	-69.32M
Financing Cash Flow	-133.92M	-137.31M	-108.59M	-150.26M	24.97M	-27.09M

Sonos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONO, the sentiment is Positive. The current price of 10.97 is above the 20-day moving average (MA) of 10.88, above the 50-day MA of 10.62, and below the 200-day MA of 11.96, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONO.

Sonos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	68 Neutral	$291.12M	19.87	12.49%	―	44.41%	―
SONO	62 Neutral	$1.33B	―	-17.69%	―	-5.24%	-67.92%
ZEPP	59 Neutral	$345.70M	―	-28.36%	―	-18.94%	-197.82%
GPRO	54 Neutral	$209.85M	―	-83.57%	―	-20.88%	62.21%
Sector *	50 Neutral	C$3.26B	5.36	-49.37%	9.08%	2.10%	-13.02%
UEIC	49 Neutral	$83.23M	―	-13.55%	―	-2.15%	52.80%
KOSS	44 Neutral	$53.72M	―	-2.44%	―	-0.34%	32.41%

Sonos Corporate Events

Sonos Appoints Tom Conrad as CEO and President

On July 22, 2025, Sonos appointed Tom Conrad as Chief Executive Officer and President, following his interim CEO role since January 2025. Under his leadership, Sonos has made significant progress, including enhancing software and product experiences, and launching new innovations. His appointment is expected to lead Sonos into a new phase of growth, focusing on customer satisfaction, innovation, and leveraging technology to create more immersive and intelligent experiences.

The most recent analyst rating on (SONO) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Sonos stock, see the SONO Stock Forecast page.