Sonos (SONO) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• 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: 120,880,280
• 10 Day Avg. Volume: 1,529,425
• 30 Day Avg. Volume: 1,556,301
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 1.16
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: -1.06K
• 1Y Price Target: $19.00
• Price Target Upside: 16.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $17.00 ▲(4.36% Upside)

Sonos's strong revenue growth and strategic initiatives are positive, but profitability challenges and valuation concerns weigh on the score. The technical analysis shows moderate bullish momentum, while the earnings call provides a mixed outlook with both strengths and risks.

Positive Factors

Operational Efficiency

Sonos' ability to reduce operating expenses by 15% year-over-year indicates strong operational efficiency, which can enhance profitability and financial health over the long term.

Brand Strength

Being the top home theater brand in the U.S. underscores Sonos' strong brand equity and competitive advantage, supporting sustained market leadership and customer loyalty.

Free Cash Flow Improvement

The improvement in free cash flow from negative to positive indicates better cash management, enhancing Sonos' ability to invest in growth opportunities and maintain financial stability.

Negative Factors

Revenue Decline

A 13% year-over-year revenue decline highlights ongoing challenges in maintaining growth, which could affect long-term financial performance and market position.

Tariff Challenges

Tariff-related costs and necessary price adjustments can pressure margins and affect competitiveness, posing a risk to profitability and pricing strategy.

Cyclical Market Challenges

Cyclical challenges in the market, including weak housing data, may hinder growth prospects, impacting Sonos' ability to expand its market share and revenue base.

Sonos Business Overview & Revenue Model

Company Description

Sonos, Inc. is a global leader in smart audio products and home sound systems, headquartered in Santa Barbara, California. Founded in 2002, Sonos designs and manufactures a range of wireless speakers, soundbars, and home theater systems that deliver high-quality sound and seamless integration with various streaming services. The company operates primarily in the consumer electronics sector and is known for its commitment to innovation in multi-room audio and smart home technology, enhancing the listening experience through advanced connectivity and user-friendly interfaces.

How the Company Makes Money

Sonos generates revenue primarily through the sale of its hardware products, including wireless speakers, soundbars, and accessories. A significant portion of its earnings comes from direct sales to consumers via its online platform and retail partnerships with major electronics retailers. Additionally, Sonos has established partnerships with various music streaming services, which enhance the functionality of its devices and drive customer engagement. The company also benefits from software and service offerings, such as premium features and subscription services that may be bundled with its products. Seasonal promotions and new product launches further contribute to revenue fluctuations, making product innovation and customer loyalty critical to its financial success.

Sonos Financial Statement Overview

Summary

Sonos shows strong revenue growth but struggles with profitability due to negative margins. The balance sheet is stable with low leverage, but negative ROE is concerning. Cash flow is solid, yet recent declines in free cash flow growth suggest potential cash management issues.

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 2019	Dec 2018
Income Statement
Total Revenue	1.44B	1.44B	1.52B	1.66B	1.26B	1.14B
Gross Profit	630.53M	630.53M	689.37M	716.49M	527.34M	489.31M
EBITDA	-1.58M	-50.47M	25.67M	54.10M	37.84M	30.05M
Net Income	-61.14M	-61.14M	-38.15M	-10.27M	-4.77M	-15.60M
Balance Sheet
Total Assets	823.28M	823.28M	916.31M	1.00B	761.61M	587.50M
Cash, Cash Equivalents and Short-Term Investments	227.53M	227.53M	221.16M	220.23M	338.64M	220.93M
Total Debt	53.29M	53.29M	64.14M	56.11M	33.17M	39.76M
Total Liabilities	468.05M	468.05M	487.69M	483.58M	480.68M	379.14M
Stockholders Equity	355.23M	355.23M	428.62M	518.66M	280.93M	208.36M
Cash Flow
Free Cash Flow	108.19M	108.19M	134.66M	50.12M	97.41M	-5.18M
Operating Cash Flow	136.87M	136.87M	189.91M	100.41M	120.64M	30.57M
Investing Cash Flow	-29.52M	-29.52M	-105.24M	-50.29M	-23.22M	-35.75M
Financing Cash Flow	-102.34M	-102.34M	-137.31M	-108.59M	21.90M	94.37M

Sonos Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 16.29 is below the 20-day moving average (MA) of 16.76, above the 50-day MA of 16.08, and above the 200-day MA of 12.42, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 26.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SONO.

Sonos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	71 Outperform	$314.33M	15.95	17.97%	―	24.09%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	56 Neutral	$2.01B	―	-15.60%	―	-4.93%	-59.17%
ZEPP	50 Neutral	$532.62M	-7.68	-24.39%	―	13.27%	-66.48%
UEIC	47 Neutral	$46.95M	―	-10.48%	―	4.00%	62.67%
KOSS	44 Neutral	$43.59M	-198.71	-0.69%	―	11.58%	81.08%
GPRO	41 Neutral	$284.65M	―	-76.81%	―	-19.83%	73.22%

Sonos Corporate Events

Sonos Inc. Earnings Call: Mixed Sentiment Amid Growth

The latest earnings call from Sonos Inc. conveyed a mixed sentiment, highlighting both achievements and challenges. While the company reported strong revenue growth in Q4, particularly in EMEA and growth markets, and improved gross margins, it also faced a full-year revenue decline and significant tariff impacts expected on margins. Despite these challenges, Sonos remains optimistic about future growth, focusing on a cohesive system and expanding market share.

Sonos Inc. Reports Strong Q4 and Fiscal 2025 Results

Sonos Inc., a leader in the audio industry, is renowned for its innovative multi-room wireless audio systems, offering a seamless platform that integrates music, movies, and other audio content. The company recently reported its financial results for the fourth quarter and fiscal year 2025, highlighting a strong finish to a transformative year. Sonos achieved a 13% year-over-year revenue growth in Q4, reaching $287.9 million, and reported an adjusted EBITDA of $6.4 million, surpassing the midpoint of their guidance range.

Sonos Inc Navigates Earnings Amid Market Challenges

Sonos Inc’s recent earnings call paints a picture of a company adeptly managing operational efficiencies and cost reductions amidst external challenges. While Sonos continues to demonstrate brand strength and leadership in the wireless home audio market, it faces hurdles from tariff impacts and a cyclical downturn in market demand. The sentiment is cautiously optimistic, buoyed by strategic software enhancements, yet tempered by revenue declines and broader market challenges.

Sonos Inc. Exceeds Revenue Expectations in Q3 2025

Sonos Inc., headquartered in Santa Barbara, California, is a leading brand in the sound experience sector, known for its innovation in multi-room wireless home audio systems that offer users access to a wide range of audio content with ease of control and high-quality sound.