Want to see SONO full AI Analyst Report?
Top Page
Sonos
(NASDAQ:SONO)
Select Model
Select Model
Rating:62Neutral
Price Target:
$14.50
▲(0.90% Upside)
Action:Reiterated
Date:05/09/26
SONO scores in the low 60s primarily due to steady balance sheet strength and healthy TTM cash generation alongside a return to profitability, but tempered by a still-inconsistent multi-year earnings/revenue trajectory. Technicals are modestly supportive (near-term uptrend, longer-term trend still mixed). Guidance points to continued growth and improving EBITDA, yet near-term gross margin headwinds from memory-cost inflation and higher inventory levels meaningfully cap the score, while valuation lacks clear support due to a negative P/E and no dividend yield provided.
Positive Factors
Strong cash generation
Consistent positive TTM operating and free cash flow provides durable internal funding for product development, buybacks, and working-capital needs. Over 2–6 months this supports execution of launches and flexibility to manage seasonal cash swings without needing structural financing changes.
Negative Factors
Memory cost inflation
Rising memory inflation is a structural input-cost headwind that compresses gross margins absent price or design offsets. If inflation persists into Q4, it will reduce durable gross-profit dollars and constrain operating-margin recovery over the next several quarters unless mitigated by sourcing or price changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent positive TTM operating and free cash flow provides durable internal funding for product development, buybacks, and working-capital needs. Over 2–6 months this supports execution of launches and flexibility to manage seasonal cash swings without needing structural financing changes.
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
$1.68B
Dividend YieldN/A
Average Volume (3M)1.98M
Price to Earnings (P/E)70.9
Beta (1Y)1.60
Revenue Growth-0.22%
EPS GrowthN/A
CountryUS
Employees1,708
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)0.20
Shares Outstanding119,128,670
10 Day Avg. Volume2,224,295
30 Day Avg. Volume1,975,845
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 Cap0.93
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit2.39
Enterprise Value/Ebitda16.56
Forecast
1Y Price Target
$19.50Price Target Upside35.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.32
Revenue Forecast (FY)$1.50B
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:May 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call shows clear operational and commercial momentum: revenue growth, improving gross profit dollars, a return to positive adjusted EBITDA, strong regional performance (notably APAC and EMEA), successful new product launches with strong early reviews, and active capital allocation via buybacks. Key near-term headwinds are material: higher memory costs are expected to pressure gross margins through Q3 and into Q4, inventory has risen, free cash flow was negative for the quarter (seasonal), and tariff refund timing is uncertain. Management has a mitigation plan (supply actions, design optimizations, potential tariff refunds) and remains confident in growth execution, but margin pressure from memory inflation is the principal risk that tempers the outlook.Positive Updates
Revenue Growth and Return to Top-Line Expansion
Q2 revenue of $282 million, up ~8% year over year and near the top end of guidance; first half revenue up 2% year over year. Q3 revenue guidance of $355M–$375M (midpoint +6% YoY) indicates sequential acceleration.
Negative Updates
Memory Cost Inflation Pressuring Margins
Higher memory costs were ~200 basis points headwind to gross margin in Q2 and are expected to be ~400 basis points YoY headwind in Q3; management expects memory inflation to rise into Q4, pressuring full-year gross margin versus 2025.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Return to Top-Line Expansion
Q2 revenue of $282 million, up ~8% year over year and near the top end of guidance; first half revenue up 2% year over year. Q3 revenue guidance of $355M–$375M (midpoint +6% YoY) indicates sequential acceleration.
Read all positive updates
Company Guidance
For Q3 Sonos guided revenue of $355–$375 million (up 3%–9% YoY, +6% at the midpoint) with negligible FX impact and no AMP Multi contribution, GAAP gross margin of 42.0%–44.5% (non‑GAAP about 150 bps higher) embedding an approximate 400‑bp year‑over‑year headwind from higher memory costs and no tariff‑refund benefit in Q3 (roughly 200 bps more headwind than Q2); GAAP operating expenses are expected to be $150–$160 million (non‑GAAP OPEX roughly $18 million lower than GAAP and about flat to Q2 at the midpoint); adjusted EBITDA is guided to $20–$48 million (5.6%–12.7% margin). Management said memory inflation is likely to rise into Q4, which should make 2026 GAAP and non‑GAAP gross margins somewhat below 2025 levels (2025: GAAP 43.5%, non‑GAAP 44.9%), while expecting continued momentum and a stronger second half.Sonos Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.46B | 1.44B | 1.52B | 1.66B | 1.75B | 1.72B |
| Gross Profit | 653.62M | 630.53M | 689.37M | 716.49M | 796.37M | 809.99M |
| EBITDA | 94.27M | 12.29M | 25.67M | 54.10M | 107.79M | 191.40M |
| Net Income | 23.68M | -61.14M | -38.15M | -10.27M | 67.38M | 158.59M |
Balance Sheet | ||||||
| Total Assets | 839.48M | 823.28M | 916.31M | 1.00B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 249.05M | 227.53M | 221.16M | 220.23M | 274.86M | 640.10M |
| Total Debt | 58.68M | 59.62M | 64.14M | 56.11M | 36.13M | 44.68M |
| Total Liabilities | 455.12M | 468.05M | 487.69M | 483.58M | 627.88M | 569.76M |
| Stockholders Equity | 384.36M | 355.23M | 428.62M | 518.66M | 560.51M | 569.04M |
Cash Flow | ||||||
| Free Cash Flow | 117.55M | 108.19M | 134.66M | 50.12M | -74.48M | 207.69M |
| Operating Cash Flow | 138.30M | 136.87M | 189.91M | 100.41M | -28.26M | 253.23M |
| Investing Cash Flow | -19.17M | -29.52M | -105.24M | -50.29M | -172.63M | -45.53M |
| Financing Cash Flow | -94.84M | -102.34M | -137.31M | -108.59M | -150.26M | 24.97M |
Sonos Technical Analysis
Neutral
14.37
Price Trends
14.78
Negative
14.46
Positive
15.67
Negative
Market Momentum
-0.26
Negative
52.53
Neutral
85.34
Negative
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 14.37 is above the 20-day moving average (MA) of 14.18, below the 50-day MA of 14.78, and below the 200-day MA of 15.67, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 85.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $1.68B | 70.85 | 5.99% | ― | -0.22% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $257.02M | 296.67 | 1.02% | ― | -21.70% | -93.37% | |
51 Neutral | $58.98M | -3.10 | -13.45% | ― | -10.20% | 9.43% | |
48 Neutral | $36.64M | -33.42 | -3.62% | ― | 3.28% | -44.36% | |
43 Neutral | $78.98M | -0.16 | -18.46% | ― | 50.67% | 49.50% | |
40 Underperform | $133.48M | -0.97 | -201.66% | ― | -21.02% | 12.80% |
* Technology Sector Average
SONO
Sonos
14.50
3.97
37.70%
GPRO
GoPro
0.76
-0.03
-3.54%
KOSS
Koss
3.95
-1.30
-24.76%
TBCH
Turtle Beach
12.84
-0.98
-7.09%
UEIC
Universal Electronics
4.66
-2.11
-31.17%
ZEPP
Zepp Health
5.34
-4.98
-48.26%
Sonos Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Sonos Appoints New COO Amid Strengthening Financial Performance
Positive
May 4, 2026
Sonos announced that it appointed former Walmart executive Frank Barbieri as Chief Operating Officer and principal operating officer on April 15, 2026, with the role effective May 4, 2026, alongside a compensation package combining salary, bonus e...
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.