Sonos Financials
This page shows Sonos (SONO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 11 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Positive cash flow is being sustained by working-capital release and light reinvestment, not restored profitability.
Across FY2023-FY2025, cumulative free cash flow of$293M was almost entirely absorbed by$310M of buybacks, so internally generated cash was used to retire shares rather than rebuild liquidity during a loss-making stretch. That helps explain why cash and resilience both look thinner: FY2025 ended with$175M of cash and a current ratio of 1.4x despite positive cash flow.
In FY2025, free cash flow stayed positive at
Gross margin stayed between
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Sonos's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Sonos has an operating margin of -3.5%, meaning the company retains $-4 of operating profit per $100 of revenue. This below-average margin results in a low score of 25/100, suggesting thin profitability after operating expenses. This is down from -3.2% the prior year.
Sonos's revenue declined 4.9% year-over-year, from $1.5B to $1.4B. This contraction results in a growth score of 15/100.
Sonos has a moderate D/E ratio of 1.32. This balance of debt and equity financing earns a leverage score of 41/100.
Sonos's current ratio of 1.43 indicates adequate short-term liquidity, earning a score of 38/100. The company can meet its near-term obligations, though with limited headroom.
Sonos has a free cash flow margin of 7.5%, earning a moderate score of 57/100. The company generates positive cash flow after capital investments, but with room for improvement.
Sonos generates a -17.2% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 17/100. This is down from -8.9% the prior year.
Sonos scores 3.73, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($1.7B) relative to total liabilities ($468.1M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Sonos passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Sonos generates $-2.24 in operating cash flow ($136.9M OCF vs -$61.1M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Sonos earns $-108.5 in operating income for every $1 of interest expense (-$50.5M vs $465K). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
Sonos generated $1.4B in revenue in fiscal year 2025. This represents a decrease of 4.9% from the prior year.
Sonos's EBITDA was $11.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 173.6% from the prior year.
Sonos reported -$61.1M in net income in fiscal year 2025. This represents a decrease of 60.3% from the prior year.
Sonos earned $-0.51 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 64.5% from the prior year.
Cash & Balance Sheet
Sonos generated $108.2M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 19.7% from the prior year.
Sonos held $174.7M in cash against $0 in long-term debt as of fiscal year 2025.
Sonos had 120M shares outstanding in fiscal year 2025. This represents a decrease of 1.3% from the prior year.
Margins & Returns
Sonos's gross margin was 43.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.7 percentage points from the prior year.
Sonos's operating margin was -3.5% in fiscal year 2025, reflecting core business profitability. This is down 0.3 percentage points from the prior year.
Sonos's net profit margin was -4.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.7 percentage points from the prior year.
Sonos's ROE was -17.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 8.3 percentage points from the prior year.
Capital Allocation
Sonos invested $280.0M in research and development in fiscal year 2025. This represents a decrease of 8.1% from the prior year.
Sonos spent $81.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 37.2% from the prior year.
Sonos invested $28.7M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 48.1% from the prior year.
SONO Income Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $281.5M-48.4% | $545.7M+89.5% | $287.9M-16.5% | $344.8M+32.7% | $259.8M-52.8% | $550.9M+115.7% | $255.4M-35.7% | $397.1M |
| Cost of Revenue | $156.9M-46.3% | $292.2M+80.3% | $162.1M-16.9% | $195.0M+33.5% | $146.1M-52.8% | $309.5M+103.1% | $152.4M-25.9% | $205.5M |
| Gross Profit | $124.6M-50.8% | $253.5M+101.5% | $125.8M-16.0% | $149.7M+31.8% | $113.6M-52.9% | $241.4M+134.3% | $103.0M-46.2% | $191.6M |
| R&D Expenses | $64.1M+7.3% | $59.8M-3.5% | $62.0M+3.7% | $59.8M-22.8% | $77.4M-4.2% | $80.8M+14.2% | $70.8M-4.6% | $74.2M |
| SG&A Expenses | $29.7M+6.1% | $28.0M-8.1% | $30.5M+0.5% | $30.3M-8.7% | $33.2M+28.5% | $25.8M-9.1% | $28.4M-14.3% | $33.2M |
| Operating Income | -$31.6M-131.4% | $100.4M+391.8% | -$34.4M-1074.7% | -$2.9M+95.2% | -$61.2M-227.3% | $48.1M+169.3% | -$69.4M-651.0% | $12.6M |
| Interest Expense | $104K-10.3% | $116K-10.1% | $129K+10.3% | $117K+7.3% | $109K-0.9% | $110K+1.9% | $108K+1.9% | $106K |
| Income Tax | -$2.2M-127.1% | $8.3M+134.5% | $3.5M+37.4% | $2.6M-76.6% | $11.0M+270.9% | -$6.4M+30.1% | -$9.2M-202.8% | $8.9M |
| Net Income | -$28.9M-130.8% | $93.8M+347.8% | -$37.9M-1020.4% | -$3.4M+95.2% | -$70.1M-239.6% | $50.2M+194.6% | -$53.1M-1531.5% | $3.7M |
| EPS (Diluted) | $-0.24-132.0% | $0.75 | N/A | $-0.03+94.8% | $-0.58-245.0% | $0.40 | N/A | $0.03 |
SONO Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $839.5M-11.4% | $947.9M+15.1% | $823.3M-1.3% | $834.4M+5.3% | $792.2M-17.8% | $963.6M+5.2% | $916.3M-4.7% | $961.1M |
| Current Assets | $540.1M-15.6% | $640.2M+27.0% | $504.0M+0.2% | $503.1M+11.1% | $453.0M-26.0% | $612.5M+11.1% | $551.1M-8.8% | $604.5M |
| Cash & Equivalents | $200.2M-36.0% | $312.5M+78.9% | $174.7M-13.2% | $201.3M+16.2% | $173.2M-38.1% | $280.0M+64.9% | $169.7M-25.3% | $227.1M |
| Inventory | $160.8M+28.3% | $125.3M-26.7% | $171.0M+48.2% | $115.4M-16.6% | $138.4M-1.8% | $140.9M-39.1% | $231.5M+49.5% | $154.9M |
| Accounts Receivable | $95.5M-17.9% | $116.3M+76.6% | $65.8M-30.1% | $94.2M+133.0% | $40.4M-52.3% | $84.8M+90.5% | $44.5M-66.2% | $131.6M |
| Goodwill | $82.9M0.0% | $82.9M0.0% | $82.9M0.0% | $82.9M0.0% | $82.9M0.0% | $82.9M0.0% | $82.9M+2.3% | $81.0M |
| Total Liabilities | $455.1M-9.8% | $504.5M+7.8% | $468.1M+7.6% | $435.1M+6.3% | $409.3M-17.2% | $494.5M+1.4% | $487.7M-1.8% | $496.7M |
| Current Liabilities | $341.1M-12.1% | $388.2M+10.1% | $352.4M+11.7% | $315.6M+9.0% | $289.6M-22.3% | $372.5M+1.7% | $366.2M-0.2% | $366.9M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $384.4M-13.3% | $443.3M+24.8% | $355.2M-11.0% | $399.3M+4.3% | $382.9M-18.4% | $469.1M+9.5% | $428.6M-7.7% | $464.4M |
| Retained Earnings | -$47.2M-158.0% | -$18.3M+83.7% | -$112.1M-51.0% | -$74.2M-4.8% | -$70.8M-10063.7% | -$697K+98.6% | -$50.9M-2459.1% | $2.2M |
SONO Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$65.4M-140.0% | $163.3M+5490.8% | $2.9M-92.2% | $37.4M+162.8% | -$59.7M-138.2% | $156.2M+513.9% | -$37.7M-159.4% | $63.5M |
| Capital Expenditures | $4.8M-19.8% | $6.0M+13.3% | $5.3M+10.6% | $4.8M-14.4% | $5.6M-57.6% | $13.1M-16.9% | $15.8M-32.1% | $23.2M |
| Free Cash Flow | -$70.2M-144.6% | $157.3M+6832.9% | -$2.3M-107.2% | $32.7M+150.1% | -$65.2M-145.6% | $143.1M+367.4% | -$53.5M-232.9% | $40.3M |
| Investing Cash Flow | -$2.7M+32.4% | -$4.1M+24.1% | -$5.4M+23.6% | -$7.0M+10.5% | -$7.8M+16.1% | -$9.3M+45.4% | -$17.1M+35.8% | -$26.6M |
| Financing Cash Flow | -$43.3M-84.8% | -$23.4M+0.9% | -$23.6M-424.3% | -$4.5M+88.8% | -$40.4M-19.5% | -$33.8M-719.3% | -$4.1M+92.6% | -$55.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $40.1M+60.5% | $25.0M+22.7% | $20.4M | $0-100.0% | $33.4M+23.1% | $27.2M+9636.6% | $279K-99.5% | $52.5M |
SONO Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.3%-2.2pp | 46.5%+2.8pp | 43.7%+0.3pp | 43.4%-0.3pp | 43.7%-0.1pp | 43.8%+3.5pp | 40.3%-7.9pp | 48.3% |
| Operating Margin | -11.2%-29.6pp | 18.4%+30.3pp | -11.9%-11.1pp | -0.9%+22.7pp | -23.6%-32.3pp | 8.7%+35.9pp | -27.2%-30.3pp | 3.2% |
| Net Margin | -10.3%-27.4pp | 17.2%+30.3pp | -13.2%-12.2pp | -1.0%+26.0pp | -27.0%-36.1pp | 9.1%+29.9pp | -20.8%-21.7pp | 0.9% |
| Return on Equity | -7.5%-28.7pp | 21.2%+31.8pp | -10.7%-9.8pp | -0.9%+17.5pp | -18.3%-29.0pp | 10.7%+23.1pp | -12.4%-13.2pp | 0.8% |
| Return on Assets | -3.4%-13.3pp | 9.9%+14.5pp | -4.6%-4.2pp | -0.4%+8.4pp | -8.8%-14.1pp | 5.2%+11.0pp | -5.8%-6.2pp | 0.4% |
| Current Ratio | 1.58-0.1 | 1.65+0.2 | 1.43-0.2 | 1.59+0.0 | 1.56-0.1 | 1.64+0.1 | 1.51-0.1 | 1.65 |
| Debt-to-Equity | 1.18+0.0 | 1.14-0.2 | 1.32+0.2 | 1.09+0.0 | 1.07+0.0 | 1.05-0.1 | 1.14+0.1 | 1.07 |
| FCF Margin | -24.9%-53.8pp | 28.8%+29.6pp | -0.8%-10.3pp | 9.5%+34.6pp | -25.1%-51.1pp | 26.0%+46.9pp | -20.9%-31.1pp | 10.1% |
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Frequently Asked Questions
What is Sonos's annual revenue?
Sonos (SONO) reported $1.4B in total revenue for fiscal year 2025. This represents a -4.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Sonos's revenue growing?
Sonos (SONO) revenue declined by 4.9% year-over-year, from $1.5B to $1.4B in fiscal year 2025.
Is Sonos profitable?
No, Sonos (SONO) reported a net income of -$61.1M in fiscal year 2025, with a net profit margin of -4.2%.
What is Sonos's EBITDA?
Sonos (SONO) had EBITDA of $11.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Sonos's gross margin?
Sonos (SONO) had a gross margin of 43.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Sonos's operating margin?
Sonos (SONO) had an operating margin of -3.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Sonos's net profit margin?
Sonos (SONO) had a net profit margin of -4.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Sonos's return on equity (ROE)?
Sonos (SONO) has a return on equity of -17.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Sonos's free cash flow?
Sonos (SONO) generated $108.2M in free cash flow during fiscal year 2025. This represents a -19.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Sonos's operating cash flow?
Sonos (SONO) generated $136.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Sonos's total assets?
Sonos (SONO) had $823.3M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Sonos's capital expenditures?
Sonos (SONO) invested $28.7M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Sonos spend on research and development?
Sonos (SONO) invested $280.0M in research and development during fiscal year 2025.
What is Sonos's current ratio?
Sonos (SONO) had a current ratio of 1.43 as of fiscal year 2025, which is considered adequate.
What is Sonos's debt-to-equity ratio?
Sonos (SONO) had a debt-to-equity ratio of 1.32 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Sonos's return on assets (ROA)?
Sonos (SONO) had a return on assets of -7.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Sonos's Altman Z-Score?
Sonos (SONO) has an Altman Z-Score of 3.73, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Sonos's Piotroski F-Score?
Sonos (SONO) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Sonos's earnings high quality?
Sonos (SONO) has an earnings quality ratio of -2.24x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Sonos cover its interest payments?
Sonos (SONO) has an interest coverage ratio of -108.5x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Sonos?
Sonos (SONO) scores 32 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.