Sonos (NASDAQ: SONO) Q2 2026 revenue rises as first half swings to profit
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sonos, Inc. reported fiscal Q2 2026 results showing a clear improvement in growth and profitability trends. Revenue rose 8% year-over-year to $281.5 million, driven mainly by Sonos speakers and system products, while GAAP net loss narrowed to $28.9 million with diluted EPS of ($0.24).
First-half fiscal 2026 revenue reached $827.2 million, up 2% year-over-year, with GAAP net income of $64.9 million reversing a prior-year loss. Non-GAAP net income was $112.6 million, and Adjusted EBITDA increased to $133.9 million, reflecting higher gross profit and lower operating expenses.
GAAP gross margin improved to 44.3% in Q2, with non-GAAP gross margin at 46.0%. Sonos returned capital to shareholders, repurchasing $40 million of stock in Q2 and $65 million in the first half. The company also appointed Frank Barbieri as Chief Operating Officer with a compensation package combining salary, bonus opportunity and equity awards, while Chief Legal Officer Eddie Lazarus relinquishes the Business Development Officer role but remains a key strategic leader.
Positive
- Return to profitability in first half 2026: Revenue grew 2% year-over-year to $827.2 million while GAAP net income swung from a prior-year loss to $64.9 million, and Adjusted EBITDA increased by $44 million to $133.9 million, signaling a meaningful improvement in underlying performance.
- Capital returns alongside margin expansion: Sonos improved GAAP gross margin to 45.7% for the first half and generated $87.2 million in free cash flow, while repurchasing $65 million of stock (4.0 million shares), combining stronger operations with direct shareholder returns.
Negative
- None.
Insights
Sonos shows early turnaround signs with revenue growth, margin gains and share buybacks.
Sonos delivered Q2 2026 revenue of $281.5M, up 8% year-over-year, with its first positive Q2 Adjusted EBITDA in four years at $1.7M. Product demand grew across speakers and system products, while non-GAAP gross margin reached 46.0%, indicating healthier unit economics.
For the first half, revenue of $827.2M and GAAP net income of $64.9M contrast with a prior-year loss, and Adjusted EBITDA rose to $133.9M, up $44M year-over-year. Operating expenses declined meaningfully, helped by lower R&D and sales and marketing spend, while non-GAAP operating income more than doubled.
The company also returned $65M to shareholders via repurchases of 4.0 million shares over six months, while cash and cash equivalents increased to $200.2M as of March 28, 2026. Leadership changes, including appointing a new COO with performance-based equity, underscore management’s focus on execution and long-term growth, with future details to be discussed on the May 4, 2026 earnings call.
8-K Event Classification
3 items: 2.02, 5.02, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 revenue: $281.5 million
Q2 2026 GAAP net loss: $28.9 million
First-half 2026 revenue: $827.2 million
+5 more
8 metrics
Q2 2026 revenue
$281.5 million
Three months ended March 28, 2026; up 8% year-over-year
Q2 2026 GAAP net loss
$28.9 million
Net loss with diluted EPS of ($0.24)
First-half 2026 revenue
$827.2 million
Six months ended March 28, 2026; up 2% year-over-year
First-half 2026 GAAP net income
$64.9 million
Versus GAAP net loss of $19.9 million in prior-year period
First-half 2026 Adjusted EBITDA
$133.9 million
Up $44 million year-over-year; Adjusted EBITDA margin 16.2%
Q2 2026 Adjusted EBITDA
$1.7 million
First positive Q2 Adjusted EBITDA in four years
Share repurchases first half 2026
$65 million
Repurchase of 4.0 million shares, including $40 million in Q2
Cash and cash equivalents
$200.2 million
Balance as of March 28, 2026 on the condensed consolidated balance sheet
Key Terms
Adjusted EBITDA, non-GAAP gross margin, free cash flow, stock-based compensation, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA increased $3 million year-over-year to $2 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP gross margin financial
"GAAP gross margin of 44.3%, Non-GAAP gross margin of 46.0%"
Non-GAAP gross margin is a measure of a company's profitability that shows how much money it makes from sales after subtracting the direct costs of producing its products or services, but without applying certain accounting adjustments required by standard rules. It helps investors understand the company's core earning ability by excluding items like one-time expenses or accounting changes. This metric provides a clearer picture of ongoing business performance beyond official financial reports.
free cash flow financial
"Free cash flow | $ (70,150) | $ (65,222) | $ 87,199 | $ 77,845"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
stock-based compensation financial
"Stock-based compensation expense | 14,864 | 20,102 | 30,056 | 45,436"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
restructuring and other charges financial
"Restructuring and other charges for the three and six months ended March 28, 2026"
Restructuring and other charges are one-time costs a company records when it reorganizes operations or deals with special situations—examples include layoffs, closing facilities, cancelling contracts, or writing down assets. For investors these items matter because they can sharply lower reported earnings or cash in the short term while aiming to reduce costs or fix problems long-term; think of it as paying to renovate a shop now so it runs cheaper and cleaner later, and you should check whether the savings actually materialize.
non-GAAP net (loss) income financial
"Non-GAAP net (loss) income | $ (2,886) | $ (21,920) | $ 112,620 | $ 63,346"
Earnings Snapshot
Revenue: $281.5 million
Q2 2026
Revenue
$281.5 million
+8% year-over-year
GAAP net loss
$28.9 million
improved by $41 million year-over-year
GAAP diluted EPS
($0.24)
improved by $0.34 year-over-year
Adjusted EBITDA
$1.7 million
+$3 million year-over-year
First-half GAAP net income
$64.9 million
improved by $85 million year-over-year
First-half Adjusted EBITDA
$133.9 million
+$44 million year-over-year
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(805 ) 965-3001
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On May 4, 2026, Sonos, Inc. (the “Company”) issued a press release announcing its financial results for its second fiscal quarter ended March 28, 2026. A copy of the press release is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in this Item 2.02 and in Exhibit 99.1 to this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, regardless of any general incorporation language in such filing.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On April 15, 2026, the Company appointed Frank Barbieri as Chief Operating Officer (“COO”) and principal operating officer, effective as of May 4, 2026.
Between April 2019 to April 2026, Mr. Barbieri, age 58, held various roles at Walmart Inc., most recently as its Vice President of Content & Digital, leading the company's omni-channel consumer content, media, and gaming operations across both stores and e-commerce, as well as chairing the enterprise-wide Entertainment Council connecting culture to commerce at Walmart scale. Prior to that role, he served as President of three Walmart-owned direct-to-consumer brands, Art.com, Hayneedle.com, and AllswellHome.com. Mr. Barbieri has also served as Chief Strategy Officer at YuMe, Inc., founded Transpera, Inc. and served as a Product Manager at Microsoft Corporation. Mr. Barbieri holds a Bachelor of Arts in Political Philosophy from Bates College.
Mr. Barbieri will receive a base salary of $500,000 and will be eligible to receive an annual cash incentive bonus with a target equal to 65% of his base salary, with the actual bonus payable based on performance against pre-established performance goals. In addition, in connection with his appointment as COO, the Compensation and People Committee (the “Committee”) of the Company’s Board of Directors approved a grant to Mr. Barbieri on May 15, 2026 (the “Grant Date”) of (i) restricted stock units, with a target value of approximately one million five hundred thousand dollars ($1,500,000), which will vest as to 33.33% of the restricted stock units on the first anniversary of the Grant Date and thereafter in equal quarterly installments over the two years following the first anniversary of the Grant Date, generally subject to Mr. Barbieri’s continued employment with the Company and (ii) performance stock units (“PSUs”), with a target value of approximately one million five hundred thousand dollars ($1,500,000), which shall be eligible to become earned between zero percent (0%) and two hundred percent (200%) of the target number of PSUs based on the achievement of performance criteria established by the Committee over a three year performance period, with vesting of such PSUs generally subject to Mr. Barbieri’s employment with the Company at the end of the three-year PSU term.
There are no arrangements or understandings with any other person pursuant to which Mr. Barbieri will be appointed as the Company’s COO, and there are no family relationships between Mr. Barbieri and any director or executive officer of the Company. Additionally, there are no transactions between Mr. Barbieri and the Company that would be required to be reported under Item 404(a) of Regulation S-K.
In addition, on May 4, 2026, following Mr. Barbieri's appointment as COO, Eddie Lazarus will no longer serve as the Company's Business Development Officer but will continue to serve as the Company's Chief Legal Officer. As Chief Legal Officer, Mr. Lazarus will remain a named executive officer of the Company and will oversee Sonos' legal, intellectual property, corporate governance, SEC reporting, government affairs, regulatory and compliance activities, as well as its sustainability and people efforts. Mr. Lazarus will also continue his deep involvement in setting corporate strategy.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | |||||
| 99.1 | Press release dated May 4, 2026 announcing second fiscal quarter 2026 financial results. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SONOS, INC. | ||||||||
| Date: May 4, 2026 | By: | /s/ Saori Casey | ||||||
Saori Casey Chief Financial Officer | ||||||||
Exhibit 99.1
Sonos Reports Second Quarter Fiscal 2026 Results
Q2 Revenue near high end of guidance range, Adjusted EBITDA above midpoint
Santa Barbara, CA – May 4, 2026 - Sonos, Inc. (Nasdaq: SONO) today reported Second Quarter Fiscal 2026 results.
“The first half of Fiscal 2026 marks an important turning point for Sonos as we return to growth and change the trajectory of the business,” said Tom Conrad, Chief Executive Officer of Sonos. “The progress we’re seeing comes from coordinated execution across the areas that matter most: better products, a stronger software experience, more effective marketing, and continued expansion in growth markets. This translated into 8% revenue growth in Q2, our first positive Q2 Adjusted EBITDA in four years, and our third consecutive semiannual period of revenue growth improvement. We enter the second half with momentum and a clear focus on building durable growth while staying disciplined in how we operate.”
"Q2 results overall came in strong against our expectations, with revenue near the high end of our guidance, and Adjusted EBITDA above the midpoint. First half Adjusted EBITDA is up 48% year over year, reflecting gross profit dollar growth combined with operating expense reductions," said Saori Casey, Chief Financial Officer. "Q2 marks our seventh consecutive quarter of executing against our commitments"
Second Quarter Fiscal 2026 Financial Highlights (unaudited)
•Revenue increased 8% year-over-year to $282 million
•GAAP gross margin of 44.3%, Non-GAAP gross margin of 46.0%
•GAAP net loss improved by $41 million year-over-year to ($29) million, GAAP diluted loss per share (EPS) improved by $0.34 year-over-year to ($0.24)
•Non-GAAP net loss improved by $19 million year-over-year to ($3) million, Non-GAAP diluted EPS improved by $0.16 year-over-year to ($0.02)
•Adjusted EBITDA increased $3 million year-over-year to $2 million
•Returned $40 million to shareholders through repurchase of 2.5 million shares
First Half Fiscal 2026 Financial Highlights (unaudited)
•Revenue increased 2% year-over-year to $827 million
•GAAP gross margin of 45.7%, Non-GAAP gross margin of 47.0%
•GAAP net income improved by $85 million year-over-year to $65 million, GAAP diluted EPS improved by $0.68 year-over-year to $0.52
•Non-GAAP net income improved by $49 million year-over-year to $113 million, Non-GAAP diluted EPS improved by $0.40 year-over-year to $0.91
•Adjusted EBITDA increased by $44 million year-over-year to $134 million
•Returned $65 million to shareholders through repurchase of 4.0 million shares
Guidance
The company will provide guidance on its Second Quarter Fiscal 2026 earnings call.
Supplemental Earnings Presentation
The company has posted a supplemental earnings presentation accompanying its Second Quarter Fiscal 2026 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports.
Conference Call, Webcast and Transcript
The company will host a webcast of its conference call and Q&A related to its Second Quarter Fiscal 2026 results on May 4, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx.
The conference call may also be accessed by dialing (888) 330-2454 with conference ID 8641747. Participants outside the U.S. can access the call by dialing (240) 789-2714 using the same conference ID.
An archived webcast of the conference call and a transcript of the company’s prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call.
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income | ||||||||||||||||||||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Revenue | $ 281,526 | $ 259,756 | $ 827,189 | $ 810,613 | ||||||||||||||||||||||
Cost of revenue | 156,877 | 146,147 | 449,080 | 455,597 | ||||||||||||||||||||||
Gross profit | 124,649 | 113,609 | 378,109 | 355,016 | ||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||
Research and development | 64,134 | 77,423 | 123,896 | 158,261 | ||||||||||||||||||||||
Sales and marketing | 62,376 | 64,210 | 127,650 | 150,854 | ||||||||||||||||||||||
General and administrative | 29,714 | 33,200 | 57,723 | 59,032 | ||||||||||||||||||||||
Total operating expenses | 156,224 | 174,833 | 309,269 | 368,147 | ||||||||||||||||||||||
Operating (loss) income | (31,575) | (61,224) | 68,840 | (13,131) | ||||||||||||||||||||||
Other income (expense), net | ||||||||||||||||||||||||||
Interest income | 1,911 | 1,973 | 3,260 | 3,834 | ||||||||||||||||||||||
Interest expense | (104) | (109) | (220) | (219) | ||||||||||||||||||||||
Other (expense) income, net | (1,361) | 193 | (941) | (5,836) | ||||||||||||||||||||||
Total other income (expense), net | 446 | 2,057 | 2,099 | (2,221) | ||||||||||||||||||||||
(Loss) income before (benefit from) provision for income taxes | (31,129) | (59,167) | 70,939 | (15,352) | ||||||||||||||||||||||
(Benefit from) provision for income taxes | (2,243) | 10,977 | 6,027 | 4,555 | ||||||||||||||||||||||
Net (loss) income | $ (28,886) | $ (70,144) | $ 64,912 | $ (19,907) | ||||||||||||||||||||||
(Loss) earnings per share: | ||||||||||||||||||||||||||
Basic | $ (0.24) | $ (0.58) | $ 0.54 | $ (0.16) | ||||||||||||||||||||||
Diluted | $ (0.24) | $ (0.58) | $ 0.52 | $ (0.16) | ||||||||||||||||||||||
Weighted-average shares used in computing (loss) earnings per share: | ||||||||||||||||||||||||||
Basic | 120,209,712 | 119,919,163 | 120,349,630 | 120,995,375 | ||||||||||||||||||||||
Diluted | 120,209,712 | 119,919,163 | 123,651,309 | 120,995,375 | ||||||||||||||||||||||
Total comprehensive (loss) income | ||||||||||||||||||||||||||
Net (loss) income | (28,886) | (70,144) | 64,912 | (19,907) | ||||||||||||||||||||||
Change in foreign currency translation adjustment | (1,763) | 656 | (28) | (460) | ||||||||||||||||||||||
Net unrealized loss on marketable securities | (59) | (33) | (42) | (117) | ||||||||||||||||||||||
Comprehensive (loss) income | $ (30,708) | $ (69,521) | $ 64,842 | $ (20,484) | ||||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||
(unaudited, in thousands, except par values) | ||||||||||||||
As of | ||||||||||||||
March 28, 2026 | September 27, 2025 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ 200,156 | $ 174,668 | ||||||||||||
Marketable securities | 48,897 | 52,858 | ||||||||||||
Accounts receivable, net | 95,511 | 65,847 | ||||||||||||
Inventories | 160,840 | 171,020 | ||||||||||||
Prepaids and other current assets | 34,718 | 39,642 | ||||||||||||
Total current assets | 540,122 | 504,035 | ||||||||||||
Property and equipment, net | 63,038 | 72,277 | ||||||||||||
Operating lease right-of-use assets | 43,950 | 45,297 | ||||||||||||
Goodwill | 82,854 | 82,854 | ||||||||||||
Intangible assets, net | 67,741 | 75,356 | ||||||||||||
Deferred tax assets | 10,409 | 10,509 | ||||||||||||
Other noncurrent assets | 31,368 | 32,950 | ||||||||||||
Total assets | $ 839,482 | $ 823,278 | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ 162,927 | $ 184,109 | ||||||||||||
Accrued expenses | 66,736 | 79,094 | ||||||||||||
Accrued compensation | 24,298 | 21,331 | ||||||||||||
Deferred revenue, current | 38,772 | 21,771 | ||||||||||||
Other current liabilities | 48,374 | 46,107 | ||||||||||||
Total current liabilities | 341,107 | 352,412 | ||||||||||||
Operating lease liabilities, noncurrent | 51,803 | 53,288 | ||||||||||||
Deferred revenue, noncurrent | 59,161 | 59,453 | ||||||||||||
Deferred tax liabilities | 118 | 126 | ||||||||||||
Other noncurrent liabilities | 2,930 | 2,774 | ||||||||||||
Total liabilities | 455,119 | 468,053 | ||||||||||||
Commitments and contingencies | ||||||||||||||
Stockholders’ equity: | ||||||||||||||
Common stock, $0.001 par value | 123 | 123 | ||||||||||||
Treasury stock | (56,653) | (37,398) | ||||||||||||
Additional paid-in capital | 486,326 | 502,775 | ||||||||||||
Accumulated deficit | (47,166) | (112,078) | ||||||||||||
Accumulated other comprehensive income | 1,733 | 1,803 | ||||||||||||
Total stockholders’ equity | 384,363 | 355,225 | ||||||||||||
Total liabilities and stockholders’ equity | $ 839,482 | $ 823,278 | ||||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||
Six Months Ended | ||||||||||||||
March 28, 2026 | March 29, 2025 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net income (loss) | $ 64,912 | $ (19,907) | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||
Stock-based compensation expense | 30,056 | 45,436 | ||||||||||||
Depreciation and amortization | 25,862 | 32,778 | ||||||||||||
Restructuring and other charges | 848 | 4,889 | ||||||||||||
Provision for excess and obsolete inventory | 343 | (143) | ||||||||||||
Deferred income taxes | 72 | 997 | ||||||||||||
Other | 4,402 | 1,528 | ||||||||||||
Foreign currency transaction loss (gain) | 1,222 | (72) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (31,660) | 4,702 | ||||||||||||
Inventories | 9,837 | 92,615 | ||||||||||||
Other assets | 4,796 | 1,328 | ||||||||||||
Accounts payable and accrued expenses | (33,297) | (83,634) | ||||||||||||
Accrued compensation | 3,522 | 10,456 | ||||||||||||
Deferred revenue | 16,993 | (257) | ||||||||||||
Other liabilities | 25 | 5,791 | ||||||||||||
Net cash provided by operating activities | 97,933 | 96,507 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Purchases of marketable securities | (25,219) | (25,900) | ||||||||||||
Purchases of property and equipment | (10,734) | (18,662) | ||||||||||||
Maturities of marketable securities | 29,140 | 27,400 | ||||||||||||
Net cash used in investing activities | (6,813) | (17,162) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Payments for repurchase of common stock | (65,121) | (60,602) | ||||||||||||
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (15,929) | (16,246) | ||||||||||||
Proceeds from exercise of stock options | 15,138 | 2,654 | ||||||||||||
Payments for debt issuance costs | (780) | — | ||||||||||||
Net cash used in financing activities | (66,692) | (74,194) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,060 | (1,725) | ||||||||||||
Net increase in cash and cash equivalents | 25,488 | 3,426 | ||||||||||||
Cash and cash equivalents | ||||||||||||||
Beginning of period | 174,668 | 169,732 | ||||||||||||
End of period | $ 200,156 | $ 173,158 | ||||||||||||
Supplemental disclosure | ||||||||||||||
Cash paid for interest | $ 123 | $ 126 | ||||||||||||
Cash paid for taxes, net of refunds | $ 3,346 | $ 16,493 | ||||||||||||
Cash paid for amounts included in the measurement of lease liabilities, net of tenant improvement reimbursements received | $ 4,473 | $ 1,149 | ||||||||||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||||||||
Purchases of property and equipment in accounts payable and accrued expenses | $ 4,588 | $ 1,311 | ||||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,829 | $ 1,491 | ||||||||||||
Excise tax on share repurchases, accrued but not paid | $ 130 | $ 264 | ||||||||||||
Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit | ||||||||||||||||||||||||||
(unaudited, in thousands, except percentages) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Reconciliation of GAAP cost of revenue | ||||||||||||||||||||||||||
GAAP cost of revenue | $ 156,877 | $ 146,147 | $ 449,080 | $ 455,597 | ||||||||||||||||||||||
Stock-based compensation expense | 1,125 | 1,606 | 2,452 | 2,955 | ||||||||||||||||||||||
Amortization of intangibles | 3,144 | 3,144 | 7,525 | 6,474 | ||||||||||||||||||||||
Restructuring and other charges | 664 | 3,935 | 664 | 3,935 | ||||||||||||||||||||||
Non-GAAP cost of revenue | $ 151,944 | $ 137,462 | $ 438,439 | $ 442,233 | ||||||||||||||||||||||
Reconciliation of GAAP gross profit | ||||||||||||||||||||||||||
GAAP gross profit | $ 124,649 | $ 113,609 | $ 378,109 | $ 355,016 | ||||||||||||||||||||||
Stock-based compensation expense | 1,125 | 1,606 | 2,452 | 2,955 | ||||||||||||||||||||||
Amortization of intangibles | 3,144 | 3,144 | 7,525 | 6,474 | ||||||||||||||||||||||
Restructuring and other charges | 664 | 3,935 | 664 | 3,935 | ||||||||||||||||||||||
Non-GAAP gross profit | $ 129,582 | $ 122,294 | $ 388,750 | $ 368,380 | ||||||||||||||||||||||
GAAP gross margin | 44.3% | 43.7% | 45.7% | 43.8% | ||||||||||||||||||||||
Non-GAAP gross margin | 46.0% | 47.1% | 47.0% | 45.4% | ||||||||||||||||||||||
Reconciliation of Selected Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Research and Development (GAAP) | $ 64,134 | $ 77,423 | $ 123,896 | $ 158,261 | ||||||||||||||||||||||
Stock-based compensation | 5,471 | 8,021 | 11,960 | 21,336 | ||||||||||||||||||||||
Amortization of intangibles | 20 | 18 | 40 | 196 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 857 | 12,766 | 857 | 12,706 | ||||||||||||||||||||||
Research and Development (Non-GAAP) | $ 57,786 | $ 56,618 | $ 111,039 | $ 124,023 | ||||||||||||||||||||||
Sales and Marketing (GAAP) | $ 62,376 | $ 64,210 | $ 127,650 | $ 150,854 | ||||||||||||||||||||||
Stock-based compensation | 2,763 | 3,980 | 5,608 | 9,612 | ||||||||||||||||||||||
Amortization of intangibles | - | - | - | - | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 1,453 | 2,792 | 1,453 | 2,792 | ||||||||||||||||||||||
Sales and Marketing (Non-GAAP) | $ 58,160 | $ 57,438 | $ 120,589 | $ 138,450 | ||||||||||||||||||||||
General and Administrative (GAAP) | 29,714 | 33,200 | 57,723 | 59,032 | ||||||||||||||||||||||
Stock-based compensation | 5,505 | 6,495 | 10,036 | 11,533 | ||||||||||||||||||||||
Legal and transaction related costs | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Amortization of intangibles | 24 | 24 | 48 | 47 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 90 | 4,207 | 90 | 4,207 | ||||||||||||||||||||||
General and Administrative (Non-GAAP) | $ 20,572 | $ 21,045 | $ 41,515 | $ 41,621 | ||||||||||||||||||||||
Total Operating Expenses (GAAP) | $ 156,224 | $ 174,833 | $ 309,269 | $ 368,147 | ||||||||||||||||||||||
Stock-based compensation | 13,739 | 18,496 | 27,604 | 42,481 | ||||||||||||||||||||||
Legal and transaction related costs (1) | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Amortization of intangibles | 44 | 42 | 88 | 243 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 2,400 | 19,765 | 2,400 | 19,705 | ||||||||||||||||||||||
Operating Expenses (Non-GAAP) | $ 136,518 | $ 135,101 | $ 273,143 | $ 304,094 | ||||||||||||||||||||||
Total Operating (Loss) Income (GAAP) | $ (31,575) | $ (61,224) | $ 68,840 | $ (13,131) | ||||||||||||||||||||||
Stock-based compensation | 14,864 | 20,102 | 30,056 | 45,436 | ||||||||||||||||||||||
Legal and transaction related costs (1) | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Amortization of intangibles | 3,188 | 3,186 | 7,613 | 6,717 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 3,064 | 23,700 | 3,064 | 23,640 | ||||||||||||||||||||||
Operating (Loss) Income (Non-GAAP) | $ (6,936) | $ (12,807) | $ 115,607 | $ 64,286 | ||||||||||||||||||||||
Depreciation | 8,653 | 11,981 | 18,249 | 26,061 | ||||||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ 1,717 | $ (826) | $ 133,856 | $ 90,347 | ||||||||||||||||||||||
Total Operating (Loss) Income (GAAP) | $ (31,575) | $ (61,224) | $ 68,840 | $ (13,131) | ||||||||||||||||||||||
Stock-based compensation expense | 14,864 | 20,102 | 30,056 | 45,436 | ||||||||||||||||||||||
Legal and transaction related costs (1) | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Amortization of intangibles | 3,188 | 3,186 | 7,613 | 6,717 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 3,064 | 23,700 | 3,064 | 23,640 | ||||||||||||||||||||||
Operating (Loss) Income (Non-GAAP) | $ (6,936) | $ (12,807) | $ 115,607 | $ 64,286 | ||||||||||||||||||||||
Interest income | 1,911 | 1,973 | 3,260 | 3,834 | ||||||||||||||||||||||
Interest expense | (104) | (109) | (220) | (219) | ||||||||||||||||||||||
Pre-tax (Loss) Income (Non-GAAP) | $ (5,129) | $ (10,943) | $ 118,647 | $ 67,901 | ||||||||||||||||||||||
(Benefit from) provision for income taxes | (2,243) | 10,977 | 6,027 | 4,555 | ||||||||||||||||||||||
Net (loss) income (Non-GAAP) | (2,886) | (21,920) | 112,620 | 63,346 | ||||||||||||||||||||||
Weighted-average shares non-GAAP, diluted | 120,209,712 | 119,919,163 | 123,651,309 | 123,750,251 | ||||||||||||||||||||||
Non-GAAP (loss) earnings per share, diluted | $ (0.02) | $ (0.18) | $ 0.91 | $ 0.51 | ||||||||||||||||||||||
(1) Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. | ||||||||||||||||||||||||||
(2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. | ||||||||||||||||||||||||||
(3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. | ||||||||||||||||||||||||||
Reconciliation of Net (Loss) Income to Adjusted EBITDA | ||||||||||||||||||||||||||
(unaudited, dollars in thousands except percentages) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
(In thousands, except percentages) | ||||||||||||||||||||||||||
Net (loss) income | $ (28,886) | $ (70,144) | $ 64,912 | $ (19,907) | ||||||||||||||||||||||
Add (deduct): | ||||||||||||||||||||||||||
Depreciation and amortization | 11,841 | 15,167 | 25,862 | 32,778 | ||||||||||||||||||||||
Stock-based compensation expense | 14,864 | 20,102 | 30,056 | 45,436 | ||||||||||||||||||||||
Interest income | (1,911) | (1,973) | (3,260) | (3,834) | ||||||||||||||||||||||
Interest expense | 104 | 109 | 220 | 219 | ||||||||||||||||||||||
Other expense (income), net | 1,361 | (193) | 941 | 5,836 | ||||||||||||||||||||||
(Benefit from) provision for income taxes | (2,243) | 10,977 | 6,027 | 4,555 | ||||||||||||||||||||||
Legal and transaction related costs (1) | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 3,064 | 23,700 | 3,064 | 23,640 | ||||||||||||||||||||||
Adjusted EBITDA | $ 1,717 | $ (826) | $ 133,856 | $ 90,347 | ||||||||||||||||||||||
Revenue | $ 281,526 | $ 259,756 | $ 827,189 | $ 810,613 | ||||||||||||||||||||||
Net (loss) income margin | (10.3)% | (27.0)% | 7.8% | (2.5)% | ||||||||||||||||||||||
Adjusted EBITDA margin | 0.6% | (0.3)% | 16.2% | 11.1% | ||||||||||||||||||||||
(1) Legal and transaction-related costs consist of expenses related to our IP litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. | ||||||||||||||||||||||||||
(2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. | ||||||||||||||||||||||||||
(3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. | ||||||||||||||||||||||||||
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income | ||||||||||||||||||||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
GAAP net (loss) income | $ (28,886) | $ (70,144) | $ 64,912 | $ (19,907) | ||||||||||||||||||||||
Stock-based compensation expense | 14,864 | 20,102 | 30,056 | 45,436 | ||||||||||||||||||||||
Legal and transaction related costs (1) | 3,523 | 1,429 | 6,034 | 1,624 | ||||||||||||||||||||||
Amortization of intangibles | 3,188 | 3,186 | 7,613 | 6,717 | ||||||||||||||||||||||
Restructuring and other charges (2)(3) | 3,064 | 23,700 | 3,064 | 23,640 | ||||||||||||||||||||||
Other expense (income), net | 1,361 | (193) | 941 | 5,836 | ||||||||||||||||||||||
Non-GAAP net (loss) income | $ (2,886) | $ (21,920) | $ 112,620 | $ 63,346 | ||||||||||||||||||||||
(Loss) earnings per share | ||||||||||||||||||||||||||
GAAP (loss) earnings per share, diluted | $ (0.24) | $ (0.58) | $ 0.52 | $ (0.16) | ||||||||||||||||||||||
Non-GAAP (loss) earnings per share, diluted | $ (0.02) | $ (0.18) | $ 0.91 | $ 0.51 | ||||||||||||||||||||||
Shares used to calculate (loss) earnings per share | ||||||||||||||||||||||||||
Weighted-average shares GAAP, diluted | 120,209,712 | 119,919,163 | 123,651,309 | 120,995,375 | ||||||||||||||||||||||
Weighted-average shares non-GAAP, diluted | 120,209,712 | 119,919,163 | 123,651,309 | 123,750,251 | ||||||||||||||||||||||
(1) Legal and transaction-related costs consist of expenses related to our IP litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. | ||||||||||||||||||||||||||
(2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. | ||||||||||||||||||||||||||
(3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. | ||||||||||||||||||||||||||
Reconciliation of Cash Flows (Used in) Provided by Operating Activities to Free Cash Flow | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Cash flows (used in) provided by operating activities | $ (65,374) | $ (59,666) | $ 97,933 | $ 96,507 | ||||||||||||||||||||||
Less: Purchases of property and equipment | (4,776) | (5,556) | (10,734) | (18,662) | ||||||||||||||||||||||
Free cash flow | $ (70,150) | $ (65,222) | $ 87,199 | $ 77,845 | ||||||||||||||||||||||
Revenue by Product Category | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Sonos speakers | $ 210,018 | $ 194,519 | $ 669,258 | $ 661,661 | ||||||||||||||||||||||
Sonos system products | 52,411 | 50,540 | 117,469 | 110,814 | ||||||||||||||||||||||
Partner products and other revenue | 19,097 | 14,697 | 40,462 | 38,138 | ||||||||||||||||||||||
Total revenue | $ 281,526 | $ 259,756 | $ 827,189 | $ 810,613 | ||||||||||||||||||||||
Revenue by Geographical Region | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Americas | $ 180,608 | $ 176,802 | $ 509,485 | $ 501,385 | ||||||||||||||||||||||
Europe, Middle East and Africa | 83,161 | 68,785 | 272,602 | 266,397 | ||||||||||||||||||||||
Asia Pacific | 17,757 | 14,169 | 45,102 | 42,831 | ||||||||||||||||||||||
Total revenue | $ 281,526 | $ 259,756 | $ 827,189 | $ 810,613 | ||||||||||||||||||||||
Stock-based Compensation | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Cost of revenue | $ 1,125 | $ 1,606 | $ 2,452 | $ 2,955 | ||||||||||||||||||||||
Research and development | 5,471 | 8,557 | 11,960 | 21,872 | ||||||||||||||||||||||
Sales and marketing | 2,763 | 4,027 | 5,608 | 9,659 | ||||||||||||||||||||||
General and administrative | 5,505 | 9,055 | 10,036 | 14,093 | ||||||||||||||||||||||
Total stock-based compensation expense | $ 14,864 | $ 23,245 | $ 30,056 | $ 48,579 | ||||||||||||||||||||||
Amortization of Intangibles | ||||||||||||||||||||||||||
(unaudited, dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
March 28, 2026 | March 29, 2025 | March 28, 2026 | March 29, 2025 | |||||||||||||||||||||||
Cost of revenue | $ 3,144 | $ 3,144 | $ 7,525 | $ 6,474 | ||||||||||||||||||||||
Research and development | 20 | 18 | 40 | 196 | ||||||||||||||||||||||
Sales and marketing | - | - | - | - | ||||||||||||||||||||||
General and administrative | 24 | 24 | 48 | 47 | ||||||||||||||||||||||
Total amortization of intangibles | $ 3,188 | $ 3,186 | $ 7,613 | $ 6,717 | ||||||||||||||||||||||
Use of Non-GAAP Measures
We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles (“U.S. GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP operating (loss) income, non-GAAP pre-tax (loss) income, free cash flow, non-GAAP gross margin, non-GAAP net (loss) income, non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of these financial measures to their
nearest U.S. GAAP financial equivalents provided in the financial statement tables above. We define Adjusted EBITDA as net (loss) income adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other expense (income), income taxes, restructuring and other charges, legal and transaction related fees and other items that we do not consider representative of our underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We define non-GAAP operating (loss) income as total operating loss adjusted to exclude stock-based compensation expense, legal and transaction related costs, amortization of intangibles and restructuring and other charges. We define non-GAAP pre-tax (loss) income as non-GAAP operating (loss) income adjusted to include interest income and to exclude interest expense. We define free cash flow as net cash from operations less purchases of property and equipment. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation, amortization of intangible assets and restructuring and other charges. We define non-GAAP cost of revenue as GAAP cost of revenue less stock-based compensation and amortization of intangibles. We define non-GAAP gross profit as GAAP gross profit less stock-based compensation, amortization of intangibles, and restructuring and other charges. We calculate non-GAAP net (loss) income as GAAP net (loss) income less stock-based compensation, legal and transaction related fees, amortization of intangibles, other expense (income) and restructuring and other charges. We calculate non-GAAP diluted earnings (loss) per share as non-GAAP net (loss) income divided by non-GAAP weighted average diluted shares outstanding during the period. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.
Forward Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our long-term outlook, financial, growth and business strategies and opportunities, market growth and our market share, our operating model and cost structure, new product launches, including critical reception and the planned timing of such launches, and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: difficulties in and effect of implementing improvements to our operating model and cost structure; the risk that restructuring and related charges may be greater than anticipated or not occur in the expected time frame; local law requirements in various jurisdictions regarding elimination of positions; our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; our ability to successfully introduce software updates; our ability to maintain, enhance and protect our brand image; the impact of global economic, market and political events, including tariffs, global trade tensions, continued inflationary pressures, high interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or
conditions, including tariffs; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to compete in the market and maintain or expand market share; our ability to maintain relationships with our channel, distribution and technology partners; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges, including memory costs and constraints; our ability to protect our brand and intellectual property; our use of artificial intelligence; and the other risk factors identified in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and subsequent filings. Copies of our SEC filings are available free of charge at the SEC’s website at www.sec.gov, on our investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners.
About Sonos
Sonos (Nasdaq: SONO) is a leading audio company dedicated to elevating life through sound. Sonos has built a connected system that brings together all the sounds people love, from music and movies to stories and conversations. Its portfolio of home theater speakers, components, plug-in and portable speakers, and headphones grows more powerful with every room and device added. Trusted by more than 17 million households in over 60 countries, Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com.
Investor Contact
James Baglanis
IR@sonos.com
IR@sonos.com
Press Contact
PR@sonos.com
Source: Sonos
FAQ
How did Sonos (SONO) perform in Q2 fiscal 2026?
Sonos grew Q2 fiscal 2026 revenue 8% year-over-year to $281.5 million, with GAAP net loss improving to $28.9 million. The company delivered its first positive Q2 Adjusted EBITDA in four years at $1.7 million, reflecting better margins and lower operating expenses.
What were Sonos’ profitability metrics for the first half of fiscal 2026?
In the first half of fiscal 2026, Sonos generated GAAP net income of $64.9 million, reversing a prior-year loss, and non-GAAP net income of $112.6 million. Adjusted EBITDA reached $133.9 million, up $44 million year-over-year, with an Adjusted EBITDA margin of 16.2%.
How are Sonos’ margins trending in fiscal 2026?
Sonos’ GAAP gross margin was 44.3% in Q2 and 45.7% for the first half, while non-GAAP gross margin reached 46.0% in Q2 and 47.0% for the half. These improvements came alongside reduced operating expenses and higher gross profit dollars.
Who is Sonos’ new Chief Operating Officer and what is his compensation structure?
Sonos appointed Frank Barbieri as Chief Operating Officer effective May 4, 2026, with a base salary of $500,000 and a target annual bonus equal to 65% of salary. He will also receive $1.5 million in RSUs and $1.5 million in PSUs, subject to time-based and performance vesting.
How did Sonos’ revenue perform by region in Q2 fiscal 2026?
In Q2 fiscal 2026, Sonos reported Americas revenue of $180.6 million, EMEA revenue of $83.2 million, and Asia Pacific revenue of $17.8 million. Total revenue reached $281.5 million, with growth across all three geographic regions compared with the prior year period.