Description

Sonos Inc.: Four High-Impact Catalysts—Ecosystem, Households, Cost Discipline, & Global Expansion!

Sonos Inc. closed fiscal 2025 with stronger profitability but mixed revenue trends, as the company continued its transformation toward a leaner and more strategically aligned organization. Management highlighted a 13% year-over-year revenue increase in the fourth quarter to $288 million, driven by strong growth in home theater and emerging markets, offsetting broader softness earlier in the year. For fiscal 2025, total revenue declined 5% to $1.44 billion, reflecting a transition year marked by pricing adjustments and selective cost optimization. Gross margin improved to 43.7% on a GAAP basis and 45.2% on a non-GAAP basis, supported by cost savings, favorable product mix, and recovery from prior-year inventory charges, partly offset by tariff-related expenses. Operating expenses declined 8% year-over-year, or 17% on a normalized basis, as the company reduced its run rate by more than $100 million through restructuring and workforce realignment.