# Sonos Inc (SONO)

Informational only - not investment advice.

CIK: 0001314727
SIC: 3651 Household Audio & Video Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3651 Household Audio & Video Equipment](/industry/3651/)
Latest 10-K filed: 2025-11-14
SEC page: https://www.sec.gov/edgar/browse/?CIK=1314727
Filing source: https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm

## At a glance

FY2025 · period end 2025-09-27 · filed 2025-11-14 · accession 0001314727-25-000090 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001314727.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,443,276,000 USD | 2025 | verified |
| Net income | -61,144,000 USD | 2025 | verified |
| Assets | 823,278,000 USD | 2025 | verified |
| Free cash flow | 108,193,000 USD | 2025 | computed |
| Net margin | -4.24% | 2025 | computed |
| Operating margin | -3.50% | 2025 | computed |
| Revenue YoY | -4.93% | 2025 | computed |
| ROE | -17.21% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | SONO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -4.2% | 4.4% | 25 | 135 |
| Operating margin | -3.5% | 4.4% | 23 | 128 |
| Revenue growth | -4.9% | 10.2% | 12 | 142 |
| FCF margin | 7.5% | 8.0% | 48 | 138 |
| ROE | -17.2% | 5.4% | 17 | 136 |
| ROA | -7.4% | 2.7% | 20 | 143 |
| Liabilities / equity | 1.32 | 0.81 | 74 | 138 |
| Current ratio | 1.43 | 2.59 | 12 | 144 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1443276000 | USD | 2025 | 2025-11-14 |
| Net income | -61144000 | USD | 2025 | 2025-11-14 |
| Assets | 823278000 | USD | 2025 | 2025-11-14 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001314727.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 901,284,000 | 992,526,000 | 1,137,008,000 | 1,260,823,000 | 1,326,328,000 | 1,716,744,000 | 1,752,336,000 | 1,655,255,000 | 1,518,056,000 | 1,443,276,000 |
| Net income | -38,214,000 | -14,217,000 | -15,604,000 | -4,766,000 | -20,115,000 | 158,595,000 | 67,383,000 | -10,274,000 | -38,146,000 | -61,144,000 |
| Operating income | -30,873,000 | -15,609,000 | -8,875,000 | 5,699,000 | -27,233,000 | 154,964,000 | 89,532,000 | -20,547,000 | -48,046,000 | -50,468,000 |
| Gross profit | 403,399,000 | 456,065,000 | 489,308,000 | 527,343,000 | 571,956,000 | 809,994,000 | 796,367,000 | 716,490,000 | 689,373,000 | 630,530,000 |
| Diluted EPS |  |  |  | -0.05 | -0.18 | 1.13 | 0.49 | -0.08 | -0.31 | -0.51 |
| Operating cash flow | 43,294,000 | 63,960,000 | 30,570,000 | 120,636,000 | 161,986,000 | 253,226,000 | -28,260,000 | 100,406,000 | 189,906,000 | 136,869,000 |
| Capital expenditures |  |  |  | 23,222,000 | 33,035,000 | 45,531,000 | 46,216,000 | 50,286,000 | 55,247,000 | 28,676,000 |
| Share buybacks | 145,000 | 10,016,000 | 911,000 | 2,426,000 | 50,015,000 | 50,014,000 | 150,121,000 | 100,064,000 | 129,018,000 | 80,984,000 |
| Assets |  | 400,020,000 | 587,498,000 | 761,605,000 | 816,051,000 | 1,138,804,000 | 1,188,388,000 | 1,002,241,000 | 916,312,000 | 823,278,000 |
| Liabilities |  | 309,652,000 | 379,140,000 | 480,677,000 | 518,212,000 | 569,762,000 | 627,875,000 | 483,584,000 | 487,692,000 | 468,053,000 |
| Stockholders' equity | -28,788,000 | 27,000 | 208,358,000 | 280,928,000 | 297,839,000 | 569,042,000 | 560,513,000 | 518,657,000 | 428,620,000 | 355,225,000 |
| Cash and cash equivalents | 74,913,000 | 130,595,000 | 220,930,000 | 338,641,000 | 407,100,000 | 640,101,000 | 274,855,000 | 220,231,000 | 169,732,000 | 174,668,000 |
| Free cash flow |  |  |  | 97,414,000 | 128,951,000 | 207,695,000 | -74,476,000 | 50,120,000 | 134,659,000 | 108,193,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -4.24% | -1.43% | -1.37% | -0.38% | -1.52% | 9.24% | 3.85% | -0.62% | -2.51% | -4.24% |
| Operating margin | -3.43% | -1.57% | -0.78% | 0.45% | -2.05% | 9.03% | 5.11% | -1.24% | -3.16% | -3.50% |
| Return on equity |  |  | -7.49% | -1.70% | -6.75% | 27.87% | 12.02% | -1.98% | -8.90% | -17.21% |
| Return on assets |  | -3.55% | -2.66% | -0.63% | -2.46% | 13.93% | 5.67% | -1.03% | -4.16% | -7.43% |
| Liabilities / equity |  |  | 1.82 | 1.71 | 1.74 | 1.00 | 1.12 | 0.93 | 1.14 | 1.32 |
| Current ratio |  | 1.35 | 1.68 | 1.69 | 1.68 | 2.01 | 1.62 | 1.86 | 1.51 | 1.43 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001314727.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-12-31 |  |  | 0.57 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  |  | -0.24 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  |  | -0.18 | reported discrete quarter |
| 2023-Q4 | 2023-09-30 | 305,147,000 | -31,240,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-12-30 | 612,869,000 | 80,947,000 | 0.64 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 | 252,662,000 | -69,709,000 | -0.56 | reported discrete quarter |
| 2024-Q3 | 2024-06-29 | 397,146,000 | 3,709,000 | 0.03 | reported discrete quarter |
| 2024-Q4 | 2024-09-28 | 255,380,000 | -53,093,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-12-28 | 550,857,000 | 50,237,000 | 0.40 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 | 259,756,000 | -70,144,000 | -0.58 | reported discrete quarter |
| 2025-Q3 | 2025-06-28 | 344,764,000 | -3,379,000 | -0.03 | reported discrete quarter |
| 2025-Q4 | 2025-09-27 | 287,900,000 | -37,858,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-12-27 | 545,662,000 | 93,798,000 | 0.75 | reported discrete quarter |
| 2026-Q2 | 2026-03-28 | 281,526,000 | -28,886,000 | -0.24 | reported discrete quarter |
| 2026-Q3 | 2026-06-27 | 375,260,000 | 29,853,000 | 0.25 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from SONO's latest 10-K: [/company/SONO/business/](/company/SONO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from SONO's latest 10-K: [/company/SONO/risk-factors/](/company/SONO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1314727/000131472726000086/sono-20260627.htm

Extracted from Part I Item 2 to the first post-MD&A boundary after HTML sanitization.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-27

Item 2. Management's discussion and analysis of financial condition and results of operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report.

We operate on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. Our fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding future operations and performance, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "could," "would," "expect," "objective," "plan," "potential," "seek," "grow," "target," "if," and similar expressions intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations, objectives, restructuring efforts, cost initiatives, timing of certain tax impacts and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled "Risk Factors" set forth in Part I, Item 1A of the Annual Report and in our other SEC filings. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results may differ materially and adversely from those anticipated or implied in the forward-looking statements. You should read this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

Overview

Sonos is a leading audio company dedicated to elevating life through sound. Since pioneering multi-room wireless audio in 2005, Sonos has built a system that unites every dimension of sound - music, movies, stories and conversations - into one connected platform. The portfolio includes home theater speakers, components, plug-in and portable speakers, and headphones that compound in value with every room and device its customers add. Known for exceptional sound, thoughtful design, ease of use and seamless access to the world’s audio content, Sonos is trusted by more than 17 million households in 60+ countries around the world.

Entering the second half of fiscal 2026, we continue to leverage the strong foundation established during our transformational prior fiscal year. With our Chief Executive Officer, Tom Conrad's strategic direction in motion, we have restored our software with reliability now exceeding historical levels, reorganized our operations to improve our efficiency and effectiveness and recommitted to delivering the kind of premium experience our customers expect. We recommitted to new product introductions, including the announcement of Amp Multi in January 2026, followed by Sonos Play™ and Sonos Era 100™ SL in March 2026. With every new product, software feature and integration, the Sonos platform becomes more powerful, provides greater value to our customers, and further strengthens our position as the differentiated system for connected home audio. Additionally, we are evolving our marketing strategy to build a strong system narrative aligned with our long-term brand differentiation.

In fiscal 2026, we continued to optimize our organizational structure, workforce, and operational footprint. Key actions included reorganization of certain corporate functions and organizational changes driven by new leadership. Furthermore, we successfully completed the operational exit of a contract manufacturing partnership in the second quarter of fiscal 2026 (initiated in the third quarter of fiscal 2025) to improve supply chain efficiency, and optimized our real estate footprint by reducing office space. We remain focused on continually improving both our operational efficiency and effectiveness.

Macroeconomic Conditions and Other Factors Affecting our Business

Our business has been, and may continue to be, adversely impacted by the potential expansion of tariffs on goods imported into the U.S., as well as any retaliatory tariffs or policies enacted in other countries or any "trade wars." In addition, we have been and expect to continue to be affected by the increases in demand for memory chips and other components caused by the build out of new AI

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technologies and data centers. We also face global macroeconomic challenges such as inflation, ongoing geopolitical conflicts, uncertainty in the financial markets, volatility in exchange rates, and low or negative growth in certain regions.

Global economic and political conditions and uncertainties, as well as global trade tensions and memory supply constraints, have caused and may continue to cause volatility in demand for our products as well as cost of materials and logistics, and as a result may impact our results of operations. We are continuing to evaluate and implement mitigating actions, including evaluating our pricing strategy across the portfolio and new product pipeline, taking measures to manage our expenses and contain costs, leveraging our supply chain flexibility, inventory management and engineering optimization.

For additional information, see Part II, Item 1A "Risk Factors."

Seasonality

Historically, we have typically experienced the highest levels of revenue in the first fiscal quarter of the year coinciding with the holiday shopping season and our promotional activities.

Key Metrics

We use the following key metrics, including measures presented in our condensed consolidated financial statements, to evaluate our business, measure our performance, identify trends affecting our business and assist us in making operational and strategic decisions. Our key metrics are total revenue, products sold, Adjusted EBITDA, and Adjusted EBITDA margin. The most directly comparable financial measure calculated under U.S. GAAP for Adjusted EBITDA is net income (loss). The most directly comparable financial measure calculated under U.S. GAAP for Adjusted EBITDA margin is net income (loss) margin.

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Nine Months Ended"],["","June 27, 2026","","June 28, 2025","","June 27, 2026","","June 28, 2025"],["(In thousands, except percentages)"],["Total revenue","$","375,260","","","$","344,764","","","$","1,202,449","","","$","1,155,376"],["Products sold","1,266","","","1,078","","","3,847","","3,696"],["Net income (loss)","$","29,853","","","$","(3,379)","","","94,765","","","(23,286)"],["Net income (loss) margin(1)","8.0","%","","(1.0)","%","","7.9","%","","(2.0)","%"],["Adjusted EBITDA(2)","$","43,966","","","$","35,589","","","177,822","","","125,936"],["Adjusted EBITDA margin(2)","11.7","%","","10.3","%","","14.8","%","","10.9","%"]]
[[/GREPCENT_TABLE]]

(1)Net income (loss) margin is calculated by dividing net income (loss) by revenue.

(2)For additional information regarding Adjusted EBITDA and Adjusted EBITDA margin (which are non-GAAP financial measures), including reconciliations of net income to Adjusted EBITDA, see the section titled "Non-GAAP Financial Measures" below.

Products Sold

Products sold represents the number of products that are sold during a period, net of returns, and includes units sold from the Sonos speakers and Sonos system products categories, as well as architectural speakers sold through our partnerships from our Partner products and other revenue category. Growth rates between products sold and revenue are not perfectly correlated because our revenue is affected by other variables, such as the mix of products sold during the period, promotional discount activity, the price at which we sell our products, the introduction of new products that may have higher or lower than average selling prices, the impact of foreign exchange rate fluctuations, as well as the impact of recognition of previously deferred revenue.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements presented in accordance with U.S. GAAP, we use Adjusted EBITDA, Adjusted EBITDA margin, and constant currency which are non-GAAP financial measures. 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 from 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

21

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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.

We define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes, legal and transaction related costs, restructuring and other costs, and other items that we do not consider representative of underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.

We present percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. We calculate constant currency growth percentages by translating our current period financial results using the prior period average currency exchange rates and comparing these amounts to our prior period reported results.

These non-GAAP financial measures are not based on standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. Furthermore, other companies may not publish these or similar metrics. These metrics may also have certain limitations as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations and comprehensive income, including stock-based compensation, which has been and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy. Because of these limitations, these non-GAAP financial measures should be considered al

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm
Complete FY 2025 MD&A: /company/SONO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-11-14
Report date: 2025-09-27

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report on Form 10-K, particularly in the section titled "Risk Factors."

We operate on a 52-week or 53-week fiscal year ending on the Saturday nearest September 30 each year. Our fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. References to fiscal 2025 are to our 52-week fiscal year ended September 27, 2025, references to fiscal 2024 are to our 52-week fiscal year ended September 28, 2024, references to fiscal 2023 are to our 52-week fiscal year ended September 30, 2023 and references to fiscal 2022 are to our 52-week fiscal year ended October 1, 2022.

Key Metrics

In addition to the measures presented in our consolidated financial statements, we use the following key metrics to evaluate our business, measure our performance, identify trends affecting our business and assist us in making operational and strategic decisions. Our key metrics are total revenue, products sold, Adjusted EBITDA and Adjusted EBITDA margin. The most directly comparable financial measure calculated under U.S. GAAP for Adjusted EBITDA and Adjusted EBITDA margin are net loss and net loss margin, respectively.

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 27, 2025","","September 28, 2024","","September 30, 2023"],["(In thousands, except percentages)"],["Revenue","$","1,443,276","","","$","1,518,056","","","$","1,655,255"],["Products sold","4,625","","","5,000","","","5,725"],["Net loss","(61,144)","","","(38,146)","","","(10,274)"],["Net loss margin(1)","(4.2)","%","","(2.5)","%","","(0.6","%)"],["Adjusted EBITDA(2)","$","132,291","","","$","107,862","","","$","153,878"],["Adjusted EBITDA margin(2)","9.2","%","","7.1","%","","9.3","%"]]
[[/GREPCENT_TABLE]]

(1)Net loss margin is calculated by dividing net loss by revenue.

(2)For additional information regarding Adjusted EBITDA and Adjusted EBITDA margin (which are non-GAAP financial measures), including reconciliations of net loss to Adjusted EBITDA, see the sections titled "Adjusted EBITDA and Adjusted EBITDA Margin" and "Non-GAAP Financial Measures" below.

Revenue

We generate substantially all of our revenue from the sale of Sonos speakers and Sonos system products. We also generate a portion of revenue from Partner products and other revenue sources, such as architectural speakers from our Sonance partnership, accessories such as speaker stands and wall mounts, professional services, licensing, and advertising revenue.

For a description of our revenue recognition policies, see the section titled "Critical accounting policies and estimates."

Products Sold

Products sold represents the number of products that are sold during a period, net of returns, and includes the sale of products in the Sonos speakers and Sonos system products categories, as well as architectural speakers and module units sold through our Partner products and other revenue category. Growth rates between products sold and revenue are not perfectly correlated because our revenue is affected by other variables, such as the mix of products sold during the period, promotional discount activity, the price at which we sell our products, the introduction of new products that may have higher or lower than average selling prices, the impact of foreign exchange fluctuations, as well as the impact of recognition of previously deferred revenue.

Adjusted EBITDA and Adjusted EBITDA Margin

See the section titled "Results of Operations —Non-GAAP Financial Measures" for information regarding our use of Adjusted EBITDA and Adjusted EBITDA margin, and a reconciliation of net income (loss) to Adjusted EBITDA and net income (loss) margin to Adjusted EBITDA margin.

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Non-GAAP Financial Measures

To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we monitor and consider Adjusted EBITDA, Adjusted EBITDA margin, and constant currency which are non-GAAP financial measures. 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 define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes, legal and transaction related costs, restructuring and other charges, and other items that we do not consider representative of underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.

We also present percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. We calculate constant currency growth percentages by translating our current period financial results using the prior period average currency exchange rates and comparing these amounts to our prior period reported results.

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.

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures, and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which is the nearest U.S. GAAP equivalent of Adjusted EBITDA, and the use of Adjusted EBITDA margin rather than net income (loss) margin, which is the nearest U.S. GAAP equivalent of Adjusted EBITDA margin. These limitations include that the non-GAAP financial measures:

•exclude depreciation and amortization, and although these are non-cash expenses, the assets being depreciated may be replaced in the future;

•exclude stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy;

•do not reflect interest income, primarily resulting from interest income earned on our cash and cash equivalent balances;

•do not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us;

•do not reflect the effect of foreign currency exchange gains or losses, which is included in other income (expense), net;

•do not reflect the provision for or benefit from income tax that may result in payments that reduce cash available to us;

•do not reflect items that are not considered representative of our underlying operating performance which reduce cash available to us; and

•may not be comparable to similar non-GAAP financial measures used by other companies, because the expenses and other items that we exclude in our calculation of these non-GAAP financial measures may differ from the expenses and other items, if any, that other companies may exclude from these non-GAAP financial measures when they report their operating results.

Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP.

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The following table presents a reconciliation of net loss to adjusted EBITDA:

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended"],["","September 27, 2025","","September 28, 2024","","September 30, 2023"],["(In thousands, except percentages)"],["Net loss","$","(61,144)","","","$","(38,146)","","","$","(10,274)"],["Add (deduct):"],["Depreciation and amortization","62,321","","","52,378","","","48,969"],["Stock-based compensation expense","81,564","","","84,294","","","76,857"],["Interest income","(6,934)","","","(11,965)","","","(10,201)"],["Interest expense","465","","","441","","","733"],["Other (income) expense, net","6,498","","","(9,371)","","","(15,473)"],["Provision for income taxes","10,647","","","10,995","","","14,668"],["Legal and transaction related costs (1)","5,384","","","7,383","","","32,950"],["Restructuring and other charges(2)","33,490","","","11,853","","","15,649"],["Adjusted EBITDA","$","132,291","","","$","107,862","","","$","153,878"],["Revenue","1,443,276","","","1,518,056","","","1,655,255"],["Net loss margin","(4.2)","%","","(2.5)","%","","(0.6","%)"],["Adjusted EBITDA margin","9.2","%","","7.1","%","","9.3","%"]]
[[/GREPCENT_TABLE]]

(1)Legal and transaction related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google as well as legal and transaction costs associated with our acquisition activities, which we do not consider representative of our underlying operating performance.

(2)Restructuring and other charges for fiscal 2025 and fiscal 2024, primarily reflect costs associated with our cost transformation initiative including the 2024 restructuring plan, 2025 restructuring plan, rationalization of our product roadmap, and non-recurring costs related to write-offs of assets no longer in use, as well as non-recurring Chief Executive Officer ("CEO") transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to our consolidated financial statements for further information. Restructuring and other charges fiscal 2023, are primarily related to our 2023 restructuring plan and also costs incurred in March 2023 related to the abandonment of portions of our office spaces.

Comparison of Fiscal Years 2025 and 2024

Revenue

[[GREPCENT_TABLE]]
[["","Fiscal Year Ended","","Change from Prior Fiscal Year"],["","September 27, 2025","September 28, 2024","","$","","%"],["(Dollars in thousands)","$","","$"],["Sonos speakers","$","1,121,808","","","$","1,169,604","","","$","(47,796)","","","(4.1)","%"],["% of total revenue","77.7","%","","77.0","%"],["Sonos system products","249,237","","","267,744","","","(18,507)","","","(6.9)"],["% of total revenue","17.3","%","","17.6","%"],["Partner products and other revenue","72,231","","","80,708","","","(8,477)","","","(10.5)"],["% of total revenue","5.0","%","","5.3","%"],["Total revenue","$","1,443,276","","","$","1,518,056","","","$","(74,780)","","","(4.9)","%"],["Volume data (products sold in thousands)","","","","Units","","%"],["Total products sold","4,625","","5,000","","(375)","","(7.5)","%"]]
[[/GREPCENT_TABLE]]

Total revenue decreased $74.8 million, or 4.9% for fiscal 2025 compared to fiscal 2024, driven by challenges resulting from our app rollout in May 2024 and softer de

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/SONO/mda/fy2025/
All MD&A years: /company/SONO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/SONO/mda/fy2024/): filed 2024-11-15; accession 0001314727-24-000026 (https://www.sec.gov/Archives/edgar/data/1314727/000131472724000026/sono-20240928.htm)
- [FY 2023 MD&A](/company/SONO/mda/fy2023/): filed 2023-11-20; accession 0000950170-23-065135 (https://www.sec.gov/Archives/edgar/data/1314727/000095017023065135/sono-20230930.htm)
- [FY 2022 MD&A](/company/SONO/mda/fy2022/): filed 2022-11-23; accession 0000950170-22-025663 (https://www.sec.gov/Archives/edgar/data/1314727/000095017022025663/sono-20221001.htm)
- [FY 2021 MD&A](/company/SONO/mda/fy2021/): filed 2021-11-22; accession 0001314727-21-000039 (https://www.sec.gov/Archives/edgar/data/1314727/000131472721000039/sono-20211002.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3651 Household Audio & Video Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/SONO.md · JSON record: /company/SONO.json · verified financials: /company/SONO/financials.json / /company/SONO/financials.csv · machine TOC for the whole site: /llms.txt