Business Wire English

Sonos Reports Second Quarter Fiscal 2026 Results

5 Maggio 2026

Q2 Revenue near high end of guidance range, Adjusted EBITDA above midpoint

SANTA BARBARA, Calif.--(BUSINESS WIRE)--$SONO--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.

Contacts

Investor Contact
James Baglanis
IR@sonos.com

Press Contact
PR@sonos.com

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