Sonos (SONO) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: N/A
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -10.02%
• EPS Growth: -385.04%
• Country: US
• Employees: 1,708
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.03
• Shares Outstanding: 120,880,280
• 10 Day Avg. Volume: 1,023,083
• 30 Day Avg. Volume: 1,478,557
• PEG Ratio: -0.14
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 11.12
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: -36.39
• 1Y Price Target: $13.77
• Price Target Upside: -19.80% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $14.00 ▼(-18.46% Downside)

Sonos' overall stock score is primarily impacted by its financial performance challenges, including declining revenue and profitability. The technical analysis shows positive momentum, which is a strong point. However, the negative valuation metrics and mixed earnings call sentiment highlight ongoing risks. The absence of corporate events further emphasizes the need for strategic improvements.

Positive Factors

Operational Efficiency

Sonos' ability to reduce operating expenses by 15% year-over-year indicates strong operational efficiency, which can enhance profitability and financial health over the long term.

Brand Strength

Being the top home theater brand in the U.S. underscores Sonos' strong brand equity and competitive advantage, supporting sustained market leadership and customer loyalty.

Free Cash Flow Improvement

The improvement in free cash flow from negative to positive indicates better cash management, enhancing Sonos' ability to invest in growth opportunities and maintain financial stability.

Negative Factors

Revenue Decline

A 13% year-over-year revenue decline highlights ongoing challenges in maintaining growth, which could affect long-term financial performance and market position.

Tariff Challenges

Tariff-related costs and necessary price adjustments can pressure margins and affect competitiveness, posing a risk to profitability and pricing strategy.

Cyclical Market Challenges

Cyclical challenges in the market, including weak housing data, may hinder growth prospects, impacting Sonos' ability to expand its market share and revenue base.

Sonos Business Overview & Revenue Model

Company Description

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.

How the Company Makes Money

Sonos generates revenue primarily through the sale of its hardware products, including wireless speakers, soundbars, and accessories. A significant portion of its earnings comes from direct sales to consumers via its online platform and retail partnerships with major electronics retailers. Additionally, Sonos has established partnerships with various music streaming services, which enhance the functionality of its devices and drive customer engagement. The company also benefits from software and service offerings, such as premium features and subscription services that may be bundled with its products. Seasonal promotions and new product launches further contribute to revenue fluctuations, making product innovation and customer loyalty critical to its financial success.

Sonos Financial Statement Overview

Summary

Sonos faces challenges across its financial statements, with declining revenue and profitability, a stable but unprofitable balance sheet, and weak cash flow performance. The company needs to address operational inefficiencies and improve profitability to enhance its financial health.

Income Statement

Sonos has experienced declining revenue over the TTM period with a negative revenue growth rate of -3.58%. The gross profit margin has decreased slightly from previous years, indicating pressure on profitability. The net profit margin is negative, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, highlighting operational challenges. Overall, the income statement shows declining performance and profitability issues.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.14, indicating a manageable level of leverage. However, the return on equity is negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is stable, suggesting a reasonable proportion of equity financing. Overall, the balance sheet is stable but lacks profitability.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow growth is negative, indicating cash flow challenges. The operating cash flow to net income ratio is positive, showing some ability to generate cash from operations despite losses. However, the free cash flow to net income ratio is below 1, indicating insufficient free cash flow relative to net income. Overall, cash flow performance is weak with declining trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	1.41B	1.52B	1.66B	1.26B	1.14B	992.53M
Gross Profit	607.76M	689.37M	716.49M	527.34M	489.31M	456.06M
EBITDA	-30.24M	25.67M	54.10M	37.84M	30.05M	22.77M
Net Income	-76.38M	-38.15M	-10.27M	-4.77M	-15.60M	-14.22M
Balance Sheet
Total Assets	834.40M	916.31M	1.00B	761.61M	587.50M	400.02M
Cash, Cash Equivalents and Short-Term Investments	253.95M	221.16M	220.23M	338.64M	220.93M	130.59M
Total Debt	55.15M	64.14M	56.11M	33.17M	39.76M	39.60M
Total Liabilities	435.10M	487.69M	483.58M	480.68M	379.14M	399.99M
Stockholders Equity	399.31M	428.62M	518.66M	280.93M	208.36M	27.00K
Cash Flow
Free Cash Flow	57.03M	134.66M	50.12M	97.41M	-5.18M	30.41M
Operating Cash Flow	96.21M	189.91M	100.41M	120.64M	30.57M	63.96M
Investing Cash Flow	-41.26M	-105.24M	-50.29M	-23.22M	-35.75M	-33.55M
Financing Cash Flow	-82.83M	-137.31M	-108.59M	21.90M	94.37M	23.95M

Sonos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONO, the sentiment is Positive. The current price of 17.17 is above the 20-day moving average (MA) of 17.02, above the 50-day MA of 15.79, and above the 200-day MA of 12.36, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 57.23 is Neutral, neither overbought nor oversold. The STOCH value of 39.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONO.

Sonos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBCH	―	$334.73M	18.03	17.97%	―	24.09%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SONO	―	$2.08B	―	-17.69%	―	-10.02%	-385.04%
GPRO	―	$316.82M	―	-76.81%	―	-19.83%	73.22%
ZEPP	―	$580.18M	-8.36	-28.36%	―	-18.94%	-197.82%
KOSS	―	$45.67M	-208.19	―	―	11.58%	81.08%
UEIC	―	$51.88M	-3.11	-10.48%	―	4.00%	62.67%

Sonos Corporate Events

Sonos Inc Navigates Earnings Amid Market Challenges

Sonos Inc’s recent earnings call paints a picture of a company adeptly managing operational efficiencies and cost reductions amidst external challenges. While Sonos continues to demonstrate brand strength and leadership in the wireless home audio market, it faces hurdles from tariff impacts and a cyclical downturn in market demand. The sentiment is cautiously optimistic, buoyed by strategic software enhancements, yet tempered by revenue declines and broader market challenges.

Sonos Inc. Exceeds Revenue Expectations in Q3 2025

Sonos Inc., headquartered in Santa Barbara, California, is a leading brand in the sound experience sector, known for its innovation in multi-room wireless home audio systems that offer users access to a wide range of audio content with ease of control and high-quality sound.

Sonos Appoints Tom Conrad as CEO and President

On July 22, 2025, Sonos appointed Tom Conrad as Chief Executive Officer and President, following his interim CEO role since January 2025. Under his leadership, Sonos has made significant progress, including enhancing software and product experiences, and launching new innovations. His appointment is expected to lead Sonos into a new phase of growth, focusing on customer satisfaction, innovation, and leveraging technology to create more immersive and intelligent experiences.

The most recent analyst rating on (SONO) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on Sonos stock, see the SONO Stock Forecast page.