Sonos (NASDAQ: SONO) stock jumped 4.9% through 12:15 p.m. ET Wednesday after beating on top and bottom lines in its fiscal Q1 2026 earnings announcement last night. Heading into the report, analysts forecast Sonos to earn $0.68 per share (adjusted for one-time items) on sales of $536.9 million. Instead, Sonos reported an adjusted profit of $0.93 per share on sales of $546 million. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, whe ...

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Sonos (SONO) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.81 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +14.82%. A quarter ago, it was expected that this maker of wireless speakers and home sound systems would post earnings of $0.05 per share when it actually produced a loss of $0.06, delivering a surprise of -220%.Over the la ...

Financial Performance - Total revenue for the three months ended December 27, 2025, was $545.662 million, a decrease of $5.2 million or 0.9% compared to the same period in 2024[101] - Net income for the same period was $93.798 million, resulting in a net income margin of 17.2%, up from 9.1% in the prior year[92] - Adjusted EBITDA for the three months ended December 27, 2025, was $132.139 million, with an Adjusted EBITDA margin of 24.2%, compared to 16.6% in the previous year[92] - The volume of products sold decreased by 3.1%, totaling 1.793 million units for the three months ended December 27, 2025[103] Revenue Breakdown - Revenue from Sonos speakers, which accounted for 84.2% of total revenue, decreased by 1.7% to $459.240 million[102] - Sonos system products revenue increased by 7.9% to $65.058 million, representing 11.9% of total revenue[102] - Revenue from Partner products and other sources decreased by 8.9% to $21.364 million, making up 3.9% of total revenue[102] - The Americas region saw a revenue increase of 1.3%, while EMEA and APAC regions experienced declines of 4.1% and 4.6%, respectively[104] Cost and Expenses - Cost of revenue decreased by $17.2 million, or 5.6%, to $292.2 million for the three months ended December 27, 2025, compared to $309.5 million for the same period in 2024[108] - Gross profit increased by $12.1 million, or 5.0%, to $253.5 million for the three months ended December 27, 2025, compared to $241.4 million for the same period in 2024[106] - Gross margin improved by 270 basis points to 46.5% for the three months ended December 27, 2025, compared to 43.8% for the same period in 2024[110] - Research and development expenses decreased by $21.1 million, or 26.1%, to $59.8 million for the three months ended December 27, 2025, compared to $80.8 million for the same period in 2024[114] - Sales and marketing expenses decreased by $21.4 million, or 24.7%, to $65.3 million for the three months ended December 27, 2025, compared to $86.6 million for the same period in 2024[116] - General and administrative expenses increased by $2.2 million, or 8.4%, to $28.0 million for the three months ended December 27, 2025, compared to $25.8 million for the same period in 2024[118] Cash Flow and Investments - Net cash provided by operating activities for the three months ended December 27, 2025, was $163.3 million, an increase from $156.2 million in the same period last year[130] - Cash used in investing activities was $4.1 million, primarily due to purchases of marketable securities of $12.5 million and property and equipment of $6.0 million, offset by maturities of marketable securities of $14.4 million[131] - Cash used in financing activities totaled $23.4 million, mainly for common stock repurchases of $25.0 million and tax-related stock repurchases of $10.9 million, partially offset by proceeds from stock options of $13.2 million[132] - The net increase in cash and cash equivalents for the period was $137.8 million, compared to $110.2 million in the prior year[129] - As of December 27, 2025, cash and cash equivalents totaled $312.5 million, including $195.7 million held by foreign subsidiaries[123] Foreign Exchange and Risk - The company recognized a foreign currency exchange gain of $0.4 million for the three months ended December 27, 2025, compared to a loss of $6.0 million in the same period last year[138] - A hypothetical adverse change of 10% in foreign currency exchange rates would have resulted in an adverse impact on income before taxes of approximately $9.2 million for the current quarter[138] - The company has not entered into any material foreign exchange contracts or derivatives to hedge foreign currency exposures, increasing its risk from exchange rate fluctuations[137] - The company’s international sales are primarily denominated in foreign currencies, which could impact revenue due to exchange rate movements, particularly with the euro and British pound[136] Strategic Initiatives - The company is focused on cost transformation initiatives, including workforce reductions of 6% in August 2024 and 12% in February 2025, to improve operational efficiency[87] - Future product introductions include the announcement of Amp Multi in January 2026, aimed at enhancing the Sonos platform's value and capabilities[86]

Sonos (NasdaqGS:SONO) Q1 2026 Earnings call February 03, 2026 04:30 PM ET Company ParticipantsErik Woodring - Managing Director of Equity ResearchJames Baglanis - Head of Corporate FinanceSaori Casey - CFOTom Conrad - CEOConference Call ParticipantsSteve Frankel - Director of Research and Senior Research AnalystNone - AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sonos first ...

Sonos (NasdaqGS:SONO) Q1 2026 Earnings call February 03, 2026 04:30 PM ET Company ParticipantsErik Woodring - Managing Director of Equity ResearchJames Baglanis - Head of Investor RelationsSaori Casey - CFOTom Conrad - CEOConference Call ParticipantsSteve Frankel - Director of Research and Senior Research AnalystNone - AnalystOperatorLadies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sonos firs ...

Sonos (NasdaqGS:SONO) Q1 2026 Earnings call February 03, 2026 04:30 PM ET Speaker2Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sonos first quarter fiscal 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star f ...

The Power of the Sonos System Investor Presentation 1Q26 Earnings February 2026 The Power of the Sonos System Era 100 Era 300 Sonos Ace Arc Ultra Sub 4 Era 100 Roam 2 Move 2 Sonos and Sonance Amp Amp Sonos and Sonance Sonos and Sonance Forward-looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal quarter ending March 28, 2026 and our first half of fiscal year 2026 ...

Financial Performance - Q1 Fiscal 2026 revenue reached $546 million, exceeding the midpoint of the guidance range[6] - Adjusted EBITDA for Q1 increased by 45% year-over-year, totaling $132 million, generating more profit than all of Fiscal 2025 combined[2][6] - GAAP net income for Q1 was $94 million, with a diluted EPS of $0.75, compared to $50.2 million and $0.40 in the same quarter last year[6][8] - Non-GAAP net income for Q1 was $116 million, with a diluted EPS of $0.93, reflecting strong financial performance[6][8] - GAAP gross margin improved to 46.5%, while Non-GAAP gross margin reached 47.5%, up from 43.8% and 44.7% respectively in the prior year[6][11] - The company reported a significant reduction in operating expenses, totaling $153 million, down from $193 million year-over-year[8] - Cash and cash equivalents increased to $312.5 million, up from $174.7 million at the end of the previous quarter[9][10] - Total assets increased to $947.9 million, compared to $823.3 million in the previous quarter[9] - Free cash flow for the period was $157,349,000, compared to $143,067,000 in the previous year, indicating a growth of 10%[18] - Non-GAAP net income increased to $115,504,000 from $85,266,000, reflecting a growth of 35.4%[17] - Adjusted EBITDA for the three months ended December 27, 2025, was $132,139,000, up from $91,173,000 in 2024, marking a 45% increase[14] - Stock-based compensation expense for the three months ended December 27, 2025, was $15,191,000, down from $25,334,000 in 2024, a reduction of 40%[20] Revenue Breakdown - Total revenue for the three months ended December 27, 2025, was $545,662,000, a decrease of 0.2% from $550,857,000 in the same period of 2024[18] - The Americas generated $328,877,000 in revenue, a slight increase from $324,583,000 in 2024, while Europe, Middle East, and Africa revenue decreased to $189,441,000 from $197,612,000[19] Strategic Initiatives - Sonos announced the launch of Amp Multi, indicating a focus on product innovation and global expansion[2] - The company is committed to operational discipline while reinvesting for long-term growth[2] - Sonos has successfully expanded its direct-to-consumer channel, contributing to overall growth and business strategies[24] - The company emphasizes the importance of maintaining relationships with channel, distribution, and technology partners to support growth[24] - Sonos continues to innovate with new products and technologies, aiming to strengthen its market position[24] Challenges and Risks - Sonos continues to face supply chain challenges, including shipping and logistics issues, which may impact product availability[24] - Future performance will depend on the company's ability to meet product demand and manage any delays in availability[24] - Sonos has outlined various risk factors in its SEC filings, which could impact future performance[24] - The company has no obligation to update forward-looking statements, reflecting a cautious approach to future projections[24] Operational Focus - The company emphasizes the importance of non-GAAP measures to evaluate operating performance and trends, which are not necessarily comparable to GAAP measures[21] - Sonos is committed to protecting its brand and intellectual property, which is crucial for competitive advantage[24] - The use of artificial intelligence is a key focus area for Sonos, potentially enhancing product offerings and customer experience[24]