Q3 revenue grew 8.8% to $375.3M, driven by the March 2026 launches of Sonos Play and Era 100 SL (building on the January 2026 Amp Multi announcement), while products sold rose 17.4% to 1.27M units; APAC revenue grew 27.2% and EMEA 17.4%, outpacing Americas at 3.8%. Sonos speakers revenue increased 12.5% to $285.3M, though volume outpaced revenue due to a mix shift toward lower-priced new products.
Sonos completed the operational exit of a contract manufacturing partnership in Q2 fiscal 2026 (initiated in Q3 fiscal 2025) to consolidate and improve supply-chain efficiency, and continued restructuring under CEO Tom Conrad, including reorganization of corporate functions, workforce changes, and partial abandonment of office space. Q3 restructuring charges totaled $4.4M ($4.2M cash, $0.2M non-cash), concentrated in R&D, reflecting ongoing organizational optimization.
Gross margin expanded 700 basis points year-over-year to 50.4%, primarily due to a $23.2M IEEPA tariff refund received in Q3 (recorded as a reduction to cost of revenue) following the February 2026 Supreme Court ruling invalidating certain IEEPA tariffs; approximately $41M in previously paid tariffs remain potentially recoverable. Excluding the tariff refund, margin improvement was driven by pricing changes and lower inventory write-downs, partially offset by higher memory-component costs and unfavorable product mix.
In the Sonos v. Google patent dispute, the stay in the Central District of California lawsuit was lifted and Sonos asserted five additional patents (bringing the total to ten); Google moved to file counterclaims on two of its own patents, with no trial date yet set. Separately, the Federal Circuit overturned the lower court's invalidation of a 2023 jury verdict in Sonos' favor, and the court is now set to decide post-trial motions including injunctive relief. In the reverse suit, all five Google patents were found invalid or non-infringed and final judgment was entered for Sonos, though Google has appealed. The Federal Circuit also affirmed the USPTO's invalidity ruling in the Implicit case, and Implicit's en banc petition was denied.
Adjusted EBITDA rose to $44.0M (11.7% margin) from $35.6M (10.3%) a year earlier. Management flagged rising memory-chip costs driven by AI/data-center buildout, ongoing tariff exposure, and global macroeconomic uncertainty as key operational headwinds, and noted it is evaluating pricing strategy, supply-chain flexibility, and engineering optimization as mitigants.
(Filed on May 5, 2026)
+8.4%
44.3%
$200.2M
Sonos launched three new products during the quarter: Amp Multi (announced January 2026), Sonos Play, and Sonos Era 100 SL (both March 2026), continuing its recommitment to new product introductions under CEO Tom Conrad's leadership.
The company completed the operational exit from a contract manufacturer partnership during Q2 fiscal 2026, a consolidation begun in Q3 fiscal 2025, reporting minimal business disruption; it continues to maintain diversified contract manufacturing partnerships.
The U.S. Supreme Court ruled on February 20, 2026 that certain IEEPA tariffs were invalid; Sonos stated it had paid approximately $40 million in IEEPA-related tariffs that may now be recoverable, but recorded no receivable due to uncertainty over timing, and will recognize any recovery as a reduction to cost of revenue when realized.
Q2 fiscal 2026 revenue was $281.5 million, up 8.4% year over year (4.3% constant currency), with 788,000 units sold (+2.6%); EMEA revenue grew 20.9% (9.1% constant currency) and APAC grew 25.3% (18.1% constant currency); gross margin was 44.3%, up 60 basis points YoY, with cost of revenue pressured by tariff expenses and higher memory component costs attributed in part to AI/data-center demand.
In IP litigation, the Federal Circuit's September 2025 ruling overturning the invalidation of Sonos' Google patent infringement verdict remains in effect with post-trial motions (including injunctive relief and additional damages) pending; separately, the Federal Circuit on March 9, 2026 affirmed that the two patents asserted in the Implicit lawsuit are unpatentable, though Implicit filed for en banc review.
The quarter included $2.4 million in restructuring and other charges tied to non-recurring organizational changes under new leadership, partial abandonment of office space for operational efficiency, and costs of the contract manufacturer exit; the company also disclosed an amended $80 million revolving credit facility (October 2025, maturing October 2030) with no outstanding borrowings as of quarter-end.
(Filed on February 4, 2026)
-0.9%
46.5%
$312.5M
Revenue of $545.7M decreased 0.9% YoY on 3.1% lower unit volume (1,793K products sold). Sonos speakers revenue fell 1.7% as expected declines in Arc, Sub, and portables were partially offset by higher Arc Ultra and Era 100 sales; Sonos system products rose 7.9% driven by higher installed-solutions channel sales. EMEA revenue declined 10.7% on a constant-currency basis.
Operating expenses decreased 20.8% YoY (R&D -26.1%, S&M -24.7%) reflecting the completed cost transformation, including workforce reductions of 6% (Aug 2024) and 12% (Feb 2025) and operational reorganization under new CEO Tom Conrad. Gross margin improved 270 bps to 46.5% (lower product/material costs, fewer inventory write-downs, FX favorability, and net pricing impact, partially offset by increased tariff expenses), and Adjusted EBITDA margin expanded to 24.2% from 16.6%.
Sonos began exiting a partnership with one contract manufacturer in Q3 fiscal 2025 to consolidate and improve supply chain efficiency and expects to complete the exit by Q2 fiscal 2026 with minimal disruption; the company states it continues to maintain diversified contract manufacturing partnerships.
Post-quarter (January 2026), Sonos announced the Amp Multi product as part of a renewed commitment to new product introductions. Management reported that software reliability now exceeds historical levels following the reorganization, and deferred revenue includes amounts related to newly launched products sold to resellers not yet recognized until general availability is reached.
In the ongoing Google IP litigation, the Federal Circuit overturned the lower court's post-trial ruling that had invalidated Sonos' $32.5M jury verdict (based on a $2.30/unit royalty), and the case is now pending post-trial motions including Sonos' motion for injunctive relief and additional damages. Separately, the stay in Sonos' original ITC/District Court lawsuit against Google has been lifted, and Google moved to assert counterclaims on two of its own patents related to device setup; no trial date has been set.
(Filed on November 14, 2025)
+12.7%
43.7%
$174.7M
Q4 FY2025 leadership change: Tom Conrad was appointed permanent CEO in July 2025, concluding his interim role that began in January 2025 when Patrick Spence stepped down as CEO and from the Board; under Conrad, the company reorganized operations, improved software products, and recommitted to delivering a premium customer experience. (Annual context: FY2025 restructuring and other charges of $33.5M included ~$4.7M in non-recurring CEO transition equity modification costs.)
Q4 FY2025 IP litigation: In August 2025, the U.S. Federal Circuit reversed in part a district court post-trial order that had invalidated Sonos's $32.5M jury verdict against Google (the court held Google failed to show prosecution laches prejudice and that the patents were adequately described), remanding for proceedings on Sonos's motions for injunctive relief and additional damages; separately, the ITC case (five patents found infringed, affirmed on appeal) is now in U.S. District Court with Google counterclaims added and no trial date set.
Supply chain consolidation (began Q3 FY2025, ongoing through Q4): Sonos initiated the exit of one contract manufacturer partnership to consolidate and improve supply chain efficiency, with completion expected by Q2 FY2026 and minimal disruption anticipated; manufacturing remains diversified across Vietnam, China, and Malaysia. (Annual context: approximately 53% of FY2025 finished-goods purchases came from a single vendor; open finished-goods purchase orders at September 27, 2025 were ~$173M, and expected component commitments were $131M–$149M.)
Q4 FY2025 tax legislation: The One Big Beautiful Bill Act (OBBBA) was enacted July 4, 2025; Sonos determined it had no material effect on FY2025 results but expects provisions including accelerated cost recovery of qualified property and immediate expensing of U.S.-based R&D costs to significantly reduce U.S. income tax expense in FY2026. (Annual context: Sonos maintains a full valuation allowance of $238.3M on its U.S. deferred tax assets as of September 27, 2025.)
(Annual context – FY2025, not Q4-only) Full-year revenue declined 4.9% to $1,443.3M, attributed to May 2024 app-redesign rollout issues and softer demand, partially offset by the October 2024 Arc Ultra launch; products sold fell 7.5% to 4.63M units; gross margin compressed ~170 bps to 43.7%; net loss widened to $61.1M. Installed base reached ~53.4M registered products in ~17.1M households; 61% of households owned more than one product (3.13 average per household), and existing customers drove ~45% of new product registrations.
(Annual context – FY2025, not Q4-only) Cost transformation: The initiative (initiated H2 FY2024) included workforce reductions of ~6% in August 2024 and ~12% in February 2025, product roadmap rationalization, and asset write-offs, totaling $33.5M in FY2025 restructuring and other charges; year-end headcount was ~1,404 full-time employees (931 U.S., 473 international). New products introduced during FY2025 included Arc Ultra and Sub Gen 4 (October 2024) and Era 100 Pro, the company's first speaker optimized for professional/light-commercial installation with PoE+ connectivity (January 2025).
