Sonos, Inc. (SONO) AI Stock Analysis

Sonos, Inc. is a provider of multi-room audio products operating globally across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company designs, develops, manufactures, and sells wireless speakers, home theater speakers, components, and accessories. Sonos distributes its products through a network of approximately 10,000 third-party retail stores, including specialized installers of home audio systems and e-commerce retailers, as well as direct-to-consumer through its website, sonos.com. Founded in 2002 and based in Santa Barbara, California, Sonos focuses on user experience and audio engineering to enhance home entertainment environments.

Between FY2021 and FY2025, Sonos experienced mixed revenue trends, peaking at $1.75B in FY2022 before declining to $1.44B in FY2025 with a negative growth rate of 4.9%. Net income shifted from $158.6M in FY2021 to a loss of -$61.1M in FY2025, while gross margin decreased from 47.2% to 43.7%. Operating margin also dipped into negative territory at -3.5% in FY2025. Over the trailing twelve months, revenue reached $1.49B with an operating margin of 4.4% and net profit margin of 3.8%. In the latest quarter ended June 30, 2026, revenue increased 8.8% year-over-year, and quarterly earnings grew 87.5%.

As of June 30, 2026, Sonos held $261.0M in cash and short-term investments against $50.2M in total debt, resulting in a net cash balance of $210.8M. Its current ratio stood at 1.61, with a low debt-to-equity ratio of 0.12 and total shareholders' equity of $403.5M. In FY2025, the business generated $136.9M in operating cash flow and $108.2M in free cash flow. Capital allocation that year included $28.7M in capital expenditures and $81.0M deployed toward share buybacks, contributing to a 15.0% reduction in share count over 5 years.

Sonos carries a market capitalization of $2.05B and an enterprise value of $1.82B. It trades at a trailing P/E of 38.5x and a forward P/E of 37.3x, both above the median of its US-listed Technology peers (28.1x and 18.8x, respectively). However, its price-to-sales multiple of 1.4x and EV/EBITDA of 14.9x are lower than the peer medians of 2.8x and 16.6x. Over the past year, SONO shares gained 5.2%, trailing the S&P 500 return of 16.8%, and the stock has dropped 45.3% over the last 5 years compared to an 83.0% gain for the index.

Wall Street coverage includes 3 Strong Buy ratings, 1 Hold rating, and zero Sell ratings. The mean price target is $18.62, representing a 7.4% upside compared to the last close of $17.34. For the current fiscal year ending September 30, 2026, analysts estimate EPS of $1.22 on revenue of $1.53B. Sonos has beaten EPS expectations in 2 of the last 4 quarters, and its next earnings date is scheduled for November 4, 2026.

This page is an AI-written research summary of Sonos, Inc. (SONO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SONO income statement, SONO balance sheet, SONO key metrics, SONO analyst forecast, SONO chart. See the SONO stock overview for the latest quote and news.