Sonos (SONO) investor relations material

Executive summary

• FY26 revenue rose 7% to $1.547B, or 5% excluding the 53rd week; adjusted EBITDA grew 39% to $183.8M despite higher memory costs.

• Q4 revenue increased 20% to $344M, or 11% excluding the 14th week; revenue, gross margin and adjusted EBITDA exceeded the midpoint of guidance.

• Five product launches, Sonos 27 and the system strategy support plans for another year of revenue growth in FY27.

Financial highlights

• FY26 non-GAAP gross margin was 45.5%, up 30 bps; non-GAAP OpEx fell 3% to $554M.

• FY26 adjusted EBITDA was $183.8M, up 39%, with an 11.9% margin; higher memory costs reduced it by $56M, and excluding that impact it would have been $240M.

• FY26 non-GAAP diluted EPS rose 92% to $1.23; GAAP net income was $89.6M, including tariff refunds and related interest.

• Q4 non-GAAP gross margin was 42.1%; adjusted EBITDA was $6.0M, flat YoY, and would have been $39M excluding $33M of higher memory costs.

• FY26 free cash flow increased 14% to $123M; operating cash flow rose 6% to $145M.

Outlook and guidance

• Q1 revenue guidance is $570M–$630M, representing 4%–15% YoY growth and 10% growth at the midpoint; constant-currency midpoint growth is 11%.

• Q1 GAAP gross margin is expected at 36%–37%, with non-GAAP margin ~90 bps higher; memory and component costs could pressure YoY margin by ~1,200 bps, with nearly 100 bps from currency.

• Q1 adjusted EBITDA guidance is $73M–$111M, with a $92M midpoint; excluding higher memory costs, it would be $165M, up 25% YoY.

• FY27 revenue is expected to grow; memory mitigation actions target ~500 bps of annualized gross-margin improvement by year-end, alongside pricing and channel-mix initiatives.

• Product launches, marketing, geographic expansion and customer advocacy are expected to support another year of growth.