Sonos reported fourth‑quarter revenue of $287.9 million, a 13% year‑over‑year increase that surpassed consensus estimates of $283.1 million by $4.8 million. The company’s non‑GAAP earnings per share were $‑0.06, a beat of $0.24 to the consensus of $‑0.24 and $0.47, while GAAP diluted loss per share was $‑0.31 versus an estimate of $‑0.29. The earnings beat was driven by disciplined cost management, a higher‑margin product mix that included the Arc Ultra soundbar and Ace headphones, and stronger demand in EMEA and growth markets.
Sonos’s adjusted EBITDA swung to $6.4 million, a turnaround from the $22.6 million loss reported in Q4 2024. The improvement reflects the company’s cost‑transformation program, which has reduced operating expenses and increased the share of higher‑margin products. The positive EBITDA also signals that the company’s focus on a unified sound platform is beginning to generate sustainable profitability.
Revenue growth was supported by the launch of the Arc Ultra in October 2024 and the Ace headphones in June 2024, which together contributed a significant portion of the quarter’s top line. EMEA markets added 12% to revenue, while growth‑market segments such as Asia‑Pacific and Latin America added 8%. The company’s core U.S. consumer segment remained flat, but the higher‑margin enterprise and professional audio lines offset the dip, illustrating the effectiveness of the product‑mix shift.
Management guided for Q1 2026 revenue of $510 million to $560 million and a gross margin of 44% to 46%. The guidance represents a modest upside to the prior outlook and signals confidence in continued demand momentum and the effectiveness of the cost‑control initiatives. The company also reiterated its focus on investing in software and ecosystem integration to support long‑term growth.
CEO Tom Conrad said the quarter “marks a strong finish to a transitional year” and that the company is “building a unified platform for the home.” CFO Saori Casey added that the firm “closed out Fiscal 2025 on a high note” and that it will “remain disciplined as we focus on returning to durable top‑line growth.”
Following the release, Sonos shares were up 3.94% at $17.05, with pre‑market trading showing a 6.83% gain. The market reaction was driven primarily by the non‑GAAP EPS beat and the revenue beat, which together underscored the company’s ability to generate profitability while sustaining growth.
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