Core Insights - Coliseum Capital Management has increased its stake in Sonos to approximately 12% following a purchase of 1,737,176 shares, valued at $93.28 million [1][2] - The total value of Coliseum's position in Sonos reached $235.9 million by the end of the third quarter, reflecting both additional purchases and stock price appreciation [2] - Sonos shares have appreciated by 32% over the past year, outperforming the S&P 500 by 17 percentage points [3] Company Overview - Sonos is a technology company focused on consumer electronics, particularly wireless audio systems, providing multi-room listening experiences through both hardware and software [5][7] - The company operates a hybrid business model, utilizing direct-to-consumer sales and third-party retail distribution through approximately 10,000 partner stores [7][14] - Sonos reported a total revenue of $1.44 billion and a net income of -$61.14 million, with a market capitalization of $2.12 billion as of November 25, 2025 [4] Investment Context - Coliseum Capital's recent purchases indicate a bullish sentiment towards Sonos, despite the company's struggles with revenue and earnings growth over the past five years [8][10] - The firm is known for its activist investing approach, which may involve cost-cutting measures or management changes to enhance shareholder value [10][11] - Sonos is viewed as a potential turnaround stock, appealing to activist investors like Coliseum [11]

Core Insights - Black Friday sales are already offering significant discounts on soundbars, with major brands like Sonos and Vizio leading the way [1][21] - The Sonos Arc Ultra is highlighted as a premium option, currently priced at $879, down from $1,099, representing a 20% discount [6] - Vizio's SV200M soundbar is noted as an affordable choice at $78, down from $99.99, which is a 22% savings [9] Soundbar Deals - The Sonos Arc Ultra features a 9.1.4-channel Dolby Atmos setup, providing immersive audio without the need for additional speakers [2][6] - The Vizio SV200M is a compact two-channel soundbar that offers good stereo separation and Bluetooth support, although its Dolby Atmos capabilities are limited [9] - The Bose Smart Soundbar is available for $399, down from $499, offering AI-enhanced dialogue and Bluetooth support, but lacks HDMI video passthrough [12] Additional Recommendations - The Vizio 2.1-channel soundbar is priced at $149.99, down from $169.99, providing decent sound quality with a wireless subwoofer, though it has limited Dolby Atmos performance [17] - The Sony Bravia Theater Quad System is available for $2,198, down from $2,699.99, featuring Dolby Atmos and DTS:X support for an immersive audio experience [18] - The Samsung Q990F is recommended as the best overall soundbar, featuring an 11.1.4-channel system with rear speakers and a subwoofer [18][19]

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 27, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38603 _______________________________________________________ SONOS, INC. (Exact name of Registrant as specified in its char ...

Core Viewpoint - Morgan Stanley upgraded Sonos Inc.'s investment rating to "equal weight" from "underweight" following the company's fourth-quarter results [4] Group 1 - The upgrade reflects Morgan Stanley's positive assessment of Sonos Inc.'s self-help story [5]

Core Insights - Sonos, Inc. reported a non-GAAP loss per share of 6 cents for Q4 fiscal 2025, missing the Zacks Consensus Estimate of 5 cents, but improved from a loss of 18 cents in the prior year quarter [1][8] - Quarterly revenues increased by 12.7% year over year to $287.9 million, aligning closely with the company's guidance of $260 million to $290 million [2][8] - Following the earnings announcement, Sonos shares rose approximately 3% in pre-market trading, with a 22.5% increase in share price over the past year compared to the industry growth of 51.2% [2] Revenue Performance - Revenue from Sonos speakers was $206.5 million, reflecting a 15.6% year-over-year increase [3] - System products generated revenues of $65.2 million, up 11.1% year over year [3] - Partner products and other revenues totaled $16.2 million, down 12.2% year over year [3] - Regionally, revenues from the Americas were $191.9 million, up 8.1%, while Europe, the Middle East, and Africa saw revenues of $77.5 million, up 32.9%. Asia Pacific revenues decreased by 5.3% to $18.5 million [3] Margin and Expense Analysis - Non-GAAP gross profit was $130 million, a 24.2% increase year over year, although the non-GAAP gross margin contracted by 410 basis points to 45.1% [4] - Adjusted operating expenses were $134.6 million, down 5.9% year over year, within the guidance range [5] - Non-GAAP R&D expenses declined by 4.3%, while G&A expenses increased by 7.3%, and sales and marketing expenses decreased by 11.1% [6] Cash Flow and Liquidity - Sonos generated $2.9 million in cash from operations, with free cash flow usage decreasing significantly to $2.3 million from $53.5 million in the same period last year [10] - As of September 27, cash and cash equivalents stood at $174.7 million, down from $201.3 million as of June 28, 2025, with no debt reported [10] Share Repurchase Activity - In Q4, Sonos spent $20 million on share repurchases, totaling 5.7 million shares for $81 million in the full fiscal 2025 [11] - The company has $130 million remaining under its current share repurchase authorization [11] Fiscal Q1 Guidance - For Q1 fiscal 2026, Sonos projects revenue between $510 million and $560 million, indicating a year-over-year change of negative 7% to positive 2% [12] - Expected GAAP gross margin is between 44% and 46%, with non-GAAP gross margin anticipated to improve by over 100 basis points year over year [13] - Adjusted EBITDA is projected between $94 million and $137 million, reflecting a 27% year-over-year increase [14]

Group 1 - The Q3 earnings season indicates that 2026 will present challenges for investors due to high valuations and significant post-earnings declines in many companies [1] - The experience of analysts covering technology companies and working in Silicon Valley highlights the evolving themes within the industry [1]

Core Insights - The audio equipment company has appointed Colleen DeCourcy as the new chief marketing officer to help recover revenue and customer base after a challenging year in 2024 [1] Company Strategy - The company is focused on regaining lost revenue and attracting customers following a significant downturn in 2024 [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $288 million, reflecting a 13% year-over-year growth, near the high end of guidance [16] - GAAP gross margin was 43.7%, while non-GAAP gross margin was 45.1%, both at the high end of guidance, with improvements of nearly 340 basis points and over 400 basis points year-over-year respectively [17] - Adjusted EBITDA was positive $6 million, a $29 million improvement year-over-year, driven by higher revenue, better gross margin, and lower operating expenses [18] - For fiscal 2025, total revenue was $1.44 billion, a 5% decline year-over-year, but adjusted EBITDA increased 23% to $132 million [21][22] Business Line Data and Key Metrics Changes - Strong double-digit growth was observed in home theater and plugins, contributing significantly to overall growth [16] - The installed base grew 5% to 17.1 million households, with devices per average household increasing to 3.13, up 2% year-over-year [21] Market Data and Key Metrics Changes - EMEA saw strong double-digit growth, and growth markets more than doubled in Q4, contributing over a quarter of overall growth [16] - The company retained its number one position in the US Premium Home Theater market for the third consecutive year and improved its share in EMEA [20] Company Strategy and Development Direction - The company is shifting focus to a cohesive system that integrates various audio experiences, moving away from a fragmented product approach [6][10] - Future strategies include leveraging the installed base to increase household engagement and lifetime value, with a goal of growing devices per multiproduct household to 6 [11] - The company aims to expand its market share in the $24 billion global premium audio market, currently holding only 6% [11] Management's Comments on Operating Environment and Future Outlook - Management characterized fiscal 2025 as a transitional year, with optimism for fiscal 2026 as a new chapter focusing on cohesive system experiences and new product launches [48][50] - The company is committed to improving efficiency, regaining profitability, and investing in long-term growth while navigating tariff impacts [26][44] Other Important Information - The company reduced operating expenses by over $100 million and maintained healthy margins despite tariff impacts [12][18] - Share repurchases totaled $81 million for fiscal 2025, reducing the share count by 1.3% [19] Q&A Session Summary Question: Will Sonos bring AI capabilities in-house? - Management indicated that Sonos will be a platform for both third-party and first-party AI experiences, similar to past integrations with Alexa and Google Assistant [29] Question: What is the promotional strategy for the holiday season? - Management noted ongoing monitoring of demand and tariff mitigation strategies, with usual promotional activities planned for the holiday season [30] Question: How will Sonos stimulate the installed base? - The company is focusing on a pricing strategy aimed at improving household acquisitions and maximizing customer lifetime value through targeted marketing [31][32] Question: How is Sonos managing tariff costs? - Management explained that they have mitigated tariff impacts through pricing strategies and collaboration with channel partners, expecting a manageable overall margin impact [44][45] Question: How does management view fiscal 2026? - Management expressed excitement about entering a new chapter, focusing on executing the new strategy and enhancing marketing efforts [48][50]

Financial Performance - FY25 revenue reached $1.44 billion[24], representing a 6% share of the global premium audio market[24] - The FY25 GAAP gross margin was 43.7%[24], while the non-GAAP gross margin was 45.2%[24] - Adjusted EBITDA for FY25 was $132 million[26], with a 9.2% margin, a 23% year-over-year increase[26] - Non-GAAP EPS for FY25 was $0.64, a 31% year-over-year increase[92] Customer Base and Product Adoption - Sonos has over 17 million households worldwide[24] - The average number of products per household is 3.13[24] - 45% of product registrations come from existing customers[24] - Households listen to Sonos an average of 2.6 hours per day, a 5% year-over-year increase[79] Market Opportunity and Growth - Sonos estimates a $24 billion total addressable market (TAM) in global premium audio[31] - The company's current market share is 6%[60], leaving a significant untapped opportunity[60] - There is a $12 billion revenue opportunity within the existing installed base[31]