Embedding AI in Sonos workflows is creating a new benchmark for efficiency, operational intelligence and risk mitigationNEW YORK, Feb. 23, 2026 (GLOBE NEWSWIRE) -- EXL [Nasdaq: EXLS], a global data and AI company, today announced a critical transformation initiative with Sonos (Nasdaq: SONO), the world’s leading sound experience company, and Amazon Web Services (AWS). This unique collaboration deploys agentic AI within Sonos IT service management (ITSM) workflows, aiming to create a new benchmark for effici ...

Core Insights - Coliseum Capital Management, LLC, a 10% owner of Sonos, purchased 647,210 shares valued at approximately $10.18 million between February 12 and February 17, 2026 [1][2]. Company Overview - Sonos, Inc. is a leading designer and manufacturer of premium multi-room audio products, including wireless speakers, home theater systems, audio components, and accessories [5]. - The company's market capitalization is $1.86 billion, with a current share price of $15.41 and a revenue of $1.44 billion for the trailing twelve months [4]. Recent Developments - Sonos announced the upcoming release of the Sonos Amp Multi, a multi-channel streaming amplifier, expected to be priced over $1,000, targeting users with large homes and office spaces [6][7]. - The weighted-average purchase price of $15.73 per share closely tracked Sonos's trading range during the acquisition period [8]. Transaction Details - The acquisition was executed by Coliseum Capital Management and various affiliate entities, with a total of 647,210 shares traded [2][8]. - Post-transaction, Coliseum Capital Management holds approximately 16,310,563 shares indirectly [2].

Sonos (SONO) closed the last trading session at $15.6, gaining 1.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $20 indicates a 28.2% upside potential.The average comprises three short-term price targets ranging from a low of $18.00 to a high of $21.00, with a standard deviation of $1.73. While the lowest estimate indicates an increase of 15.4% from the current price level, the ...

Group 1: Earnings Performance - Sonos stock increased by 4.9% after reporting fiscal Q1 2026 earnings that exceeded analyst expectations, with an adjusted profit of $0.93 per share on sales of $546 million, compared to forecasts of $0.68 per share and $536.9 million in sales [1] - Despite beating estimates, revenue was down 1% from the previous year's Q1 [2] Group 2: Cost Management - Sonos significantly reduced costs across various areas, including a 26% year-over-year decrease in research and development spending, which may negatively impact the attractiveness of its audio products in the long term [3] - The company's per-share profit under GAAP nearly doubled year-over-year to $0.75, and free cash flow improved by about 3% to $150.8 million [4] Group 3: Investment Considerations - Sonos reported negative earnings for 2025 and has incurred losses in each of the last four years, but its free cash flow stands at a healthy $122.5 million, leading to a valuation of 15 times free cash flow [5] - The current cash flow situation supports a positive outlook on Sonos stock as a potential buy [6]

Group 1 - The stock market in 2026 is experiencing volatility while maintaining all-time highs achieved in 2025 [1] - The Q4 earnings season has commenced, indicating a critical period for market performance [1] - Gary Alexander has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential opportunities for traders before the market opens [1] Premarket Gainers - Silicon Laboratories Inc. (SLAB) is up 49% at $204.51 [3] - Concorde International Group Ltd. (CIGL) is up 44% at $3.90 [3] - ENvue Medical, Inc. (FEED) is up 25% at $3.08 [3] - Enphase Energy, Inc. (ENPH) is up 23% at $46.06 [3] - Digital Turbine, Inc. (APPS) is up 18% at $5.85 [3] - Tandy Leather Factory, Inc. (TLF) is up 16% at $3.35 [3] - Lumentum Holdings Inc. (LITE) is up 12% at $487.60 [3] - Super Micro Computer, Inc. (SMCI) is up 10% at $32.66 [3] - Sonos, Inc. (SONO) is up 10% at $16.17 [3] - Exicure, Inc. (XCUR) is up 9% at $4.52 [3] Premarket Losers - Intapp, Inc. (INTA) is down 16% at $24.50 [4] - Texxon Holding Limited (NPT) is down 15% at $6.08 [4] - Varonis Systems, Inc. (VRNS) is down 14% at $22.59 [4] - Mercury Systems, Inc. (MRCY) is down 11% at $88.00 [4] - Boston Scientific Corporation (BSX) is down 9% at $82.80 [4] - nLIGHT, Inc. (LASR) is down 9% at $45.10 [4] - Advanced Micro Devices, Inc. (AMD) is down 8% at $220.84 [4] - NGL Energy Partners LP (NGL) is down 7% at $10.98 [4] - MKDWELL Tech Inc. (MKDW) is down 7% at $2.67 [4] - Wabash National Corporation (WNC) is down 6% at $10.54 [4]

分组1 - Sonos reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.81 per share, and up from $0.64 per share a year ago, representing an earnings surprise of +14.82% [1] - The company posted revenues of $545.66 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.29%, although this is a decrease from year-ago revenues of $550.86 million [2] - Sonos shares have declined approximately 15.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $266.53 million, and for the current fiscal year, it is $1.01 on revenues of $1.48 billion [7] - The Audio Video Production industry, to which Sonos belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Total revenue for the three months ended December 27, 2025, was $545.662 million, a decrease of $5.2 million or 0.9% compared to the same period in 2024[101] - Net income for the same period was $93.798 million, resulting in a net income margin of 17.2%, up from 9.1% in the prior year[92] - Adjusted EBITDA for the three months ended December 27, 2025, was $132.139 million, with an Adjusted EBITDA margin of 24.2%, compared to 16.6% in the previous year[92] - The volume of products sold decreased by 3.1%, totaling 1.793 million units for the three months ended December 27, 2025[103] Revenue Breakdown - Revenue from Sonos speakers, which accounted for 84.2% of total revenue, decreased by 1.7% to $459.240 million[102] - Sonos system products revenue increased by 7.9% to $65.058 million, representing 11.9% of total revenue[102] - Revenue from Partner products and other sources decreased by 8.9% to $21.364 million, making up 3.9% of total revenue[102] - The Americas region saw a revenue increase of 1.3%, while EMEA and APAC regions experienced declines of 4.1% and 4.6%, respectively[104] Cost and Expenses - Cost of revenue decreased by $17.2 million, or 5.6%, to $292.2 million for the three months ended December 27, 2025, compared to $309.5 million for the same period in 2024[108] - Gross profit increased by $12.1 million, or 5.0%, to $253.5 million for the three months ended December 27, 2025, compared to $241.4 million for the same period in 2024[106] - Gross margin improved by 270 basis points to 46.5% for the three months ended December 27, 2025, compared to 43.8% for the same period in 2024[110] - Research and development expenses decreased by $21.1 million, or 26.1%, to $59.8 million for the three months ended December 27, 2025, compared to $80.8 million for the same period in 2024[114] - Sales and marketing expenses decreased by $21.4 million, or 24.7%, to $65.3 million for the three months ended December 27, 2025, compared to $86.6 million for the same period in 2024[116] - General and administrative expenses increased by $2.2 million, or 8.4%, to $28.0 million for the three months ended December 27, 2025, compared to $25.8 million for the same period in 2024[118] Cash Flow and Investments - Net cash provided by operating activities for the three months ended December 27, 2025, was $163.3 million, an increase from $156.2 million in the same period last year[130] - Cash used in investing activities was $4.1 million, primarily due to purchases of marketable securities of $12.5 million and property and equipment of $6.0 million, offset by maturities of marketable securities of $14.4 million[131] - Cash used in financing activities totaled $23.4 million, mainly for common stock repurchases of $25.0 million and tax-related stock repurchases of $10.9 million, partially offset by proceeds from stock options of $13.2 million[132] - The net increase in cash and cash equivalents for the period was $137.8 million, compared to $110.2 million in the prior year[129] - As of December 27, 2025, cash and cash equivalents totaled $312.5 million, including $195.7 million held by foreign subsidiaries[123] Foreign Exchange and Risk - The company recognized a foreign currency exchange gain of $0.4 million for the three months ended December 27, 2025, compared to a loss of $6.0 million in the same period last year[138] - A hypothetical adverse change of 10% in foreign currency exchange rates would have resulted in an adverse impact on income before taxes of approximately $9.2 million for the current quarter[138] - The company has not entered into any material foreign exchange contracts or derivatives to hedge foreign currency exposures, increasing its risk from exchange rate fluctuations[137] - The company’s international sales are primarily denominated in foreign currencies, which could impact revenue due to exchange rate movements, particularly with the euro and British pound[136] Strategic Initiatives - The company is focused on cost transformation initiatives, including workforce reductions of 6% in August 2024 and 12% in February 2025, to improve operational efficiency[87] - Future product introductions include the announcement of Amp Multi in January 2026, aimed at enhancing the Sonos platform's value and capabilities[86]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $546 million, which is above the midpoint of guidance and represents a 1% year-over-year decline compared to guidance of -7% to +2% [17] - Adjusted EBITDA grew 45% year-over-year to $132 million, equating to the total Adjusted EBITDA generated in all of fiscal 2025 [4][20] - GAAP gross margin was 46.5%, and non-GAAP gross margin was 47.5%, both above the high end of the guidance range [18] - Non-GAAP earnings per share increased by 37% to $0.93, up from $0.68 last year [21] Business Line Data and Key Metrics Changes - Revenue in the Americas grew by 1% year-over-year, while EMEA revenue declined by 4% and APAC by 5% [17] - Plug-ins, particularly driven by the Era 100, delivered double-digit growth [17] - The Era 100 has led to a 40% year-over-year increase in new customer growth, marking the third consecutive quarter of acceleration [11] Market Data and Key Metrics Changes - The company holds approximately 6% of the $24 billion global premium audio market, with significant room for growth, especially outside core markets [12] - The company has seen dollar share gains in premium home theater in both the U.S. and EMEA [12] Company Strategy and Development Direction - The company aims to build durable, repeatable growth through five growth dimensions: product innovation, customer advocacy, effective marketing, geo expansion, and tapping into external demand trends [6][28] - The strategy emphasizes creating a cohesive system rather than standalone products, enhancing customer lifetime value and repeat purchases [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through cost inflation and supply chain volatility, particularly regarding memory costs [31] - The second quarter is expected to be quieter, but the first half of fiscal 2026 reflects a stabilizing business with a clear plan to return to growth [15][16] Other Important Information - The company generated $157 million in free cash flow, up from $143 million last year [22] - The balance sheet remains strong with a net cash balance of $363 million [21] Q&A Session Summary Question: Addressing rising memory costs and their impact on gross margins - Management acknowledged memory pricing as a headwind but emphasized their team's capability to manage cost inflation and secure additional suppliers [31][32] Question: Impact of new marketing leadership on programs - Management indicated that the new CMO is already making progress in aligning marketing efforts and that improvements will be seen quickly [33][34] Question: Broader health of the premium home theater market - Management noted continued share growth in the Americas and EMEA, with a focus on premium experiences despite a K-shaped economy [41][42] Question: Clarification on gross margin performance - Management highlighted cost reduction efforts, favorable FX impacts, and pricing adjustments as key factors in achieving high gross margins [46][49]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $546 million, which is above the midpoint of guidance and represents a 1% year-over-year decline compared to guidance of -7% to +2% [17][18] - Adjusted EBITDA grew 45% year-over-year to $132 million, equating to the total adjusted EBITDA generated in all of fiscal 2025 [4][20] - GAAP gross margin was 46.5%, and non-GAAP gross margin was 47.5%, both above the high end of guidance [18] - Non-GAAP earnings per share increased by 37% to $0.93, up from $0.68 last year [21] Business Line Data and Key Metrics Changes - Revenue in the Americas grew by 1% year-over-year, while EMEA revenue declined by 4% and APAC by 5% [17] - Plugins delivered double-digit growth, driven by strong performance from the Era 100 product [17][18] - The Era 100 saw a 40% year-over-year increase in new customer growth, marking the third consecutive quarter of acceleration [11][18] Market Data and Key Metrics Changes - The company holds approximately 6% of the $24 billion global premium audio market, with opportunities to grow this share, particularly outside core markets [12] - The company experienced dollar share gains in premium home theater in both the U.S. and EMEA [12] Company Strategy and Development Direction - The company aims to build durable, repeatable growth through five growth dimensions: product innovation, customer advocacy, intentional marketing, geo expansion, and tapping into external demand trends [6][28] - The strategy emphasizes creating a cohesive system rather than standalone products, enhancing customer lifetime value and repeat purchases [5][6] - The company plans to introduce new products in the second half of fiscal 2026, including the recently unveiled Sonos Amp Multi, which aligns with the system strategy [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage through cost inflation and supply chain volatility, particularly regarding memory costs [31][32] - The company anticipates a quieter second quarter but expects to see acceleration in growth in the second half of fiscal 2026 [15][16] - Management highlighted the importance of returning to growth and structural profitability, focusing on executing across multiple dimensions [57][58] Other Important Information - The company generated free cash flow of $157 million, up from $143 million last year [22] - The balance sheet remains strong with a net cash balance of $363 million [21] Q&A Session Questions and Answers Question: How is the company addressing rising memory costs and their impact on gross margins? - Management acknowledged memory pricing as a headwind but emphasized their team's ability to manage cost inflation and secure additional memory suppliers [31][32] Question: When will the impact of the new CMO on marketing programs be seen? - Management indicated that the new CMO is already making progress and that improvements in marketing will be seen gradually rather than through a single large campaign [33][34] Question: What is the outlook for the premium home theater market? - Management noted continued growth in share within the Americas and EMEA, despite a K-shaped economy affecting demand for entry-level experiences [42][43] Question: Can you provide details on the gross margin performance and its drivers? - Management highlighted cost reduction efforts, favorable FX, and pricing adjustments as tailwinds, while tariffs and product mix were noted as headwinds [46][49]