SONOS(SONO) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 Fiscal 2025 was $259.8 million, representing a slight increase from $252.7 million in Q2 Fiscal 2024[7] - GAAP net loss for Q2 Fiscal 2025 was $70.1 million, with a GAAP diluted loss per share of $0.58, compared to a net loss of $69.7 million and a diluted loss per share of $0.56 in the same quarter last year[7][10] - Non-GAAP net loss for Q2 Fiscal 2025 was $21.7 million, with a Non-GAAP diluted EPS of $0.18[7] - Adjusted EBITDA for Q2 Fiscal 2025 was $(0.8) million, indicating a significant improvement in expense management year over year[7][10] - GAAP net loss for the three months ended March 29, 2025, was $70,144 thousand, compared to a loss of $69,709 thousand for the same period in 2024[21] - Revenue for the three months ended March 29, 2025, was $259,756 thousand, a slight increase from $252,662 thousand in the prior year[19] - Non-GAAP gross profit for the three months ended March 29, 2025, was $122,294 thousand, compared to $113,697 thousand for the same period in 2024, reflecting a year-over-year increase of 7.0%[16] - Total operating expenses (GAAP) for the three months ended March 29, 2025, were $174,833 thousand, compared to $182,998 thousand for the same period in 2024, indicating a decrease of 4.8%[18] - Adjusted EBITDA for the three months ended March 29, 2025, was $(826) thousand, an improvement from $(33,643) thousand in the prior year[19] - Non-GAAP net loss for the three months ended March 29, 2025, was $(21,727) thousand, compared to $(42,142) thousand in the same period of 2024[21] - The net loss income margin for the three months ended March 29, 2025, was (27.0)%, slightly improved from (27.6)% in the prior year[19] - Operating cash flows for the three months ended March 29, 2025, were $(59,666) thousand, compared to $(111,244) thousand for the same period in 2024, indicating an improvement of 46.6%[23] - Total revenue for the three months ended March 29, 2025, was $259,756 thousand, a 2.3% increase from $252,662 thousand in the same period of 2024[25] - Revenue from Sonos speakers for the six months ended March 29, 2025, was $661,661 thousand, down 4.1% from $690,273 thousand in the same period of 2024[23] - Free cash flow for the six months ended March 29, 2025, was $77,845 thousand, a decrease of 47.4% compared to $147,894 thousand for the same period in 2024[23] - The company reported a total revenue of $810,613 thousand for the six months ended March 29, 2025, a decrease of 6.3% from $865,531 thousand in the same period of 2024[25] Cost Management and Restructuring - The company initiated a restructuring plan affecting 12% of its employees, which is expected to reduce costs significantly[20] - Research and Development expenses (GAAP) for the three months ended March 29, 2025, were $77,423 thousand, down from $80,322 thousand in the prior year[18] - Stock-based compensation expense for the three months ended March 29, 2025, was $23,245 thousand, slightly down from $23,673 thousand in the same period of 2024[25] Strategic Initiatives - The company delivered nine major software updates in the last 120 days, enhancing product reliability and customer satisfaction[3] - Sonos is strategically pricing its popular Era 100 product to reinvigorate demand amid a complex macroeconomic environment[3] - The company aims to enhance its operating model and cost structure, focusing on market growth and expanding its customer footprint[28] Asset and Liability Management - Total current assets decreased to $453.0 million as of March 29, 2025, down from $551.1 million as of September 28, 2024[12] - Total liabilities decreased to $409.3 million as of March 29, 2025, compared to $487.7 million as of September 28, 2024[12] - Cash and cash equivalents at the end of the period were $173,158 thousand, up from $169,732 thousand at the beginning of the period[15] Market Challenges and Outlook - The company is facing challenges related to supply chain logistics and component availability, which may impact product demand and availability[29] - Forward-looking statements indicate potential risks including economic uncertainties, tariffs, and competition in the market[28] - The company is actively navigating the evolving tariff landscape with operational discipline and flexibility[3] - Sonos plans to provide further guidance on its future performance during the earnings call[5]