SONOS(SONO) - 2025 Q4 - Annual Results

Revenue Performance - Q4 revenue increased by 13% year over year, reaching $287.9 million, which is near the high end of the guidance range[1] - Fiscal 2025 total revenue was $1,443.3 million, a decrease from $1,518.1 million in Fiscal 2024[4] - Total revenue for the three months ended September 27, 2025, was $287.9 million, a 12.7% increase from $255.4 million in the same period last year[22] - Sonos speakers revenue reached $206.5 million for the three months ended September 27, 2025, up 15.8% from $178.2 million year-over-year[22] - The Americas region generated $191.9 million in revenue for the three months ended September 27, 2025, a 8.1% increase from $177.5 million year-over-year[23] Profitability Metrics - Q4 adjusted EBITDA was $6.4 million, above the midpoint of the guidance range, while Fiscal 2025 adjusted EBITDA was $132.3 million[1][4] - Non-GAAP net income for Q4 was $78.5 million, with a non-GAAP diluted earnings per share of $0.64[4] - The company reported a net loss margin of (13.1)% for the three months ended September 27, 2025, compared to (20.8)% in the same period of 2024, indicating improved profitability[18] - The net loss for the three months ended September 27, 2025, was $37,858,000, an improvement from a net loss of $53,093,000 in the same period of 2024, representing a reduction of 28.8%[20] - Non-GAAP net income for the twelve months ended September 27, 2025, was $78.5 million, compared to $62.0 million in the previous year, representing a 26.5% increase[22] Cost Management - Research and Development (GAAP) expenses for the three months ended September 27, 2025, were $61,958,000, down from $70,777,000 in 2024, a decrease of 11.5%[16] - Total operating expenses (GAAP) for the twelve months ended September 27, 2025, were $680,998,000, compared to $737,419,000 in 2024, a reduction of 7.7%[17] - Stock-based compensation expense for the three months ended September 27, 2025, was $16.9 million, down from $19.3 million in the same period last year, a decrease of 12.5%[23] - Total stock-based compensation expense for the twelve months ended September 27, 2025, was $86.3 million, compared to $84.3 million in the previous year, an increase of 2.4%[23] - The company initiated a restructuring plan on February 5, 2025, affecting 12% of its workforce, aimed at reducing costs[19] Gross Margin Analysis - The company reported a GAAP gross margin of 43.7% for Q4 and 45.2% on a non-GAAP basis[4] - Non-GAAP gross margin for the three months ended September 27, 2025, was 45.1%, compared to 41.0% in the same period of 2024, an increase of 10.0%[15] - GAAP gross profit for the three months ended September 27, 2025, was $125,791,000, compared to $103,016,000 for the same period in 2024, reflecting a growth of 22%[15] - Non-GAAP gross profit for the twelve months ended September 27, 2025, was $652,458,000, up from $695,878,000 in the previous year, indicating a decline of 6.2%[15] Future Strategy - The company aims to focus on durable top-line growth while balancing profitability improvements in Fiscal 2026[2] - Sonos is committed to enhancing its software quality and expanding its product offerings as part of its growth strategy[2] - The company aims to expand its market share and enhance its product offerings through new product introductions and improvements to its operating model[26]