Sonos' Q2 Loss Matches Estimates, Revenues Increase Y/Y

Core Viewpoint - Sonos, Inc. reported a non-GAAP loss per share of 18 cents for Q2 fiscal 2025, consistent with the previous year's loss and meeting consensus estimates [1][2] Financial Performance - Quarterly revenues increased by 3% year over year to $259.8 million, aligning with the high end of the company's guidance [2] - Revenue from Sonos speakers was $194.5 million, up 3.9% year over year, while system products generated $50.5 million, growing 2.6% [5] - Partner products and other revenues totaled $14.7 million, down 8.9% year over year [5] - Revenue from the Americas was $176.8 million, up 3.9%, while Europe, the Middle East, and Africa remained flat at $68.8 million, and Asia Pacific revenues rose 8% to $14.2 million [6] Margin and Expense Management - Non-GAAP gross profit was $122.3 million, a 7.6% increase year over year, with gross margin expanding by 210 basis points to 47.1% [7] - Adjusted operating expenses decreased by 14% year over year to $135 million, reflecting cost-saving measures [8] - Adjusted EBITDA loss was $1 million, significantly better than guidance, marking a $33 million improvement from the prior year [9] Cash Flow and Shareholder Returns - The company used $59.7 million in cash from operations, with free cash outflow improving to $65 million from $121 million last year [11] - Sonos returned $33 million to shareholders through stock repurchases, with a new $150 million share repurchase program authorized [12] Future Guidance - For Q3 fiscal 2025, Sonos expects revenues between $310 million and $340 million, reflecting a quarter-over-quarter increase but a year-over-year decline [13] - GAAP gross margin is anticipated to be between 43% and 45%, while non-GAAP gross margin is projected to be between 45.2% and 47% [13][14]