Sonos Reports Second Quarter Fiscal 2026 Results

Sonos Reports Second Quarter Fiscal 2026 Results May 4, 2026 Q2 Revenue near high end of guidance range, Adjusted EBITDA above midpoint Sonos, Inc. (Nasdaq: SONO) today reported Second Quarter Fiscal 2026 results. “The first half of Fiscal 2026 marks an important turning point for Sonos as we return to growth and change the trajectory of the business,” said Tom Conrad, Chief Executive Officer of Sonos. “The progress we’re seeing comes from coordinated execution across the areas that matter most: better products, a stronger software experience, more effective marketing, and continued expansion in growth markets. This translated into 8% revenue growth in Q2, our first positive Q2 Adjusted EBITDA in four years, and our third consecutive semiannual period of revenue growth improvement. We enter the second half with momentum and a clear focus on building durable growth while staying disciplined in how we operate.” "Q2 results overall came in strong against our expectations, with revenue near the high end of our guidance, and Adjusted EBITDA above the midpoint. First half Adjusted EBITDA is up 48% year over year, reflecting gross profit dollar growth combined with operating expense reductions," said Saori Casey, Chief Financial Officer. "Q2 marks our seventh consecutive quarter of executing against our commitments" Second Quarter Fiscal 2026 Financial Highlights (unaudited) Revenue increased 8% year-over-year to $282 millionGAAP gross margin of 44.3%, Non-GAAP gross margin of 46.0%GAAP net loss improved by $41 million year-over-year to ($29) million, GAAP diluted loss per share (EPS) improved by $0.34 year-over-year to ($0.24)Non-GAAP net loss improved by $19 million year-over-year to ($3) million, Non-GAAP diluted EPS improved by $0.16 year-over-year to ($0.02)Adjusted EBITDA increased $3 million year-over-year to $2 millionReturned $40 million to shareholders through repurchase of 2.5 million shares First Half Fiscal 2026 Financial Highlights (unaudited) Revenue increased 2% year-over-year to $827 millionGAAP gross margin of 45.7%, Non-GAAP gross margin of 47.0%GAAP net income improved by $85 million year-over-year to $65 million, GAAP diluted EPS improved by $0.68 year-over-year to $0.52Non-GAAP net income improved by $49 million year-over-year to $113 million, Non-GAAP diluted EPS improved by $0.40 year-over-year to $0.91Adjusted EBITDA increased by $44 million year-over-year to $134 millionReturned $65 million to shareholders through repurchase of 4.0 million shares Guidance The company will provide guidance on its Second Quarter Fiscal 2026 earnings call. Supplemental Earnings Presentation The company has posted a supplemental earnings presentation accompanying its Second Quarter Fiscal 2026 results to the Earnings Reports section of its investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports. Conference Call, Webcast and Transcript The company will host a webcast of its conference call and Q&A related to its Second Quarter Fiscal 2026 results on May 4, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). Participants may access the live webcast in listen-only mode on the Sonos investor relations website at https://investors.sonos.com/news-and-events/default.aspx. The conference call may also be accessed by dialing (888) 330-2454 with conference ID 8641747. Participants outside the U.S. can access the call by dialing (240) 789-2714 using the same conference ID. An archived webcast of the conference call and a transcript of the company’s prepared remarks and Q&A session will also be available at https://investors.sonos.com/reports-and-filings/default.aspx#section=earningsreports following the call. Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (unaudited, in thousands, except share and per share amounts) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Revenue $ 281,526 $ 259,756 $ 827,189 $ 810,613 Cost of revenue 156,877 146,147 449,080 455,597 Gross profit 124,649 113,609 378,109 355,016 Operating expenses Research and development 64,134 77,423 123,896 158,261 Sales and marketing 62,376 64,210 127,650 150,854 General and administrative 29,714 33,200 57,723 59,032 Total operating expenses 156,224 174,833 309,269 368,147 Operating (loss) income (31,575 ) (61,224 ) 68,840 (13,131 ) Other income (expense), net Interest income 1,911 1,973 3,260 3,834 Interest expense (104 ) (109 ) (220 ) (219 ) Other (expense) income, net (1,361 ) 193 (941 ) (5,836 ) Total other income (expense), net 446 2,057 2,099 (2,221 ) (Loss) income before (benefit from) provision for income taxes (31,129 ) (59,167 ) 70,939 (15,352 ) (Benefit from) provision for income taxes (2,243 ) 10,977 6,027 4,555 Net (loss) income $ (28,886 ) $ (70,144 ) $ 64,912 $ (19,907 ) (Loss) earnings per share: Basic $ (0.24 ) $ (0.58 ) $ 0.54 $ (0.16 ) Diluted $ (0.24 ) $ (0.58 ) $ 0.52 $ (0.16 ) Weighted-average shares used in computing (loss) earnings per share: Basic 120,209,712 119,919,163 120,349,630 120,995,375 Diluted 120,209,712 119,919,163 123,651,309 120,995,375 Total comprehensive (loss) income Net (loss) income (28,886 ) (70,144 ) 64,912 (19,907 ) Change in foreign currency translation adjustment (1,763 ) 656 (28 ) (460 ) Net unrealized loss on marketable securities (59 ) (33 ) (42 ) (117 ) Comprehensive (loss) income $ (30,708 ) $ (69,521 ) $ 64,842 $ (20,484 ) Condensed Consolidated Balance Sheets (unaudited, in thousands, except par values) As of March 28, 2026 September 27, 2025 Assets Current assets: Cash and cash equivalents $ 200,156 $ 174,668 Marketable securities 48,897 52,858 Accounts receivable, net 95,511 65,847 Inventories 160,840 171,020 Prepaids and other current assets 34,718 39,642 Total current assets 540,122 504,035 Property and equipment, net 63,038 72,277 Operating lease right-of-use assets 43,950 45,297 Goodwill 82,854 82,854 Intangible assets, net 67,741 75,356 Deferred tax assets 10,409 10,509 Other noncurrent assets 31,368 32,950 Total assets $ 839,482 $ 823,278 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 162,927 $ 184,109 Accrued expenses 66,736 79,094 Accrued compensation 24,298 21,331 Deferred revenue, current 38,772 21,771 Other current liabilities 48,374 46,107 Total current liabilities 341,107 352,412 Operating lease liabilities, noncurrent 51,803 53,288 Deferred revenue, noncurrent 59,161 59,453 Deferred tax liabilities 118 126 Other noncurrent liabilities 2,930 2,774 Total liabilities 455,119 468,053 Commitments and contingencies Stockholders’ equity: Common stock, $0.001 par value 123 123 Treasury stock (56,653 ) (37,398 ) Additional paid-in capital 486,326 502,775 Accumulated deficit (47,166 ) (112,078 ) Accumulated other comprehensive income 1,733 1,803 Total stockholders’ equity 384,363 355,225 Total liabilities and stockholders’ equity $ 839,482 $ 823,278 Condensed Consolidated Statements of Cash Flows (unaudited, dollars in thousands) Six Months Ended March 28, 2026 March 29, 2025 Cash flows from operating activities Net income (loss) $ 64,912 $ (19,907 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Stock-based compensation expense 30,056 45,436 Depreciation and amortization 25,862 32,778 Restructuring and other charges 848 4,889 Provision for excess and obsolete inventory 343 (143 ) Deferred income taxes 72 997 Other 4,402 1,528 Foreign currency transaction loss (gain) 1,222 (72 ) Changes in operating assets and liabilities: Accounts receivable (31,660 ) 4,702 Inventories 9,837 92,615 Other assets 4,796 1,328 Accounts payable and accrued expenses (33,297 ) (83,634 ) Accrued compensation 3,522 10,456 Deferred revenue 16,993 (257 ) Other liabilities 25 5,791 Net cash provided by operating activities 97,933 96,507 Cash flows from investing activities Purchases of marketable securities (25,219 ) (25,900 ) Purchases of property and equipment (10,734 ) (18,662 ) Maturities of marketable securities 29,140 27,400 Net cash used in investing activities (6,813 ) (17,162 ) Cash flows from financing activities Payments for repurchase of common stock (65,121 ) (60,602 ) Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (15,929 ) (16,246 ) Proceeds from exercise of stock options 15,138 2,654 Payments for debt issuance costs (780 ) — Net cash used in financing activities (66,692 ) (74,194 ) Effect of exchange rate changes on cash and cash equivalents 1,060 (1,725 ) Net increase in cash and cash equivalents 25,488 3,426 Cash and cash equivalents Beginning of period 174,668 169,732 End of period $ 200,156 $ 173,158 Supplemental disclosure Cash paid for interest $ 123 $ 126 Cash paid for taxes, net of refunds $ 3,346 $ 16,493 Cash paid for amounts included in the measurement of lease liabilities, net of tenant improvement reimbursements received $ 4,473 $ 1,149 Supplemental disclosure of non-cash investing and financing activities Purchases of property and equipment in accounts payable and accrued expenses $ 4,588 $ 1,311 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,829 $ 1,491 Excise tax on share repurchases, accrued but not paid $ 130 $ 264 Reconciliation of GAAP to Non-GAAP Cost of Revenue and Gross Profit (unaudited, in thousands, except percentages) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Reconciliation of GAAP cost of revenue GAAP cost of revenue $ 156,877 $ 146,147 $ 449,080 $ 455,597 Stock-based compensation expense 1,125 1,606 2,452 2,955 Amortization of intangibles 3,144 3,144 7,525 6,474 Restructuring and other charges 664 3,935 664 3,935 Non-GAAP cost of revenue $ 151,944 $ 137,462 $ 438,439 $ 442,233 Reconciliation of GAAP gross profit GAAP gross profit $ 124,649 $ 113,609 $ 378,109 $ 355,016 Stock-based compensation expense 1,125 1,606 2,452 2,955 Amortization of intangibles 3,144 3,144 7,525 6,474 Restructuring and other charges 664 3,935 664 3,935 Non-GAAP gross profit $ 129,582 $ 122,294 $ 388,750 $ 368,380 GAAP gross margin 44.3 % 43.7 % 45.7 % 43.8 % Non-GAAP gross margin 46.0 % 47.1 % 47.0 % 45.4 % Reconciliation of Selected Non-GAAP Financial Measures (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Research and Development (GAAP) $ 64,134 $ 77,423 $ 123,896 $ 158,261 Stock-based compensation 5,471 8,021 11,960 21,336 Amortization of intangibles 20 18 40 196 Restructuring and other charges (2)(3) 857 12,766 857 12,706 Research and Development (Non-GAAP) $ 57,786 $ 56,618 $ 111,039 $ 124,023 Sales and Marketing (GAAP) $ 62,376 $ 64,210 $ 127,650 $ 150,854 Stock-based compensation 2,763 3,980 5,608 9,612 Amortization of intangibles - - - - Restructuring and other charges (2)(3) 1,453 2,792 1,453 2,792 Sales and Marketing (Non-GAAP) $ 58,160 $ 57,438 $ 120,589 $ 138,450 General and Administrative (GAAP) 29,714 33,200 57,723 59,032 Stock-based compensation 5,505 6,495 10,036 11,533 Legal and transaction related costs 3,523 1,429 6,034 1,624 Amortization of intangibles 24 24 48 47 Restructuring and other charges (2)(3) 90 4,207 90 4,207 General and Administrative (Non-GAAP) $ 20,572 $ 21,045 $ 41,515 $ 41,621 Total Operating Expenses (GAAP) $ 156,224 $ 174,833 $ 309,269 $ 368,147 Stock-based compensation 13,739 18,496 27,604 42,481 Legal and transaction related costs (1) 3,523 1,429 6,034 1,624 Amortization of intangibles 44 42 88 243 Restructuring and other charges (2)(3) 2,400 19,765 2,400 19,705 Operating Expenses (Non-GAAP) $ 136,518 $ 135,101 $ 273,143 $ 304,094 Total Operating (Loss) Income (GAAP) $ (31,575 ) $ (61,224 ) $ 68,840 $ (13,131 ) Stock-based compensation 14,864 20,102 30,056 45,436 Legal and transaction related costs (1) 3,523 1,429 6,034 1,624 Amortization of intangibles 3,188 3,186 7,613 6,717 Restructuring and other charges (2)(3) 3,064 23,700 3,064 23,640 Operating (Loss) Income (Non-GAAP) $ (6,936 ) $ (12,807 ) $ 115,607 $ 64,286 Depreciation 8,653 11,981 18,249 26,061 Adjusted EBITDA (Non-GAAP) $ 1,717 $ (826 ) $ 133,856 $ 90,347 Total Operating (Loss) Income (GAAP) $ (31,575 ) $ (61,224 ) $ 68,840 $ (13,131 ) Stock-based compensation expense 14,864 20,102 30,056 45,436 Legal and transaction related costs (1) 3,523 1,429 6,034 1,624 Amortization of intangibles 3,188 3,186 7,613 6,717 Restructuring and other charges (2)(3) 3,064 23,700 3,064 23,640 Operating (Loss) Income (Non-GAAP) $ (6,936 ) $ (12,807 ) $ 115,607 $ 64,286 Interest income 1,911 1,973 3,260 3,834 Interest expense (104 ) (109 ) (220 ) (219 ) Pre-tax (Loss) Income (Non-GAAP) $ (5,129 ) $ (10,943 ) $ 118,647 $ 67,901 (Benefit from) provision for income taxes (2,243 ) 10,977 6,027 4,555 Net (loss) income (Non-GAAP) (2,886 ) (21,920 ) 112,620 63,346 Weighted-average shares non-GAAP, diluted 120,209,712 119,919,163 123,651,309 123,750,251 Non-GAAP (loss) earnings per share, diluted $ (0.02 ) $ (0.18 ) $ 0.91 $ 0.51 (1) Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. (2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. (3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. Reconciliation of Net (Loss) Income to Adjusted EBITDA (unaudited, dollars in thousands except percentages) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 (In thousands, except percentages) Net (loss) income $ (28,886 ) $ (70,144 ) $ 64,912 $ (19,907 ) Add (deduct): Depreciation and amortization 11,841 15,167 25,862 32,778 Stock-based compensation expense 14,864 20,102 30,056 45,436 Interest income (1,911 ) (1,973 ) (3,260 ) (3,834 ) Interest expense 104 109 220 219 Other expense (income), net 1,361 (193 ) 941 5,836 (Benefit from) provision for income taxes (2,243 ) 10,977 6,027 4,555 Legal and transaction related costs (1) 3,523 1,429 6,034 1,624 Restructuring and other charges (2)(3) 3,064 23,700 3,064 23,640 Adjusted EBITDA $ 1,717 $ (826 ) $ 133,856 $ 90,347 Revenue $ 281,526 $ 259,756 $ 827,189 $ 810,613 Net (loss) income margin (10.3 )% (27.0 )% 7.8 % (2.5 )% Adjusted EBITDA margin 0.6 % (0.3 )% 16.2 % 11.1 % (1) Legal and transaction-related costs consist of expenses related to our IP litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. (2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. (3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income (unaudited, in thousands, except share and per share amounts) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 GAAP net (loss) income $ (28,886 ) $ (70,144 ) $ 64,912 $ (19,907 ) Stock-based compensation expense 14,864 20,102 30,056 45,436 Legal and transaction related costs (1) 3,523 1,429 6,034 1,624 Amortization of intangibles 3,188 3,186 7,613 6,717 Restructuring and other charges (2)(3) 3,064 23,700 3,064 23,640 Other expense (income), net 1,361 (193 ) 941 5,836 Non-GAAP net (loss) income $ (2,886 ) $ (21,920 ) $ 112,620 $ 63,346 (Loss) earnings per share GAAP (loss) earnings per share, diluted $ (0.24 ) $ (0.58 ) $ 0.52 $ (0.16 ) Non-GAAP (loss) earnings per share, diluted $ (0.02 ) $ (0.18 ) $ 0.91 $ 0.51 Shares used to calculate (loss) earnings per share Weighted-average shares GAAP, diluted 120,209,712 119,919,163 123,651,309 120,995,375 Weighted-average shares non-GAAP, diluted 120,209,712 119,919,163 123,651,309 123,750,251 (1) Legal and transaction-related costs consist of expenses related to our IP litigation against Alphabet and Google, which we do not consider representative of our underlying operating performance. (2) Restructuring and other charges for the three and six months ended March 28, 2026, include costs associated with non-recurring organizational changes driven by new leadership, charges related to the partial abandonment of office space in support of operational efficiencies, and costs associated with exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. (3) Restructuring and other charges for the three and six months ended March 29, 2025 primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. Reconciliation of Cash Flows (Used in) Provided by Operating Activities to Free Cash Flow (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Cash flows (used in) provided by operating activities $ (65,374 ) $ (59,666 ) $ 97,933 $ 96,507 Less: Purchases of property and equipment (4,776 ) (5,556 ) (10,734 ) (18,662 ) Free cash flow $ (70,150 ) $ (65,222 ) $ 87,199 $ 77,845 Revenue by Product Category (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 (In thousands) Sonos speakers $ 210,018 $ 194,519 $ 669,258 $ 661,661 Sonos system products 52,411 50,540 117,469 110,814 Partner products and other revenue 19,097 14,697 40,462 38,138 Total revenue $ 281,526 $ 259,756 $ 827,189 $ 810,613 Revenue by Geographical Region (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Americas $ 180,608 $ 176,802 $ 509,485 $ 501,385 Europe, Middle East and Africa 83,161 68,785 272,602 266,397 Asia Pacific 17,757 14,169 45,102 42,831 Total revenue $ 281,526 $ 259,756 $ 827,189 $ 810,613 Stock-based Compensation (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 (In thousands) Cost of revenue $ 1,125 $ 1,606 $ 2,452 $ 2,955 Research and development 5,471 8,557 11,960 21,872 Sales and marketing 2,763 4,027 5,608 9,659 General and administrative 5,505 9,055 10,036 14,093 Total stock-based compensation expense $ 14,864 $ 23,245 $ 30,056 $ 48,579 Amortization of Intangibles (unaudited, dollars in thousands) Three Months Ended Six Months Ended March 28, 2026 March 29, 2025 March 28, 2026 March 29, 2025 Cost of revenue $ 3,144 $ 3,144 $ 7,525 $ 6,474 Research and development 20 18 40 196 Sales and marketing - - - - General and administrative 24 24 48 47 Total amortization of intangibles $ 3,188 $ 3,186 $ 7,613 $ 6,717 Use of Non-GAAP Measures We have provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles (“U.S. GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP operating (loss) income, non-GAAP pre-tax (loss) income, free cash flow, non-GAAP gross margin, non-GAAP net (loss) income, non-GAAP cost of revenue, non-GAAP gross profit and non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures are not based on any standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of these financial measures to their nearest U.S. GAAP financial equivalents provided in the financial statement tables above. We define Adjusted EBITDA as net (loss) income adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other expense (income), income taxes, restructuring and other charges, legal and transaction related fees and other items that we do not consider representative of our underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. We define non-GAAP operating (loss) income as total operating loss adjusted to exclude stock-based compensation expense, legal and transaction related costs, amortization of intangibles and restructuring and other charges. We define non-GAAP pre-tax (loss) income as non-GAAP operating (loss) income adjusted to include interest income and to exclude interest expense. We define free cash flow as net cash from operations less purchases of property and equipment. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation, amortization of intangible assets and restructuring and other charges. We define non-GAAP cost of revenue as GAAP cost of revenue less stock-based compensation and amortization of intangibles. We define non-GAAP gross profit as GAAP gross profit less stock-based compensation, amortization of intangibles, and restructuring and other charges. We calculate non-GAAP net (loss) income as GAAP net (loss) income less stock-based compensation, legal and transaction related fees, amortization of intangibles, other expense (income) and restructuring and other charges. We calculate non-GAAP diluted earnings (loss) per share as non-GAAP net (loss) income divided by non-GAAP weighted average diluted shares outstanding during the period. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook. Forward Looking Statements This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our long-term outlook, financial, growth and business strategies and opportunities, market growth and our market share, our operating model and cost structure, new product launches, including critical reception and the planned timing of such launches, and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: difficulties in and effect of implementing improvements to our operating model and cost structure; the risk that restructuring and related charges may be greater than anticipated or not occur in the expected time frame; local law requirements in various jurisdictions regarding elimination of positions; our ability to accurately forecast product demand and effectively forecast and manage owned and channel inventory levels; our ability to successfully introduce software updates; our ability to maintain, enhance and protect our brand image; the impact of global economic, market and political events, including tariffs, global trade tensions, continued inflationary pressures, high interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or conditions, including tariffs; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth and business strategies; our ability to compete in the market and maintain or expand market share; our ability to maintain relationships with our channel, distribution and technology partners; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges, including memory costs and constraints; our ability to protect our brand and intellectual property; our use of artificial intelligence; and the other risk factors identified in our filings with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and subsequent filings. Copies of our SEC filings are available free of charge at the SEC’s website at www.sec.gov, on our investor relations website at https://investors.sonos.com/reports-and-filings/default.aspx or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this press release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events. Sonos and Sonos product names are trademarks or registered trademarks of Sonos, Inc. All other product names and services may be trademarks or service marks of their respective owners. About Sonos Sonos (Nasdaq: SONO) is a leading audio company dedicated to elevating life through sound. Sonos has built a connected system that brings together all the sounds people love, from music and movies to stories and conversations. Its portfolio of home theater speakers, components, plug-in and portable speakers, and headphones grows more powerful with every room and device added. Trusted by more than 17 million households in over 60 countries, Sonos is headquartered in Santa Barbara, California. Learn more at www.sonos.com. Source: Sonos.