Sonos Inc. has recently released its 10-Q report, providing a detailed look into the company's financial health and operational performance. Sonos, Inc. is a leading audio company that designs, develops, manufactures, and sells audio products and services worldwide. The company's product offerings include wireless, portable, plug-in, and home theater speakers, as well as headphones, soundbars, components, and accessories. Sonos, Inc. was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. The company is headquartered in Santa Barbara, California.
In the 10-Q report, Sonos Inc. provided an overview of its management's discussion and analysis of financial condition and results of operations. The company operates on a 52* or 53-week fiscal year ending on the Saturday nearest September 30 each year, divided into four quarters. Sonos also highlighted forward-looking statements, emphasizing the risks, uncertainties, and assumptions that may impact its financial condition and results of operations.
The report also delved into Sonos' performance, outlining key metrics used to evaluate the business, including total revenue, products sold, Adjusted EBITDA, and Adjusted EBITDA margin. In the three months ended December 27, 2025, Sonos reported total revenue of $545,662, with 1,793 products sold. The company's net income for the period was $93,798, reflecting a net income margin of 17.2%. Adjusted EBITDA for the same period amounted to $132,139, with an Adjusted EBITDA margin of 24.2%.
Sonos Inc. provided a breakdown of its revenue by product and region, showing changes in revenue and volume of products sold. The report highlighted that Sonos speakers represented 84.2% of total revenue, while Sonos system products accounted for 11.9% of total revenue. The company experienced a 0.9% decrease in total revenue, attributed to softer demand due to market conditions, partially offset by favorability from foreign exchange rates. Additionally, the volume of products sold decreased by 3.1% in the same period.
Furthermore, the report discussed the cost of revenue and gross profit. Sonos reported a cost of revenue of $292,202 and a gross profit of $253,460, resulting in a gross margin of 46.5%. The company's cost of revenue decreased by 5.6% compared to the same period in the previous year, while gross profit increased by 5.0%.
The market has reacted to these announcements by moving the company's shares -0.5% to a price of $15.85. For more information, read the company's full 10-Q submission here.
