A month has gone by since the last earnings report for Sonos (SONO Quick QuoteSONO - Free Report) . Shares have added about 15.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Sonos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Sonos Posts Q4 Loss

Sonos reported fourth-quarter fiscal 2025 non-GAAP loss per share of 6 cents. The Zacks Consensus Estimate was pegged at earnings of 5 cents. The company incurred a loss of 18 cents in the prior-year quarter. On a GAAP basis, the company reported a loss of 31 cents compared with a loss of 44 cents in the year-ago quarter.

Quarterly revenues increased 12.7% year over year to $287.9 million. Moreover, the figure came near the high end of the company’s guidance of $260 million to $290 million. The Zacks Consensus Estimate for the top line was pegged at $283.1 million.

Sonos’ Revenue Details

Revenues from Sonos speakers were $206.5 million, up 15.6% year over year.
Sonos’ system products’ revenues of $65.2 million increased 11.1%.

Revenues from Partner products and other totaled $16.2 million, down 12.2% year over year.

Region-wise, revenues from the Americas of $191.9 million increased 8.1% year over year. Europe, the Middle East and Africa generated revenues of $77.5 million, up 32.9%. Revenues from the Asia Pacific decreased 5.3% to $18.5 million.

Sonos’ Margin Performance

Non-GAAP gross profit was $130 million, up 24.2% on a year-over-year basis. Non-GAAP gross margin contracted 410 basis points (bps) to 45.1%.

Adjusted operating expenses amounted to $134.6 million, down 5.9% year over year and came within the company’s guidance ($130-$135 million). On a normalized basis (mainly adjusting for variable compensation), primarily reflecting lower variable compensation, non-GAAP operating expenses fell 19%, driven by the cost optimization initiatives implemented in August last year.

Non-GAAP Research and development (R&D) expenses declined 4.3%. Non-GAAP general and administrative (G&A) expenses were up 7.3%. Non-GAAP sales and marketing expenses decreased 11.1%.

Non-GAAP adjusted EBITDA totaled $6.4 million, which came within the company’s guidance of a loss of $10 million to a gain of $14 million, driven by higher revenue, better gross margin and reduced operating expenses.

Cash Flow & Liquidity

In the fiscal fourth quarter, Sonos had $2.9 million of cash from operations. Free cash flow used was $2.3 million, down from $53.5 million used in the same period last year.

As of Sept. 27, cash and cash equivalents were $174.7 million compared with $201.3 million as of June 28, 2025. SONO has no debt.

In the fourth quarter, the company spent $20 million on share repurchases. In the full fiscal 2025, the company repurchased 5.7 million shares for a total of $81 million. Sonos still has $130 million remaining under its current share repurchase authorization.

Sonos’ Fiscal Q1 Guidance

The company projects revenue between $510 million and $560 million, implying a year-over-year change of negative 7% to growth of 2%. At the midpoint, underlying demand growth is expected to be slightly positive, outperforming the revenue comparison due to last year’s launch and channel fill of Arc Ultra and Sub 4. Sonos anticipates stronger year-over-year comparisons, with new product launches concentrated in the second half of fiscal 2026.

For first-quarter fiscal 2026, the company expects GAAP gross margin of 44%–46%, and non-GAAP gross margin about 110 bps higher, both improving more than 100 bps year over year at the midpoint.

GAAP operating expenses are expected to range between $152 million and $162 million, down about 19% year over year at the midpoint, with non-GAAP operating expenses about $16 million lower.

The company projects adjusted EBITDA between $94 million and $137 million, up 27% year over year, with a margin of around 22%, indicating about 500 bps of expansion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 86.84% due to these changes.

VGM Scores

Currently, Sonos has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Sonos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.