Sonos Posts Q4 Loss, Revenues Surpass Estimates & Rise Y/Y

Sonos, Inc. SONO 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.Following the announcement, shares of the company have jumped around 3% in the pre-market trading session today. In the past year, shares have soared 22.5% compared with the Zacks Audio Video Production industry’s growth of 51.2%.Image Source: Zacks Investment ResearchSonos’ Revenue DetailsRevenues 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 PerformanceNon-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.Sonos, Inc. Price, Consensus and EPS Surprise Sonos, Inc. price-consensus-eps-surprise-chart | Sonos, Inc. QuoteNon-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 & LiquidityIn 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 GuidanceThe 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.Sonos’ Zacks RankSonos currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other CompaniesInterparfums IPAR came out with quarterly earnings of $2.05 per share, beating the Zacks Consensus Estimate of $1.85. This compares to earnings of $1.93 per share a year ago. Interparfums posted revenues of $429.58 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $424.63 million.Shares of IPAR have plunged 28.8% in the past year.Alto Ingredients (ALTO came out with quarterly earnings of 19 cents per share, beating the Zacks Consensus Estimate of a loss of 6 cents per share. This compares to a loss of 4 cents per share a year ago. Alto Ingredients posted revenues of $240.99 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.91%. This compares to year-ago revenues of $251.81 million.Shares of ALTO have declined 4.1% in the past year.Charter Communications CHTR has reported third-quarter 2025 earnings of $8.34 per share, which missed the Zacks Consensus Estimate by 10.52%. The reported figure decreased 5.4% year over year.Revenues of $13.67 billion edged down 0.9% year over year, driven by lower residential video and advertising sales revenues, partially offset by growth in residential mobile service and Internet revenues. Residential connectivity revenues increased 3.8% year over year. The reported lagged the Zacks Consensus Estimate by 0.52%.Shares of CHTR have lost 42.7% in the past year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Charter Communications, Inc. (CHTR): Free Stock Analysis Report Sonos, Inc. (SONO): Free Stock Analysis Report Interparfums, Inc. (IPAR): Free Stock Analysis Report Alto Ingredients, Inc. (ALTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks