# Sonos (SONO.US)

Canonical: https://gigainvestors.com/s/SONO

Analysis as of: 2026-10-16T07:32:02.323Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $17.69 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 8

- Operating margin variation: 26.08×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.03×

- FY2017: -0.02×

- FY2018: -0.01×

- FY2019: 0.00×

- FY2020: -0.02×

- FY2021: 0.09×

- FY2022: 0.05×

- FY2023: -0.01×

- FY2024: -0.03×

- FY2025: -0.03×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -7.6%

- ROIC, second-lowest year: -38.2%

- Typical minus recent gross margin: 0.5 pp

- Typical gross margin (annual median): 44.2%

- Recent gross margin (lower of latest and 3-year median): 43.7%

- Years with nonpositive capital: 4

- Capital spending / revenue: 2.8%

- ROIC including acquisitions, ten-year median: -13.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -70.4%

- FY2017: -9.6%

- FY2018: -26.8%

- FY2019: 0.4%

- FY2020: -5.6%

- FY2021: 25.2%

- FY2022: 35.9%

- FY2023: -4.9%

- FY2024: -20.1%

- FY2025: -38.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.21×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $141M

- Net income, five-year total: $116M

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.1 pp

- Working capital / revenue, final three-year average: 7.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.92×

- FY2023: 1.13×

- FY2024: 1.08×

- FY2025: 0.45×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -26.8% vs -20.1%

- Per-share earnings: -0.71 to -0.31 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 9.0%

- Ordinary dilution, 5-year annual growth: 1.9%

- Market cap gain: $292M

- Cumulative retained earnings: $92M

- Diluted shares, 10-year annual growth: 9.0%

- Diluted shares, 5-year annual growth: 1.9%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.40

- Per-share value, starting three-year median: -$0.71

- Per-share value, ending three-year median: -$0.31

- Buybacks concentrated in cheaper years (correlation): -0.12

- Average buyback yield: 4.9%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: $23M

- ROIC, first three-year median: -26.8%

- ROIC, last three-year median: -20.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.71

- FY2017: -$0.25

- FY2018: -$0.24

- FY2019: -$0.05

- FY2020: -$0.18

- FY2021: $1.13

- FY2022: $0.49

- FY2023: -$0.08

- FY2024: -$0.31

- FY2025: -$0.51

### accounting: fail

- latest-year receivables to sales index (DSRI) exceeds 1.465

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -24.1%

- Receivables to sales index (DSRI): 1.56×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 59.6%

- Earnings backed by cash: Yes

- Accounting red flags: 2

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -29.2%

- FY2017: -19.5%

- FY2018: -7.9%

- FY2019: -16.5%

- FY2020: -22.3%

- FY2021: -8.3%

- FY2022: 8.0%

- FY2023: -11.0%

- FY2024: -24.9%

- FY2025: -24.1%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 46% since Oct 2021 · "Sonos expects Q3 revenue of $355M-$375M amid ~400 bps memory cost headwind" (seekingalpha.com, May 2026) · sales -4.9%

Story as of 2026-10-16T09:59:36.863Z; price observation 2026-10-15.

- 2025-08-06: Sonos outlines Q4 revenue guidance of $260M-$290M while advancing AI and platform strategy ([seekingalpha.com](https://seekingalpha.com/news/4480796-sonos-outlines-q4-revenue-guidance-of-260m-290m-while-advancing-ai-and-platform-strategy?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-05: Sonos expects Q3 revenue of $355M-$375M amid ~400 bps memory cost headwind ([seekingalpha.com](https://seekingalpha.com/news/4585290-sonos-expects-q3-revenue-of-355m-375m-amid-400-bps-memory-cost-headwind?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-30: Sonos Q3 Earnings Beat on Broad-Based Growth and Cost Control ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sonos-q3-earnings-beat-broad-142000142.html))

### Sales · FY2024–2025

sales -4.9%; source https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm; observed 2025-11-14.

- FY2016: $901M 

- FY2017: $993M 

- FY2018: $1.1B 

- FY2019: $1.3B 

- FY2020: $1.3B 

- FY2021: $1.7B 

- FY2022: $1.8B 

- FY2023: $1.7B 

- FY2024: $1.5B 

- FY2025: $1.4B 

### Gross margin · FY2025

gross margin 43.7%; source https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm; observed 2025-11-14.

- FY2016: 44.8% 

- FY2017: 45.9% 

- FY2018: 43.0% 

- FY2019: 41.8% 

- FY2020: 43.1% 

- FY2021: 47.2% 

- FY2022: 45.4% 

- FY2023: 43.3% 

- FY2024: 45.4% 

- FY2025: 43.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in consumer electronics; annual sales are USD 1.4 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm (filed 2025-11-14); FY2025: revenue 1443276000; grossProfit 630530000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); SONO.US: Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers wireless, portable, plug-in, and home theater speakers; and headphones, soundbars, components, and accessories. It offers its products through physical stores, websites, online retailers, and custom installers. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is based in Santa Barbara, California.

### Why customers stay

Margins ranged from 43.3% to 45.4% during 2023–25; it lost 7.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); FY2023: grossProfit / revenue = 43.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); FY2024: grossProfit / revenue = 45.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm (filed 2025-11-14); FY2025: grossProfit / revenue = 43.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); 10-year return on capital observations [[2016,-0.7040491311125223],[2017,-0.09560334000093036],[2018,-0.2676866982284667],[2019,0.0035790080260807828],[2020,-0.0560222848914269],[2021,0.25249704265421374],[2022,0.3590279749660922],[2023,-0.04872243401492075],[2024,-0.20109638828696616],[2025,-0.3816452885094]]; median -0.07581281244617863. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 81 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); FY2019: growth capex 0; upkeep 23222000; cash acquisitions 0; owner earnings 8427000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); FY2021: growth capex 11649000; upkeep 33882000; cash acquisitions 0; owner earnings 158595000. Growth capex plus acquisitions / owner earnings = 0.07345124373403954.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); FY2022: growth capex 2430360.3115727007; upkeep 43785639.6884273; cash acquisitions 126416000; owner earnings 62101360.3115727. Growth capex plus acquisitions / owner earnings = 2.074775168613528.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); Dividend observations: [[2016,0],[2017,0],[2018,79093000],[2019,30989000],[2020,42286000],[2021,147818000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm (filed 2025-11-14); FY2025: cash repurchases 80984000 USD.

### Are managers owners

Insiders own 1.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); SONO.US SharesStats.PercentInsiders = 1.865 percentage points; cache date 2026-10-15.

### What the price says

The price is 1.5 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-14); Closing price 17.69 USD; reporting-to-trading FX 1; FY2025 annual sales per share 11.952289225663122; price multiple 1.4800511990637966. FY2025 cash earnings/share -0.2277291394137436. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-08: $19.26 per share

- 2018-09: $16.04 per share

- 2018-10: $12.71 per share

- 2018-11: $12.28 per share

- 2018-12: $9.82 per share

- 2019-01: $11.87 per share

- 2019-02: $10.33 per share

- 2019-03: $10.29 per share

- 2019-04: $10.92 per share

- 2019-05: $10.15 per share

- 2019-06: $11.34 per share

- 2019-07: $10.85 per share

- 2019-08: $14.52 per share

- 2019-09: $13.41 per share

- 2019-10: $13.08 per share

- 2019-11: $13.85 per share

- 2019-12: $15.62 per share

- 2020-01: $13.72 per share

- 2020-02: $11.54 per share

- 2020-03: $8.48 per share

- 2020-04: $10.22 per share

- 2020-05: $10.86 per share

- 2020-06: $14.63 per share

- 2020-07: $16.00 per share

- 2020-08: $14.07 per share

- 2020-09: $15.18 per share

- 2020-10: $14.60 per share

- 2020-11: $22.24 per share

- 2020-12: $23.39 per share

- 2021-01: $26.15 per share

- 2021-02: $38.94 per share

- 2021-03: $37.47 per share

- 2021-04: $40.03 per share

- 2021-05: $37.00 per share

- 2021-06: $35.23 per share

- 2021-07: $33.38 per share

- 2021-08: $39.73 per share

- 2021-09: $32.36 per share

- 2021-10: $32.62 per share

- 2021-11: $31.65 per share

- 2021-12: $29.80 per share

- 2022-01: $25.22 per share

- 2022-02: $27.39 per share

- 2022-03: $28.22 per share

- 2022-04: $22.82 per share

- 2022-05: $22.13 per share

- 2022-06: $18.04 per share

- 2022-07: $22.11 per share

- 2022-08: $15.04 per share

- 2022-09: $13.90 per share

- 2022-10: $16.12 per share

- 2022-11: $17.53 per share

- 2022-12: $16.90 per share

- 2023-01: $18.44 per share

- 2023-02: $19.43 per share

- 2023-03: $19.62 per share

- 2023-04: $21.14 per share

- 2023-05: $14.53 per share

- 2023-06: $16.33 per share

- 2023-07: $17.14 per share

- 2023-08: $13.78 per share

- 2023-09: $12.91 per share

- 2023-10: $10.78 per share

- 2023-11: $15.10 per share

- 2023-12: $17.14 per share

- 2024-01: $15.58 per share

- 2024-02: $18.96 per share

- 2024-03: $19.06 per share

- 2024-04: $16.90 per share

- 2024-05: $15.80 per share

- 2024-06: $14.76 per share

- 2024-07: $13.50 per share

- 2024-08: $12.23 per share

- 2024-09: $12.29 per share

- 2024-10: $12.53 per share

- 2024-11: $13.61 per share

- 2024-12: $15.04 per share

- 2025-01: $13.79 per share

- 2025-02: $13.22 per share

- 2025-03: $10.67 per share

- 2025-04: $9.21 per share

- 2025-05: $10.28 per share

- 2025-06: $10.81 per share

- 2025-07: $10.81 per share

- 2025-08: $13.92 per share

- 2025-09: $15.80 per share

- 2025-10: $17.17 per share

- 2025-11: $18.56 per share

- 2025-12: $17.56 per share

- 2026-01: $14.35 per share

- 2026-02: $15.40 per share

- 2026-03: $13.40 per share

- 2026-04: $14.83 per share

- 2026-05: $15.78 per share

- 2026-06: $13.53 per share

- 2026-07: $14.66 per share

- 2026-08: $15.60 per share

- 2026-09: $17.89 per share

- 2026-10: $17.69 per share

## Annual estimated value (USD per share)

- FY2022: low $2.67 per share, central $2.80 per share, high $2.97 per share

- FY2023: low $2.41 per share, central $2.54 per share, high $2.72 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1314727/000131472725000090/sono-20250927.htm); period 2025-09-27, filed 2025-11-14.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.