Sonos Fourth-Quarter Revenue Growth Accelerates to 20%

The Tip Desk · November 12, 2026 · 3 min read

Fourth-quarter revenue rose 20% to $344 million, faster than the 9% pace of the third quarter, as the audio company posted full-year GAAP net income of $90 million.

Sonos, Inc. (SONO) reported fourth-quarter revenue of $344 million, a 20% increase from a year earlier, accelerating from 9% growth in the third quarter and 8% in the second.

The audio-systems company said the quarter closed with revenue, gross margin and Adjusted EBITDA above the midpoint of its guidance range. Chief Executive Officer Tom Conrad said the company had grown in every region, delivered higher profitability and brought five new products to market.

For the full fiscal year ended October 3, 2026, revenue increased 7% to $1,547 million, continuing growth after a 2% first-half increase and 9% third-quarter growth. GAAP net income was $90 million, or $0.73 a share, versus a $61 million loss and $0.51 a share of loss a year earlier. Non-GAAP net income rose 92% to $150 million, or $1.23 a share. Adjusted EBITDA increased 39% to $184 million. GAAP operating income was $89.6 million, versus an operating loss of $50.5 million a year earlier.

Chief Financial Officer Saori Casey said the company grew revenue 7%, reduced Non-GAAP operating expenses 3% and grew Adjusted EBITDA 39% to $184 million, all while absorbing $56 million of higher memory costs. Non-GAAP operating income was $150.0 million, versus $82.7 million a year earlier.

GAAP results included $41.2 million of IEEPA tariff refunds, of which $18.0 million fell in the fourth quarter, following a U.S. Supreme Court ruling invalidating certain IEEPA tariffs. Non-GAAP figures exclude that benefit.

In the fourth quarter, GAAP gross margin was 46.1% and Non-GAAP gross margin was 42.1%. Adjusted EBITDA was $6 million, flat year over year. GAAP net loss improved $33 million to $5 million, or $0.04 a share. Non-GAAP net income was $5 million, or $0.04 a share.

Sonos speakers generated $247.5 million of fourth-quarter revenue, versus $206.5 million a year earlier. System products contributed $77.0 million, versus $65.2 million, and partner products and other revenue was $19.9 million, versus $16.2 million. Americas revenue was $224.8 million, versus $191.9 million; Europe, Middle East and Africa was $95.9 million, versus $77.5 million; Asia Pacific was $23.8 million, versus $18.5 million.

For the full year, GAAP gross margin was 46.9% and Non-GAAP gross margin was 45.5%. Cash flows from operations increased 6% to $145 million and free cash flow rose 14% to $123 million. Inventories were $273.0 million as of October 3, 2026, versus $171.0 million a year earlier. Accounts receivable, net, were $102.1 million, versus $65.8 million. Cash and cash equivalents were $178.1 million.

The company returned $35 million to shareholders through repurchase of 2.2 million shares in the fourth quarter. For the full year it returned $130 million through repurchase of 8.2 million shares. The board authorized a new common-stock repurchase program of up to $150 million after completing the prior $150 million program in the fourth quarter of fiscal 2026.

Conrad said the system strategy is working and that with Sonos 27 the company’s products will keep improving those customers already own. Casey said the company is actively managing the levers available to optimize financial performance.