NASDAQ:SONO

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Sonos Slips 0.65% After Hours Despite Return to Growth and Higher Profitability

Sonos (NASDAQ: SONO) shares fell about 0.65% in after-hours trading despite reporting a return to annual revenue growth, sharply higher profitability and strong fourth-quarter sales growth.

Fiscal 2026 revenue increased 7% year over year to $1.55 billion, while adjusted EBITDA rose 39% to $184 million. GAAP net income improved by $151 million to $90 million, and non-GAAP net income increased 92% to $150 million.

Fourth-quarter revenue rose 20% year over year to $344 million. GAAP net loss narrowed to $5 million from a much larger loss a year earlier, while non-GAAP net income improved to $5 million. Adjusted EBITDA was $6 million, flat year over year.

Cash generation also improved. Full-year operating cash flow increased 6% to $145 million, while free cash flow rose 14% to $123 million. Sonos returned $130 million to shareholders through share repurchases during the year.

The company also authorized a new $150 million share repurchase program after completing its previous $150 million authorization in the fourth quarter.

The modest after-hours decline appears to reflect limited incremental upside from the quarter and investor caution ahead of detailed guidance, which management said would be provided on the earnings call, despite strong full-year earnings improvement and a return to top-line growth.
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Author
Global Finance News 11-11-26
Sonos, Inc. reported its First Quarter Fiscal 2025 results, with revenue of $551 million, coming in near the high end of its guidance range. The company reported a GAAP gross margin of 43.8% and GAAP net income of $50.2 million, or $0.40 per diluted share. Non-GAAP net income for the quarter was $79.2 million, with non-GAAP diluted EPS of $0.64, and adjusted EBITDA stood at $91.2 million.

The company also announced a reorganization and reduction in force, which will affect approximately 12% of its workforce. This restructuring is expected to incur charges between $15 million and $18 million, primarily for employee severance and benefits costs, with most of the charges expected to occur in the second quarter of fiscal 2025.

Interim CEO Tom Conrad emphasized the company’s focus on efficiency and growth, while CFO Saori Casey highlighted the progress made in Sonos' ongoing transformation, aiming to strengthen its future performance.
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Author
European Investor 02-06-25