Sonos (NASDAQ:SONO) Releases Earnings Results, Beats Estimates By $0.08 EPS

Sonos (NASDAQ:SONO) posted its quarterly earnings results on Tuesday. The company reported $0.93 EPS for the quarter, beating the consensus estimate of $0.85 by $0.08, FiscalAI reports. Sonos had a negative net margin of 1.22% and a positive return on equity of 0.85%. The business had revenue of $545.66 million during the quarter, compared to analyst estimates of $536.93 million. During the same period in the previous year, the business posted $0.64 EPS. The company’s quarterly revenue was down .9% on a year-over-year basis.

Here are the key takeaways from Sonos’ conference call:

• Sonos reported Q1 revenue of $546 million (above guidance midpoint) with gross profit dollars up 5% year‑over‑year and adjusted EBITDA up 45% to $132 million, matching all of fiscal 2025 adjusted EBITDA in one quarter.
• The company is executing a system‑first product strategy, unveiled Amp Multi for installers, and plans multiple new product launches in the second half of fiscal 2026 to drive durable, repeatable growth.
• Price reduction on the Era 100 is producing results—new customer starts from Era 100 accelerated >40% year‑over‑year—and Sonos highlights a large upside in lifetime value if multi‑product households increase devices per home (company estimates roughly $5B–$7B incremental revenue opportunity).
• Headwinds remain: tariffs (~300 basis points) and rising memory costs are pressuring margins (Q2 GAAP gross margin guided 44%–46%), and Q2 adjusted EBITDA guidance is wide and includes a possible loss (-$18M to $10M), reflecting near‑term uncertainty despite mitigation efforts and supplier actions.

Sonos Price Performance

SONO opened at $15.56 on Thursday. The business has a 50 day moving average price of $17.14 and a two-hundred day moving average price of $15.70. The company has a market capitalization of $1.88 billion, a price-to-earnings ratio of -91.53 and a beta of 2.05. Sonos has a 1-year low of $7.63 and a 1-year high of $19.82.

Trending Headlines about Sonos

Here are the key news stories impacting Sonos this week:

• Positive Sentiment: Q1 beat on EPS and revenue; margins and cash flow improved — Sonos reported $0.93 EPS vs. consensus ~$0.85 and $545.7M revenue (toppling estimates), with margin expansion and stronger operating cash flow cited on the call. Sonos Inc (SONO) Q1 2026 Earnings Call Highlights
• Positive Sentiment: Management credits margin improvement (margin-driven beat) and launched Amp Multi — the market framed the EPS beat as margin-driven and highlighted Amp Multi as a meaningful new product that can expand ASPs and channel momentum. Why Sonos (SONO) Is Up 6.8% After Margin-Driven Q1 Earnings Beat And New Amp Multi Launch
• Positive Sentiment: Company push on new hardware and roadmap — Sonos emphasized a pipeline of new products (Amp Multi plus additional launches planned) as part of its plan to “return to growth.” Product roadmap commentary supports a multi-quarter growth thesis. Sonos Reports First Quarter Fiscal 2026 Results
• Positive Sentiment: Retail promotions and flash sales may boost near-term unit demand — multiple outlets flagged discounts on Era 100, soundbars and headphones tied to events (Valentine’s/Big Game), which can help clear inventory and lift seasonal sales. Sonos is blowing out its most popular soundbars, speakers, and headphones during this flash sale
• Neutral Sentiment: Q2 revenue guidance range is $250M–$280M (consensus ~ $267M) — the range leaves room for upside or downside vs. expectations; investors should watch upcoming quarterly cadence for confirmation of re-acceleration. Sonos, Inc. (SONO) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Revenue still slightly down y/y and profitability not fully restored — revenue fell ~0.9% YoY and the company reported a negative net margin (~-1.2%); analysts still model negative FY EPS (~-0.37), so durable profitability recovery is not guaranteed. Sonos Q1 earnings and results

Insiders Place Their Bets

In related news, insider Edward P. Lazarus sold 12,000 shares of the firm’s stock in a transaction dated Thursday, December 4th. The stock was sold at an average price of $19.00, for a total transaction of $228,000.00. Following the completion of the transaction, the insider owned 423,219 shares of the company’s stock, valued at $8,041,161. This trade represents a 2.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Thomas Conrad purchased 62,325 shares of the company’s stock in a transaction on Monday, November 17th. The stock was acquired at an average price of $16.17 per share, for a total transaction of $1,007,795.25. Following the completion of the transaction, the chief executive officer owned 305,103 shares of the company’s stock, valued at $4,933,515.51. This represents a 25.67% increase in their position. The disclosure for this purchase is available in the SEC filing. 1.25% of the stock is currently owned by insiders.

Institutional Trading of Sonos

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quarry LP grew its position in Sonos by 485.8% in the third quarter. Quarry LP now owns 3,251 shares of the company’s stock worth $51,000 after buying an additional 2,696 shares during the last quarter. Strs Ohio acquired a new position in shares of Sonos in the 1st quarter worth $147,000. Tower Research Capital LLC TRC grew its holdings in shares of Sonos by 359.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 13,568 shares of the company’s stock worth $147,000 after acquiring an additional 10,613 shares during the last quarter. Focus Partners Wealth acquired a new stake in shares of Sonos during the third quarter worth $170,000. Finally, Centaurus Financial Inc. lifted its holdings in shares of Sonos by 6.6% during the third quarter. Centaurus Financial Inc. now owns 11,056 shares of the company’s stock valued at $175,000 after purchasing an additional 681 shares during the last quarter. 85.82% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities analysts have commented on SONO shares. Weiss Ratings restated a “sell (d-)” rating on shares of Sonos in a research note on Thursday, January 22nd. Rosenblatt Securities reaffirmed a “buy” rating and issued a $21.00 target price on shares of Sonos in a research report on Monday. Morgan Stanley set a $18.00 target price on Sonos in a research note on Wednesday. Wall Street Zen lowered shares of Sonos from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Finally, Jefferies Financial Group increased their price objective on shares of Sonos from $19.00 to $21.00 and gave the stock a “buy” rating in a report on Monday, January 5th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $20.00.

About Sonos

Sonos, Inc is a consumer electronics company specializing in wireless home audio systems. The company’s core business revolves around designing, developing and manufacturing smart speakers and soundbars that deliver high-fidelity audio and seamless multi-room listening experiences. Sonos products connect via Wi-Fi or Bluetooth and integrate with popular streaming services, enabling users to control music and other audio content through a dedicated mobile app, voice assistants or traditional controls.

Sonos offers a diversified product lineup that includes compact speakers such as Sonos One and Sonos Roam, premium models like Sonos Five and Sonos Move, home theater solutions including Sonos Beam and Sonos Arc, as well as accessories such as the Sonos Sub and Sonos Amp.