Sonos, Inc. (NASDAQ: SONO) closed at $14.84, up 3.4% on the day, following the release of its first-quarter fiscal 2026 earnings. The company’s market capitalization stood at approximately $1.78 billion at the latest market close.
Latest Quarterly Results (Q1FY26)
For the first quarter of fiscal year 2026, Sonos reported revenue of $545.662 million. Revenue declined modestly compared with the same period a year earlier, reflecting softer demand across certain product categories. GAAP net income for the quarter was $93.798 million, while non-GAAP net income totaled $115.504 million. Adjusted EBITDA for the quarter was reported at $132.139 million.
GAAP earnings per share for the quarter were $0.75, compared with $0.93 on a non-GAAP basis. Gross margin expanded during the quarter, supported by favorable product mix and cost discipline. Operating expenses declined year over year, contributing to improved profitability despite lower revenue.
Segment Highlights
Revenue from the Americas region totaled $328.877 million during the quarter, accounting for the majority of total sales. EMEA contributed $189.441 million, while APAC revenue was $27.344 million. The company reported continued demand for its speaker portfolio, with plug-in products remaining a key contributor to overall revenue.
Financial Trends
For fiscal year 2025, Sonos reported full-year revenue of approximately $1440.0 million. The company recorded a GAAP net loss of $61.0 million for the year. Management highlighted improvements in adjusted EBITDA and cash flow generation during the year, reflecting restructuring actions and tighter cost controls implemented across the business.
Business & Operations Update
During the quarter, Sonos continued to focus on product reliability, software performance, and supply chain efficiency. The company reported progress in inventory reduction efforts and noted improved availability across key markets. New product initiatives and updates to the installer-focused portfolio were highlighted as part of efforts to broaden distribution channels. Sonos also continued share repurchase activity during the quarter as part of its capital return program.
Guidance & Outlook — what to watch for
For the second quarter of fiscal 2026, the company provided revenue guidance in the range of $250 million to $280 million. GAAP gross margin is expected to be between 44% and 46%, while adjusted EBITDA is projected to range from a loss of $18 million to a profit of $10 million. Investors are watching demand trends, margin performance, and execution on new product launches.
M&A or Strategic Moves
The company did not announce any acquisitions or divestitures during the quarter. Management reiterated its focus on organic growth initiatives, partnerships, and disciplined capital allocation.
Equity Analyst Commentary
During the earnings call, management addressed questions related to demand trends, pricing, and cost structure. Discussion focused on margin sustainability, memory cost trends, and the pace of new product introductions. No changes to long-term strategic priorities were announced.
Performance Summary
Sonos shares moved higher following the earnings release. First-quarter revenue totaled $545.662 million, with adjusted EBITDA of $132.139 million. Profitability improved year over year, while geographic performance remained led by the Americas. The quarter reflected continued focus on cost control and operational execution.
