NASDAQ$SONO

Sonos Inc · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Sonos reported its First Quarter Fiscal 2025 results, with revenue near the high-end of its guidance range and an announced reduction in force.

Sonos reported a revenue of $551 million for the first quarter of fiscal 2025, with a GAAP net income of $50.2 million and diluted EPS of $0.40. The company also announced a reorganization and reduction in force affecting approximately 12% of its employees.

  • Revenue for Q1 Fiscal 2025 was $551 million, near the high-end of the guidance range.
  • GAAP net income was $50.2 million, with GAAP diluted earnings per share of $0.40.
  • Non-GAAP net income was $79.2 million, and Non-GAAP diluted EPS was $0.64.
  • The company implemented a reorganization and reduction in force, impacting approximately 12% of its employees, expecting to incur $15 to $18 million in related charges.

Headline financials

Total Revenue

$551M

Previous: $613M-10.1%
EPS (adj)

$0.64

Previous: $0.64+0.0%
Adjusted EBITDA

$91.2M

Previous: $115M-20.9%
Adjusted EBITDA margin

16.6%

Previous: 18.8%-11.7%
Net income margin

9.1%

No prior period
GAAP gross margin

43.8%

Previous: 46.1%-5.0%
Non-GAAP gross margin

44.7%

Previous: 46.4%-3.7%
Capital Expenditures

-$13.1M

Previous: -$6.08M-115.7%
Net Income

$50.2M

Previous: $80.9M-37.9%
Operating Income

$48.1M

Previous: $79.7M-39.7%
Gross Profit

$241M

Previous: $283M-14.6%
R&D Expense

$80.7M

Previous: $79.2M+1.9%

Revenue & EPS history

Sonos · Revenue · Quarterly

$551M

Q1 2025-10.1%vs Q1 2024
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Sonos · $305M total across 3 segments · Q4 2023

  • Sonos speakers
    $223M-5.0%
  • Sonos system products
    $62.3M-0.7%
  • Partner products and other revenue
    $19.5M+5.9%

Forward guidance

The company will provide guidance on its First Quarter Fiscal 2025 earnings call.

Tailwinds

  • Commitment to execution in a difficult environment.
  • Progress in transformation journey for future setup.
  • Focus on improving core customer experience.
  • Designing next set of Sonos products and innovations.
  • Talented Sonos team driving efforts.

Headwinds

  • Difficult operating environment acknowledged.
  • Significant organizational changes with 12% employee reduction.
  • Expected restructuring and related charges of $15-$18 million.
  • Substantially all restructuring charges to be incurred in Q2 Fiscal 2025.
  • No specific financial guidance provided in the press release.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-0.5%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-3.5%

Avg return

30 days after

51%

19 / 37 earnings

Positive

+29.5%

Q4 2020

Best reaction

-25.9%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.0%+1.3%+9.3%
Q1 2026+6.4%+16.7%-2.5%
Q4 2025+1.5%+1.5%+16.7%
Q2 2025+9.7%+25.3%+11.9%
Q1 2025-7.5%-12.5%-14.1%
Q4 2024-2.2%-10.2%+3.6%
Q3 2024-5.4%-8.4%-6.9%
Q2 2024-5.8%-7.0%-11.2%
Q1 2024+21.8%+15.6%+20.2%
Q4 2023+18.0%+27.2%+51.1%
Q3 2023-7.8%-11.8%-16.1%
Q2 2023-25.9%-28.7%-27.5%
Q1 2023+11.9%+14.2%+3.0%
Q4 2022-2.5%-3.7%-1.5%
Q3 2022-22.3%-22.2%-27.1%
Q2 2022+4.4%+4.5%+2.0%
Q1 2022+4.7%+2.7%-9.7%
Q4 2021-4.3%-6.8%-14.0%
Q3 2021+6.2%+13.4%+5.0%
Q2 2021-3.0%-2.9%+1.3%
Q1 2021+13.1%+10.1%+28.9%
Q4 2020+29.5%+25.1%+42.0%
Q3 2020-13.6%-16.5%-20.7%
Q2 2020-1.3%+0.6%+14.0%
Q1 2020+8.0%-5.7%-28.2%
Q4 2019-2.0%+6.5%+2.2%
Q3 2019+8.8%+18.8%+48.0%
Q2 2019+4.0%+1.8%+3.3%
Q1 2018-13.5%-9.3%-19.3%
Q1 2019-17.1%-16.5%-24.2%
Q2 2018+4.5%+7.5%-15.6%
Q2 2017+4.5%+7.5%-15.6%
Q1 2016+4.5%+7.5%-15.6%
Q4 2018+10.8%-4.4%-18.2%
Q3 2018-19.2%-21.6%-38.0%
Q3 2017-19.2%-21.6%-38.0%
Q4 2017-19.2%-11.2%-28.8%

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