sono-20250628

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________

FORM 10-Q


x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025


o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38603

_________________________________________________________

SONOS, INC.

(Exact name of registrant as specified in its charter)

_________________________________________________________


Delaware		03-0479476
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

301 Coromar Drive	Santa Barbara	CA	93117
(Address of Principal Executive Offices)			(Zip Code)

(805) 965-3001

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Common Stock, $0.001 par value	SONO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o

Non-accelerated filer	o	Smaller reporting company	o

		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of July 22, 2025, the registrant had 120,880,277 shares of common stock outstanding.

Table of contents

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Financial statements (unaudited)

	Condensed consolidated balance sheets	3

	Condensed consolidated statements of operations and comprehensive income (loss)	4

	Condensed consolidated statements of stockholders' equity	5

	Condensed consolidated statements of cash flows	6

	Notes to condensed consolidated financial statements	7

Item 2.	Management’s discussion and analysis of financial condition and results of operations	20

Item 3.	Quantitative and qualitative disclosures about market risk	29

Item 4.	Controls and procedures	29

PART II. OTHER INFORMATION

Item 1.	Legal proceedings	31

Item 1A.	Risk factors	31

Item 2.	Unregistered sales of equity securities and use of proceeds	31

Item 3.	Defaults upon senior securities	31

Item 4.	Mine safety disclosures	31

Item 5.	Other information	32

Item 6.	Exhibit index	33

SIGNATURES		34

Table of contents

PART I. FINANCIAL INFORMATION

Item 1. Financial statements

SONOS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except par values)


	As of
	June 28, 2025		September 28, 2024
Assets
Current assets:
Cash and cash equivalents	$	201,273	$	169,732
Marketable securities	52,681		51,426
Accounts receivable, net	94,201		44,513
Inventories	115,427		231,505
Prepaids and other current assets	39,559		53,910
Total current assets	503,141		551,086
Property and equipment, net	80,726		102,148
Operating lease right-of-use assets	46,625		50,175
Goodwill	82,854		82,854
Intangible assets, net
In-process research and development	—		73,770
Other intangible assets	78,008		14,266
Deferred tax assets	10,012		10,314
Other noncurrent assets	33,036		31,699
Total assets	$	834,402	$	916,312

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	143,992	$	194,590
Accrued expenses	75,872		87,783
Accrued compensation	26,408		15,701
Deferred revenue, current	21,867		21,802
Other current liabilities	47,464		46,277
Total current liabilities	315,603		366,153
Operating lease liabilities, noncurrent	55,147		56,588
Deferred revenue, noncurrent	61,098		61,075
Deferred tax liabilities	512		60
Other noncurrent liabilities	2,736		3,816
Total liabilities	435,096		487,692

Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.001 par value	122		123
Treasury stock	(16,322)		(17,096)
Additional paid-in capital	488,548		498,245
Accumulated deficit	(74,220)		(50,934)
Accumulated other comprehensive income (loss)	1,178		(1,718)
Total stockholders’ equity	399,306		428,620
Total liabilities and stockholders’ equity	$	834,402	$	916,312

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of contents

SONOS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands, except share and per share amounts)


	Three Months Ended				Nine Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Revenue	$	344,764	$	397,146	$	1,155,376	$	1,262,676
Cost of revenue	195,040		205,505		650,637		676,320
Gross profit	149,724		191,641		504,739		586,356
Operating expenses
Research and development	59,750		74,223		218,011		233,780
Sales and marketing	62,576		71,643		213,430		217,428
General and administrative	30,327		33,186		89,357		113,825
Total operating expenses	152,653		179,052		520,798		565,033
Operating income (loss)	(2,929)		12,589		(16,059)		21,323
Other income (expense), net
Interest income	1,572		2,629		5,406		9,638
Interest expense	(117)		(106)		(336)		(333)
Other income (expense), net	661		(2,464)

SEC Form 10-Q filed by Sonos Inc.