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Revenue: $260 million, up 3% year over year.
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Adjusted EBITDA: Negative $1 million, a $33 million improvement from last year’s Q2.
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GAAP Gross Margin: 43.7%.
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Non-GAAP Gross Margin: 47.1%.
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GAAP Operating Expenses: $175 million, down 4% year over year.
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Non-GAAP Operating Expenses: $135 million, down 14% year over year.
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Free Cash Flow: Negative $65 million, improved from negative $121 million last year.
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Net Cash: $224 million, including $50 million in marketable securities.
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Inventory Balance: $138 million, down 23% year over year.
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Share Repurchase: $33 million returned to shareholders, reducing share count by 2.3 million shares.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Sonos Inc (NASDAQ:SONO) reported a 3% year-over-year revenue growth, driven by strong performance in home theater and over-the-ear headphones.
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The company achieved a 14% year-over-year decline in non-GAAP operating expenses, reflecting disciplined execution on restructuring.
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Sonos Inc (NASDAQ:SONO) has successfully moved the majority of its US-bound production out of China, reducing exposure to tariffs.
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The company is experiencing positive customer response to the pricing change of the Era 100, enhancing customer acquisition.
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Sonos Inc (NASDAQ:SONO) has a strong balance sheet with $224 million in net cash and a $100 million undrawn revolving credit facility.
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Sonos Inc (NASDAQ:SONO) faces a dynamic global environment with potential impacts from tariffs and macroeconomic forces.
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The company reported a negative $1 million adjusted EBITDA for Q2, although it was an improvement from the previous year.
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Free cash flow was negative $65 million in Q2, impacted by non-recurring items such as restructuring payments and tax payments.
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Sonos Inc (NASDAQ:SONO) anticipates a challenging year-over-year comparison in Q3 due to the previous year’s product launch.
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The winding down of the IKEA partnership may indicate a need to simplify operations and focus on core products.
Q: As you try to deal with the tariffs, what’s your sense of the channel’s willingness to take on inventory that might have a lower tariff attached to it? A: Saori Casey, CFO: We’re in discussions with our channel partners about tariff rates and strategies to mitigate consumer impact. It’s a work in progress, involving pricing, promotion, and channel inventory strategies.
Q: There’s been press reports about the winding down of the IKEA partnership. Should we read anything into that regarding your pricing strategies? A: Thomas Conrad, Interim CEO: We’ve largely wound down the IKEA partnership to sharpen our focus on core experiences, profitable growth, cost efficiency, and delivering innovative experiences.
