Sonos (SONO) Stock Forecast & Price Target

Sonos has demonstrated strong growth in product ownership, with 61% of users now averaging 4.49 products per household, an increase from 4.42 last year. In the fourth quarter, the company reported a year-over-year revenue growth of 12.7%, contributing to a total annual revenue of $1.44 billion, despite a 4.9% decline year-over-year. The company is well-positioned for future success, driven by a new management team, improved software, a leaner cost structure, and anticipated gross margin improvements as they navigate tariff pressures.

Sonos Inc experienced a 13% year-over-year revenue decline, which is particularly concerning given that the previous year's quarter included the launch of the Ace Headphones, creating a difficult comparison. The company’s projections suggest an expected revenue decline of 8% year-over-year on a reported basis for the upcoming fiscal quarter, compounded by an absence of products to stimulate significant growth amid challenging macroeconomic conditions. Furthermore, with Street expectations remaining modest and largely dependent on the performance during the Holiday season, the outlook for future growth appears strained.