Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. is projected to achieve a year-over-year revenue increase of 2%, translating to a 5% growth when accounting for previous sell-in issues, with revised full-year estimates rising to $1.67 billion. The company has successfully increased its market share in both home theater and streaming music segments, particularly benefitting from the traction of the new Era 100 and 300 speakers, despite operating in a competitive, promotional environment. Additionally, Sonos reported non-GAAP gross margins of 46.4%, a notable improvement from 42.6% in the prior year, signaling effective cost management and operational efficiency amid rising operating expenses.

Sonos Inc. reported an 8.9% year-over-year decline in total revenue, indicating potential challenges in market demand despite outperforming certain competitors. The company is facing a projected sequential revenue decline of 59% to 61% in the next quarter, coupled with expected negative adjusted EBITDA of $34 million to $47 million, suggesting ongoing financial distress. Additionally, while inventory levels have reduced significantly, the macroeconomic environment remains difficult for the consumer electronics sector, resulting in pronounced revenue declines particularly in key geographic markets such as EMEA and Asia Pacific.