The Sonos Comeback Plan is Working

Sonos CEO Tom Conrad made good on his promise to return the company to growth this fiscal year with a solid quarter to cap a solid year.

Sonos reported that it posted a net loss of $5.2 million on revenues of $344 million; the former is an improvement over the $38 million loss in the year ago quarter while the latter is a gain of 20 percent year-over-year (YOY).

For its fiscal year, Sonos reported a net income of $90 million on revenues of $1.5 billion. Sonos posted a net loss of $58 million in the previous fiscal year, while the revenue number represents a gain of 7 percent YOY.

“We said fiscal 2026 would be the year Sonos returned to growth, and we delivered,” Mr. Conrad said. “We grew in every region, delivered meaningfully higher profitability, and brought five new products to market. Underneath it all, the system strategy is working. Every product improves those our customers already own, and with Sonos 27, that will keep getting stronger every year.”

Sonos says that its products are now in 17.7 million households, with an average of over 3 devices per home and a 7 percent share of the global premium audio market. The company released five new hardware products during the fiscal year, but its biggest news came from software and services, not hardware: Sonos introduced its Sonos 27 OS back in September and opened its ecosystem to third-party voice assistants and AI agents. And Sonos says it will deliver annual updates like this going forward, each with new system capabilities.

Sonos says it expects the growth to continue, with revenues expected to grow about 10 percent in the current quarter YOY.

“I’m really excited about the product road map moving into fiscal 2027,” Conrad said during the Sonos post-earnings conference call. “We have many more great products to come.”

And regarding its long-running legal battle with Google over the theft of its intellectual property, Sonos said that it was eager to get to trial. And it seems like there will be more than one.

“We have scored a very nice victory in the Federal Circuit just recently defeating one of Google’s cases against us,” Sonos chief legal officer Eddie Lazarus said. “We’re very much looking forward to getting the trial in our big case in the Central District of California against Google, where many of those patents have already been through the ITC [the U.S. International Trade Commission], where we had findings of validity and infringement. And we have a case in Northern California, where we’re waiting for the judge to, knock [on] wood, affirm the jury verdict that came in, in our favor.”