Sonos Earnings Up 3 Percent to $260 Million, But…

Struggling smart speaker maker Sonos posted a mini-rebound in the most recent quarter as it turns the corner on app quality. But it’s still unprofitable and will be for the foreseeable future.

Sonos reported a net loss of $70 million on revenues of $260 million in the quarter ending March 29, 2025. Revenues were up 3 percent year-over-year (YOY).

“We made significant progress in [fiscal] Q2 across our top initiatives,” Sonos interim CEO Tom Conrad said. “We’re firmly on track in restoring the reliability and responsiveness our customers expect, with nine major software updates delivered in the last 120 days and more on the way. We’re actively navigating the evolving tariff landscape with operational discipline and flexibility and we’re reinvigorating demand through strategic pricing on Era 100, one of our most popular gateway products. Even in a complex environment, we’re operating with focus and confidence as we position Sonos for long-term success.”

There’s a lot to unpack there, but here’s the short version of what he’s trying to say: Sonos has improved its app dramatically since last’s May’s fiasco, it lowered the price on the Era 100 to match that of its predecessor, and it has no new products to introduce for the remainder of its fiscal year, which ends in September. Oh, and Mr. Conrad would very much like to stay on as the permanent Sonos CEO, a fact he made clear across several interviews tied to the earnings announcement.

Sonos said that its high-end Arc soundbar, low-end Era 100 speaker–now selling for $199 in the U.S., down from its original $249 price–and Ace headphones experienced strong sales in the quarter. But Sonos has fallen further than many probably realize: In the same quarter in 2023, Sonos revenues were 17 percent higher, at $304 million. And Q2 2022 ($400 million in revenues) and 2023 ($333 million) were even better.

Looking ahead, Sonos says that revenues in the current quarter should be about $325 million, a decline of 18 percent YOY. And though it expects the ill-conceived new U.S. tariffs to reduce profits by about $3 million, Sonos was already working to reduce its reliance on China to diversify its supply chain.

But all anyone wants to talk about is the app. Which is really about how Sonos can possibly win back all the trust it lost with customers last year.

“We’ve made tremendous progress over the course of the last 120 days on the quality and reliability of the core experience,” Conrad said during the Sonos earnings call. “We’ve delivered 9 software updates focused on stability, speed, and usability. And we’re getting really great positive customer response on the backs of these improvements. We’re seeing all of our core metrics improve across every dimension. We’re at levels that are better than the previous generation software.”

Sonos confirmed that it is winding down its IKEA partnership. And Conrad also noted that it still has “two affirmative cases against Google that are proceeding.” The company has a strong case against Google, but as I noted about 18 months ago, it’s time for the two to settle their differences and work together.