# EDGAR Filing Document

**Accession Number:** 0001314727
**File Stem:** 0001314727-25-000074
**Filing Date:** 2025-8
**Character Count:** 136123
**Document Hash:** 8a7475550b43c7ce93c1805c8215d6a9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001314727-25-000074.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001314727-25-000074

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 77

**CONFORMED PERIOD OF REPORT**: 20250628

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sonos Inc
- **CENTRAL INDEX KEY:** 0001314727
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 030479476
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38603
- **FILM NUMBER:** 251190796

**BUSINESS ADDRESS:**
- **STREET 1:** 301 COROMAR DRIVE
- **CITY:** SANTA BARBARA
- **STATE:** CA
- **ZIP:** 93117
- **BUSINESS PHONE:** 805-965-3001

**MAIL ADDRESS:**
- **STREET 1:** 301 COROMAR DRIVE
- **CITY:** SANTA BARBARA
- **STATE:** CA
- **ZIP:** 93117

?xml version='1.0' encoding='ASCII'? sono-20250628

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**_________________________________________________________**

**FORM 10-Q** 

⌧ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

**For the quarterly period ended June 28, 2025**

**or** 

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**<br>

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp; to**

**Commission File Number: 001-38603** 

**_________________________________________________________**

**SONOS, INC.** 

**(Exact name of registrant as specified in its charter)**

**_________________________________________________________**

---

| | | | |
|:---|:---|:---|:---|
| **Delaware** | | **03-0479476** | |
| (State or other jurisdiction<br>of incorporation or organization) | | (I.R.S. Employer Identification No.) | |
| **301 Coromar Drive** | **Santa Barbara** | **CA** | **93117** |
| (Address of Principal Executive Offices) | | | (Zip Code) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(805) 965-3001

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.001 par value | SONO | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No □

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ⌧ | Accelerated filer | □ |
| Non-accelerated filer | □ | Smaller reporting company | □ |
| | | Emerging growth company | □ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes □ No ⌧

As of July 22, 2025, the registrant had 120,880,277 shares of common stock outstanding.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[PART I. FINANCIAL INFORMATION](#i49711531abdd45e8af964f68608b4615_10)</u>** | **<u>[PART I. FINANCIAL INFORMATION](#i49711531abdd45e8af964f68608b4615_10)</u>** | |
| **<u>[Item 1.](#i49711531abdd45e8af964f68608b4615_13)</u>** | **<u>[Financial statements (unaudited)](#i49711531abdd45e8af964f68608b4615_13)</u>** | |
|  | <u>[Condensed consolidated balance sheets](#i49711531abdd45e8af964f68608b4615_16)</u> | <u>[3](#i49711531abdd45e8af964f68608b4615_16)</u> |
|  | <u>[Condensed consolidated statements of operations and](#i49711531abdd45e8af964f68608b4615_19)[comprehensive income (loss)](#i49711531abdd45e8af964f68608b4615_19)</u> | <u>[4](#i49711531abdd45e8af964f68608b4615_19)</u> |
|  | <u>[Condensed consolidated statements of stockholders' equity](#i49711531abdd45e8af964f68608b4615_22)</u> | <u>[5](#i49711531abdd45e8af964f68608b4615_22)</u> |
|  | <u>[Condensed consolidated statements of cash flows](#i49711531abdd45e8af964f68608b4615_25)</u> | <u>[6](#i49711531abdd45e8af964f68608b4615_25)</u> |
|  | <u>[Notes to condensed consolidated financial statements](#i49711531abdd45e8af964f68608b4615_28)</u> | <u>[7](#i49711531abdd45e8af964f68608b4615_28)</u> |
| **<u>[Item 2.](#i49711531abdd45e8af964f68608b4615_73)</u>** | <u>[Management's discussion and analysis of financial condition and results of operations](#i49711531abdd45e8af964f68608b4615_73)</u> | <u>[20](#i49711531abdd45e8af964f68608b4615_73)</u> |
| **<u>[Item 3.](#i49711531abdd45e8af964f68608b4615_109)</u>** | <u>[Quantitative and qualitative disclosures about market risk](#i49711531abdd45e8af964f68608b4615_109)</u> | <u>[29](#i49711531abdd45e8af964f68608b4615_109)</u> |
| **<u>[Item 4.](#i49711531abdd45e8af964f68608b4615_112)</u>** | <u>[Controls and procedures](#i49711531abdd45e8af964f68608b4615_112)</u> | <u>[29](#i49711531abdd45e8af964f68608b4615_112)</u> |
| **<u>[PART II. OTHER INFORMATION](#i49711531abdd45e8af964f68608b4615_115)</u>** | **<u>[PART II. OTHER INFORMATION](#i49711531abdd45e8af964f68608b4615_115)</u>** |  |
| **<u>[Item 1.](#i49711531abdd45e8af964f68608b4615_118)</u>** | <u>[Legal proceedings](#i49711531abdd45e8af964f68608b4615_118)</u> | <u>[31](#i49711531abdd45e8af964f68608b4615_118)</u> |
| **<u>[Item 1A.](#i49711531abdd45e8af964f68608b4615_121)</u>** | <u>[Risk factors](#i49711531abdd45e8af964f68608b4615_121)</u> | <u>[31](#i49711531abdd45e8af964f68608b4615_121)</u> |
| **<u>[Item 2.](#i49711531abdd45e8af964f68608b4615_124)</u>** | <u>[Unregistered sales of equity securities and use of proceeds](#i49711531abdd45e8af964f68608b4615_124)</u> | <u>[31](#i49711531abdd45e8af964f68608b4615_124)</u> |
| **<u>[Item 3.](#i49711531abdd45e8af964f68608b4615_127)</u>** | <u>[Defaults upon senior securities](#i49711531abdd45e8af964f68608b4615_127)</u> | <u>[31](#i49711531abdd45e8af964f68608b4615_127)</u> |
| **<u>[Item 4.](#i49711531abdd45e8af964f68608b4615_130)</u>** | <u>[Mine safety disclosures](#i49711531abdd45e8af964f68608b4615_130)</u> | <u>[31](#i49711531abdd45e8af964f68608b4615_130)</u> |
| **<u>[Item 5.](#i49711531abdd45e8af964f68608b4615_133)</u>** | <u>[Other information](#i49711531abdd45e8af964f68608b4615_133)</u> | <u>[32](#i49711531abdd45e8af964f68608b4615_133)</u> |
| **<u>[Item 6.](#i49711531abdd45e8af964f68608b4615_139)</u>** | <u>[Exhibit index](#i49711531abdd45e8af964f68608b4615_139)</u> | <u>[33](#i49711531abdd45e8af964f68608b4615_139)</u> |
| **<u>[SIGNATURES](#i49711531abdd45e8af964f68608b4615_142)</u>** | **<u>[SIGNATURES](#i49711531abdd45e8af964f68608b4615_142)</u>** | <u>[34](#i49711531abdd45e8af964f68608b4615_142)</u> |

---

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**PART I. FINANCIAL INFORMATION**

**Item 1.&nbsp;&nbsp;&nbsp;&nbsp; Financial statements** 

**SONOS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

*(unaudited, in thousands, except par values)*

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $201273 | $169732 |
| &nbsp;&nbsp;&nbsp;Marketable securities | 52681 | 51426 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 94201 | 44513 |
| &nbsp;&nbsp;&nbsp;Inventories | 115427 | 231505 |
| &nbsp;&nbsp;&nbsp;Prepaids and other current assets | 39559 | 53910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 503141 | 551086 |
| Property and equipment, net | 80726 | 102148 |
| Operating lease right-of-use assets | 46625 | 50175 |
| Goodwill | 82854 | 82854 |
| Intangible assets, net |  |  |
| &nbsp;&nbsp;&nbsp;In-process research and development |  | 73770 |
| &nbsp;&nbsp;&nbsp;Other intangible assets | 78008 | 14266 |
| Deferred tax assets | 10012 | 10314 |
| Other noncurrent assets | 33036 | 31699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $834402 | $916312 |
| **Liabilities and stockholders' equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $143992 | $194590 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 75872 | 87783 |
| &nbsp;&nbsp;&nbsp;Accrued compensation | 26408 | 15701 |
| &nbsp;&nbsp;&nbsp;Deferred revenue, current | 21867 | 21802 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 47464 | 46277 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 315603 | 366153 |
| Operating lease liabilities, noncurrent | 55147 | 56588 |
| Deferred revenue, noncurrent | 61098 | 61075 |
| Deferred tax liabilities | 512 | 60 |
| Other noncurrent liabilities | 2736 | 3816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 435096 | 487692 |
| Commitments and contingencies (Note 7) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.001 par value | 122 | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock | (16322) | (17096) |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 488548 | 498245 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (74220) | (50934) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) | 1178 | (1718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 399306 | 428620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $834402 | $916312 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

*(unaudited, in thousands, except share and per share amounts)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| Revenue | $344764 | $397146 | $1155376 | $1262676 |
| Cost of revenue | 195040 | 205505 | 650637 | 676320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 149724 | 191641 | 504739 | 586356 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 59750 | 74223 | 218011 | 233780 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 62576 | 71643 | 213430 | 217428 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 30327 | 33186 | 89357 | 113825 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 152653 | 179052 | 520798 | 565033 |
| Operating income (loss) | (2929) | 12589 | (16059) | 21323 |
| Other income (expense), net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 1572 | 2629 | 5406 | 9638 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (117) | (106) | (336) | (333) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income (expense), net | 661 | (2464) | (5176) | 4507 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | 2116 | 59 | (106) | 13812 |
| Income (loss) before provision for income taxes | (813) | 12648 | (16165) | 35135 |
| Provision for income taxes | 2566 | 8939 | 7121 | 20188 |
| Net income (loss) | $(3379) | $3709 | $(23286) | $14947 |
| Net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $(0.03) | $0.03 | $(0.19) | $0.12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $(0.03) | $0.03 | $(0.19) | $0.12 |
| Weighted-average shares used in computing net income (loss) per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 120423439 | 122553129 | 120804730 | 123828150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 120423439 | 127245459 | 120804730 | 127886368 |
| Total comprehensive income (loss) |  |  |  |  |
| Net income (loss) | (3379) | 3709 | (23286) | 14947 |
| Change in foreign currency translation adjustment | 3496 | 681 | 3036 | (267) |
| Net unrealized loss on marketable securities | (23) | (6) | (140) | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income (loss) | $94 | $4384 | $(20390) | $14648 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

*(unaudited, in thousands, except share amounts)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **Total stockholders' equity, beginning balances** | $382859 | $494004 | $428620 | $518657 |
| Common stock |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | $124 | $128 | $123 | $130 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock pursuant to equity incentive plans | 1 | 2 | 5 | 6 |
| &nbsp;&nbsp;&nbsp;Retirement of treasury stock | (3) | (4) | (6) | (10) |
| &nbsp;&nbsp;Ending balances | $122 | $126 | $122 | $126 |
| Additional paid-in capital |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | $507805 | $577840 | $498245 | $607345 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock pursuant to equity incentive plans | (1) | 4405 | 2648 | 16306 |
| &nbsp;&nbsp;&nbsp;Retirement of treasury stock | (40040) | (66003) | (81709) | (150440) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 20784 | 21930 | 69364 | 64961 |
| &nbsp;&nbsp;Ending balances | $488548 | $538172 | $488548 | $538172 |
| Treasury stock |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | $(51934) | $(77996) | $(17096) | $(72586) |
| &nbsp;&nbsp;&nbsp;Retirement of treasury stock | 40042 | 66007 | 81715 | 150450 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock, including excise tax and commission | 77 | (52820) | (60187) | (129430) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (4507) | (7514) | (20754) | (20757) |
| &nbsp;&nbsp;Ending balances | $(16322) | $(72323) | $(16322) | $(72323) |
| Retained earnings (accumulated deficit) |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | $(70841) | $(1550) | $(50934) | $(12788) |
| &nbsp;&nbsp;&nbsp;Net income (loss) | (3379) | 3709 | (23286) | 14947 |
| &nbsp;&nbsp;Ending balances | $(74220) | $2159 | $(74220) | $2159 |
| Accumulated other comprehensive income (loss) |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | $(2295) | $(4418) | $(1718) | $(3444) |
| &nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment | 3496 | 681 | 3036 | (267) |
| &nbsp;&nbsp;&nbsp;Unrealized loss on investments | (23) | (6) | $(140) | $(32) |
| &nbsp;&nbsp;Ending balances | $1178 | $(3743) | $1178 | $(3743) |
| **Total stockholders' equity, ending balances** | $399306 | $464391 | $399306 | $464391 |
| Common stock shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balances | 123760168 | 127825196 | 123046510 | 130399940 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock pursuant to equity incentive plans | 1129089 | 1582772 | 4806666 | 4911125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retirement of treasury stock | (2830758) | (3885878) | (5794677) | (9788975) |
| &nbsp;&nbsp;&nbsp;Ending balances | 122058499 | 125522090 | 122058499 | 125522090 |
| Treasury stock shares: |  |  |  |  |
| &nbsp;&nbsp;Beginning balances | (3692282) | (4747402) | (1282734) | (5286024) |
| &nbsp;&nbsp;&nbsp;Retirement of treasury stock | 2830758 | 3885878 | 5794677 | 9788975 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | 0 | (3253468) | (4167203) | (7777208) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (415834) | (433871) | (1622098) | (1274606) |
| &nbsp;&nbsp;Ending balances | (1277358) | (4548863) | (1277358) | (4548863) |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(unaudited, in thousands)*

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** |
| **Cash flows from operating activities** | | |
| Net income (loss) | $(23286) | $14947 |
| &nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 64789 | 64961 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 48657 | 35154 |
| &nbsp;&nbsp;&nbsp;Provision for inventory obsolescence | 9242 | 2005 |
| &nbsp;&nbsp;&nbsp;Restructuring and other charges | 6323 | 266 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 942 | 819 |
| &nbsp;&nbsp;&nbsp;Other | 2432 | 2973 |
| &nbsp;&nbsp;&nbsp;Foreign currency transaction loss (gain) | 572 | (2750) |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (49010) | (64218) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | 106223 | 189613 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 11616 | (15285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (55341) | (16942) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation | 10352 | 10251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (1033) | 1685 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 1470 | 4161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 133948 | 227640 |
| **Cash flows from investing activities** |  |  |
| Purchases of marketable securities | (43949) | (68676) |
| Purchases of property and equipment | (23418) | (39477) |
| Maturities of marketable securities | 43200 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (24167) | (88153) |
| **Cash flows from financing activities** |  |  |
| Payments for repurchase of common stock, including excise tax and commission | (60602) | (128739) |
| Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards | (20754) | (20757) |
| Proceeds from exercise of common stock options | 2653 | 16312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (78703) | (133184) |
| Effect of exchange rate changes on cash and cash equivalents | 463 | 580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase in cash and cash equivalents | 31541 | 6883 |
| **Cash and cash equivalents** |  |  |
| Beginning of period | 169732 | 220231 |
| End of period | $201273 | $227114 |
| **Supplemental disclosure** |  |  |
| Cash paid for interest | $197 | $195 |
| Cash paid for taxes, net of refunds | $19065 | $17134 |
| Cash paid for amounts included in the measurement of lease liabilities, net of tenant improvement reimbursements received | $3460 | $9637 |
| **Supplemental disclosure of non-cash investing and financing activities** |  |  |
| Purchases of property and equipment in accounts payable and accrued expenses | $2155 | $9910 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $1491 | $11277 |
| Excise tax on share repurchases, accrued but not paid | $187 | $691 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

**1. Business Overview and Basis of Presentation**

***Description of business***

The Company's products are sold through third-party physical retailers, including custom installers of home audio systems, select e-commerce retailers, and its website, sonos.com. The Company's products are distributed in over 60 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan, and Sonos Australia Pty Ltd. in Australia.

***Basis of presentation and preparation***

The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet as of September 28, 2024, has been derived from the audited consolidated financial statements of the Company.

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by U.S. GAAP for annual financial statements. They should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 28, 2024, (the "Annual Report"), filed with the SEC on November 15, 2024.

In management's opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company's financial position, its results of operations, and its cash flows for the interim periods presented. The results of operations for the three and nine months ended June 28, 2025, are not necessarily indicative of the results to be expected for the full fiscal year or any other period.

The Company operates on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. The Company's fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the fourth quarter of the Company's fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. The nine months ended June 28, 2025 and June 29, 2024, spanned 39 weeks each. As used in this Quarterly Report on Form 10-Q, "fiscal 2025" refers to the fiscal year ending September 27, 2025 and "fiscal 2024" refers to the fiscal year ended September 28, 2024.

***Use of estimates and judgments***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and expected trends.

**2. Summary of Significant Accounting Policies** 

There have been no changes in the Company's significant accounting policies, recently adopted accounting pronouncements, or recent accounting pronouncements pending adoption from those disclosed in the Annual Report, except as noted below.

***Recent accounting pronouncements pending adoption*** 

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure of disaggregated information about significant expenses within relevant income statement captions, such as purchases of inventory, employee compensation, depreciation, and amortization. Also

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. In January 2025, FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies that the amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The amendments may be applied retrospectively or prospectively, with early adoption permitted. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.

**3. Financial Instruments**

The carrying values of the Company's accounts receivable and accounts payable, approximate their fair values due to the short period of time to maturity or repayment. The Company utilizes the following fair value hierarchy to establish priorities of the inputs used to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Quoted prices in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

The following table summarizes cash, cash equivalents and marketable securities by investment category as of June 28, 2025 and September 28, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** |
| | **Amortized Cost** | **Unrealized Gain** | **Unrealized Loss** | **Estimated Fair Value** | **Cash and Cash Equivalents** | **Marketable Securities** |
| Cash | $172644 | $— | $— | $172644 | $172644 | $— |
| **Level 1:** |  |  |  |  |  |  |
| Money market funds | 28629 |  |  | 28629 | 28629 |  |
| Subtotal | 28629 |  |  | 28629 | 28629 |  |
| **Level 2:** |  |  |  |  |  |  |
| U.S. Treasury securities | 52699 | 2 | (20) | 52681 |  | 52681 |
| Subtotal | 52699 | 2 | (20) | 52681 |  | 52681 |
| Total | $253972 | $2 | $(20) | $253954 | $201273 | $52681 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** |
| | **Amortized Cost** | **Unrealized Gain** | **Unrealized Loss** | **Estimated Fair Value** | **Cash and Cash Equivalents** | **Marketable Securities** |
| Cash | $144184 | $— | $— | $144184 | $144184 | $— |
| **Level 1:** |  |  |  |  |  |  |
| Money market funds | 25548 |  |  | 25548 | 25548 |  |
| Subtotal | 25548 |  |  | 25548 | 25548 |  |
| **Level 2:** |  |  |  |  |  |  |
| U.S. Treasury securities | 51304 | 122 |  | 51426 |  | 51426 |
| Subtotal | 51304 | 122 |  | 51426 |  | 51426 |
| Total | $221036 | $122 | $— | $221158 | $169732 | $51426 |

---

*Marketable securities* 

As of June 28, 2025, the Company held no securities with original maturities exceeding one year. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the condensed consolidated statements of operations and comprehensive income.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

There were no realized gains or losses on sales of marketable securities during the three and nine months ended June 28, 2025. For securities in a loss position, the Company does not intend to sell the securities, and it is more-likely-than-not that it will not be required to sell before recovery of their amortized cost basis. The Company evaluated whether the decline in fair value resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of the securities and were due primarily to changes in interest rates and market conditions of the underlying securities. Accordingly, an allowance for credit losses was deemed unnecessary for these securities as of June 28, 2025.

Accrued interest receivable related to our marketable securities was immaterial as of June 28, 2025. No accrued interest receivables were written off during the three and nine months ended June 28, 2025.

**4. Revenue and Geographic Information**

***Disaggregation of revenue***

Revenue is attributed to each region based on ship-to address, and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region. Revenue by region is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | | | |
| Americas | $229656 | $264611 | $731041 | $827238 |
| Europe, Middle East and Africa ("EMEA") | 97245 | 110902 | 363642 | 372074 |
| Asia Pacific ("APAC") | 17863 | 21633 | 60693 | 63364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $344764 | $397146 | $1155376 | $1262676 |

---

Revenue is attributed to individual countries based on ship-to address and also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | | | |
| United States | $213815 | $248094 | $675546 | $765639 |
| Other countries | 130949 | 149052 | 479830 | 497037 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $344764 | $397146 | $1155376 | $1262676 |

---

Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | | | |
| Sonos speakers | $253669 | $301105 | $915330 | $991378 |
| Sonos system products | 73179 | 75186 | 183993 | 209013 |
| Partner products and other revenue | 17916 | 20855 | 56053 | 62285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $344764 | $397146 | $1155376 | $1262676 |

---

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

**5. Balance Sheet Components**

***Accounts receivable, net***

Accounts receivable, net consist of the following:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Accounts receivable | $147287 | $96254 |
| Allowance for credit losses | (2904) | (2619) |
| Allowance for sales incentives | (50182) | (49122) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowances | $94201 | $44513 |

---

***Inventories***

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Finished goods | $93264 | $199825 |
| Component parts | 22163 | 31680 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | $115427 | $231505 |

---

As of June 28, 2025 and September 28, 2024, inventory write-downs were $39.0 million and $33.3 million, respectively.

***Property and equipment***

Property and equipment net of accumulated depreciation were as follows:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Property and equipment | $296833 | $280247 |
| Less: accumulated depreciation | (216107) | (178099) |
| Property and equipment, net | $80726 | $102148 |

---

***Intangible assets***

In the first quarter of fiscal year 2025, the Company determined that the underlying project related to the in-process research and development from the acquisition of Mayht Holding BV ("Mayht") was completed. As a result, the acquired $73.8 million of in-process research and development was reclassified as definite-lived developed technology and is being amortized over its estimated economic life of 7 years. The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** | **June 28, 2025** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Foreign Currency Translation** | **Net Carrying Value** | **Weighted-Average Remaining Life** <br>**(In years)** |
| **(In thousands, except weighted-average remaining life)** | | | | | |
| Trade name | $451 | $(244) | $16 | $223 | 2.75 |
| Technology-based | 94419 | (16634) | - | 77785 | 5.97 |
| Total intangible assets | $94870 | $(16878) | $16 | $78008 | 5.96 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** | **September 28, 2024** |
| | **Gross Carrying Amount** | **Accumulated Amortization** | **Foreign Currency Translation** | **Net Carrying Value** | **Weighted-Average Remaining Life**<br>**(In years)** |
| **(In thousands, except weighted-average remaining life)** | | | | | |
| Trade name | $451 | $(188) | $7 | $270 | 3.50 |
| Technology-based | 31480 | (17484) | - | 13996 | 4.52 |
| Total finite-lived intangible assets | 31931 | (17672) | 7 | 14266 | 4.51 |
| In-process research and development not subject to amortization | 73770 | - | - | 73770 |  |
| Total intangible assets | $105701 | $(17672) | $7 | $88036 |  |

---

The following table summarizes the estimated future amortization expense of the Company's intangible assets as of June 28, 2025:

---

| | |
|:---|:---|
| **Fiscal years ending** | **Future Amortization Expense** |
| **(In thousands)** | |
| Remainder of fiscal 2025 | $2651 |
| 2026 | 13585 |
| 2027 | 13570 |
| 2028 | 13451 |
| 2029 | 12453 |
| 2030 and thereafter | 22298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total future amortization expense | $78008 |

---

***Cloud computing arrangements***

Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's condensed consolidated balance sheets and were as follows:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Cloud computing implementation costs | $26844 | $25038 |
| Less: accumulated amortization | (12314) | (9697) |
| Cloud computing implementation costs, net | $14530 | $15341 |

---

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

Amortization expense for implementation costs for cloud-based computing arrangements for the three months ended June 28, 2025 and June 29, 2024, were $0.9 million. Amortization expense for implementation costs for cloud-based computing arrangements for the nine months ended June 28, 2025 and June 29, 2024, were $2.6 million.

***Accrued expenses***

Accrued expenses included the following:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Accrued inventory and supply chain costs | $36773 | $34204 |
| Accrued taxes | 10668 | 19084 |
| Accrued advertising and marketing | 10562 | 12893 |
| Accrued general and administrative expenses | 8969 | 10870 |
| Accrued product development | 4928 | 4338 |
| Other accrued payables | 3972 | 6394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total accrued expenses | $75872 | $87783 |

---

***Deferred revenue***

Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. For the nine months ended June 28, 2025 and June 29, 2024, deferred revenue included revenue allocated to unspecified software upgrades and cloud-based services of $82.3 million and $82.4 million, respectively, as well as current deferred revenue related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached.

The following table presents the changes in the Company's deferred revenue:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | |
| Deferred revenue, beginning of period | $82877 | $80838 |
| Recognition of revenue included in beginning of period deferred revenue | (15041) | (17723) |
| Revenue deferred, net of revenue recognized on contracts in the respective period | 15129 | 19871 |
| Deferred revenue, end of period | $82965 | $82986 |

---

The Company expects the following recognition of deferred revenue as of June 28, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the fiscal years ending** | **For the fiscal years ending** | **For the fiscal years ending** | **For the fiscal years ending** | **For the fiscal years ending** | |
| | **Remainder of 2025** | **2026** | **2027** | **2028** | **2029 and <br>Beyond** | **Total** |
| **(In thousands)** |  |  |  |  |  |  |
| Deferred revenue expected to be recognized | $6225 | $20546 | $17813 | $14690 | $23691 | $82965 |

---

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

***Other current liabilities***

Other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **September 28,<br>2024** |
| **(In thousands)** | | |
| Reserve for returns | $23108 | $20304 |
| Warranty liability | 9708 | 10565 |
| Short-term operating lease liabilities | 7023 | 7551 |
| Other | 7625 | 7857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other current liabilities | $47464 | $46277 |

---

The following table presents the changes in the Company's warranty liability:

---

| | | |
|:---|:---|:---|
| | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | |
| Warranty liability, beginning of period | $10565 | $7466 |
| Provision for warranties issued during the period | 10312 | 13363 |
| Settlements of warranty claims during the period | (11169) | (12039) |
| Warranty liability, end of period | $9708 | $8790 |

---

**6. Debt** 

On October 13, 2021, the Company entered into a Revolving Credit Agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and Bank of America N.A., Morgan Stanley Senior Funding, Inc., and Goldman Sachs Bank USA as the other lenders party thereto (the "Revolving Credit Agreement"). The Revolving Credit Agreement provides for (i) a five-year senior secured revolving credit facility in the amount of up to $100.0 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. In June 2023, the Company amended the Revolving Credit Agreement, replacing prior references to LIBOR with references to SOFR as a result of the discontinuation of LIBOR. The facility may be drawn as an Alternative Base Rate Loan (at 1.00% plus an applicable margin) or Term Benchmark Loan (at the Term SOFR Rate, plus the applicable Term SOFR Adjustment ranging from 0.11% to 0.43%, plus an applicable margin (in total, "Adjusted Term SOFR")). The Company must also pay (i) an unused commitment fee ranging from 0.200% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitment under the agreement and (ii) a per annum fee equal to the applicable margin over Adjusted Term SOFR multiplied by the aggregate face amount of outstanding letters of credit. As of June 28, 2025, the Company did not have any outstanding borrowings and had $2.4 million in undrawn letters of credit that reduce the availability under the Revolving Credit Agreement.

The Company's obligations under the Revolving Credit Agreement are secured by substantially all of the Company's assets. The Revolving Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain consolidated leverage ratio, and customary events of default. As of June 28, 2025, the Company was in compliance with all financial covenants under the Revolving Credit Agreement.

**7. Commitments and Contingencies**

***Commitments to suppliers***

As of June 28, 2025, the Company's open purchase orders to contract manufacturers for finished goods were approximately $147 million, the majority of which are expected to be paid over the next six months. As of June 28, 2025, the Company's expected commitments to suppliers for components were in the range of $216 million to $244 million, the majority of which is expected to be paid and/or utilized by our contract manufacturers in building finished goods within the next two years. The expected commitments are subject to change as a result of fluctuations in the demand forecast, as well as ongoing negotiations with contract manufacturers and suppliers. These commitments are related to components that can be specific to Sonos products and comprised 1) indirect obligations to third-party

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

manufacturers and suppliers, 2) the inventory owned by contract manufacturers procured to manufacture Sonos products, and 3) purchase commitments made by contract manufacturers to their upstream suppliers.

***Legal proceedings***

From time to time, the Company is involved in legal proceedings in the ordinary course of business, including claims relating to employee relations, business practices, and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict, and the Company's view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company's operations or its financial position, liquidity or results of operations.

*The Company's Lawsuits Against Google:*

On January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission ("ITC") against Alphabet Inc. ("Alphabet") and Google LLC ("Google") and a counterpart lawsuit in the U.S. District Court for the Central District of California against Google. The complaint and lawsuit each allege infringement by Alphabet and Google of certain Sonos patents related to its smart speakers and related technology. The counterpart lawsuit was stayed pending completion of the ITC investigation and appeal thereof. The ITC concluded its investigation in January 2022, finding all five of the Company's asserted patents to be valid and infringed by Google, and further finding that one redesign per patent proposed by Google would avoid infringement. The ITC issued a limited exclusion order and a cease-and-desist order with respect to Google's infringing products. The Company and Google each appealed the ITC's determination, which was upheld in its entirety by a panel of the appeals court. Google's petition for rehearing by the full appeals court has been denied. The stay in the counterpart lawsuit has been lifted. Google moved to file counterclaims on two of its own patents related to device setup and the court has added those patents to the case. No trial date has been set.

On September 29, 2020, the Company filed another lawsuit against Google alleging infringement of additional Sonos patents and seeking monetary damages and other non-monetary relief. A jury trial was held in May 2023, which found one Sonos patent to be infringed and another Sonos patent not infringed, and returned an award of $32.5 million based on a royalty rate of $2.30 per infringing unit. After trial, the court held Sonos' patents unenforceable under the doctrine of prosecution laches and invalid as a result of amendments made during prosecution. The Company is appealing the ruling.

*Google's Lawsuits Against the Company:* 

On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company alleging infringement by the Company of five Google patents and seeking monetary damages and other non-monetary relief. All five of these patents have since been found invalid or non-infringed by the Court or by the U.S. Patent and Trademark Office or have been withdrawn from the case by Google. The Court has now entered final judgment for Sonos and against Google. Google has appealed.

On August 8, 2022, Google filed two complaints with the ITC against the Company and two counterpart lawsuits in the Northern District of California against the Company, collectively alleging infringement by the Company of seven Google patents generally related to wireless charging, device setup, and voice control, and seeking monetary damages and other non-monetary relief. The counterpart lawsuits are stayed pending completion of the ITC investigations. In the first ITC investigation, the ITC terminated the investigation as to one Google patent as a result of the expiration of that Google patent and found the other two Google patents invalid as indefinite, thus concluding the first investigation. Google's time to appeal the decision of indefiniteness has not yet expired. The second ITC investigation concluded in December 2023 with a final determination of no violation by the Company. Google did not appeal this determination.

*Implicit* 

On March 10, 2017, Implicit, LLC ("Implicit") filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company has infringed on certain claims of two patents in this case. The Company denies the allegations. The claims at issue have been held unpatentable by the U.S. Patent and Trademark Office. Implicit has appealed this ruling, which is currently scheduled to be heard by the appeals court in 2025. A range of loss, if any, associated with this matter is not probable or reasonably estimable as of June 28, 2025.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

The Company is involved in certain other litigation matters not listed above but does not consider these matters to be material either individually or in the aggregate at this time. The Company's view of the matters not listed may change in the future as the litigation and events related thereto unfold.

**8. Stockholders' Equity** 

On November 15, 2023, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $200.0 million (the "2023 Stock Repurchase Program"). On February 24, 2025, the Board authorized a new common stock repurchase program of up to $150.0 million (the "2025 Stock Repurchase Program") resulting in the expiration of the $11.1 million remaining under the 2023 Stock Repurchase Program.

During the nine months ended June 28, 2025, the Company repurchased 4,167,203 shares for an aggregate purchase price of $60.0 million and at an average price of $14.39 per share under the 2023 Stock Repurchase Program. The Company has not made any repurchases under the 2025 Stock Repurchase Program. Aggregate purchase price and average price per share exclude commission and excise tax. The Company's share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the condensed consolidated statements of equity.

Treasury stock during the nine months ended June 28, 2025, included 1,622,098 shares withheld to satisfy employees' tax withholding requirements in connection with vesting of stock awards. Additionally, during the nine months ended June 28, 2025, the Company retired 5,794,677 shares of treasury stock.

**9. Stock-based Compensation** 

***2018 Equity Incentive Plan***

In July 2018, the Board adopted the 2018 Equity Incentive Plan (the "2018 Plan").

***Stock options***

The summary of the Company's stock option activity is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Number of Options** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Term** | **Aggregate Intrinsic Value** |
| | | | **(In years)** | **(In thousands)** |
| Outstanding at September 28, 2024 | 7082389 | $14.24 | 2.8 | $210 |
| Exercised | (195479) | $13.59 |  |  |
| Forfeited / expired | (1010510) | $14.24 |  |  |
| Outstanding at June 28, 2025 | 5876400 | $14.26 | 1.7 | $— |

---

As of June 28, 2025 and September 28, 2024, all outstanding stock options have vested and the Company had no unrecognized stock-based compensation expense related to stock options.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

***Restricted stock units ("RSU")***

Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. The summary of the Company's RSU activity is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Number of Units**  | **Weighted-Average Grant Date Fair <br>Value** | **Aggregate Intrinsic Value** |
| | | | **(In thousands)** |
| **Outstanding at September 28, 2024** | 10763098 | $14.79 | $130772 |
| Granted | 7252030 | $12.41 |  |
| Released | (4603993) | $15.17 |  |
| Forfeited | (3322526) | $13.66 |  |
| **Outstanding at June 28, 2025** | 10088609 | $13.28 | $108251 |

---

As of June 28, 2025 and September 28, 2024, the Company had $94.7 million and $115.4 million of unrecognized stock-based compensation expense related to RSUs, which are expected to be recognized over weighted-average periods of 2.3 years and 2.4 years, respectively.

***Performance stock units ("PSU")***

Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of outstanding PSUs is based on the target number of share awards. The number of shares vested at the end of the performance period is based on achievement of performance conditions and includes a performance adjustment to reflect the extent to which the corresponding performance goals have been achieved. The summary of the Company's PSU activity is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Number of Units**  | **Weighted-Average Grant Date Fair <br>Value** | **Aggregate Intrinsic Value** |
| | | | **(In thousands)** |
| **Outstanding at September 28, 2024** | 684080 | $18.37 | $8312 |
| Granted | 339837 | $11.53 |  |
| Released | (7194) | $17.54 |  |
| Performance adjustment | (121250) | $21.80 |  |
| Forfeited | (137914) | $17.40 |  |
| **Outstanding at June 28, 2025** | 757559 | $14.93 | $8129 |

---

As of June 28, 2025 and September 28, 2024, the Company had $4.3 million and $0.2 million of unrecognized stock-based compensation expense related to PSUs, which are expected to be recognized over weighted-average periods of 1.3 years and 1.5 years, respectively.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

***Stock-based compensation***

Total stock-based compensation expense by functional category was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | | | |
| Cost of revenue | $1633 | $655 | $4588 | $1995 |
| Research and development | 7944 | 9735 | 29816 | 29133 |
| Sales and marketing | 3568 | 4510 | 13227 | 13297 |
| General and administrative | 7639 | 7030 | 21733 | 20536 |
| Total stock-based compensation expense | $20784 | $21930 | $69364 | $64961 |

---

For the three and nine months ended June 28, 2025, the Company incurred non-recurring stock-based compensation expenses related to restructuring activities.

**10. Income Taxes**

The Company's income tax provision and the resulting effective tax rate for interim periods is generally determined based upon its estimated annual effective tax rate ("AETR"), adjusted for the effect of discrete items arising in that quarter. The impact of such inclusions could result in a higher or lower effective tax rate during a quarter, based upon the mix and timing of actual earnings or losses versus annual projections. In each quarter, the Company updates its estimate of the AETR, and if the estimated AETR changes, a cumulative adjustment is made in that quarter.

The Company recorded a provision for income taxes of $2.6 million and $8.9 million for the three months ended June 28, 2025 and June 29, 2024, respectively, related to U.S. and non-U.S. income taxes. The Company recorded a provision for income taxes of $7.1 million and $20.2 million for the nine months ended June 28, 2025 and June 29, 2024, respectively, related to U.S. and non-U.S. income taxes.

For the three and nine months ended June 28, 2025, the Company utilized the AETR method to calculate separate U.S. and foreign income tax provisions. Separate U.S. and foreign AETRs were calculated in accordance with U.S. GAAP since Sonos, Inc. is forecasted to a full-year loss with no corresponding deferred tax benefit while all non-U.S. entities are forecasted to profitability and, unlike the prior year, small fluctuations in forecasted pre-tax income (loss) are not expected to have a material impact on the estimated U.S. AETR. For the three and nine months ended June 29, 2024, the Company calculated its U.S. income tax provision using the discrete method as though the interim period was an annual period since minor deviations in the projected pre-tax net income (loss) in the U.S. could have resulted in a disproportionate and unreliable effective tax rate under the AETR method.

For the three and nine months ended June 28, 2025, the Company's tax provision is comprised of a U.S. tax provision resulting from the application of a negative U.S. AETR to year-to-date U.S. pretax loss and a tax provision for non-U.S. income taxes. For the three and nine months ended June 29, 2024, the Company's U.S. income tax provision was adversely impacted by Section 174 as the Company recorded a current U.S. tax expense with no corresponding deferred tax benefit due to the valuation allowance maintained against its U.S. deferred tax assets.

For the nine months ended June 28, 2025, the Company concluded that a full valuation allowance on its deferred tax assets in the U.S. continued to be appropriate considering cumulative pre-tax losses in recent years and uncertainty with respect to future taxable income. Release of the valuation allowance in the U.S. would result in a benefit to the income tax provision in the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the U.S.

On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. The Company continues to evaluate the bill's impact on its consolidated financial statements.

**11. Net Income (Loss) Per Share** 

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted net income (loss) per share adjusts the basic net income (loss) per

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

share and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock awards, using the treasury stock method.

The following table sets forth the computation of the Company's basic and diluted net income (loss) per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands, except share and per share data)** | | | | |
| **Numerator:** | | | | |
| Net income (loss) - basic and diluted | $(3379) | $3709 | $(23286) | $14947 |
| **Denominator:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted-average shares of common stock—basic | 120423439 | 122553129 | 120804730 | 123828150 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of potentially dilutive stock options |  | 1116000 |  | 956598 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of RSUs |  | 3543526 |  | 3085571 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of PSUs |  | 32804 |  | 16049 |
| Weighted-average shares of common stock—diluted | 120423439 | 127245459 | 120804730 | 127886368 |
| **Net income (loss) per share:** |  |  |  |  |
| Basic | $(0.03) | $0.03 | $(0.19) | $0.12 |
| Diluted | $(0.03) | $0.03 | $(0.19) | $0.12 |

---

The following shares were excluded from the computation of diluted net income (loss) per share because their effect would have been antidilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| Stock options to purchase common stock | 6338165 | 6371604 | 6673403 | 6998738 |
| Restricted stock units | 10863006 | 9556879 | 13394270 | 9828619 |
| Performance stock units | 516697 | 187255 | 201691 | 88030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 17717868 | 16115738 | 20269364 | 16915387 |

---

**12. Retirement Plans** 

The Company has a defined contribution 401(k) plan (the "401(k) Plan") for the Company's U.S.-based employees, as well as various defined contribution plans for its international employees. Eligible U.S. employees may make tax-deferred contributions under the 401(k) plan but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended. The Company matches contributions towards the 401(k) Plan and international defined contribution plans. The Company's matching contributions totaled $1.6 million and $2.5 million for the three months ended June 28, 2025 and June 29, 2024, respectively. The Company's matching contributions totaled $5.9 million and $7.4 million for the nine months ended June 28, 2025 and June 29, 2024, respectively.

**13. Restructuring and Other Charges** 

The Company started a cost transformation initiative in the second half of fiscal 2024 with the goal of optimizing investments for sustainable, long-term growth. This included the August 14, 2024 initiation of a restructuring plan (the "2024 restructuring plan") that involved a reduction in force of approximately 6% of its employees and a reduction to its real estate footprint. Building on this effort, the Company announced a subsequent restructuring on February 5, 2025, including a reduction in force involving approximately 12% of its employees (the "2025 restructuring plan"). This cost transformation also involved charges related to rationalization of its product roadmap. Furthermore, in January 2025, Patrick Spence stepped down from his role as Chief Executive Officer ("CEO") and as a member of the Board, resulting in the Company incurring costs related to this transition, which are also included in restructuring and other charges.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SONOS, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(unaudited)*

The following table summarizes the components of restructuring and other charges:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| **(in thousands)** | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| Cash restructuring charges: |  |  |  |  |
| &nbsp;&nbsp;Employee-related costs | $1874 | $443 | $17227 | $443 |
| &nbsp;&nbsp;Other restructuring costs <sup>(1)</sup> | (1327) | 850 | 2071 | 1157 |
| Total cash charges | $547 | $1293 | $19298 | $1600 |
| Non-cash charges: |  |  |  |  |
| &nbsp;&nbsp;Stock-based awards <sup>(2)</sup> | $1434 | $— | $4577 | $— |
| &nbsp;&nbsp;Asset write-offs |  |  | 1746 | 266 |
| Total non-cash charges | $1434 | $— | $6323 | $266 |
| Total restructuring and other charges | $1981 | $1293 | $25621 | $1866 |

---

<sup>(1)</sup> Other restructuring charges include estimated costs primarily related to rationalization of the Company's product roadmap, including a benefit for the three months ended June 28, 2025, related to a change in estimate resulting from favorable contract negotiations with one of the Company's contract manufacturers.

<sup>(2)</sup> Non-cash charges for stock-based awards were related to modifications for equity awards primarily in connection with the CEO transition. These modifications included accelerated vesting of certain RSUs and an extension of the post-termination exercise period for certain stock options.

The following table summarizes restructuring and other charges recorded in the Company's condensed consolidated statements of operations and comprehensive income (loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| **(in thousands)** | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| Cost of revenue | $(514) | $— | $3420 | $— |
| Research and development | (824) | 478 | 11882 | 801 |
| Sales and marketing | 1038 | 185 | 3831 | 297 |
| General and administrative | 2281 | 630 | 6488 | 768 |
| Total restructuring and other charges | $1981 | $1293 | $25621 | $1866 |

---

The following table summarizes the Company's restructuring and other charges recorded in accrued expenses and accrued compensation within the condensed consolidated balance sheets:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)** | **Employee Related Costs**  | **Other**<br>**Restructuring Costs**  | **Total**  |
| Balance as of September 28, 2024<sup>(1)</sup> | $2152 | $1037 | $3189 |
| Restructuring charges | 17227 | 2071 | 19298 |
| Cash paid | (16294) | (1529) | (17823) |
| Balance as of June 28, 2025 | $3085 | $1579 | $4664 |

---

<sup>(1)</sup> Balance as of September 28, 2024, relates to activities under the 2024 restructuring plan.

**14. Subsequent Event**

On July 22, 2025, the Board of Directors (the "Board") appointed Tom Conrad Chief Executive Officer and President effective immediately, following his tenure as interim Chief Executive Officer since January 13, 2025. Mr. Conrad will remain on the Board.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**Item 2. Management's discussion and analysis of financial condition and results of operations**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in our Annual Report.* 

*We operate on a 52- week or 53- week fiscal year ending on the Saturday nearest September 30 each year. Our fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters.* 

***Forward-Looking Statements***

*This Quarterly Report on Form 10-Q contains forward-looking statements. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding future operations and performance, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "could," "would," "expect," "objective," "plan," "potential," "seek," "grow," "target," "if," and similar expressions intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations, objectives, restructuring efforts, cost initiatives, timing of certain tax impacts and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled "Risk Factors" set forth in Part I, Item 1A of the Annual Report and in our other SEC filings. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results may differ materially and adversely from those anticipated or implied in the forward-looking statements. You should read this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.*

***Overview***

Sonos is one of the world's leading sound experience brands.

We pioneered multi-room, wireless audio products, debuting the world's first multi-room wireless sound system in 2005. In October 2024, we introduced Arc Ultra, our new premium soundbar debuting Sound Motion <sup>TM,</sup> our revolutionary transducer technology, and Sonos Sub 4, the next generation of our iconic subwoofer with a refreshed design and internals. Today, our product lineup includes wireless, portable, and home theater speakers, headphones, components, and accessories to address consumers' evolving audio needs. We are known for delivering unparalleled sound, thoughtful design aesthetic, simplicity of use, and an open platform. Our platform has attracted a broad range of more than 100 streaming content providers, such as Apple Music, Spotify, Deezer, and Pandora. These partners find value in our independent platform and access to our millions of desirable and engaged customers. We frequently introduce new services and features across our platform, providing our customers with enhanced functionality, improved sound, and an enriched user experience. In May 2024, we launched an extensive redesign of our Sonos app. We rebuilt the app from the ground up with the purpose of improving the user experience through a modern user interface and to provide a modular developer platform allowing us to drive more innovation faster in the future. We are committed to continuous technological innovation as reflected in our growing global patent portfolio. We believe our patents comprise the foundational intellectual property for wireless multi-room and other audio technologies.

We generate revenue from the sale of our Sonos speaker products, including wireless speakers, home theater speakers and beginning in June 2024, headphones, from our Sonos system products, including our component products, and from partner products and other revenue, including Sonos and third-party accessories and partnerships.

On July 22, 2025, our board of directors appointed Tom Conrad as our new Chief Executive Officer, following his tenure as interim Chief Executive Officer since January 13, 2025. Under Mr. Conrad's direction, we have significantly improved our software products, reorganized our operations to improve our efficiency and effectiveness and recommitted to delivering the kind of premium experience our customers expect. With every new product, software feature and integration, the Sonos platform becomes more powerful and provides greater value to our customers.

During the second half of fiscal 2024, we started a cost transformation initiative aimed at optimizing our investments for sustainable, long-term growth and to enhance our agility. We've taken steps to streamline, reorganize and flatten our organizational structures, including workforce reductions of approximately 6% in August 2024 (the "2024 restructuring plan") and approximately 12% in

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

February 2025 (the "2025 restructuring plan") which are expected to result in approximately $20 million in savings during the remainder of fiscal 2025. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information. Furthermore, we remain focused on additional transformation efforts to improve both our operational efficiency and effectiveness. Additionally, during the third quarter of fiscal 2025, we began the process of exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. We expect to complete this exit with minimal disruption to our business by the second quarter of fiscal 2026. This exit did not impact the third quarter fiscal 2025. We continue to maintain diversified contract manufacturing partnerships.

**Macroeconomic environment**

Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as inflation, ongoing geopolitical conflicts, uncertainty in the markets, volatility in exchange rates, low or negative growth in certain regions, declining consumer sentiment of international customers towards U.S.-based companies as a result of U.S. trade policy, and uncertainty in consumer demand. In addition, our business may be adversely impacted by the potential expansion of tariffs on goods imported into the U.S., as well as any retaliatory tariffs or policies enacted in other countries.

Global economic and political conditions and uncertainties, including global trade tensions, have caused and may continue to cause volatility in demand for our products as well as cost of materials and logistics, and as a result may impact our results of operations. We are continuing to evaluate and implement mitigating actions, including taking measures to manage our expenses and contain costs, leveraging our supply chain flexibility and evaluating potential pricing and promotion strategies.

For additional information, see Part II, Item 1A "Risk Factors."

***Key Metrics***

In addition to the measures presented in our condensed consolidated financial statements, we use the following key metrics to evaluate our business, measure our performance, identify trends affecting our business and assist us in making operational and strategic decisions. Our key metrics are total revenue, products sold, Adjusted EBITDA, and Adjusted EBITDA margin. The most directly comparable financial measure calculated under U.S. GAAP for Adjusted EBITDA is net income (loss). The most directly comparable financial measure calculated under U.S. GAAP for Adjusted EBITDA margin is net income (loss) margin.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands, except percentages)** | | | | |
| Total revenue | $344764 | $397146 | $1155376 | $1262676 |
| Products sold | 1078 | 1280 | 3696 | 4135 |
| Net income (loss) | $(3379) | $3709 | (23286) | 14947 |
| Net income (loss) margin<sup>(1)</sup> | (1.0%) | 0.9% | (2.0%) | 1.2% |
| Adjusted EBITDA<sup>(2)</sup> | $35589 | $48906 | 125936 | 130506 |
| Adjusted EBITDA margin<sup>(2)</sup> | 10.3% | 12.3% | 10.9% | 10.3% |

---

<sup>(1)</sup> Net income (loss) margin is calculated by dividing net income (loss) by revenue.

<sup>(2)</sup> For additional information regarding Adjusted EBITDA and Adjusted EBITDA margin (which are non-GAAP financial measures), including reconciliations of net income (loss) to Adjusted EBITDA, see the section titled "Non-GAAP Financial Measures" below.

***Products Sold***

Products sold represents the number of products that are sold during a period, net of returns and includes units sold from the Sonos speakers and Sonos system products categories, and module units sold through our partnerships from our Partner products and other revenue category. Growth rates between products sold and revenue are not perfectly correlated because our revenue is affected by other variables, such as the mix of products sold during the period, promotional discount activity, the introduction of new products that may have higher or lower than average selling prices, changes to selling prices, the impact of foreign exchange rate fluctuations, as well as the impact of recognition of previously deferred revenue.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

***Non-GAAP Financial Measures***

To supplement our condensed consolidated financial statements presented in accordance with U.S. GAAP, we use Adjusted EBITDA, Adjusted EBITDA margin, and constant currency which are non-GAAP financial measures. We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude from these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making.

We define Adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes, legal and transaction related costs, restructuring and other costs, and other items that we do not consider representative of underlying operating performance. We define Adjusted EBITDA margin as Adjusted EBITDA divided by revenue.

We present percentage sales growth in constant currency to show performance unaffected by fluctuations in currency exchange rates. We calculate constant currency growth percentages by translating our current period financial results using the prior period average currency exchange rates and comparing these amounts to our prior period reported results.

These non-GAAP financial measures are not based on standardized methodology prescribed by U.S. GAAP and are not necessarily comparable to similarly titled measures presented by other companies. Furthermore, other companies may not publish these or similar metrics. These metrics may also have certain limitations as they do not include the impact of certain expenses that are reflected in our condensed consolidated statements of operations and comprehensive income, including stock-based compensation, which has been and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP.

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands, except percentages)** | | | | |
| Net income (loss) | $(3379) | $3709 | $(23286) | $14947 |
| Add (deduct): |  |  |  |  |
| Depreciation and amortization | 15879 | 12032 | 48657 | 35154 |
| Stock-based compensation expense | 19352 | 21930 | 64789 | 64961 |
| Interest income | (1572) | (2629) | (5406) | (9638) |
| Interest expense | 117 | 106 | 336 | 333 |
| Other (income) expense, net | (661) | 2464 | 5176 | (4507) |
| Provision for income taxes | 2566 | 8939 | 7121 | 20188 |
| Legal and transaction related costs<sup>(1)</sup> | 1306 | 1062 | 2928 | 7202 |
| Restructuring and other charges<sup>(2)</sup> | 1981 | 1293 | 25621 | 1866 |
| Adjusted EBITDA | $35589 | $48906 | $125936 | $130506 |
| Revenue | $344764 | $397146 | $1155376 | $1262676 |
| Net income (loss) margin | (1.0%) | 0.9% | (2.0%) | 1.2% |
| Adjusted EBITDA margin | 10.3% | 12.3% | 10.9% | 10.3% |

---

<sup>(1)</sup> Legal and transaction-related costs consist of expenses related to our intellectual property ("IP") litigation against Alphabet and Google, as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance.

<sup>(2)</sup> Restructuring and other charges for the three and nine months ended June 28, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.

**Results of Operations**

**Comparison of the three and nine months ended June 28, 2025 and June 29, 2024**

***Revenue by Product***

*Comparison of the three and nine months ended June 28, 2025 and June 29, 2024* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Change** | **Nine Months Ended** | **Nine Months Ended** | **Change** |
| | **June 28,<br>2025** | **June 29,<br>2024** | $**%** | **June 28,<br>2025** | **June 29,<br>2024** | $**%** |
| **(In thousands)** | | | | | | |
| Sonos speakers | $253669 | $301105 | (15.8)% | $915330 | $991378 | (7.7)% |
| &nbsp;&nbsp;*% of total revenue* | *73.6 %* | *75.8 %* |  | *79.2 %* | *78.5 %* |  |
| Sonos system products | 73179 | 75186 | (2.7) | 183993 | $209013 | (12.0) |
| &nbsp;&nbsp;*% of total revenue* | *21.2 %* | *18.9 %* |  | *15.9 %* | *16.6 %* |  |
| Partner products and other revenue | 17916 | 20855 | (14.1) | 56053 | $62285 | (10.0) |
| &nbsp;&nbsp;*% of total revenue* | *5.2 %* | *5.3 %* |  | *4.9 %* | *4.9 %* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | $344764 | $397146 | (13.2)% | $1155376 | $1262676 | (8.5)% |
| **Volume data (products sold in thousands)** | **Volume data (products sold in thousands)** | **Volume data (products sold in thousands)** | **%** |  |  | **%** |
| Total products sold | 1078 | 1280 | (15.8)% | 3696 | 4135 | (10.6)% |

---

We generate substantially all of our revenue from the sale of Sonos speakers and Sonos system products. We also generate a portion of revenue from Partner products and other revenue sources, including accessories such as speaker stands and wall mounts, and architectural speakers from our Sonance partnership.

Total revenue decreased $52.4 million, or 13.2%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to lapping the launch of Ace in the previous year and softer demand due to challenging market conditions, partially offset by the introduction of Arc Ultra in October 2024.

Sonos speakers revenue represented 73.6% of total revenue for the three months ended June 28, 2025 and decreased 15.8% compared to the three months ended June 29, 2024, primarily driven by expected declines in sales of Arc, lapping the launch of Ace, and softer demand due to challenging market conditions, partially offset by the introduction of Arc Ultra. Sonos system products represented 21.2% of total revenue for the three months ended June 28, 2025 and decreased 2.7% compared to the three months ended June 29, 2024. Partner products and other revenue represented 5.2% of total revenue for the three months ended June 28, 2025 and decreased 14.1% compared to the three months ended June 29, 2024.

The volume of products sold decreased 15.8% for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, consistent with the decline in revenue.

Total revenue decreased $107.3 million, or 8.5%, for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to softer demand due to market conditions and challenges resulting from our 2024 app rollout, partially offset by the introduction of Arc Ultra in October 2024.

Sonos speakers revenue represented 79.2% of total revenue for the nine months ended June 28, 2025 and decreased 7.7% compared to the nine months ended June 29, 2024, primarily driven by expected declines in sales of Arc and Sonos One, as well as Move and Beam. These declines were partially offset by the introduction of Arc Ultra, as well as Era 100. Sonos system products represented 15.9% of total revenue for the nine months ended June 28, 2025 and decreased 12.0% compared to the nine months ended June 29, 2024, due to lower sales to our installed solutions channel. Partner products and other revenue represented 4.9% of total revenue for the nine months ended June 28, 2025 and decreased 10.0% compared to the nine months ended June 29, 2024.

The volume of products sold decreased 10.6% for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, consistent with the decline in revenue.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

***Revenue by Region***

The following table presents the change in revenue for the three and nine months ended June 28, 2025 compared with the three and nine months ended June 29, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 28, 2025** | **Three Months Ended<br>June 28, 2025** | **Nine Months Ended<br>June 28, 2025** | **Nine Months Ended<br>June 28, 2025** |
| | **Change (%)** | **Constant Currency Change (%)**<sup>(1)</sup> | **Change (%)** | **Constant Currency Change (%)**<sup>(1)</sup> |
| Americas | (13.2)% | (13.0)% | (11.6)% | (11.2)% |
| EMEA | (12.3)% | (16.4)% | (2.3)% | (3.5)% |
| APAC | (17.4)% | (15.7)% | (4.2)% | (3.4)% |

---

<sup>(1)</sup> Constant currency is a financial measure that is not calculated in accordance with U.S. GAAP. For additional information, see the section titled "Non-GAAP Financial Measures" above.

***Cost of Revenue and Gross Profit***

*Comparison of the three and nine months ended June 28, 2025 and June 29, 2024*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Change** | **Nine Months Ended** | **Nine Months Ended** | **Change** |
| | **June 28,<br>2025** | **June 29,<br>2024** | $**%** | **June 28,<br>2025** | **June 29,<br>2024** | $**%** |
| **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** |
| Cost of revenue | $195040 | $205505 | (5.1)% | $650637 | $676320 | (3.8)% |
| Gross profit | $149724 | $191641 | (21.9)% | $504739 | $586356 | (13.9)% |
| Gross margin | 43.4% | 48.3% |  | 43.7% | 46.4% |  |

---

*Cost of Revenue*

Cost of revenue consists of product costs, including costs of our contract manufacturers for production, components, shipping and handling, tariffs, duty costs, warranty replacement costs, packaging, fulfillment costs, manufacturing and tooling equipment depreciation, warehousing costs, hosting costs, and excess and obsolete inventory write-downs. It also includes licensing costs, such as royalties to third parties, and attributable amortization of acquired developed technology. In addition, we allocate certain costs related to management and facilities, personnel-related expenses, and supply chain logistic costs. Personnel-related expenses consist of salaries, bonuses, benefits, and stock-based compensation expenses.

Cost of revenue decreased $10.5 million, or 5.1%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to a decrease in products sold and a decrease in product and material costs, partially offset by an increase in inventory-related write-downs.

Cost of revenue decreased $25.7 million, or 3.8%, for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to a decrease in products sold as well as a decrease in product and material costs, partially offset by a shift into higher cost products, the impact of reorganization efforts, and increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets.

*Gross Margin* 

Our gross margin fluctuates from period to period based on a number of factors, including the mix of products we sell, the mix of channels through which we sell our products, fluctuations of our product and material cost savings, fluctuations in our product and material and logistics markets, product pricing strategies and promotional activity, the foreign currency in which our products are sold, and tariffs and duty costs implemented by governmental authorities.

Gross margin decreased 490 basis points for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to an increase in inventory-related write-downs, the impact of reorganization efforts, and deleverage resulting from lower revenue, partially offset by a decrease in product and material costs.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

Gross margin decreased 270 basis points for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to the impact of reorganization efforts, unfavorable channel mix, an increase in inventory-related write-downs, increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets, partially offset by decreased product and material costs and favorable product mix.

***Operating Expenses***

*Comparison of the three and nine months ended June 28, 2025 and June 29, 2024* 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Change** | **Nine Months Ended** | **Nine Months Ended** | **Change** |
| | **June 28, 2025** | **June 29, 2024** | $% | **June 28, 2025** | **June 29, 2024** | $% |
| **(Dollars in thousands)** |  |  |  |  |  |  |
| Research and development | $59750 | $74223 | (19.5%) | $218011 | $233780 | (6.7%) |
| &nbsp;&nbsp;Less restructuring and other charges<sup>(1)</sup> | (824) | 478 | \* | 11882 | 801 | \* |
| Research and development, net of restructuring and other charges | $60574 | $73745 | (17.9%) | $206129 | $232979 | (11.5%) |
| Sales and marketing | $62576 | $71643 | (12.7)% | $213430 | $217428 | (1.8)% |
| &nbsp;&nbsp;Less restructuring and other charges<sup>(1)</sup> | 1038 | 185 | \* | 3831 | 297 | \* |
| Sales and marketing, net of restructuring and other charges | $61538 | $71458 | (13.9)% | $209599 | $217131 | (3.5)% |
| General and administrative | $30327 | $33186 | (8.6)% | $89357 | $113825 | (21.5)% |
| &nbsp;&nbsp;Less restructuring and other charges<sup>(1)</sup> | 2281 | 630 | \* | 6488 | 768 | \* |
| General and administrative, net of restructuring and other charges | $28046 | $32556 | (13.9)% | $82869 | $113057 | (26.7)% |
| Operating expenses | $152653 | $179052 | (14.7)% | $520798 | $565033 | (7.8)% |
| &nbsp;&nbsp;Less restructuring and other charges<sup>(1)</sup> | 2495 | 1293 | 93.0 | 22201 | 1866 | \* |
| Operating expenses, net of restructuring and other charges | $150158 | $177759 | (15.5)% | $498597 | $563167 | (11.5)% |
| &nbsp;&nbsp;\* Not meaningful |  |  |  |  |  |  |

---

<sup>(1)</sup> Restructuring and other charges for the three and nine months ended June 28, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.

***Research and Development***

Research and development expenses consist primarily of personnel-related expenses, consulting and contractor expenses, tooling, test equipment, prototype materials, and related overhead costs. To date, software development costs have been expensed as incurred because the period between achieving technological feasibility and the release of the software has been short and development costs qualifying for capitalization have been insignificant.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

Research and development expenses excluding restructuring and other costs decreased $13.2 million, or 17.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, our reorganization efforts, and timing of product development costs.

Research and development expenses excluding restructuring and other costs decreased $26.9 million, or 11.5%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and our reorganization efforts.

***Sales and Marketing***

Sales and marketing expenses consist primarily of advertising and marketing activity for our products and personnel-related expenses, depreciation for product displays, as well as related maintenance and repair expenses, customer experience expenses, revenue related sales fees from our direct-to-consumer business, and related overhead costs.

Sales and marketing expenses excluding restructuring and other costs decreased $9.9 million, or 13.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower marketing costs compared to the prior year when we incurred costs associated with our launch of Sonos Ace in June 2024, and lower personnel-related costs due to lower headcount, partially offset by increased depreciation costs associated with our product displays.

Sales and marketing expenses excluding restructuring and other costs decreased $7.5 million, or 3.5%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower marketing costs compared to the prior year when we incurred costs associated with our launch of Sonos Ace in June 2024, lower personnel-related costs due to lower headcount, partially offset by increased depreciation costs associated with our product displays, and increased investment in customer experience.

***General and Administrative***

General and administrative expenses consist of administrative personnel-related expenses for our information technology, finance, legal, human resources, and similar personnel, as well as the costs of professional services, information technology, litigation, patents, related overhead, and other administrative expenses.

General and administrative expenses excluding restructuring and other costs decreased $4.5 million, or 13.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, and lower professional and information technology costs as a result of our cost transformation efforts.

General and administrative expenses excluding restructuring and other costs decreased $30.2 million, or 26.7%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, and lower professional and information technology costs as a result of our cost transformation efforts.

***Interest Income, Interest Expense, and Other Income (Expense), Net***

*Comparison of the three and nine months ended June 28, 2025 and June 29, 2024*

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Change** | **Nine Months Ended** | **Nine Months Ended** | **Change** |
| | **June 28,<br>2025** | **June 29,<br>2024** | $**%** | **June 28,<br>2025** | **June 29,<br>2024** | $**%** |
| **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** |
| &nbsp;&nbsp;&nbsp;Interest income | $1572 | $2629 | (40.2%) | $5406 | $9638 | (43.9%) |
| &nbsp;&nbsp;&nbsp;Interest expense | (117) | (106) | 10.4 | (336) | (333) | 0.9 |
| &nbsp;&nbsp;&nbsp;Other income (expense), net | 661 | (2464) | (126.8) | (5176) | 4507 | (214.8) |
| Total other income, net | $2116 | $59 | \* | $(106) | $13812 | (100.8)% |
| \* not meaningful | \* not meaningful | \* not meaningful | \* not meaningful | \* not meaningful | \* not meaningful | \* not meaningful |

---

Interest income consists primarily of interest income earned on our cash, cash equivalents, and marketable securities balances. Interest expense consists primarily of interest expense associated with our debt financing arrangements and amortization of debt issuance costs. Other income, net consists primarily of our foreign currency exchange gains and losses relating to transactions and remeasurement of asset and liability balances denominated in currencies other than the U.S. dollar. We expect our foreign currency gains and losses to continue to fluctuate in the future due to changes in foreign currency exchange rates.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

Interest income for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, decreased due to lower cash balances. Interest expense for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, remained relatively consistent. Other income (expense), net for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, increased from other expenses of $2.5 million for the three months ended June 29, 2024 to other income of $0.7 million for the three months ended June 28, 2025 due to foreign currency exchange fluctuations.

Interest income for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, decreased due to lower cash balances. Other income (expense), net for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, decreased from other income of $4.5 million for the nine months ended June 29, 2024 to other expense of $5.2 million for the nine months ended June 28, 2025 due to foreign currency exchange fluctuations.

***Provision for Income Taxes***

*Comparison of the three and nine months ended June 28, 2025 and June 29, 2024*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Change** | **Nine Months Ended** | **Nine Months Ended** | **Change** |
| | **June 28,<br>2025** | **June 29,<br>2024** | $**%** | **June 28,<br>2025** | **June 29,<br>2024** | $**%** |
| **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** | **(In thousands, except percentages)** |
| Provision for income taxes | $2566 | $8939 | (71.3)% | $7121 | $20188 | (64.7)% |

---

We are subject to income taxes in the United States and foreign jurisdictions in which we operate. Foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rate will vary depending on jurisdictional mix of earnings, and changes in tax laws. In addition, certain U.S. tax regulations subject the earnings of our non-U.S. subsidiaries to current taxation in the United States. Our effective tax rate will be impacted by our ability to claim deductions and foreign tax credits to offset the taxation of foreign earnings in the United States. On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act ("OBBBA") was enacted. We continue to evaluate the bill's impact on our consolidated financial statements.

We recognized tax provisions of $2.6 million and $8.9 million for the three months ended June 28, 2025 and ended June 29, 2024, respectively. This decrease was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax provision for the period ending June 28, 2025 versus the discrete method used to calculate the income tax provision for the period ending June 29, 2024.

For the three months ended June 28, 2025, we utilized the AETR method to calculate separate U.S. and foreign income tax provisions. Separate U.S. and non-U.S. AETRs were calculated in accordance with interim U.S. GAAP reporting requirements since, unlike the prior year, small fluctuations in forecasted pre-tax income (loss) are not expected to have a material impact on the estimated U.S. AETR. For the three months ended June 29, 2024, we calculated our U.S. income tax provision using the discrete method as though the interim period was an annual period, since minor deviations in the projected pre-tax loss in the U.S. could have resulted in a disproportionate and unreliable effective tax rate under the AETR method.

We recognized tax provisions of $7.1 million and $20.2 million for the nine months ended June 28, 2025 and June 29, 2024, respectively. This decrease was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax provision for the period ending June 28, 2025 versus the method used to calculate the income tax provision for the period ending June 29, 2024.

**Liquidity and Capital Resources** 

Our operations are financed primarily through cash flows from operating activities. As of June 28, 2025, our principal sources of liquidity consisted of cash flows from operating activities, cash and cash equivalents of $201.3 million, including $91.8 million held by our foreign subsidiaries, marketable securities of $52.7 million, proceeds from the exercise of stock options, and borrowing capacity under the credit facility under our Revolving Credit Agreement. In accordance with our policy, the undistributed earnings of our non-U.S. subsidiaries remain indefinitely reinvested outside of the United States as of June 28, 2025, as they are required to fund needs outside of the United States. In the event funds from foreign operations are needed to fund operations in the United States and if U.S. tax has not already been previously provided, we may be required to accrue and pay additional U.S. taxes to repatriate these funds.

We believe our existing cash and cash equivalent balances, cash flows from operations and committed credit lines will be sufficient to meet our long-term working capital and capital expenditure needs for at least the next 12 months. We hold our cash with a diverse group of major financial institutions and have processes and safeguards in place to manage our cash balances and mitigate the risk of loss. In October 2021, we entered into the Revolving Credit Agreement, which allows us to borrow up to $100 million, with a maturity date of October 2026. Our future capital requirements may vary materially from those currently planned and will depend on many factors,

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

including our rate of revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, our planned sales and marketing activities, the timing of new product introductions, our potential merger and acquisition activity, market acceptance of our products, and overall economic conditions. To the extent that current and anticipated sources of liquidity are insufficient to fund our future business activities and requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in increased dilution to our stockholders. If we were to incur additional debt financing, it would result in increased debt service obligations and the instruments governing such debt could require additional operating and financing covenants that would restrict our operations.

***Debt Obligations***

On October 13, 2021, we entered into the Revolving Credit Agreement. The Revolving Credit Agreement provides for (i) a five year senior secured revolving credit facility in the amount of up to $100 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. The facility may be drawn as an Alternative Base Rate Loan (at 1.00% plus an applicable margin) or Term Benchmark Loan (SOFR plus an applicable margin). We must also pay (i) an unused commitment fee ranging from 0.200% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitment under the agreement and (ii) a per annum fee equal to the applicable margin over SOFR multiplied by the aggregate face amount of outstanding letters of credit. As of June 28, 2025, we did not have any outstanding borrowings and had $2.4 million in undrawn letters of credit that reduce the availability under the Revolving Credit Agreement.

Our obligations under the Revolving Credit Agreement are secured by substantially all of our assets. The Revolving Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires us to maintain a certain consolidated leverage ratio, and customary events of default. As of June 28, 2025, we were in compliance with all financial covenants under the Revolving Credit Agreement.

***Cash Flows***

The following table summarizes our cash flows for the periods indicated:

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| | | |
|:---|:---|:---|
| | **Nine Months Ended** | **Nine Months Ended** |
| | **June 28,<br>2025** | **June 29,<br>2024** |
| **(In thousands)** | | |
| Net cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $133948 | $227640 |
| &nbsp;&nbsp;&nbsp;Investing activities | (24167) | (88153) |
| &nbsp;&nbsp;&nbsp;Financing activities | (78703) | (133184) |
| &nbsp;&nbsp;&nbsp;Effect of exchange rate changes | 463 | 580 |
| Net increase in cash and cash equivalents | $31541 | $6883 |

---

*Cash flows from operating activities*

Net cash provided by operating activities of $133.9 million for the nine months ended June 28, 2025, consisted of net loss of $23.3 million, non-cash adjustments of $133.0 million, and a favorable impact of net changes in operating assets and liabilities of $24.3 million. Non-cash adjustments primarily consisted of stock-based compensation expense, depreciation and amortization, as well as non-cash restructuring and other charges. The net increase in cash from the change in operating assets and liabilities was primarily due to a decrease in inventories of $106.2 million due to seasonality and as the result of measures taken to more efficiently manage inventory, a decrease in other assets of $11.6 million, and an increase in accrued compensation of $10.4 million. The net increase in cash from the change in operating assets and liabilities was partially offset by a decrease in accounts payable of $55.3 million due to lower inventory purchases, and an increase in accounts receivable of $49.0 million.

*Cash flows from investing activities*

Cash used in investing activities of $24.2 million for the nine months ended June 28, 2025, primarily consisted of the purchases of marketable securities of $43.9 million and purchases of property and equipment of $23.4 million mainly related to point-of-sale product displays and manufacturing-related tooling and test equipment to support the launch of new products, partially offset by cash provided by maturities of marketable securities of $43.2 million.

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**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

*Cash flows from financing activities*

Cash used in financing activities of $78.7 million for the nine months ended June 28, 2025, primarily consisted of payments for repurchases of common stock of $60.6 million and payments for repurchases of common stock related to shares withheld for tax in connection with vesting of stock awards of $20.8 million, partially offset by proceeds from the exercise of stock options of $2.7 million.

***Commitments and Contingencies***

See Note 7. Commitments and Contingencies in the notes to condensed consolidated financial statements.

**Critical Accounting Policies and Estimates**

Our unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP. The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from those estimates.

Other than items discussed in Note 2 of our condensed consolidated financial statements, there have been no material changes to our critical accounting policies as compared to the critical accounting policies and significant judgments and estimates disclosed in our Annual Report on Form 10-K.

**Item 3.&nbsp;&nbsp;&nbsp;&nbsp; Quantitative and Qualitative Disclosures About Market Risk**

We are exposed to financial market risks, including changes in currency exchange rates and interest rates. For quantitative and qualitative disclosures about market risk, refer to Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K. Our exposure to market risk has not changed materially, except as follows:

***Foreign Currency Risk***

Our inventory purchases are primarily denominated in U.S. dollars. Our international sales are primarily denominated in foreign currencies and any movement in the exchange rate between the U.S. dollar and the currencies in which we conduct sales in foreign countries could have an impact on our revenue, principally for sales denominated in the euro and the British pound. A portion of our operating expenses are incurred outside the United States and are denominated in foreign currencies, which are also subject to foreign currency exchange rate fluctuations. In certain countries where we may invoice customers in the local currency our revenues benefit from a weaker dollar and are adversely affected by a stronger dollar. The opposite impact occurs in countries where we record expenses in local currencies. In those cases, our costs and expenses benefit from a stronger dollar and are adversely affected by a weaker dollar.

We have not entered into any material foreign exchange contracts or derivatives to hedge any foreign currency exposures. The volatility of exchange rates depends on many factors that we cannot forecast with reliable accuracy. Our continued international expansion increases our exposure to exchange rate fluctuations and, as a result, such fluctuations could have a significant impact on our future results of operations.

For the three months ended June 28, 2025 and June 29, 2024, we recognized a gain from foreign currency exchange of $0.6 million and loss of $2.6 million, respectively. For the nine months ended June 28, 2025 and June 29, 2024, we recognized a loss from foreign currency exchange of $5.2 million and gain of $4.2 million, respectively. Based on transactions denominated in currencies other than the U.S. dollar as of June 28, 2025, a hypothetical adverse change of 10% would have resulted in an adverse impact on loss before provision for income taxes of approximately $4.3 million and $15.2 million for the three and nine months ended June 28, 2025.

**Item 4.&nbsp;&nbsp;&nbsp;&nbsp; Controls and Procedures** 

***Evaluation of Disclosure Controls and Procedures***

Under the supervision and with the participation of our management, including the Interim Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required under Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended ("Exchange Act") as of June 28, 2025. Based on that evaluation, the Interim Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period covered by this Quarterly Report on Form 10-Q.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

***Changes in Internal Control***

There were no changes in our internal control over financial reporting in management's evaluation pursuant to Rule 13a-15(f) during the quarter ended June 28, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Other than the matters described in Note 7. Commitments and Contingencies of the notes to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, we were not a party to any legal proceedings that in the opinion of our management, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, financial condition, or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

**Item 1A. Risk Factors** 

Our operations and financial results are subject to various risks and uncertainties, including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended September 28, 2024 and in Part II, Item 1A of in our Quarterly Report on Form 10-Q for the quarter ended March 29, 2025 (the "Second Quarter Form 10-Q"), which could adversely affect our business, reputation, financial condition and operating results, and affect the trading price of our common stock. There have been no material changes to the risk factors disclosed in our Annual Report and Second Quarter Form 10-Q.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

***Recent Sales of Unregistered Securities***

None.

***Issuer Purchases of Equity Securities***

On November 15, 2023, the Board authorized a common stock repurchase program of up to $200.0 million (the "2023 Stock Repurchase Program"). On February 24, 2025, the Board authorized a new common stock repurchase program of up to $150.0 million (the "2025 Stock Repurchase Program") resulting in the expiration of the $11.1 million remaining under the 2023 Stock Repurchase Program.

The following table presents information with respect to the Company's repurchase of common stock during the three months ended June 28, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Period** | **Total Number of Shares**<br>**Purchased**  | **Average Price Paid per Share**<sup>(1)</sup> | **Total Number of Shares Purchased <br>as Part of Publicly Announced <br>Plans or Programs** | **Approximate Dollar Value of** <br>**Shares that May Yet Be** <br>**Purchased Under the Plans or** <br>**Programs**<br>**(in thousands)**<sup>(2)</sup> |
| Mar 30 - Apr 26 |  | $— |  | $150000 |
| Apr 27 - May 24 |  | $— |  | $150000 |
| May 25 - Jun 28 |  | $— |  | $150000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total |  |  |  |  |

---

<sup>(1)</sup> Aggregate purchase price and average price per share exclude commission and excise tax. See Note 8. Stockholders' Equity of the Company's condensed consolidated financial statements for further information.

<sup>(2)</sup> Approximate dollar value of shares that may yet to be purchased under the plans or programs does not include the impact of direct costs incurred to acquire shares.

**Item 3. Defaults Upon Senior Securities**

None.

**Item 4. Mine Safety Disclosures**

None.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**Item 5. Other Information** 

***Rule 10b5-1 Trading Plans and Non-Rule 10b5-1 Trading Arrangements***

None.

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**Item 6. Exhibit Index**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **Incorporated by reference** | **Incorporated by reference** | **Incorporated by reference** | **Incorporated by reference** | **Incorporated by reference** |
|<br>**Exhibit**<br>**number** |<br>**Exhibit title** | **Form** | **File no.** | **Exhibit** | **Filing<br>date** | **Filed or<br>furnished<br>herewith** |
| 31.1 | <u>[Certification of](ex-311q3fy25.htm)[Chief Executive Officer pursuant to Rules 13a-14(a) and Rule 15d-14(a) of the Exchange Act](ex-311q3fy25.htm)</u> |  |  |  |  | X |
| 31.2 | <u>[Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and Rule 15d-14(a) of the Exchange Act](ex-312q3fy25.htm)</u> |  |  |  |  | X |
| 32.1\* | <u>[Certification of](ex-321q3fy25.htm)[Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex-321q3fy25.htm)</u> |  |  |  |  | X |
| 32.2\* | <u>[Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](ex-322q3fy25.htm)</u> |  |  |  |  | X |
| 101 | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended June 28, 2025, formatted in Inline XBRL: (i) Condensed consolidated balance sheets, (ii) Condensed consolidated statements of operations and comprehensive income (loss), (iv) Condensed consolidated statements of stockholders' equity, (v) Condensed consolidated statements of cash flows and (vi) Notes to condensed consolidated financial statements, tagged as blocks of text and including detailed tags |  |  |  |  | X |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  |  |  |  | X |

---

\**The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Form 10-Q and are not deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.*

*+ Indicates a management contract or compensatory plan or arrangement.*

------

**<u>[Table of contents](#i49711531abdd45e8af964f68608b4615_7)</u>**

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Sonos, Inc.** |
| &nbsp;&nbsp;Date: August 6, 2025 | By: | /s/ Tom Conrad |
|  |  | Tom Conrad |
|  |  | Chief Executive Officer  |
|  |  | &nbsp;&nbsp;&nbsp;*(Principal Executive Officer)* |
| &nbsp;&nbsp;Date: August 6, 2025 | By: | /s/ Saori Casey |
|  |  | Saori Casey |
|  |  | Chief Financial Officer |
|  |  | *(Principal Financial Officer and Principal Accounting Officer)* |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Tom Conrad, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Sonos, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 6, 2025 | /s/ Tom Conrad |
| | Tom Conrad |
| | Chief Executive Officer<br>(Principal Executive Officer) |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Saori Casey, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this Quarterly Report on Form 10-Q of Sonos, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: August 6, 2025 | /s/ Saori Casey |
| | Saori Casey |
| | Chief Financial Officer <br>(Principal Financial Officer and Principal Accounting Officer) |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Tom Conrad, Chief Executive Officer of Sonos, Inc. (the "Company"), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, this Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 28, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 6, 2025 | By: | /s/ Tom Conrad |
|  |  | Tom Conrad |
|  |  | Chief Executive Officer<br>(Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Saori Casey, Chief Financial Officer of Sonos, Inc. (the "Company"), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge, this Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 28, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: August 6, 2025 | By: | /s/ Saori Casey |
|  |  | Saori Casey |
|  |  | Chief Financial Officer <br>(Principal Financial Officer and Principal Accounting Officer) |

---

<br>