Sonos Q3 Revenue Climbs 9%, Gross Margin Reaches 50% on Tariff Refunds
SONO sits 70% above its 52-week low of $10.111 on elevated volume (1.9× avg).
Summary
Sonos reported Q3 FY2026 revenue of $375 million, up 9% YoY, with GAAP net income of $30 million. Gross margin expanded to 50.4%, aided by a $23.2 million tariff refund. The company repurchased $30 million in stock during the quarter.
Key Events · Earnings and Guidance · SONO
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Revenue Up 9% to $375M
Q3 FY2026 revenue rose 8.8% year-over-year to $375.3 million, driven by new product launches Era 100 SL and Play, partially offset by declines in Arc Ultra.
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Gross Margin Expands to 50.4%
Gross margin increased 700 basis points to 50.4%, primarily due to a $23.2 million IEEPA tariff refund. Excluding the refund, margin still improved from pricing actions and lower inventory write-downs.
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Swings to GAAP Profitability
Net income was $29.9 million ($0.25 per share) compared to a loss of $3.4 million a year ago. Adjusted EBITDA reached $44.0 million with an 11.7% margin.
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Aggressive Share Repurchases Continue
Sonos repurchased 1.99 million shares for $30.3 million in Q3, with $34.7 million remaining under its $150 million authorization. Year-to-date repurchases total $95.3 million.
Analysis · SONO · Manufacturing
Sonos delivered a strong quarter, with revenue climbing 9% year-over-year and a decisive swing to GAAP profitability. Gross margin surged to 50.4%, boosted by a $23.2 million tariff refund, but even excluding that one-time benefit, underlying margins improved from pricing actions and lower inventory write-downs. The company continues to buy back shares aggressively, repurchasing nearly 2 million shares in the quarter. Against a backdrop of recent layoffs and executive departures, these results show the restructuring is translating into improved financial performance.
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At the time of this filing, SONO was trading at $17.14 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $10.11 to $19.82. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.