Sonos Inc. Common Stock (SONO)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Sonos as a consumer-electronics business with a brand but no obvious wide moat in the numbers. The filed record is uneven. Annual revenue has slipped from $1.7B in fiscal 2023 to $1.5B in fiscal 2024 to $1.4B in fiscal 2025, and the company reported net losses of $10.3M, $38.1M, and $61.1M, respectively. Yet the latest filed quarter, fiscal Q3 2026 ended 2026-06-27, showed revenue of $375.3M, net income of $29.9M, and diluted EPS of $0.25, a sharp improvement over fiscal Q3 2025's net loss of $3.4M. Fiscal Q1 2026 ended 2025-12-27 also produced $93.8M of net income, while fiscal Q2 2026 ended 2026-03-28 lost $28.9M, so the trend is volatile. The balance sheet and cash flow are better than the income record. At the 2026-10-13 close of $17.72, FairStock calculates a 6.0% FCF yield on $125.1M of trailing free cash flow, a 14.18% ROE, low D/E of 0.14, an Altman Z-Score of 3.45, and a perfect 9/9 Piotroski F-Score. Still, ROCE is only 4.73%, and the valuation is demanding: P/E 39.38, P/B 5.20, EV/EBITDA 15.96, and a Graham Number of $5.88, leaving a margin of safety of negative 201.36%. FairStock's Lynch category is TURNAROUND, reflecting a loss in the latest year after earlier profits. I would want evidence that revenue is no longer shrinking and that recent profits are durable before calling this a bargain.

In plain English: Sonos makes wireless speakers, soundbars, headphones and home audio gear. The company has a mixed record: it lost money in its last three reported fiscal years, but it has been generating cash and its most recent filed quarter showed a profit. At $17.72, the stock looks expensive compared with its earnings and accounting value, even though cash flow looks more supportive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-27) · fiscal Q2 2026 10-Q (period ended 2026-03-28) · fiscal Q1 2026 10-Q (period ended 2025-12-27) · fiscal Q3 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-09-27) · FY2024 10-K (period ended 2024-09-28) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer