Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. has demonstrated strong product adoption, with 61% of users owning multiple products and an increase in average products per household from 4.42 to 4.49 over the last year, indicating a deepening consumer engagement with the brand. In the fourth quarter, the company achieved a 12.7% year-over-year revenue growth, culminating in a full-year revenue of $1.44 billion, despite a slight decline of 4.9% year-over-year for the annual figure, while improving EBITDA margins from 7.1% to 8.7%. The company has also taken proactive steps to mitigate tariff impacts and streamline operations, setting a positive foundation for growth moving forward into fiscal year 2026 and beyond.

Sonos Inc. exhibited a significant revenue decline of 13% year-over-year, exacerbated by challenging comparisons from the previous year’s product launches, such as the Ace Headphones. The company's projections indicate an anticipated further revenue decline of 8% year-over-year on a reported basis, with only a modest expected normalization of growth. Additionally, market conditions remain unfavorable due to a lack of catalysts for a large-scale product replacement cycle, leading to moderate expectations for future growth tied to the upcoming holiday season.