Sonos, Inc. (SONO) reported a 9% year-over-year revenue increase for the third quarter of fiscal 2026, totaling $375 million, aided by the launch of new products like the Play and Era 100 SL. This follows a more modest 2% growth in the first half of the fiscal year. Management projects a full-year revenue growth of 6% to 8%, or 4% to 6% excluding an extra week.
However, rising memory costs have begun to significantly impact profitability, shrinking gross margins by approximately 380 basis points in Q3 and leading to a projected $35 million reduction in gross profit for Q4. Sonos ended the quarter with $206.9 million in cash and $54.1 million in marketable securities, supporting ongoing product development amid cost pressures.
Regional sales highlight growth in EMEA (17.4%) and Asia-Pacific (27.2%), compared to only 3.8% growth in the Americas. As Sonos expands its household presence (over 17 million households and 53 million connected devices), challenges remain from competitors like Apple and Amazon in the evolving connected-audio landscape.
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