Sonos, Inc. (SONO) reported a 9% year-over-year revenue increase to $375 million for the third-quarter of fiscal 2026, following a 2% growth in the first half. The company anticipates fourth-quarter revenues between $325 million and $355 million, which translates to a projected growth of 13% to 23% year-over-year, benefiting from an additional fiscal week contributing about $24 million.
However, Sonos faces significant challenges due to rising memory costs, which are expected to reduce fourth-quarter gross profit by approximately $35 million. Adjusted EBITDA is projected to range from an $11 million loss to an $18 million profit, while GAAP gross margin is expected to be between 39% and 41%.
As of the end of Q3, Sonos had $261 million in cash and marketable securities, alongside operating cash flow of $144.2 million in the first nine months of fiscal 2026. Despite current liquidity, heightened inventory levels, up 37% year-over-year to $158 million, pose risks in the event of a demand shortfall or product launch delays.
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