Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. has demonstrated a positive trend in product ownership, with 61% of users now owning an average of 4.49 products per household, reflecting an increase in consumer engagement and ecosystem leverage. The company's fourth-quarter revenue grew by 12.7% year-over-year, leading to a full-year total of $1.44 billion, despite facing challenges, as EBITDA margins improved from 7.1% to 8.7%. With a new management team driving software improvements, cost reductions, and strategic inventory purchases to mitigate tariff impacts, Sonos is well-positioned for future growth as it continues to enhance its operational efficiency.

Sonos Inc has experienced a significant revenue decline of 13% year-over-year, primarily influenced by challenging comparisons due to the previous year's launch of the Ace Headphones. The company's financial model anticipates a further revenue dip of 8% year-over-year on a reported basis for the upcoming quarter, reflecting continued difficulties in achieving comparable sales growth. Additionally, the overall market environment is characterized by moderate expectations, with a lack of catalysts for major product upgrades, leaving future growth prospects primarily dependent on seasonal performance in FY26.