Sonos (SONO) Stock Forecast & Price Target

Sonos Inc. has demonstrated significant growth in product ownership, with users now averaging 4.49 products per household, indicating strong customer engagement and loyalty within its ecosystem. The company's fourth-quarter revenue rose by 12.7% year-over-year, contributing to a full-year total of $1.44 billion, highlighting its ability to rebound despite prior challenges. Improvements in EBITDA margins, which increased to 8.7% from 7.1% the previous year, alongside a new management team and strategic cost reductions, suggest a positive trajectory for future performance.

Sonos Inc has experienced a significant revenue decline of 13% year-over-year, primarily due to tough comparisons with the previous year, which included the launch of new products like the Ace Headphones. Projections indicate a further revenue decline of 8% year-over-year in the upcoming quarter, as management has yet to provide specific guidance amidst challenging market conditions and a lack of catalysts for product replacement cycles. The overall outlook remains cautious, with modest expectations for future growth in fiscal year 2026 heavily reliant on the performance during the Holiday season.