Sonos’ second quarter results were well received by the market, with revenue coming in above Wall Street expectations and year-over-year sales growth driven by strong demand for home theater products and successful promotional campaigns. Management attributed the performance to disciplined cost reduction, software reliability improvements, and early momentum from targeted pricing moves. Interim CEO Tom Conrad noted, “We delivered a solid second quarter with revenue up 3% year-over-year and adjusted EBITDA increasing by $33 million, driven by a combination of strong gross margin and disciplined execution on our restructuring.”

Is now the time to buy SONO? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Sonos’s Q1 Earnings Call

• Steven Frankel (Rosenblatt Securities) asked about Sonos’ channel inventory strategy amid tariff uncertainty. CFO Saori Casey explained that the company is coordinating closely with partners to time inventory flows and balance pricing strategies in response to tariff changes.
• Frankel (Rosenblatt Securities) also inquired about the conclusion of the IKEA partnership. Interim CEO Tom Conrad said the decision reflects a sharpened focus on core experiences and direct control of the Sonos ecosystem.
• Frankel (Rosenblatt Securities) followed up on efforts to repair relationships with installer partners. Conrad reported improved product reliability and positive customer feedback, indicating progress in restoring trust.
• Logan Katzman (Raymond James) questioned whether tariffs have impacted demand or pulled forward purchases. Casey stated no material demand changes have been observed so far, but the company is monitoring the situation closely.
• Erik Woodring (Morgan Stanley) requested clarification on Sonos’ current tariff exposure by manufacturing location. Conrad responded that almost all U.S.-bound production now comes from Vietnam and Malaysia, minimizing exposure to China-specific tariffs.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) how effectively Sonos manages tariff costs and supply chain flexibility, (2) the pace of software and hardware product updates—especially in the home theater segment, and (3) sustained double-digit growth in targeted international markets. Progress on these fronts will help clarify Sonos’ ability to achieve profitable growth amid external uncertainties.

Sonos currently trades at $10.96, up from $8.96 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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