Key Highlights

  • GAAP Diluted Earnings per Share for fiscal 2026 were USD 0.73 against a loss of USD 0.51, including USD 41.2 million of Tariff refunds in gross profit; non-GAAP diluted EPS, which excludes the refunds, was USD 1.23.
  • Fiscal 2026 Revenue rose 7% to USD 1,547 million, while fourth-quarter revenue grew 20% to USD 344 million, or 11% excluding the extra week, according to management.
  • Adjusted EBITDA, a non-GAAP measure, grew 39% to USD 184 million for the year, though management said higher memory costs reduced it by USD 56 million versus the prior year.
  • The board authorized a new share repurchase program of up to USD 150 million after the prior USD 150 million program was completed, with USD 130 million spent on 8.2 million shares in fiscal 2026.

Tariff Refunds Lift GAAP Profit Above the Underlying Result

Sonos reported fiscal 2026 results on November 10, 2026 for the 53 weeks ended October 3, 2026. GAAP Net Income was USD 89.6 million, or USD 0.73 per diluted share, compared with a loss of USD 61.1 million. The result includes USD 41.2 million of refunds tied to Import duties found invalid by a Supreme Court ruling, plus USD 1.4 million of interest. That is about USD 0.35 per diluted share before tax (calculated, USD 42.6 million over 122.3 million shares). Non-GAAP net income, which excludes the refunds, was USD 150 million, or USD 1.23 per share, up 92%.

Fourth Quarter Growth, Memory Costs and Heavier Inventory

Sonos (NASDAQ:SONO) sells wireless speakers and home audio products. Fourth-quarter revenue was USD 344.4 million versus USD 287.9 million, and the GAAP net loss was USD 5.2 million, or USD 0.04 per share, against a loss of USD 37.9 million. Non-GAAP gross Margin fell to 42.1% from 45.1% as higher memory prices weighed. Management said memory costs cut fourth-quarter adjusted EBITDA by USD 33 million, leaving it flat at USD 6 million. Inventories rose to USD 273.0 million from USD 171.0 million, and fourth-quarter free Cash Flow was negative USD 5 million, on management's figure.

First-Quarter Guidance and a New USD 150 Million Buyback

On the call, management guided first-quarter fiscal 2027 revenue to USD 570 million to USD 630 million, growth of 4% to 15%, and adjusted EBITDA to USD 73 million to USD 111 million. It said memory and component costs remain a headwind of about 1,200 basis points to gross margin and expects fiscal 2027 to bring another year of revenue growth. Fiscal 2026 free cash flow rose 14% to USD 123 million. Cash and equivalents were USD 178.1 million plus USD 49.1 million of marketable securities, with no borrowings shown on the balance sheet. The installed base reached 17.7 million households.

Where Things Stand

A meaningful slice, though not the whole story. Sonos (NASDAQ:SONO) booked USD 41.2 million of tariff refunds in fiscal 2026, roughly USD 0.35 of the USD 0.73 GAAP EPS before tax (calculated), yet the non-GAAP figure of USD 1.23 and the 39% rise in adjusted EBITDA show earnings also improved without them. Offsetting that, memory costs are a large and growing drag on margin, and inventory is up. Next markers are the holiday-season first quarter, the pace of memory cost mitigation and the use of the new buyback authorization.