Sonos

SONO

Consumer Electronics · Technology

Price

$15.11

+0.84 (+5.89%)

Market Cap

$1.80B

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

−13.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 140.3M (2021) → 120.8M (2025)

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its Website sonos.com. The company was formerly

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.4% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+58.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$280M/ year

↓ Declining (-8% vs prior year)

19.4% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

17.0%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~9 months

$200M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Sonos has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

44.3%

Healthy — 44.3% gross margin

Operating Margin

-8.9%

Losing money on operations — -8.9%

ROCE

-6.4%

Weak — -6.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-19.1%

Shrinking sales (-19.1% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-8.9%

Burning cash (-8.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.02

Conservative — low debt load (0.02)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

74.5x

Expensive — P/E 74.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+38.4

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (74.5 → 36.1)

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Dividends

Not applicable for this business.

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