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SONO News
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Sonos Stock Drops 17.8% to $14.40
Sonos is down -17.8%, or -$3.12 to $14.40.
Sonos Expects 6% to 8% Revenue Growth for Fiscal 2026
The company states: "Taking our year-to-date results and the Q4 guidance I just outlined, I will now walk through what we expect for fiscal 2026, as well as some directional color for fiscal 2027. We expect fiscal 2026 revenue to grow 6 to 8 percent, or 4 to 6 percent, excluding the 53rd week after three. Years of declining top line, this return to growth represents a pivotal moment for Sonos. We expect the momentum we built in fiscal 2026 to carry into fiscal 2027 and beyond, as we continue to execute on the five growth dimensions. Tariff refunds and higher memory costs distort the gross margin improvement achieved in fiscal 2026."
Company Expects Gross Margin Pressure in FY2027, Adjusted EBITDA at $181 Million
The company states: "Looking ahead to fiscal 2027, we expect higher memory prices to further weigh on our gross margin on an annualized basis, we expect our mitigation actions to drive around 500 basis points of improvements. Though, because this work will take effect progressively through the year, we will not see the full benefit in fiscal 2027. As a result, we expect the lower end of our Q4 gross margin guidance range is a reasonable way to think about the year ahead as a flow through of higher priced memory is partially offset by our mitigation efforts, with first half running lower and some improvements in the second half as our mitigation actions begin to phase in. The combination of growing top line, expanding gross margin and disciplined management of our cost base has a compounding effect on our adjusted EBITDA in fiscal 2026. We expect adjusted EBITDA to be $181 million, up 37% year over year, representing an 11.7% margin."
Company Expects Q4 GAAP Gross Margin of 39% to 41%
The company states: "We expect Q4 GAAP gross margin to be in the range of 39% to 41%, with non-GAAP gross margin approximately 120 basis points higher than GAAP. As previously mentioned, please note that our Q4 GAAP Gross margin guidance does not include benefit of any tariff refunds. Our Q4 guidance embeds the latest announced tariff rates of 10% and 12.5% for goods imported from Malaysia and Vietnam, respectively. Memory prices are expected to be a $35 million headwind to Q4. Gross profit year over year, representing a headwind of approximately 1,000 basis points, which is approximately 600 basis points greater year over year impact than Q3. As Tom mentioned, we are actively working to mitigate some of this industry wide cost pressure. However, the Q4 gross margin guidance. I just provided only reflects a small portion of the mitigation benefit. As our action will take effect progressively through fiscal 2027. We are focused on managing this challenge thoughtfully, without losing sight of larger opportunity to drive top line growth and maximizing long term value. Expect Q4, GAAP operating expenses to be in the range of $160 million to $170 million. We expect non-GAAP operating expenses to be lower than GAAP by approximately $20 million. Please note that the extra week in Q4 contributes approximately $5 million of additional non-GAAP operating expenses in the quarter. Excluding this, the midpoint of our guidance implies that non-GAAP operating expenses grow by 4% year over year, mainly attributable to program expenses related to new product introductions. Bringing it all together, we expect Q4 adjusted EBITDA to be in the range of -$11 million to positive $18 million, or positive $3 million at the midpoint. As previously noted, we expect higher memory prices to reduce our Q4 adjusted EBITDA by $35 million, excluding higher memory prices. The midpoint of our guidance range implies adjusted EBITDA would have increased from $6 million last year to $38 million, or nearly six times last year." Comments taken from Q3 earnings conference call.
SK Hynix Raises $26.5B in U.S. IPO
The major averages finished Friday broadly higher as investors balance continued enthusiasm for artificial intelligence against renewed geopolitical uncertainty. Despite the up-and-down nature of the week, the S&P 500 and Nasdaq had weekly gains.A key news story was the debut of SK Hynix's U.S.-listed American depositary receipts. The South Korean memory-chip maker raised approximately $26.5B in one of the largest equity offerings ever, underscoring continued investor appetite for companies tied to AI infrastructure. The listing follows the blockbuster SpaceX IPO and reinforces the view that capital markets remain receptive to large-scale technology offerings despite recent volatility.Meanwhile, traders continue to keep an eye on tensions in the Middle East. Oil prices have retreated after a surge earlier in the week as President Donald Trump said that Iran called to make a deal, while Qatar and Pakistan are reportedly aiming to bring both sides back into peace talks.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:SK Hynixin the U.S. at $170 per ADR after its U.S. IPO was priced at $149Deltareportedand reiterated its FY26 outlookCircle Internetreceivedto establish a national trust bankBaker Hugheshas received conditional EU antitrust approval for its $13.6B acquisition of Chart Industries,easyJet'sboard and Apollo Globalhave reached an agreement in principle on the2. WALL STREET CALLS:Twilioto Buy at StifelPepsiCoto Neutral at CitiFox Corp.to Buy from Neutral at Rothschild & Co RedburnSusquehannaIBMat Neutral despite "so many reasons to like"Toll Brothersto Buy at Citi3. AROUND THE WEB:As part of its recent job cuts, Sonoshas laid off some of its top design and product management executives, Bloomberg saysUBShelped trigger a wave of withdraws from a Blue Owl fund in the final quarter of 2025 after advising overexposed clients to diversify away from private credit, FT reportsSemiAnalysis posted a positive report on Meta'sAI computeDisneyis exploring making some Disney+ content available without a paywall, Business Insider saysCCC Intelligent Solutionsis weighing a sale of the company, Reuters says4. MOVERS:EquipmentSharewas higher after authorizing afor up to $50M and raising its guidance for FY26Cadizgained after announcing the U.S BLM approved theVodafoneincreased in New York after e& announced the termination of itsFermifell after pricing its $375MBrookdale Senior Livingwas lower after reporting5. EARNINGS/GUIDANCE:WD-40and raised its guidance for FY26Barnes & Noble Educationreported, with revenue in-line with consensusChipMOS, with revenue higher year-over-yearAtegrity SpecialtyprovidedNurix Therapeutics, with EPS and revenue missing consensusINDEXES:The Dow rose 149.60, or 0.29%, to 52,637.01, the Nasdaq gained 74.72, or 0.29%, to 26,281.61, and the S&P 500 advanced 31.75, or 0.42%, to 7,575.39.
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