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SONO, Sonos Inc.

Sonos is a leading audio company dedicated to elevating life through sound.

Since pioneering multi-room wireless audio in 2005, Sonos has built a system that unites every dimension of sound - music, movies, stories and conversations - into one connected platform.

The portfolio includes home theater speakers, components, plug-in and portable speakers, and headphones that compound in value with every room and device its customers add.

Latest annual: FY2025 10-K

SONO · Sonos Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.4B

−4.9% YoY · 2% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.5B 5-yr avg $1.6B

Gross margin 45% 5-yr avg 45%

Operating margin 2.2% 5-yr avg 1.2%

ROIC 11% 5-yr avg −2%

Owner-earnings margin 8% 5-yr avg 6%

Free cash flow margin 8% 5-yr avg 5%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Sonos speakers (78%), Sonos system products (17%) and Partner products and other revenue (5%).
What moves the needle: Operating margin has run around −1.6% through the cycle on a 44% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 14% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −15%, above 15% in 1 of 5 years). The steadier read is owner earnings: roughly 5% of revenue reaches owners as cash, though it swings. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Sonos speakers is 78% of revenue, with Sonos system products the other meaningful line at 17%.

Revenue by product line, FY2025

Sonos speakers78%$1.1B
Sonos system products17%$249M
Partner products and other revenue5%$72M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$901M	$993M	$1.1B	$1.3B	$1.3B	$1.7B	$1.8B	$1.7B	$1.5B	$1.4B	$1.5B	RevenueRevenue
45%	46%	43%	42%	43%	47%	45%	43%	45%	44%	45%	Gross marginGross mgn
8%	8%	7%	8%	9%	9%	10%	10%	9%	8%	8%	SG&A / revenueSG&A/rev
12%	13%	12%	14%	16%	13%	15%	18%	20%	19%	17%	R&D / revenueR&D/rev
($31M)	($16M)	($9M)	$6M	($27M)	$155M	$90M	($21M)	($48M)	($50M)	$32M	Operating incomeOp. inc.
−3.4%	−1.6%	−0.8%	0.5%	−2.1%	9.0%	5.1%	−1.2%	−3.2%	−3.5%	2.2%	Operating marginOp. mgn
($38M)	($14M)	($16M)	($5M)	($20M)	$159M	$67M	($10M)	($38M)	($61M)	$24M	Net incomeNet inc.
—	—	—	—	—	-1%	2%	—	—	—	34%	Effective tax rateTax rate
											Cash flow & returns
$43M	$64M	$31M	$121M	$162M	$253M	($28M)	$100M	$190M	$137M	$138M	Operating cash flowOp. cash
$34M	$35M	$39M	$36M	$36M	$34M	$39M	$49M	$52M	$62M	$55M	DepreciationDeprec.
$21M	$7M	($32M)	$42M	$88M	($1M)	($210M)	($15M)	$91M	$54M	($7M)	Working capital & otherWC & other
$53M	$34M	$36M	$23M	$33M	$46M	$46M	$50M	$55M	$29M	$21M	CapexCapex
5.8%	3.4%	3.1%	1.8%	2.5%	2.7%	2.6%	3.0%	3.6%	2.0%	1.4%	Capex / revenueCapex/rev
$9M	$30M	($5M)	$97M	$129M	$219M	($74M)	$50M	$135M	$108M	$118M	Owner earningsOwner earn.
1.0%	3.1%	−0.5%	7.7%	9.7%	12.8%	−4.3%	3.0%	8.9%	7.5%	8.1%	Owner earnings marginOE mgn
($9M)	$30M	($5M)	$97M	$129M	$208M	($74M)	$50M	$135M	$108M	$118M	Free cash flowFCF
−1.0%	3.1%	−0.5%	7.7%	9.7%	12.1%	−4.3%	3.0%	8.9%	7.5%	8.1%	Free cash flow marginFCF mgn
—	—	$0	$0	$36M	$0	$126M	$0	$0	—	$0	AcquisitionsAcquis.
$145K	$10M	$911K	$2M	$50M	$50M	$150M	$100M	$129M	$81M	—	BuybacksBuybacks
—	—	-26%	—	—	—	31%	-3%	-15%	-22%	11%	ROICROIC
—	-52656%	-7%	-2%	-7%	28%	12%	-2%	-9%	-17%	6%	Return on equityROE
—	n/m	−7%	−2%	−7%	28%	12%	−2%	−9%	−17%	6%	Retained to equityRetained/eq
											Balance sheet
$75M	$131M	$221M	$339M	$407M	$640M	$275M	$220M	$170M	$175M	$200M	Cash & investmentsCash+inv
$45M	$47M	$73M	$103M	$55M	$101M	$101M	$68M	$45M	$66M	$96M	ReceivablesReceiv.
$54M	$114M	$193M	$220M	$181M	$185M	$454M	$347M	$232M	$171M	$161M	InventoryInvent.
—	$114M	$195M	$252M	$250M	$215M	$336M	$188M	$195M	$184M	$163M	Accounts payablePayables
$99M	$47M	$71M	$71M	($15M)	$71M	$220M	$226M	$81M	$53M	$93M	Operating working capitalOper. WC
—	$301M	$498M	$679M	$660M	$958M	$867M	$660M	$551M	$504M	$540M	Current assetsCur. assets
—	$223M	$296M	$402M	$393M	$476M	$536M	$354M	$366M	$352M	$341M	Current liabilitiesCur. liab.
—	1.4×	1.7×	1.7×	1.7×	2.0×	1.6×	1.9×	1.5×	1.4×	1.6×	Current ratioCurr. ratio
—	—	$1M	$1M	$16M	$16M	$77M	$80M	$83M	$83M	$83M	GoodwillGoodwill
—	$400M	$587M	$762M	$816M	$1.1B	$1.2B	$1.0B	$916M	$823M	$839M	Total assetsAssets
—	$40M	$40M	$33M	$25M	$0	—	—	—	—	$0	Total debtDebt
—	($91M)	($181M)	($305M)	($382M)	($640M)	—	—	—	—	($200M)	Net debt / (cash)Net debt
—	-3.6×	-1.7×	2.3×	-18.3×	261.8×	162.2×	-28.0×	-108.9×	-108.5×	67.6×	Interest coverageInt. cov.
($29M)	$27K	$208M	$281M	$298M	$569M	$561M	$519M	$429M	$355M	$384M	Shareholders’ equityEquity
2.9%	3.7%	3.4%	3.7%	4.3%	3.6%	4.3%	4.6%	5.6%	5.7%	4.5%	Stock comp / revenueSBC/rev
											Per share
53.9M	56.3M	65.7M	104M	110M	140M	138M	128M	123M	121M	124M	Shares out (diluted)Shares
$16.73	$17.62	$17.30	$12.15	$12.08	$12.24	$12.72	$12.96	$12.32	$11.95	$11.81	Revenue / shareRev/sh
$-0.71	$-0.25	$-0.24	$-0.05	$-0.18	$1.13	$0.49	$-0.08	$-0.31	$-0.51	$0.19	EPS (diluted)EPS
$0.17	$0.54	$-0.08	$0.94	$1.17	$1.56	$-0.54	$0.39	$1.09	$0.90	$0.95	Owner earnings / shareOE/sh
$-0.17	$0.54	$-0.08	$0.94	$1.17	$1.48	$-0.54	$0.39	$1.09	$0.90	$0.95	Free cash flow / shareFCF/sh
$0.97	$0.60	$0.54	$0.22	$0.30	$0.32	$0.34	$0.39	$0.45	$0.24	$0.17	Cap. spending / shareCapex/sh
$-0.53	$0.00	$3.17	$2.71	$2.71	$4.06	$4.07	$4.06	$3.48	$2.94	$3.11	Book value / shareBVPS

The diluted share count moved ×1.58 into 2019 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	−3.7%/yr	−0.2%/yr
Owner earnings / share	+20.6%/yr	−5.3%/yr
Capital spending / share	−14.5%/yr	−4.6%/yr
Book value / share	—	+1.6%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

121Mpeak FY2021

ROIC

−22%low FY2018

Gross margin

44%low FY2019

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$108Mowner earningsvs.($61M)net incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $61M loss into $108M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($61M)	($38M)	($10M)	$67M	$159M
Depreciation & amortizationnon-cash charge added back	+$62M	+$52M	+$49M	+$39M	+$34M
Stock-based compensationreal costnon-cash, but a real cost	+$82M	+$84M	+$77M	+$76M	+$62M
Working capital & othertiming of cash in and out, other non-cash items	+$54M	+$91M	−$15M	−$210M	−$1M
Cash from operations	$137M	$190M	$100M	($28M)	$253M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$29M	−$55M	−$50M	−$46M	−$34M
Owner earnings	$108M	$135M	$50M	($74M)	$219M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	—	—	−$12M
Free cash flow	$108M	$135M	$50M	($74M)	$208M
Owner-earnings marginowner earnings ÷ revenue	7%	9%	3%	-4%	13%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $82M), owner earnings is nearer $27M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -108.5×

Does not cover its interest

Operating income ($50M) ÷ interest expense $465K

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$175M

Net cash, debt-free

Cash $175M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $175M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 11d

Tight

DSO 17 + DIO 77 − DPO 83 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -15%

Below average through the cycle

5-yr median, range -26%–31%; -22% latest = NOPAT ($40M) ÷ invested capital $181M

Industry peers: median 5%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 5 years (it ran -22% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 7%

Solid, recently turned positive

latest $108M = operating cash $137M − maintenance capex $29M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 3%)

Industry peers: median 11%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 3% median across 10 years. Treating stock comp as the real expense it is (less $82M of SBC) leaves $27M.
Are earnings backed by cash? $137M

Loss, but cash-generative

Net income ($61M) · cash from operations $137M

In the filing’s words And the filing leans heavily on adjusted, non-GAAP earnings — steering you off the GAAP figure just where the cash is not backing it. Read the reconciliation in the notes before taking the adjusted number.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 75%

Returns about half

Dividends + buybacks $81M ÷ Owner Earnings $108M

What this means
Of $108M Owner Earnings, $81M (75%) went back to shareholders, $0 dividends, $81M buybacks. But the buybacks barely exceed stock issued to employees ($82M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.46×

Harvesting

Capex $29M ÷ depreciation $62M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.4B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.43×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $0 vs $152M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 8 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.31/share (latest year $-0.51), the averaged base the calculator's gate runs on, and book value is $2.98/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 2 of 10

What this means
Lost money in 8 year(s), look at what happened there before trusting the average.
Operating margin −2% → −3% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about −2% early, −3% lately, median −2%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +22%/yr

What this means
Owner earnings grew about 22% a year over the record.
Worst year 2025 · −3.5% op. margin

What this means
Operations went underwater in 2025, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Also, if we fail to keep pace with rapidly evolving technological developments in artificial intelligence, our competitive position and business results may suffer.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 28, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$540M

Cash & short-term investments$200M
Receivables$96M
Inventory$161M
Other current assets$84M

Current liabilities$341M

Accounts payable$163M
Other current liabilities$178M

Current ratio1.58×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.11×stricter: inventory excluded

Cash ratio0.59×strictest: cash alone against what's due

Working capital$199Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+8.4%the freshest read on whether the business is still growing

Current ratio, recent quarters1.6× → 1.6×

Deeper floors

Tangible book value$234Mequity stripped of goodwill & intangibles

Net current asset value$85MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$59M$59M of it operating leases

Deferred revenue$98Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $1.1B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$404M · 38%
Buybacks$574M · 53%
Retained (debt / cash)$95M · 9%

Returned to owners$574M
82% of the owner earnings the business produced over the span, $0 as dividends and $574M as buybacks.
Average price paid for buybacks$18.35
Across the years where the filing reports a share count, 26M shares were bought for $479M, about $18.35 each. Year to year the price paid ranged from $13.20 (2020) to $35.88 (2021); its heaviest year, 2022, paid $22.82 ($150M).
Net change in share count129.5%
The diluted count rose from 54M to 124M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$158M19% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity23%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$163Mover 10 years buying other businesses, against $404M of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Pay, as filed	“Actually paid”	Owner earnings
2021	$5.5M	$32.3M	$219M
2022	$8.4M	−$13.5M	($74M)
2023	$5.2M	$4.7M	$50M
2024	$5.8M	$3.7M	$135M
2025	$8.3M	$9.2M	$108M
2025	$8.6M	$4.1M	$108M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership1.3%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio37:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$82M
The slice of the business handed to employees in shares this year, 6% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Sonos Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 5 tests turned up something to look into; the other 3 came back clean.

Look hereDid the share count rise anyway?129.5%
Diluted shares grew 129.5% over 2016–2025, even as the company spent $574M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.
Look hereDid receivables and inventory outpace sales?11% → 18% of sales
Receivables and inventory grew from $99M to $256M while revenue grew 62%: working capital is climbing faster than sales (11% of revenue then, 18% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Household Durables

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
VISNVistance Networks Inc.	$1.9B	37%	0.9%	-0%	10%
HELEHelen of Troy	$1.8B	43%	11.8%	11%	12%
LITELumentum Holdings Inc.	$1.6B	32%	3.0%	3%	9%
SONOSonos Inc.	$1.4B	44%	-1.4%	-15%	5%
POWLPowell Industries Inc.	$1.1B	18%	2.5%	5%	11%
ESEESCO Technologies Inc.	$1.1B	39%	12.2%	7%	11%
ADTNADTRAN Holdings Inc.	$1.1B	39%	-4.9%	-5%	-1%
KNKnowles Corporation	$593M	40%	9.5%	5%	—
Group median	—	39%	2.8%	4%	10%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Sonos Inc. has delivered.

Sonos Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Sonos Inc. earns about $76M on its 5.3% median owner-earnings margin. This year’s 7.5% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($76M) Net of stock comp (−$66M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+14%/yr

Owner-earnings growth · ’16→’25+31%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $118M on 119M shares outstanding, per the 10-Q cover, as of 2026-04-17; net cash $200M. The if-converted diluted count is 124M, 4% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh SONO against another business →

Cite: Owner Scorecard, "Sonos Inc. (SONO), the owner's record," https://ownerscorecard.com/c/SONO, data as of 2026-07-09.

Manual order: ← SON its page in the Manual SOUN →

Industry order: ← SN the Household Durables chapter SONY →