SONOS INC, 10-K filed on 11/14/2025
Annual Report
v3.25.3
Cover - USD ($)
$ in Millions
12 Months Ended
Sep. 27, 2025
Oct. 27, 2025
Mar. 28, 2025
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 27, 2025    
Current Fiscal Year End Date --09-27    
Document Transition Report false    
Entity File Number 001-38603    
Entity Registrant Name SONOS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 03-0479476    
Entity Address, Address Line One 301 Coromar Drive    
Entity Address, City or Town Santa Barbara    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 93117    
City Area Code 805    
Local Phone Number 965-3001    
Title of 12(b) Security Common Stock, $0.001 par value    
Trading Symbol SONO    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Small Reporting Company false    
Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 818.1
Entity Common Stock, Shares Outstanding   120,240,651  
Documents Incorporated by Reference
Part III incorporates by reference certain information from the registrant’s definitive proxy statement (the "2026 Proxy Statement") relating to its 2026 Annual Meeting of Stockholders. The 2026 Proxy Statement will be filed with the United States Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.
   
Entity Central Index Key 0001314727    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.25.3
Audit Information
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Audit Information [Abstract]    
Auditor Firm ID 185 238
Auditor Name KPMG LLP PricewaterhouseCoopers LLP
Auditor Location Seattle, Washington Los Angeles, California
v3.25.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Current assets:    
Cash and cash equivalents $ 174,668 $ 169,732
Marketable securities 52,858 51,426
Accounts receivable, net of allowances of $66,098 and $51,741 as of September 27, 2025, and September 28, 2024, respectively 65,847 44,513
Inventories 171,020 231,505
Prepaid and other current assets 39,642 53,910
Total current assets 504,035 551,086
Property and equipment, net 72,277 102,148
Operating lease right-of-use assets 45,297 50,175
Goodwill 82,854 82,854
Intangible assets, net:    
In-process research and development 0 73,770
Other intangible assets 75,356 14,266
Deferred tax assets 10,509 10,314
Other noncurrent assets 32,950 31,699
Total assets 823,278 916,312
Current liabilities:    
Accounts payable 184,109 194,590
Accrued expenses 79,094 87,783
Accrued compensation 21,331 15,701
Deferred revenue, current 21,771 21,802
Other current liabilities 46,107 46,277
Total current liabilities 352,412 366,153
Operating lease liabilities, noncurrent 53,288 56,588
Deferred revenue, noncurrent 59,453 61,075
Deferred tax liabilities 126 60
Other noncurrent liabilities 2,774 3,816
Total liabilities 468,053 487,692
Commitments and contingencies (Note 12)
Stockholders’ equity:    
Common stock, $0.001 par value; 500,000,000 shares authorized, 122,881,915 and 123,046,510 shares issued, 120,093,113 and 121,763,776 shares outstanding as of September 27, 2025, and September 28, 2024, respectively 123 123
Treasury stock, 2,788,802 and 1,282,734 shares at cost as of September 27, 2025 and September 28, 2024, respectively (37,398) (17,096)
Additional paid-in capital 502,775 498,245
Accumulated deficit (112,078) (50,934)
Accumulated other comprehensive income (loss) 1,803 (1,718)
Total stockholders' equity 355,225 428,620
Total liabilities and stockholders’ equity $ 823,278 $ 916,312
v3.25.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Statement of Financial Position [Abstract]    
Allowance for credit loss $ 66,098 $ 51,741
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 122,881,915 123,046,510
Common stock, shares outstanding (in shares) 120,093,113 121,763,776
Treasury stock, shares at cost (in shares) 2,788,802 1,282,734
v3.25.3
Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Income Statement [Abstract]      
Revenue $ 1,443,276 $ 1,518,056 $ 1,655,255
Cost of revenue 812,746 828,683 938,765
Gross profit 630,530 689,373 716,490
Operating expenses      
Research and development 279,969 304,558 301,001
Sales and marketing 281,192 290,609 267,518
General and administrative 119,837 142,252 168,518
Total operating expenses 680,998 737,419 737,037
Operating loss (50,468) (48,046) (20,547)
Other income (expense), net      
Interest income 6,934 11,965 10,201
Interest expense (465) (441) (733)
Other income (expense) (6,498) 9,371 15,473
Total other income (expense), net (29) 20,895 24,941
Income (loss) before provision for income taxes (50,497) (27,151) 4,394
Provision for income taxes 10,647 10,995 14,668
Net loss $ (61,144) $ (38,146) $ (10,274)
Loss per share - basic (in USD per share) $ (0.51) $ (0.31) $ (0.08)
Loss per share - diluted (in USD per share) $ (0.51) $ (0.31) $ (0.08)
Weighted-average shares used in computing loss per share - basic (in shares) 120,753,102 123,218,532 127,702,885
Weighted-average shares used in computing loss per share - diluted (in shares) 120,753,102 123,218,532 127,702,885
Total comprehensive loss      
Net loss $ (61,144) $ (38,146) $ (10,274)
Change in foreign currency translation adjustment 3,619 1,604 153
Net unrealized gain (loss) on marketable securities (98) 122 0
Comprehensive loss $ (57,623) $ (36,420) $ (10,121)
v3.25.3
Consolidated Statements of Stockholders’ Equity - USD ($)
$ in Thousands
Total
Common stock:
Additional paid-in capital:
Treasury stock:
Accumulated deficit:
Accumulated other comprehensive gain (loss):
Beginning balances at Oct. 01, 2022 $ 560,513 $ 130 $ 617,390 $ (50,896) $ (2,514) $ (3,597)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans   6 21,340      
Retirement of treasury stock   (6) (108,242) 108,248    
Stock-based compensation expense     76,857      
Repurchase of common stock       (100,064)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards       (29,874)    
Net loss (10,274)       (10,274)  
Change in foreign currency translation adjustment 153         153
Unrealized gain (loss) on investments 0         0
Ending balances at Sep. 30, 2023 518,657 $ 130 607,345 $ (72,586) (12,788) (3,444)
Balances, beginning of period (in shares) at Oct. 01, 2022   129,823,663        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans (in shares)   6,714,406        
Retirement of treasury stock (in shares)   (6,138,129)        
Balances, ending of period (in shares) at Sep. 30, 2023   130,399,940        
Treasury stock, Beginning balances (in shares) at Oct. 01, 2022       (3,154,940)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Retirement of treasury stock (in shares)       6,138,129    
Repurchase of common stock (in shares)       (6,555,702)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares)       (1,713,511)    
Treasury stock, Ending balances (in shares) at Sep. 30, 2023       (5,286,024)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans   $ 6 17,047      
Retirement of treasury stock   (13) (210,441) $ 210,454    
Stock-based compensation expense     84,294      
Repurchase of common stock       (129,620)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards       (25,344)    
Net loss (38,146)       (38,146)  
Change in foreign currency translation adjustment 1,604         1,604
Unrealized gain (loss) on investments 122         122
Ending balances at Sep. 28, 2024 $ 428,620 $ 123 498,245 $ (17,096) (50,934) (1,718)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans (in shares)   6,122,884        
Retirement of treasury stock (in shares)   (13,476,314)        
Balances, ending of period (in shares) at Sep. 28, 2024 121,763,776 123,046,510        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Retirement of treasury stock (in shares)       13,476,314    
Repurchase of common stock (in shares)       (7,796,120)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares)       (1,676,904)    
Treasury stock, Ending balances (in shares) at Sep. 28, 2024 (1,282,734)     (1,282,734)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans   $ 6 4,497      
Retirement of treasury stock   (6) (86,217) $ 86,222    
Stock-based compensation expense     86,250      
Repurchase of common stock       (80,663)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards       (25,861)    
Net loss $ (61,144)       (61,144)  
Change in foreign currency translation adjustment 3,619         3,619
Unrealized gain (loss) on investments (98)         (98)
Ending balances at Sep. 27, 2025 $ 355,225 $ 123 $ 502,775 $ (37,398) $ (112,078) $ 1,803
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock pursuant to equity incentive plans (in shares)   6,045,916        
Retirement of treasury stock (in shares)   (6,210,511)        
Balances, ending of period (in shares) at Sep. 27, 2025 120,093,113 122,881,915        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Retirement of treasury stock (in shares) 6,210,511     6,210,511    
Repurchase of common stock (in shares)       (5,689,219)    
Repurchase of common stock related to shares withheld for tax in connection with vesting of stock awards (in shares)       (2,027,360)    
Treasury stock, Ending balances (in shares) at Sep. 27, 2025 (2,788,802)     (2,788,802)    
v3.25.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Cash flows from operating activities      
Net loss $ (61,144) $ (38,146) $ (10,274)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 62,321 52,378 48,969
Restructuring and other charges 11,920 2,204 5,533
Stock-based compensation expense 81,564 84,294 76,857
Provision for inventory obsolescence 8,143 8,894 20,640
Other 3,769 3,701 5,535
Deferred income taxes 8 (18,922) (583)
Foreign currency transaction (gain) loss 2,352 (7,276) (7,335)
Changes in operating assets and liabilities:      
Accounts receivable, net (21,873) 23,044 32,120
Inventories 51,729 106,122 87,004
Other assets 10,483 (28,775) 10,470
Accounts payable and accrued expenses (14,439) (789) (162,345)
Accrued compensation 5,232 (6,775) (2,185)
Deferred revenue (2,737) 304 (4,576)
Other liabilities (459) 9,648 576
Net cash provided by operating activities 136,869 189,906 100,406
Cash flows from investing activities      
Purchases of marketable securities (57,944) (90,495) 0
Purchases of property and equipment (28,676) (55,247) (50,286)
Maturities of marketable securities 57,100 40,500 0
Net cash used in investing activities (29,520) (105,242) (50,286)
Cash flows from financing activities      
Payments for debt issuance costs 0 0 0
Proceeds from exercise of stock options 4,503 17,053 21,346
Payments for repurchase of common stock (80,984) (129,018) (100,064)
Payments for repurchase of common stock related to shares withheld for tax in connection with vesting of RSUs (25,861) (25,344) (29,874)
Net cash used in financing activities (102,342) (137,309) (108,592)
Effect of exchange rate changes on cash and cash equivalents (71) 2,146 3,848
Net increase (decrease) in cash and cash equivalents 4,936 (50,499) (54,624)
Cash and cash equivalents      
Beginning of period 169,732 220,231 274,855
End of period 174,668 169,732 220,231
Supplemental disclosure      
Cash paid for interest 279 256 1,330
Cash paid for taxes, net of refunds 23,945 21,206 9,522
Cash paid for amounts included in the measurement of lease liabilities, net of tenant improvement reimbursements received 6,629 11,008 14,218
Supplemental disclosure of non-cash investing and financing activities      
Purchases of property and equipment, accrued but not paid 5,055 7,878 2,784
Right-of-use assets obtained in exchange for lease liabilities 1,491 11,492 31,692
Excise tax on share repurchases, accrued but not paid 281 602 0
Change in estimate of asset retirement obligations $ 0 $ 0 $ 2,290
v3.25.3
Business Overview
12 Months Ended
Sep. 27, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business Overview
1. Business Overview
Description of Business
Sonos, Inc. and its wholly owned subsidiaries (collectively, “Sonos,” the “Company,” “we,” “us” or “our”) designs, develops, manufactures, and sells audio products and services. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform, and the ability to stream content from a variety of sources over the customer’s wireless network or over Bluetooth.
The Company’s products are sold through third-party physical retailers, including custom installers of home audio systems, e-commerce retailers, and its website sonos.com. The Company’s products are distributed in over 60 countries through its wholly owned subsidiaries: Sonos Europe B.V. in the Netherlands, Beijing Sonos Technology Co. Ltd. in China, Sonos Japan GK in Japan, and Sonos Australia Pty Ltd. in Australia.
v3.25.3
Summary of Significant Accounting Policies
12 Months Ended
Sep. 27, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting Policies
Basis of Presentation and Preparation
The consolidated financial statements, which include the accounts of Sonos, Inc. and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
The Company operates on a 52-week or 53-week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. As used in the Annual Report on Form 10-K, “fiscal 2025” refers to the 52-week fiscal year ending September 27, 2025, “fiscal 2024” refers to the 52-week fiscal year ending September 28, 2024, and “fiscal 2023” refers to the 52-week fiscal year ending September 30, 2023.
Use of Estimates and Judgments
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price ("SSP") of performance obligations and estimating variable consideration such as sales incentives and product returns. Additionally, management makes estimates and judgments for allowances for credit losses, excess and obsolete inventory, loss on purchase commitments, useful lives associated with property and equipment, incremental borrowing rates associated with leases, the recording of and release of valuation allowances with respect to deferred tax assets and uncertain tax positions, impairment of long-lived assets, impairment of goodwill and indefinite-lived intangible assets, warranty, contingencies and valuation and assumptions underlying stock-based compensation and other equity instruments. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and trends that form the basis for making estimates and judgments about the carrying value of assets and liabilities.
Comprehensive Income (Loss)
Comprehensive income (loss) consists of two components: net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to net gains and losses that are recorded as an element of stockholders’ equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of net unrealized gains and losses on foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on marketable securities.
Cash and Cash Equivalents
Cash equivalents consist of short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. As of September 27, 2025, and September 28, 2024, cash equivalents consisted of money market funds, which are recorded at fair value.
Marketable Securities
The Company’s marketable securities consist of U.S. Treasury securities. Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company classifies its marketable securities as available-for-sale and reports them at fair value in the consolidated balance sheets,
with unrealized gains and losses recorded in accumulated other comprehensive loss. If securities are sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss.
Classification of the Company's marketable securities in the consolidated balance sheets is based on each instrument’s underlying contractual maturity date. Securities with an original maturity of three months or less at time of purchase are recorded in cash and cash equivalents. Securities with an original maturity of greater than three months but less than one year are recorded in marketable securities.
For securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through earnings. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the consolidated balance sheets.
The Company has elected the practical expedient to exclude the applicable accrued interest from both the fair value and the amortized cost basis of its marketable securities for the purpose of identifying and measuring impairment. The Company presents accrued interest receivable related to its marketable securities in prepaid and other current assets, separate from marketable securities, on its consolidated balance sheets. The Company's accounting policy is to not measure an allowance for credit losses for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which it considers to be in the period in which it determines the accrued interest will not be collected.
Accounts Receivable
Accounts receivable are recorded at the invoiced amount, net of allowances for credit losses and sales incentives. Receivables do not require collateral and do not bear interest. The allowance for credit losses is established through a provision for expected credit losses, which is recorded as general and administrative expense in the consolidated statements of operations and comprehensive loss.
The Company evaluates the adequacy of the allowance for credit losses by assessing the collectability of accounts receivable. This assessment considers the age of outstanding invoices, each customer’s payment history and expected ability to pay, customer-specific information, and current economic conditions that may affect collectability. The allowance estimate is reviewed and adjusted periodically, or when the Company becomes aware of specific factors indicating a customer’s inability to meet its financial obligations.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains cash and cash equivalents and marketable securities in several high-quality financial institutions. Cash and cash equivalents held at these banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand, and management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to cash. The Company has not experienced any losses in such accounts.
As of September 27, 2025, and September 28, 2024, the Company’s customers that accounted for 10% or more of total accounts receivable, net, were as follows:
September 27,
2025
September 28,
2024
Customer A
18 %20 %
Customer B
14 %31 %
Customer C12 %*
*Accounts receivable was less than 10%
The Company’s customer that accounted for 10% or more of total revenue were as follows:
Year Ended
September 27,
2025
September 28,
2024
September 30,
2023
Customer B14 %16 %17 %
Inventories
Inventories primarily consist of finished goods and component parts, which are purchased from contract manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost is determined using a standard costing method, which approximates first-in first-out. Inventory costs primarily consist of materials, inbound freight, import duties, tariffs, direct labor and manufacturing overhead, logistics, and other handling fees. The Company assesses the valuation of inventory balances including an analysis of determine potential excess and/or obsolete inventory. The Company may be required to write down the value of inventory if estimates of future demand and market conditions indicate excess and/or obsolete inventory. Inventory write-downs and losses on purchase commitments are recorded as a component of cost of revenue in the consolidated statements of operations and comprehensive loss. Losses related to purchase commitments for fiscal 2025 and fiscal 2024 were not material. Ownership of inventory transfers to the Company based on contractual terms with its contract manufacturers.
Property and Equipment, Net
Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware, equipment, and software
3-5 years
Furniture and fixtures
5 years
Tooling and production line test equipment
2-4 years
Leasehold improvements
1-15 years
Product displays
1-3 years
Costs incurred to improve leased office space are capitalized. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Expenditures for major renewals and improvements that extend the useful lives of property and equipment are capitalized. Maintenance, repair costs and gains or losses associated with disposals are charged to expense as incurred.
Product displays are deployed at retail locations. Because the product displays facilitate marketing of the Company’s products within the retail stores, depreciation for product displays is recorded in sales and marketing expenses in the consolidated statements of operations and comprehensive loss.
Cloud Computing Arrangements
The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. For cloud computing arrangements that do not include a software license, implementation costs incurred during the application development stage are capitalized until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the term of the associated hosting arrangement and are recognized as an operating expense within the consolidated statements of operations and comprehensive loss. Capitalized costs related to cloud computing arrangements, net of accumulated amortization, are reported as a component of other noncurrent assets on the Company's consolidated balance sheets.
Impairment of Goodwill and Indefinite-lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized and are tested for impairment on an annual basis during the third quarter of each fiscal year or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or asset below its carrying value.
In connection with the Company's evaluation of goodwill impairment, the Company performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, the Company tests goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). The Company determines fair value of its reporting unit using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations.
In connection with the Company’s evaluation of indefinite-lived intangible asset impairment, the Company performs a qualitative assessment to determine if it is more likely than not that the fair value of the asset is less than its carrying amount. If the
qualitative assessment is not conclusive, the Company proceeds to test for impairment by comparing the fair value of the asset to the carrying value. Fair value is determined based on estimated discounted future cash flow analyses that include significant management assumptions such as revenue growth rates, weighted-average costs of capital and assumed royalty rates. If the carrying value exceeds fair value, an impairment charge will be recorded to reduce the asset to fair value.
For fiscal years 2025, 2024, and 2023, the Company’s qualitative assessments identified no factors indicating it was more likely than not that the fair value of the Company’s reporting unit and indefinite-lived intangible assets were less than their respective carrying amounts. Therefore, the Company incurred no impairment charges.
Impairment of Long-Lived Assets
The Company evaluates the recoverability of its long-lived assets, which primarily comprises property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company performs impairment testing at the level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability is measured by comparing the carrying amounts to the expected future undiscounted cash flows attributable to the assets. If it is determined that an asset may not be recoverable, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Fair value is determined based on estimated discounted future cash flows analyses. There were no impairment charges identified on the Company's long-lived assets during fiscal years 2025, 2024, and 2023.
Product Warranties
The Company’s products are covered by warranty to be free from defects in material and workmanship for a period of one year, except in the EU and select other countries where the Company provides a minimum two-year warranty, depending on the region. At the time of sale, an estimate of future warranty costs is recorded as a component of cost of revenue and a warranty liability is recorded for estimated costs to satisfy the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience and expectations of future costs to repair or replace.
Legal Contingencies
If a potential loss from any claim or legal proceeding is considered probable, and the amount can be reasonably estimated, the Company records a liability for an estimated loss. Legal fees are expensed as incurred and included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. See Note 12. Commitments and Contingencies for additional information regarding legal contingencies.
Treasury Stock
The Company accounts for treasury stock acquisitions using the cost method. The Company accounts for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital on the consolidated balance sheets.
Fair Value Accounting
Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level InputInput Definition
Level 1Quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2Inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities, in active markets or other inputs that are observable or can be corroborated with market data at the measurement date.
Level 3Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date.
Foreign Currency
Certain of the Company’s wholly owned subsidiaries have non-U.S. dollar functional currencies. The Company translates assets and liabilities of non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period and stockholders’ equity at historical rates. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from translation are recognized in foreign currency translation included in accumulated other comprehensive loss.
The Company remeasures monetary assets or liabilities denominated in currencies other than the functional currency using exchange rates prevailing on the balance sheet date, and non-monetary assets and liabilities at historical rates. Foreign currency remeasurement and transaction gains and losses are included in other income (expense), net.
Foreign currency remeasurement and transaction gains (losses) are recorded in other income (expense), net as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Foreign currency remeasurement and transaction gains (losses)$(6,456)$9,062 $13,674 
Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of allowances for returns, discounts, sales incentives, and any taxes collected from customers. The Company defers a portion of revenue that is allocated to unspecified software upgrades and cloud-based services, as well as for newly launched products sold to resellers not recognized until the date of general availability is reached. The Company's contracts generally include a combination of products and services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns, discounts, sales incentives and any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are not considered a separate performance obligation and are accounted for as a fulfillment cost and are included in cost of revenue.
Nature of Products and Services
Product revenue primarily includes sales of Sonos speakers and Sonos system products, which include software that enables the Company’s products to operate over a customer’s wireless network, as well as connect to various third-party services, including music and voice. The Company also generates a small portion of revenue from Partner products and other revenue sources in connection with partnerships, accessories, professional services, licensing, advertising, and subscription revenue. Revenue for module units is related to hardware and embedded software that is integrated into final products that are manufactured and sold by the Company's partners. Software primarily consists of firmware embedded in the products and the Sonos app, which is software that can be downloaded to consumer devices at no charge, with or without the purchase of one of the Company’s products. Products and related software are accounted for as a single performance obligation and all intended functionality is available to the customer upon purchase. The revenue allocated to the products and related software is the substantial portion of the total sale price. Product revenue is recognized at the point in time when control is transferred, which is either upon shipment or upon delivery to the customer, depending on delivery terms.
Service revenue includes revenue allocated to (i) unspecified software upgrades and (ii) cloud-based services that enable products to access third-party music and voice assistant platforms, based on relative standalone selling price, which are each distinct performance obligations and are provided to customers at no additional charge. Unspecified software upgrades are provided on a when-and-if-available basis and have historically included updates and enhancements such as bug fixes, feature enhancements and updates to the ability to connect to third-party music or voice assistant platforms. Service revenue is recognized ratably over the estimated service period.
Significant Judgments
The Company’s contracts with customers generally contain promises to transfer products and services as described above. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires significant judgment.
Determining the SSP for each distinct performance obligation requires judgment. The Company estimates SSP for items that are not sold separately, which include the products and related software, unspecified software upgrades and cloud-based services, using information that may include competitive pricing information, where available, as well as analyses of the cost of providing the products or services plus a reasonable margin. In developing SSP estimates, the Company also considers the nature of the products and services and the expected level of future services.
Determining the revenue recognition period for unspecified software upgrades and cloud-based services also requires judgment. The Company recognizes revenue attributable to these performance obligations ratably over the best estimate of the period that the customer is expected to receive the services. In developing the estimated period of providing future services, the Company considers past history, plans to continue to provide services, including plans to continue to support updates and enhancements to prior versions of the Company’s products, expected technological developments, obsolescence, competition and other factors. The estimated service period may change in the future in response to competition, technology developments and the Company’s business strategy.
The Company offers sales incentives through various programs consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless it receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received, in which case the Company records it as an expense. The Company recognizes a liability or a reduction to accounts receivable, and reduces revenue based on the estimated amount of sales incentives that will be claimed by customers. Estimates for sales incentives are developed using the most likely amount and are included in the transaction price to the extent that a significant reversal of revenue would not result once the uncertainty is resolved. In developing its estimate, the Company also considers the susceptibility of the incentive to outside influences, the length of time until the uncertainty is resolved and the Company’s experience with similar contracts. Reductions in revenue related to discounts are allocated to products and services on a relative basis based on their respective SSP. Judgment is required to determine the timing and amount of recognition of marketing funds which the Company estimates based on past practice of providing similar funds.
The Company accepts returns from direct customers and from certain resellers. To establish an estimate for returns, the Company uses the expected value method by considering a portfolio of contracts with similar characteristics to calculate the historical returns rate. When determining the expected value of returns, the Company considers future business initiatives and relevant anticipated future events.
Supplier Concentration
The Company relies on third parties for the supply and manufacture of its products, as well as third-party logistics providers for the distribution of its products. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to customers on time, if at all. During fiscal years 2025, 2024 and 2023, approximately 53%, 60% and 58%, respectively, of the Company’s finished goods purchased during each year were from one vendor.
Deferred Revenue and Payment Terms
The Company invoices each order upon hardware shipment or delivery and recognizes revenue for each distinct performance obligation when transfer of control has occurred, which in the case of services, may extend over several reporting periods. Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and platform services, as well as for newly launched products sold to resellers not recognized until the date of general availability is reached. General availability deferrals are classified as current deferred revenue as the Company starts shipping the product to the reseller within one month prior to the general availability date. The Company classifies deferred revenue as noncurrent if amounts are expected to be recognized as revenue beyond one year from the balance sheet date.
Payment Terms
Payment terms and conditions vary among the Company’s distribution channels although terms generally include a requirement of payment within 30 days of product shipment. Sales directly to customers from the Company’s website are paid at the time of product shipment. Prior to providing payment terms to customers, an evaluation of the customer’s credit risk is performed. Contractual allowances are an offset to accounts receivable.
Research and Development
Research and development expenses consist primarily of personnel-related expenses, consulting and outside professional service costs, tooling and prototype materials and overhead costs. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. To date, software development costs have been expensed as incurred because the period between achieving technological feasibility and the release of the software has been short and development costs qualifying for capitalization have been insignificant.
In-process research and development ("IPRD") assets represent the fair value of incomplete research and development projects obtained as part of a business combination that have not yet reached technological feasibility and are initially not subject to amortization; rather, these assets are subject to impairment considerations of indefinite-lived intangible assets. Upon completion of development, IPRD assets are considered definite-lived intangible assets, transferred to developed technology and are amortized over their useful lives. If a project were to be abandoned, the IPRD would be considered fully impaired and expensed to research and development.
Advertising Costs
Advertising costs are expensed as incurred and included in sales and marketing expenses. Advertising expenses were $42.8 million, $55.8 million and $43.9 million for fiscal 2025, 2024 and 2023, respectively.
Restructuring and Related Costs
Costs associated with a restructuring plan generally consist of involuntary employee termination benefits, contract termination costs, and other exit-related costs including costs to close facilities. The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date. Restructuring and related costs may also include the write-down of related assets, including operating lease right-of-use assets, when the sale or abandonment of the asset is a direct result of the plan. Other exit-related costs are recognized as incurred. Restructuring and related costs are recognized as within operating expenses and cost of revenue within the consolidated statements of operations and comprehensive loss and are classified based on the Company's classification policy for each category of operating expense.
Stock-Based Compensation
The Company measures stock-based compensation cost at fair value on the date of grant. Compensation cost for stock options is recognized, on a straight-line basis, as an expense over the period of vesting as the employee performs the related services, net of estimated forfeitures. The Company estimates the fair value of stock option awards using the Black-Scholes option-pricing model and is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The Company estimates forfeitures based on expected future terminations and will revise rates, as necessary, in subsequent periods if actual forfeitures differ from initial estimates. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. The Company estimates the fair value of performance stock units ("PSU") on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available.
Retirement Plans
The Company has a defined contribution 401(k) plan (the "401(k) Plan") for the Company’s U.S.-based employees, as well as various defined contribution plans for its international employees. Eligible U.S. employees may make tax-deferred contributions under the 401(k) plan, but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended (the "Code"). The Company matches contributions towards the 401(k) Plan and international defined contribution plans. The Company's matching contributions totaled $7.8 million, $9.5 million, and $9.5 million for fiscal 2025, fiscal 2024, and 2023, respectively.
Income Taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date.
The Company records a valuation allowance when necessary to reduce its deferred tax assets to amounts that are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would result in a benefit to income taxes.
The Company records uncertain tax positions in accordance with a two-step process whereby (i) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the consolidated statements of operations and comprehensive loss. The Company has not incurred any interest or penalties related to unrecognized tax benefits in any of the periods presented.
The Company’s provision for (benefit from) income taxes, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits involves the use of estimates, assumptions and judgments. Although the Company believes its estimates, assumptions and judgments to be reasonable, any changes in tax law or its interpretation of tax laws and the resolutions of potential tax audits could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements. Actual future
operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting the Company’s financial position and results of operations.
Segment Information
The Company operates as one operating segment as it only reports aggregate financial information on a consolidated basis, accompanied by disaggregated information about revenue by geographic region and product category, to its Chief Executive Officer, who is the Company’s Chief Operating Decision Maker ("CODM"). The CODM reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM uses consolidated net income (loss) to measure segment profit or loss and make key operating decisions, such as allocation of the budget and monitoring budget versus actual results.
Significant expenses within net income (loss) include cost of revenue, research and development, sales and marketing, and general and administrative, which are each separately presented on the Company’s consolidated statements of operations and comprehensive loss. Other segment items include interest income, interest expense, other income (expense), and provision for income taxes, which are also each separately presented on the Company’s consolidated statements of operations and comprehensive loss. The CODM does not evaluate segment performance or allocate resources using asset information.
Leases
The majority of the Company’s leases are for its office spaces and facilities, which are accounted for as operating leases. The Company leases office space in California, as well as offices in various locations in the U.S., with additional sales, operations, and research and development offices around the world. The Company determines whether an arrangement is a lease at inception if there is an identified asset, and if it has the right to control the identified asset for a period of time. Some of the Company’s leases include options to extend the leases for up to 5 years, and some include options to terminate the leases. The Company's lease terms are only for periods in which it has enforceable rights and are impacted by options to extend or terminate the lease only when it is reasonably certain that the Company will exercise the option. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the lease terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases do not include any residual value guarantees or bargain purchase options.
Lease agreements will typically exist with lease and non-lease components, which are accounted for separately. The Company's agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and exclude those which depend on facts or circumstances occurring after the commencement date, other than the passage of time.
As most of the Company’s leases do not contain an implicit interest rate, the Company uses judgment to determine an incremental borrowing rate, which is defined as the rate of interest the Company would have to pay to borrow an amount that is equal to the lease obligations, on a collateralized basis, and over a similar term. The Company takes into consideration the terms of the Company's Credit Facility (as defined in Note 7. Debt), lease terms, and current interest rates to determine the incremental borrowing rate at lease commencement date. At September 27, 2025, the Company's weighted-average discount rate was 5.51%, while the weighted-average remaining lease term was 8.6 years. As part of the supplemental cash flow disclosure, the right-of-use assets obtained in exchange for new operating lease liabilities does not reflect the impact of prepaid or deferred rent.
Recently adopted accounting pronouncements
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The Company adopted this standard in the fourth quarter of fiscal 2025. Refer to our significant accounting policies above for the impact of adoption.
Recent accounting pronouncements pending adoption
In September 2025, the FASB issued ASU No. 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update modernize the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to "development stages". It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. The amendments in this update may be applied utilizing a prospective transition approach, a retrospective transition approach, or a
modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient for the application of the current expected credit losses model to current accounts receivable and contract assets. The amendments are effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The transition method is prospective. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure of disaggregated information about significant expenses within relevant income statement captions, such as purchases of inventory, employee compensation, depreciation, and amortization. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. In January 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies that the amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The amendments may be applied retrospectively or prospectively, with early adoption permitted. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
v3.25.3
Financial Instruments
12 Months Ended
Sep. 27, 2025
Fair Value Disclosures [Abstract]  
Financial Instruments
3. Financial Instruments
The carrying values of the Company’s accounts receivable and accounts payable, approximate their fair values due to the short period of time to maturity or repayment. The following table summarizes cash, cash equivalents and marketable securities by investment category as of September 27, 2025, and September 28, 2024:

September 27, 2025
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash and Cash EquivalentsMarketable Securities
Cash$158,556 $— $— $158,556 $158,556 $— 
Level 1:
Money market funds16,112 — — 16,112 16,112 — 
Subtotal16,112 — — 16,112 16,112 — 
Level 2:
U.S. Treasury securities52,834 32 (8)52,858 — 52,858 
Subtotal52,834 32 (8)52,858 — 52,858 
Total227,502 32 (8)227,526 174,668 52,858 
September 28, 2024
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash and Cash EquivalentsMarketable Securities
Cash$144,184 $— $— $144,184 $144,184 $— 
Level 1:
Money market funds25,548 — — 25,548 25,548 — 
Subtotal25,548 — — 25,548 25,548 — 
Level 2:
U.S. Treasury securities51,304 122 — 51,426 — 51,426 
Subtotal51,304 122 — 51,426 — 51,426 
Total221,036 122 — 221,158 169,732 51,426 
Marketable Securities
As of September 27, 2025, and September 28, 2024, the Company held no securities with original maturities exceeding one year. There were no realized gains or losses on sales of marketable securities during fiscal 2025, and fiscal 2024.
For securities in an unrealized loss position, the Company does not intend to sell the securities, and it is more-likely-than-not that it will not be required to sell before recovery of their amortized cost basis. The Company evaluated whether the decline in fair value resulted from credit losses or other factors and concluded these amounts were related to temporary fluctuations in value of the securities and were due primarily to changes in interest rates and market conditions of the underlying securities. Accordingly, an allowance for credit losses was deemed unnecessary for these securities as of September 27, 2025.
Accrued interest receivable related to our marketable securities was nominal as of September 27, 2025, and September 28, 2024. No accrued interest receivables were written off during fiscal 2025, and fiscal 2024.
v3.25.3
Revenue and Geographic Information
12 Months Ended
Sep. 27, 2025
Revenue from Contract with Customer [Abstract]  
Revenue and Geographic Information
4. Revenue and Geographic Information
Disaggregation of Revenue
Revenue by geographical region also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region, is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Americas$922,941 $1,004,770 $1,048,245 
Europe, Middle East and Africa ("EMEA")441,177 430,428 518,179 
Asia Pacific ("APAC")79,158 82,858 88,831 
Total revenue$1,443,276 $1,518,056 $1,655,255 
Revenue is attributed to individual countries also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
United States$855,740 $930,286 $971,151 
Other countries587,536 587,770 684,104 
Total revenue$1,443,276 $1,518,056 $1,655,255 
Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Sonos speakers$1,121,808 $1,169,604 $1,293,440 
Sonos system products249,237 267,744 285,064 
Partner products and other revenue72,231 80,708 76,751 
Total revenue$1,443,276 $1,518,056 $1,655,255 
v3.25.3
Balance Sheet Components
12 Months Ended
Sep. 27, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components
5. Balance Sheet Components
The following tables show the Company’s balance sheet component details.
Accounts Receivable Allowances
The following table summarizes changes in the allowance for credit losses for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$2,619 $2,711 $2,744 
Increases382 1,188 1,561 
Write-offs(101)(1,280)(1,594)
Ending balance$2,900 $2,619 $2,711 
The following table summarizes the changes in the allowance for sales incentives for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$49,122 $29,075 $23,573 
Charged to revenue198,759 183,144 139,657 
Utilization of sales incentive allowance(184,683)(163,097)(134,155)
Ending balance$63,198 $49,122 $29,075 
Inventories
Inventories consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Finished goods$153,485 $199,825 
Components17,535 31,680 
Inventories$171,020 $231,505 
The Company writes down inventory as a result of excess and obsolete inventories, or when it believes that the net realizable value of inventories is less than the carrying value. As of September 27, 2025, and September 28, 2024, inventory write-downs were $41.2 million and $33.3 million, respectively.
Property and Equipment, Net
Property and equipment, net consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Tooling and production line test equipment$106,296 $106,174 
Product displays80,545 77,074 
Leasehold improvements45,842 52,112 
Computer hardware, equipment, and software
31,852 39,163 
Furniture and fixtures5,403 5,724 
Total property and equipment269,938 280,247 
Accumulated depreciation and amortization(197,661)(178,099)
Property and equipment, net$72,277 $102,148 
Depreciation expense was $49.6 million, $46.4 million and $42.7 million for fiscal 2025, 2024 and 2023, respectively. During fiscal 2025, 2024 and 2023, the Company abandoned and disposed of gross fixed assets of $35.6 million, $59.9 million and $21.3 million, with accumulated depreciation of $28.8 million, $55.5 million and $21.1 million, respectively. Disposals of fixed assets were recorded in cost of revenue and operating expenses in the consolidated statements of operations and comprehensive loss and resulted in losses of $6.8 million and $4.4 million for fiscal 2025 and 2024, respectively, and nominal losses for fiscal 2023.
Property and equipment, net by country as of September 27, 2025, and September 28, 2024 were as follows:
September 27,
2025
September 28,
2024
(In thousands)
China$22,320 $31,653 
United States21,988 32,647 
Other countries27,969 37,848 
Property and equipment, net$72,277 $102,148 
Intangible Assets
In the first quarter of fiscal year 2025, the Company determined that the underlying project related to the in-process research and development from the acquisition of Mayht Holding BV ("Mayht") was completed. As a result, the acquired $73.8 million of in-process research and development was reclassified as definite-lived developed technology and is being amortized over its estimated economic life of 7 years.
The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:
September 27, 2025
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(264)$16 $203 2.50
Technology-based94,419 (19,266)75,153 5.73
Total intangible assets$94,870 $(19,530)$16 $75,356 5.73
September 28, 2024
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(188)$$270 3.50
Technology-based31,480 (17,484)13,996 4.52
Total finite-lived intangible assets31,931 (17,672)14,266 4.51
In-process research and development and other intangible assets not subject to amortization73,770 73,770 
Total intangible assets$105,701 $(17,672)$$88,036 
The following table summarizes the estimated future amortization expense of the Company's intangible assets as September 27, 2025:
Fiscal years endingFuture Amortization Expense
(In thousands)
2026$13,585 
202713,570 
202813,450 
202912,453 
2030 and thereafter22,298 
Total future amortization expense$75,356 
Cloud Computing Arrangements
Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's consolidated balance sheets and were as follows:
September 27,
2025
September 28,
2024
(In thousands)
Cloud computing implementation costs$27,411 $25,038 
Less: accumulated amortization13,320 9,697 
Cloud computing implementation costs, net$14,091 $15,341 
Amortization expenses for implementation costs for cloud-based computing arrangements for fiscal 2025, fiscal 2024 and fiscal 2023 were $3.6 million, $3.5 million and $3.7 million, respectively.
Accrued Expenses
Accrued expenses consisted of the following:
September 27,
2025
September 28,
2024
(In thousands)
Accrued inventory and supply chain costs$37,780 $34,204 
Accrued taxes10,133 19,084 
Accrued advertising and marketing12,429 12,893 
Accrued general and administrative expenses8,923 10,870 
Accrued product development5,912 4,338 
Other accrued payables3,917 6,394 
Total accrued expenses$79,094 $87,783 
Deferred Revenue
Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the consolidated balance sheets. For fiscal 2025, and fiscal 2024, deferred revenue included revenue allocated to unspecified software upgrades and cloud-based services of $80.5 million and $81.5 million, respectively, as well as current deferred revenue related to newly launched products sold to resellers not recognized as revenue until the date of general availability was reached.
The following table presents the changes in the Company's deferred revenue balances for the fiscal years ended September 27, 2025, September 28, 2024, and September 30, 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Deferred revenue, beginning of period$82,877 $80,838 $83,470 
Recognition of revenue included in beginning of period deferred revenue(20,086)(19,111)(27,057)
Revenue deferred, net of revenue recognized on contracts in the respective period18,433 21,150 24,425 
Deferred revenue, end of period$81,224 $82,877 $80,838 
The Company expects the following recognition of deferred revenue as of fiscal year ending 2025:
For the fiscal years ending
20262027202820292030 and BeyondTotal
(In thousands)
Revenue expected to be recognized$21,771 $18,348 $15,226 $11,658 $14,221 $81,224 
Other Current Liabilities
Other current liabilities consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Reserve for returns$20,383 $20,304 
Warranty liability10,002 10,565 
Short-term operating lease liabilities6,335 7,551 
Other9,387 7,857 
Total other current liabilities$46,107 $46,277 
The following table presents the changes in the Company’s warranty liability for the fiscal years ended September 27, 2025, and September 28, 2024:
September 27,
2025
September 28,
2024
(In thousands)
Warranty liability, beginning of period$10,565 $7,466 
Provision for warranties issued during the period12,324 17,689 
Settlements of warranty claims during the period(12,887)(14,590)
Warranty liability, end of period$10,002 $10,565 
v3.25.3
Leases
12 Months Ended
Sep. 27, 2025
Leases [Abstract]  
Leases
6. Leases
The components of lease expense were as follows:
Fiscal Years Ended
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Operating lease cost$8,307 $13,565 $12,324 
Short-term lease cost602 873 340 
Variable lease cost4,827 5,193 5,480 
Total lease cost$13,736 $19,631 $18,144 
The following table summarizes the maturity of lease liabilities under operating leases as of fiscal year ending 2025:
Fiscal years ending
Operating leases
(In thousands)
2026$9,485 
20278,941 
20288,301 
20297,862 
20308,058 
Thereafter33,209 
Total lease payments75,856 
Less imputed interest(16,233)
Total lease liabilities$59,623 
v3.25.3
Debt
12 Months Ended
Sep. 27, 2025
Debt Disclosure [Abstract]  
Debt
7. Debt
On October 13, 2021, the Company entered into a Revolving Credit Agreement with JPMorgan Chase Bank, N.A., as the administrative agent, and Bank of America N.A., Morgan Stanley Senior Funding, Inc., and Goldman Sachs Bank USA as the other lenders party thereto (the "Revolving Credit Agreement"). The Revolving Credit Agreement provides for (i) a five-year senior secured revolving credit facility in the amount of up to $100.0 million and (ii) an uncommitted incremental facility subject to certain conditions. Proceeds are to be used for working capital and general corporate purposes. In June 2023, the Company amended the Revolving Credit Agreement, replacing prior references to LIBOR with references to SOFR as a result of the discontinuation of LIBOR. The facility may be drawn as an Alternative Base Rate Loan (at 1.00% plus an applicable margin) or Term Benchmark Loan (at the Term SOFR Rate, plus the applicable Term SOFR Adjustment ranging from 0.11% to 0.43%, plus an applicable margin (in total, "Adjusted Term SOFR")). The Company must also pay (i) an unused commitment fee ranging from 0.200% to 0.275% per annum of the average daily unused portion of the aggregate revolving credit commitment under the agreement and (ii) a per annum fee equal to the applicable margin over Adjusted Term SOFR multiplied by the aggregate face amount of outstanding letters of credit. As of September 27, 2025, the Company did not have any outstanding borrowings and had $2.4 million in undrawn letters of credit that reduce the availability under the Revolving Credit Agreement. In October 2025, the Revolving Credit Agreement was amended. See Note 14. Subsequent Event for additional information.
The Company’s obligations under the Revolving Credit Agreement are secured by substantially all of the Company’s assets. The Revolving Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain consolidated leverage ratio, and customary events of default. As of September 27, 2025, the Company was in compliance with all financial covenants under the Revolving Credit Agreement.
v3.25.3
Stockholders' Equity
12 Months Ended
Sep. 27, 2025
Equity [Abstract]  
Stockholders' Equity
8. Stockholders' Equity
Share Repurchase Program
On November 15, 2023, the Board of Directors (the "Board") authorized a common stock repurchase program of up to $200.0 million (the "2023 Stock Repurchase Program"). On February 24, 2025, the Board authorized a new common stock repurchase program of up to $150.0 million (the "2025 Stock Repurchase Program") resulting in the expiration of the $11.1 million remaining under the 2023 Stock Repurchase Program.

During fiscal 2025, the Company repurchased 5,689,219 shares for an aggregate purchase price of $80.3 million and at an average price of $14.12 per share under the 2023 Stock Repurchase Program and 2025 Stock Repurchase Program. Aggregate purchase price and average price per share exclude commission and excise tax. The Company's share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recognized as part of the cost basis of the shares acquired in the consolidated statements of equity. As of September 27, 2025, the Company had $129.6 million available for share repurchases under the 2025 Stock Repurchase Program.
Treasury stock during fiscal 2025, included 2,027,360 shares withheld to satisfy employees' tax withholding requirements in connection with vesting of stock awards. Additionally, during fiscal 2025, the Company retired 6,210,511 shares of treasury stock.
v3.25.3
Stock-Based Compensation
12 Months Ended
Sep. 27, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
9. Stock-based Compensation
2018 Equity Incentive Plan
In July 2018, the Board adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan became effective in connection with the Company's initial public offering. The number of shares reserved for issuance under the 2018 Plan increases automatically on January 1 of each year beginning in 2019 and continuing through 2028 by a number of shares of common stock equal to the lesser of (x) 5% of the total outstanding shares of the Company’s common stock and common stock equivalents as of the immediately preceding December 31 (rounded to the nearest whole share) and (y) a number of shares determined by the Company's the Board. As of September 27, 2025, there were 45,881,799 shares reserved for future issuance under the 2018 Plan.
Stock Options
Pursuant to the 2018 Plan, the Company issues stock options to employees and directors. The option price, number of shares and grant date are determined at the discretion of the Board. For so long as the option holder performs services for the Company, the options generally vest over 48 months, on a monthly or quarterly basis, with certain options subject to an initial annual cliff vest, and are exercisable for a period not to exceed ten years from the date of grant. The Company’s policy for issuing stock upon stock option exercise is to issue new common stock.
The summary of the Company’s stock option activity is as follows:
Number of
Options
Weighted-Average Exercise PriceWeighted-Average Remaining Contractual
Term
Aggregate Intrinsic Value
(In years)(In thousands)
Outstanding at September 28, 20247,082,389$14.24 2.8$210 
Exercised(329,674)$13.68 
Forfeited / expired
(1,207,830)$14.20 
Outstanding at September 27, 20255,544,885$14.28 1.5$5,850 
The Company granted no options in fiscal 2025 and 2024. As of September 27, 2025 and September 28, 2024, respectively, all outstanding stock options had been vested and the Company had no unrecognized stock-based compensation expense related to stock options.
Restricted Stock Units
Pursuant to the 2018 Plan, the Company issues RSUs to employees and directors. RSUs generally vest quarterly over the service period, which is generally one to four years with certain awards subject to an initial annual cliff vest. The summary of the Company’s RSU activity is as follows:
Number of
Units
Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at September 28, 202410,763,098$14.79 $130,772 
Granted7,697,575$12.34 
Released(5,709,048)$15.13 
Forfeited(3,974,238)$13.63 
Outstanding at September 27, 20258,777,387$12.96 $134,294 
At September 27, 2025
Units expected to vest7,471,456$12.93 $114,313 
As of September 27, 2025 and September 28, 2024, the Company had $78.1 million and $115.4 million of unrecognized stock-based compensation expense related to RSUs, each of which are expected to be recognized over a weighted-average period of 2.3 years and 2.4 years, respectively.
Performance Stock Units
Pursuant to the 2018 Plan, the Company has issued and may issue certain PSUs that vest on the satisfaction of service and performance conditions. The number of outstanding PSUs is based on the target number of share awards. The number of shares vested at the end of the performance period is based on achievement of performance conditions and includes a performance adjustment to reflect the extent to which the corresponding performance goals have been achieved. The summary of the Company’s PSU activity is as follows:
Number of
Units
Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at September 28, 2024684,080$18.37 $8,312 
Granted339,837$11.53 
Released(7,194)$17.54 
Performance adjustment
(121,250)$21.80 
Forfeited
(414,935)$16.71 
Outstanding at September 27, 2025480,538$14.11 $7,352 
As of September 27, 2025 and September 28, 2024, the Company had $3.3 million and $0.2 million of unrecognized stock-based compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.3 years and 1.5 years, respectively.
Stock-based Compensation
Total stock-based compensation expense by function category was as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Cost of revenue$6,148 $2,614 $2,038 
Research and development37,060 37,913 35,530 
Sales and marketing15,932 17,499 15,677 
General and administrative27,110 26,268 23,612 
Total stock-based compensation expense$86,250 $84,294 $76,857 
For fiscal 2025, the Company incurred non-recurring stock-based compensation expenses related to restructuring activities.
v3.25.3
Income Taxes
12 Months Ended
Sep. 27, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
10. Income Taxes
The Company’s income (loss) before provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Domestic$(70,672)$(56,661)$(9,904)
Foreign20,175 29,510 14,298 
Income (loss) before provision for income taxes$(50,497)$(27,151)$4,394 
Components of the provision for income taxes consisted of the following:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Current:
U.S. Federal$3,776 $8,094 $7,507 
U.S. State2,363 4,023 4,947 
Foreign4,500 17,798 2,810 
Total current10,639 29,915 15,264 
Deferred:
U.S. Federal— — — 
U.S. State— — — 
Foreign(18,920)(596)
Total deferred(18,920)(596)
Provision for income taxes$10,647 $10,995 $14,668 
The Company is subject to income taxes in the United States and foreign jurisdictions in which it operates. The Company’s tax provision is impacted by the jurisdictional mix of earnings as its foreign subsidiaries have statutory tax rates different from those in the United States. Accordingly, the Company's effective tax rate will vary depending on jurisdictional mix of earnings and changes in tax laws. For fiscal 2025, the Company’s U.S. tax expense was adversely impacted by the requirement to capitalize and amortize research and development expenses under Section 174 of the U.S. Internal Revenue Code ("Section 174") as the Company recorded a current U.S. tax expense with no corresponding deferred tax benefit due to the valuation allowance maintained against its U.S. deferred tax assets.
Components of the Company’s deferred income tax assets and liabilities are as follows:
September 27,
2025
September 28,
2024
(In thousands)
Deferred tax assets
Capitalized research & development$131,858 $107,474 
Research & development tax credit carryforwards51,752 58,156 
Accrued expenses and reserves18,979 17,070 
Deferred revenue14,363 15,374 
Operating lease liability13,165 14,259 
Other capitalized costs12,448 12,030 
Stock-based compensation6,973 8,195 
Foreign net operating loss carryforwards5,293 5,783 
Depreciation4,098 2,991 
U.S. net operating loss carryforwards3,889 2,296 
Other370 592 
Total deferred tax assets263,188 244,220 
Valuation allowance(238,268)(216,365)
Deferred tax assets, net of valuation allowance24,920 27,855 
Deferred tax liabilities
Right-of-use asset(9,788)(10,955)
Intangibles(2,675)(3,392)
Capitalized inventory
(2,074)(3,254)
Total deferred tax liabilities(14,537)(17,601)
Net deferred tax assets
$10,383 $10,254 
Reported as
Deferred tax assets$10,509 $10,314 
Deferred tax liabilities(126)(60)
Net deferred tax assets
$10,383 $10,254 
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided to reduce the Company's deferred tax assets to amounts that are more-likely-than-not to be realized. The Company has assessed, on a jurisdictional basis, the realization of its net deferred tax assets, including the ability to carry back net operating losses, the existence of taxable temporary differences, the availability of tax planning strategies and available sources of future taxable income. The Company has concluded that based on cumulative taxable income and future taxable income that it is able to realize a benefit for net deferred tax assets in all non-U.S. jurisdictions. In addition, the Company has concluded that a valuation allowance on its net deferred tax assets in the U.S. continues to be appropriate considering cumulative taxable losses in recent years and uncertainty with respect to future taxable income. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the remaining valuation allowance in the U.S. Release of the remaining valuation allowance would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment, as well as prospective earnings in the United States.
For fiscal 2025, the Company had gross state net operating loss carryforwards of $58.2 million, which expire beginning in 2032, as well as $37.8 million in foreign net operating loss carryforwards with an indefinite life. As of September 27, 2025, the Company also had U.S. federal research and development tax credit carryforwards as filed of $30.1 million, and state research and development tax credit carryforwards as filed of $50.2 million, which will expire beginning in 2042 and 2026, respectively. The federal and state research and development tax credits are shown net of uncertain tax positions and net of federal benefit, as applicable, in the components of the Company's deferred income tax assets and liabilities. For fiscal 2025, the increase in capitalized research and development relates to the requirement to capitalize research and development expenses under Section 174.
Because of the change of ownership provisions of Sections 382 and 383 of the Internal Revenue Code, and similar state provisions, use of a portion of the Company’s U.S. federal and state net operating loss and research and development tax credit carryforwards may be limited in future periods if there are future changes in ownership. Further, a portion of the carryforwards may expire before being applied to reduce future taxable income and income tax liabilities if sufficient taxable income is not generated in future periods.
The following table summarizes changes in the valuation allowance for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$216,365 $185,840 $162,267 
Increase during the period21,903 32,573 23,628 
Decrease during the period— (2,048)(55)
Ending balance$238,268 $216,365 $185,840 
Reconciliation of U.S. statutory federal income taxes to the Company’s provision for income taxes is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
U.S. federal income taxes at statutory rate$(10,604)$(5,702)$923 
U.S. state and local income taxes, net of federal benefit and state credits(4,619)(2,496)(841)
Foreign income tax rate differential991 1,544 734 
Stock-based compensation5,068 2,726 104 
Federal research and development tax credits(5,081)(8,240)(7,591)
Unrecognized federal tax benefits457 1,082 184 
Change in tax rate(190)(188)— 
Global intangible low taxed income, net of foreign tax credits715 944 1,234 
Foreign -derived intangible income (FDII) deduction(1,000)(1,519)(6,863)
Subpart F income697 733 1,374 
162(m) executive compensation limitation1,923 1,496 2,513 
Deferred adjustments— 504 — 
Intercompany IP sale— (10,412)— 
Other387 (121)(695)
Change in valuation allowance21,903 30,644 23,592 
Provision for income taxes$10,647 $10,995 $14,668 
Change in gross unrecognized tax benefits, excluding interest and penalties, as a result of uncertain tax positions are as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$18,910 $17,619 $17,021 
Increase (decrease) - tax positions in prior periods
(207)147 (566)
Increase - tax positions in current periods904 1,144 1,164 
Ending balance$19,607 $18,910 $17,619 
The Company does not anticipate changes to its unrecognized benefits within the next 12 months that would result in a material change to the Company’s financial position. The unrecognized tax benefits as of September 27, 2025, would have no impact on the effective tax rate if recognized.
The Company conducts business in a number of jurisdictions and, as such, is required to file income tax returns in multiple jurisdictions globally. U.S. federal income tax returns for the 2021 tax year and earlier are no longer subject to examination by the
U.S. Internal Revenue Service (the "IRS"). All U.S. federal and state net operating losses as well as research and development tax credits generated to date, including 2021 and earlier, used in open tax years are subject to adjustment by the IRS and state tax authorities.
The Company recognizes interest and penalties, if any, related to uncertain tax positions in income tax expense. There were no accrued interest or penalties as of September 27, 2025, and September 28, 2024.
As of September 27, 2025, the Company continues to assert that the unremitted earnings in our foreign subsidiaries are permanently reinvested and therefore no deferred taxes or withholding taxes have been provided. If, in the future, the Company decides to repatriate its $16.3 million of undistributed earnings from these subsidiaries in the form of dividends or otherwise, the Company could be subject to withholding taxes payable at that time. Outside basis differences in the Company's foreign subsidiaries including unremitted earnings and any related taxes are not material.
On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was enacted. The legislation includes provisions such as accelerated cost recovery of qualified property, immediate expensing of U.S.-based research and development costs, and changes to the U.S. international taxation regime. The Company has evaluated the impact of the OBBBA and determined that it did not have a material effect on its fiscal 2025 consolidated financial statements.
v3.25.3
Loss Per Share
12 Months Ended
Sep. 27, 2025
Earnings Per Share [Abstract]  
Loss Per Share
11. Loss Per Share
Basic loss per share attributable to common stockholders is calculated by dividing loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding less shares subject to repurchase. Diluted loss per share attributable to common stockholders adjusts the basic loss per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock awards, using the treasury stock method.
The following table sets forth the computation of the Company’s basic and diluted loss per share attributable to common stockholders:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands, except share and per share data)
Numerator:
Net loss - basic and diluted
$(61,144)$(38,146)$(10,274)
Denominator:  
Weighted-average shares of common stock - basic and diluted
120,753,102 123,218,532 127,702,885 
Loss per share:
Loss per share - basic and diluted
$(0.51)$(0.31)$(0.08)
The following potentially dilutive shares as of the end of each period presented were excluded from the computation of diluted loss per share for the periods presented because including them would have been antidilutive:
September 27,
2025
September 28,
2024
September 30,
2023
Stock options to purchase common stock6,438,3207,756,5729,449,904
Restricted stock units12,387,37512,613,4349,742,444
Performance stock units246,81283,998149,991
Total19,072,50720,454,00419,342,339
v3.25.3
Commitments and Contingencies
12 Months Ended
Sep. 27, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
12. Commitments and Contingencies
Commitments to suppliers
The Company utilizes contract manufacturers to build its products. These contract manufacturers acquire components and build products based on demand forecast information the Company supplies, which typically covers twelve months. Consistent with industry practice, the Company acquires inventories from such manufacturers through blanket purchase orders which are based on projected demand information and availability of goods. Such purchase commitments typically cover the Company's forecasted product and manufacturing requirements for periods that range a number of months. In certain instances, these agreements allow the Company the option to cancel, reschedule, and/or adjust our requirements based on its business needs for a period of time before the order is due to be fulfilled. The Company's purchase orders typically are not cancellable in the event of a demand plan change or other circumstances, such as where the supplier has procured unique, Sonos-specific designs, and/or specific non-cancellable, non-returnable components based on our provided forecasts.
The expected commitments are subject to change as a result of fluctuations in the demand forecast, as well as ongoing negotiations with contract manufacturers and suppliers. These commitments are related to components that can be specific to Sonos products and comprised 1) indirect obligations to third-party manufacturers and suppliers, 2) the inventory owned by contract manufacturers procured to manufacture Sonos products, and 3) purchase commitments made by contract manufacturers to their upstream suppliers.
Legal Proceedings
From time to time, the Company is involved in legal proceedings in the ordinary course of business, including claims relating to employee relations, business practices, and patent infringement. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to predict, and the Company’s view of these matters may change in the future as the litigation and events related thereto unfold. The Company expenses legal fees as incurred. The Company records a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. An unfavorable outcome to any legal matter, if material, could have an adverse effect on the Company’s operations or its financial position, liquidity or results of operations.
The Company’s Lawsuits Against Google:
On January 7, 2020, the Company filed a complaint with the U.S. International Trade Commission ("ITC") against Alphabet Inc. ("Alphabet") and Google LLC ("Google") and a counterpart lawsuit in the U.S. District Court for the Central District of California against Google. The complaint and lawsuit each allege infringement by Alphabet and Google of certain Sonos patents related to its smart speakers and related technology. The counterpart lawsuit was stayed pending completion of the ITC investigation and appeal thereof. The ITC concluded its investigation in January 2022, finding all five of the Company’s asserted patents to be valid and infringed by Google, and further finding that one redesign per patent proposed by Google would avoid infringement. The ITC issued a limited exclusion order and a cease-and-desist order with respect to Google’s infringing products. The Company and Google each appealed the ITC’s determination, which was upheld in its entirety by the appeals court. The stay in the counterpart lawsuit has been lifted. Google moved to file counterclaims on two of its own patents related to device setup and the court has added those patents to the case. No trial date has been set.
On September 29, 2020, the Company filed another lawsuit against Google alleging infringement of additional Sonos patents and seeking monetary damages and other non-monetary relief. A jury trial was held in May 2023, which found one Sonos patent to be infringed and another Sonos patent not infringed, and returned an award of $32.5 million based on a royalty rate of $2.30 per infringing unit. After trial, the court held Sonos’ patents unenforceable under the doctrine of prosecution laches and invalid as a result of amendments made during prosecution. In September 2025, the Federal Circuit overturned the lower court decision that had invalidated the jury verdict against Google, and is now set to decide the post-trial motions, including the Company’s motion for injunctive relief and additional damages.
Google’s Lawsuits Against the Company:
On June 11, 2020, Google filed a lawsuit in the U.S. District Court for the Northern District of California against the Company alleging infringement by the Company of five Google patents and seeking monetary damages and other non-monetary relief. All five of these patents have since been found invalid or non-infringed by the Court or by the U.S. Patent and Trademark Office or have been withdrawn from the case by Google. The Court has now entered final judgment for Sonos and against Google. Google has appealed the non-infringement rulings.
On August 8, 2022, Google filed two complaints with the ITC against the Company and two counterpart lawsuits in the Northern District of California against the Company, collectively alleging infringement by the Company of seven Google patents generally related to wireless charging, device setup, and voice control, and seeking monetary damages and other non-monetary relief. The counterpart lawsuits are stayed pending completion of the ITC investigations. In the first ITC investigation, the ITC terminated the investigation as to one Google patent as a result of the expiration of that Google patent and determined the other two Google patents to be invalid as indefinite, thus concluding the first investigation. Google has appealed this first ITC determination. The second ITC investigation concluded in December 2023 with a final determination of no violation by the Company. Google did not appeal this determination.
Implicit
On March 10, 2017, Implicit, LLC (“Implicit”) filed a patent infringement action in the United States District Court, District of Delaware against the Company. Implicit is asserting that the Company has infringed on certain claims of two patents in this case. The Company denies the allegations. The claims at issue have been held unpatentable by the U.S. Patent and Trademark Office. Implicit has appealed this ruling, which is currently scheduled to be heard by the appeals court in 2025. A range of loss, if any, associated with this matter is not probable or reasonably estimable as of September 27, 2025.
The Company is involved in certain other litigation matters not listed above but does not consider these matters to be material either individually or in the aggregate at this time. The Company’s view of the matters not listed may change in the future as the litigation and events related thereto unfold.
Guarantees and Indemnifications
In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by the Delaware General Corporation Law. The Company also currently has directors’ and officers’ insurance. No amount has been accrued in the consolidated financial statements with respect to these indemnification guarantees.
v3.25.3
Restructuring and Other Charges
12 Months Ended
Sep. 27, 2025
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges
13. Restructuring and Other Charges
The Company started a cost transformation initiative in the second half of fiscal 2024 with the goal of optimizing investments for sustainable, long-term growth. This included the August 14, 2024 initiation of a restructuring plan (the "2024 restructuring plan") that involved a reduction in force of approximately 6% of its employees and a reduction to its real estate footprint. In furtherance of this initiative, the Company announced a subsequent restructuring on February 5, 2025, including a reduction in force involving approximately 12% of its employees (the “2025 restructuring plan”). This cost transformation also involved non-recurring charges related to rationalization of its product roadmap and costs related to write-offs of assets no longer in use. Furthermore, in January 2025, Patrick Spence stepped down from his role as Chief Executive Officer ("CEO") and as a member of the Board, resulting in the Company incurring costs related to this transition, which are also included in restructuring and other charges.
The following table summarizes the components of restructuring and other charges:
Fiscal Year Ended
(in thousands)September 27,
2025
September 28,
2024
Cash restructuring charges:
Employee-related costs$19,486 $7,371 
Other restructuring costs (1)
2,084 2,278 
Total cash charges$21,570 $9,649 
Non-cash charges:
Stock-based awards (2)
$4,687 $— 
Asset write-offs
7,233 2,204 
Total non-cash charges$11,920 $2,204 
Total restructuring and other charges$33,490 $11,853 
(1)Other restructuring charges include estimated costs primarily related to rationalization of the Company's product roadmap.
(2)Non-cash charges for stock-based awards were related to modifications for equity awards primarily in connection with the CEO transition. These modifications included accelerated vesting of certain RSUs and an extension of the post-termination exercise period for certain stock options.
The following table summarizes restructuring and other charges recorded in the Company's consolidated statements of operations and comprehensive loss:
(in thousands)September 27,
2025
September 28,
2024
Cost of revenue
$3,420 $— 
Research and development
12,555 5,743 
Sales and marketing
9,779 2,770 
General and administrative
7,736 3,340 
Total restructuring and other charges
$33,490 $11,853 
The following table summarizes the Company's restructuring and other charges recorded in accrued expenses and accrued compensation within the consolidated balance sheets:

(in thousands)Employee Related Costs
Other
Restructuring Costs
Total
Balance as of September 28, 2024(1)
$2,152 $1,037 $3,189 
Restructuring charges19,486 2,084 21,570 
Cash paid(21,144)(2,835)(23,979)
Balance as of September 27, 2025
$494 $286 $780 
(1)Balance as of September 28, 2024, relates to activities under the 2024 restructuring plan.
v3.25.3
Subsequent Event
12 Months Ended
Sep. 27, 2025
Subsequent Events [Abstract]  
Subsequent Event
Note 14. Subsequent Event
In October 2025, the Company entered into Amendment No. 2 ("Amendment No. 2") to the Revolving Credit Agreement with JPMorgan Chase Bank, N.A., KeyBank National Association and Goldman Sachs Bank USA. Amendment No. 2 extended the maturity date of the credit facility from October 2026 to October 2030 and reduced the borrowing capacity from $100.0 million to $80.0 million.
v3.25.3
Insider Trading Arrangements
3 Months Ended
Sep. 27, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Julius Genachowski [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement On August 14, 2025, Julius Genachowski, Chairperson and a member of our Board of Directors, adopted a trading plan intended to satisfy the requirements of Rule 10b5-1(c). The plan provides that Mr. Genachowski may sell up to 47,652 shares of common stock underlying options granted under our equity incentive plan. The plan terminates on the earlier of the date all shares under the plan are sold or November 5, 2027.
Name Julius Genachowski
Title Chairperson and a member of our Board of Directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date August 14, 2025
Expiration Date November 5, 2027
Arrangement Duration 813 days
Aggregate Available 47,652
Eddie Lazarus [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On September 5, 2025, Eddie Lazarus, the Company's Chief Legal and Business Development Officer, adopted a trading plan intended to satisfy the requirements of Rule 10b5-1(c). The plan provides that Mr. Lazarus may sell up to 12,000 shares of common stock. The plan terminates on the earlier of the date all shares under the plan are sold or September 4, 2026.
Name Eddie Lazarus
Title Company's Chief Legal and Business Development Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date September 5, 2025
Expiration Date September 4, 2026
Arrangement Duration 364 days
Aggregate Available 12,000
v3.25.3
Insider Trading Policies and Procedures
12 Months Ended
Sep. 27, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.3
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Sep. 27, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have developed and implemented an enterprise-wide cybersecurity program, which is part of our overall risk management system and is designed to provide cybersecurity risk management and governance. Our cybersecurity program prioritizes, among other things, proactive detection and mitigation of threats; protection of customer and internal confidential information; minimization of the impact of incidents; and identification, assessment, and management of material risks from cybersecurity threats.
We use a variety of strategies and techniques designed to identify cybersecurity risks and reduce the risk of unauthorized access to internal and customer confidential information and critical business systems and platforms. This approach utilizes both internal and external resources and includes regular risk assessments (for example, penetration testing and annual self-assessments), ongoing employee training, proactive monitoring of our IT systems, encryption of certain types of information, and certain controls governing access to our facilities and systems.
We maintain a detailed incident response plan to manage cybersecurity incidents when detected. The response plan includes procedures for identifying, containing, and responding to cybersecurity incidents. Our ability to respond to cybersecurity incidents is tested on a recurring basis.
We use third-party service providers to assist us from time to time to identify, assess, and manage material risks from cybersecurity threats, including professional services firms, cybersecurity software providers, and certain testing firms.
We have processes in place designed to identify and mitigate risks from third-party vendors, including, as appropriate, pre-contractual security assessments and review of contractual terms addressing cybersecurity and data protection.
To date, we are not aware of cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations or financial condition. Despite our security measures, however, there can be no assurance that we, or third parties with which we interact, will not experience a cybersecurity incident in the future that will materially affect us. For a discussion regarding risks related to cybersecurity threats, refer to Item 1A. “Risk Factors” of this Form 10-K.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have developed and implemented an enterprise-wide cybersecurity program, which is part of our overall risk management system and is designed to provide cybersecurity risk management and governance. Our cybersecurity program prioritizes, among other things, proactive detection and mitigation of threats; protection of customer and internal confidential information; minimization of the impact of incidents; and identification, assessment, and management of material risks from cybersecurity threats.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors oversees the management of risks inherent in the operation of our business, with a focus on the most significant risks that we face, including those related to cybersecurity. The Board of Directors has delegated oversight of our
cybersecurity program to the Audit Committee. In connection with that oversight responsibility, senior members of our information security team meet with the Audit Committee on a regular basis (but no less than semi-annually) and provide information and updates on our cybersecurity program and related topics. This includes existing and new cybersecurity risks, status on how management is identifying, assessing, managing and/or mitigating those risks, cybersecurity and data privacy incidents (if any), status on key information security initiatives, and developments in the cybersecurity space and evolving standards.
Our enterprise-wide cybersecurity program is managed by a dedicated information security team, led by our Head of Cybersecurity, Risk & Trust (“Head of Cybersecurity”). Our Head of Cybersecurity has over 25 years of cybersecurity, information governance, and IT experience in the technology industry.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Board of Directors has delegated oversight of our cybersecurity program to the Audit Committee.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] senior members of our information security team meet with the Audit Committee on a regular basis (but no less than semi-annually) and provide information and updates on our cybersecurity program and related topics.
Cybersecurity Risk Role of Management [Text Block] The Board of Directors has delegated oversight of our
cybersecurity program to the Audit Committee. In connection with that oversight responsibility, senior members of our information security team meet with the Audit Committee on a regular basis (but no less than semi-annually) and provide information and updates on our cybersecurity program and related topics. This includes existing and new cybersecurity risks, status on how management is identifying, assessing, managing and/or mitigating those risks, cybersecurity and data privacy incidents (if any), status on key information security initiatives, and developments in the cybersecurity space and evolving standards.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] Our enterprise-wide cybersecurity program is managed by a dedicated information security team, led by our Head of Cybersecurity, Risk & Trust (“Head of Cybersecurity”).
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Our Head of Cybersecurity has over 25 years of cybersecurity, information governance, and IT experience in the technology industry.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] senior members of our information security team meet with the Audit Committee on a regular basis (but no less than semi-annually) and provide information and updates on our cybersecurity program and related topics. This includes existing and new cybersecurity risks, status on how management is identifying, assessing, managing and/or mitigating those risks, cybersecurity and data privacy incidents (if any), status on key information security initiatives, and developments in the cybersecurity space and evolving standards.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.3
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Sep. 27, 2025
Accounting Policies [Abstract]  
Basis of Presentation and Preparation
The consolidated financial statements, which include the accounts of Sonos, Inc. and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Fiscal Period
The Company operates on a 52-week or 53-week fiscal year ending on the Saturday nearest September 30 each year. The Company’s fiscal year is divided into four quarters of 13 weeks, each beginning on a Sunday and containing two 4-week periods followed by a 5-week period. An additional week is included in the fourth fiscal quarter approximately every five years to realign fiscal quarters with calendar quarters. This last occurred in the Company’s fiscal year ended October 3, 2020, and will reoccur in the fiscal year ending October 3, 2026. As used in the Annual Report on Form 10-K, “fiscal 2025” refers to the 52-week fiscal year ending September 27, 2025, “fiscal 2024” refers to the 52-week fiscal year ending September 28, 2024, and “fiscal 2023” refers to the 52-week fiscal year ending September 30, 2023.
Use of Estimates and Judgments
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. For revenue recognition, examples of estimates and judgments include: determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price ("SSP") of performance obligations and estimating variable consideration such as sales incentives and product returns. Additionally, management makes estimates and judgments for allowances for credit losses, excess and obsolete inventory, loss on purchase commitments, useful lives associated with property and equipment, incremental borrowing rates associated with leases, the recording of and release of valuation allowances with respect to deferred tax assets and uncertain tax positions, impairment of long-lived assets, impairment of goodwill and indefinite-lived intangible assets, warranty, contingencies and valuation and assumptions underlying stock-based compensation and other equity instruments. On an ongoing basis, the Company evaluates its estimates and judgments compared to historical experience and trends that form the basis for making estimates and judgments about the carrying value of assets and liabilities.
Comprehensive Income (Loss)
Comprehensive income (loss) consists of two components: net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to net gains and losses that are recorded as an element of stockholders’ equity but are excluded from net income (loss). The Company’s other comprehensive income (loss) consists of net unrealized gains and losses on foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency and unrealized gains and losses on marketable securities.
Cash and Cash Equivalents
Cash equivalents consist of short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. As of September 27, 2025, and September 28, 2024, cash equivalents consisted of money market funds, which are recorded at fair value.
Marketable Securities
The Company’s marketable securities consist of U.S. Treasury securities. Management determines the appropriate classification of its marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. The Company classifies its marketable securities as available-for-sale and reports them at fair value in the consolidated balance sheets,
with unrealized gains and losses recorded in accumulated other comprehensive loss. If securities are sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of securities are recorded in other income (expense), net in the consolidated statements of operations and comprehensive loss.
Classification of the Company's marketable securities in the consolidated balance sheets is based on each instrument’s underlying contractual maturity date. Securities with an original maturity of three months or less at time of purchase are recorded in cash and cash equivalents. Securities with an original maturity of greater than three months but less than one year are recorded in marketable securities.
For securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through earnings. For securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the consolidated balance sheets.
The Company has elected the practical expedient to exclude the applicable accrued interest from both the fair value and the amortized cost basis of its marketable securities for the purpose of identifying and measuring impairment. The Company presents accrued interest receivable related to its marketable securities in prepaid and other current assets, separate from marketable securities, on its consolidated balance sheets. The Company's accounting policy is to not measure an allowance for credit losses for accrued interest receivable and to write-off any uncollectible accrued interest receivable as a reversal of interest income in a timely manner, which it considers to be in the period in which it determines the accrued interest will not be collected.
Accounts Receivable
Concentration of Credit Risk
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, and accounts receivable. The Company maintains cash and cash equivalents and marketable securities in several high-quality financial institutions. Cash and cash equivalents held at these banks, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. These deposits may be redeemed upon demand, and management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to cash. The Company has not experienced any losses in such accounts.
Inventories Inventories primarily consist of finished goods and component parts, which are purchased from contract manufacturers and component suppliers. Inventories are stated at the lower of cost and net realizable value. Cost is determined using a standard costing method, which approximates first-in first-out. Inventory costs primarily consist of materials, inbound freight, import duties, tariffs, direct labor and manufacturing overhead, logistics, and other handling fees. The Company assesses the valuation of inventory balances including an analysis of determine potential excess and/or obsolete inventory. The Company may be required to write down the value of inventory if estimates of future demand and market conditions indicate excess and/or obsolete inventory. Inventory write-downs and losses on purchase commitments are recorded as a component of cost of revenue in the consolidated statements of operations and comprehensive loss.
Property and Equipment, Net
Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware, equipment, and software
3-5 years
Furniture and fixtures
5 years
Tooling and production line test equipment
2-4 years
Leasehold improvements
1-15 years
Product displays
1-3 years
Costs incurred to improve leased office space are capitalized. Leasehold improvements are amortized on a straight-line basis over the shorter of the term of the lease or the estimated useful life of the improvement. Expenditures for major renewals and improvements that extend the useful lives of property and equipment are capitalized. Maintenance, repair costs and gains or losses associated with disposals are charged to expense as incurred.
Product displays are deployed at retail locations. Because the product displays facilitate marketing of the Company’s products within the retail stores, depreciation for product displays is recorded in sales and marketing expenses in the consolidated statements of operations and comprehensive loss.
Cloud Computing Arrangements The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. For cloud computing arrangements that do not include a software license, implementation costs incurred during the application development stage are capitalized until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the term of the associated hosting arrangement and are recognized as an operating expense within the consolidated statements of operations and comprehensive loss. Capitalized costs related to cloud computing arrangements, net of accumulated amortization, are reported as a component of other noncurrent assets on the Company's consolidated balance sheets.
Impairment of Goodwill and Indefinite-lived Intangible Assets
Goodwill and indefinite-lived intangible assets are not amortized and are tested for impairment on an annual basis during the third quarter of each fiscal year or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or asset below its carrying value.
In connection with the Company's evaluation of goodwill impairment, the Company performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, the Company tests goodwill for impairment, including comparing the fair value of the reporting unit to its carrying value (including attributable goodwill). The Company determines fair value of its reporting unit using an income or market approach incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. Fair value determinations may include both internal and third-party valuations.
In connection with the Company’s evaluation of indefinite-lived intangible asset impairment, the Company performs a qualitative assessment to determine if it is more likely than not that the fair value of the asset is less than its carrying amount. If the
qualitative assessment is not conclusive, the Company proceeds to test for impairment by comparing the fair value of the asset to the carrying value. Fair value is determined based on estimated discounted future cash flow analyses that include significant management assumptions such as revenue growth rates, weighted-average costs of capital and assumed royalty rates. If the carrying value exceeds fair value, an impairment charge will be recorded to reduce the asset to fair value.
Impairment of Long-Lived Assets
The Company evaluates the recoverability of its long-lived assets, which primarily comprises property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company performs impairment testing at the level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability is measured by comparing the carrying amounts to the expected future undiscounted cash flows attributable to the assets. If it is determined that an asset may not be recoverable, an impairment loss equal to the excess of the asset’s carrying value over its fair value is recorded. Fair value is determined based on estimated discounted future cash flows analyses. There were no impairment charges identified on the Company's long-lived assets during fiscal years 2025, 2024, and 2023.
Product Warranties
The Company’s products are covered by warranty to be free from defects in material and workmanship for a period of one year, except in the EU and select other countries where the Company provides a minimum two-year warranty, depending on the region. At the time of sale, an estimate of future warranty costs is recorded as a component of cost of revenue and a warranty liability is recorded for estimated costs to satisfy the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience and expectations of future costs to repair or replace.
Legal Contingencies
If a potential loss from any claim or legal proceeding is considered probable, and the amount can be reasonably estimated, the Company records a liability for an estimated loss. Legal fees are expensed as incurred and included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. See Note 12. Commitments and Contingencies for additional information regarding legal contingencies.
Treasury Stock
The Company accounts for treasury stock acquisitions using the cost method. The Company accounts for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital on the consolidated balance sheets.
Fair Value Accounting
Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value.
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level InputInput Definition
Level 1Quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2Inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities, in active markets or other inputs that are observable or can be corroborated with market data at the measurement date.
Level 3Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date.
Foreign Currency
Certain of the Company’s wholly owned subsidiaries have non-U.S. dollar functional currencies. The Company translates assets and liabilities of non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period and stockholders’ equity at historical rates. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from translation are recognized in foreign currency translation included in accumulated other comprehensive loss.
The Company remeasures monetary assets or liabilities denominated in currencies other than the functional currency using exchange rates prevailing on the balance sheet date, and non-monetary assets and liabilities at historical rates. Foreign currency remeasurement and transaction gains and losses are included in other income (expense), net.
Revenue Recognition
Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of allowances for returns, discounts, sales incentives, and any taxes collected from customers. The Company defers a portion of revenue that is allocated to unspecified software upgrades and cloud-based services, as well as for newly launched products sold to resellers not recognized until the date of general availability is reached. The Company's contracts generally include a combination of products and services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns, discounts, sales incentives and any taxes collected from customers, which are subsequently remitted to governmental authorities. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are not considered a separate performance obligation and are accounted for as a fulfillment cost and are included in cost of revenue.
Nature of Products and Services
Product revenue primarily includes sales of Sonos speakers and Sonos system products, which include software that enables the Company’s products to operate over a customer’s wireless network, as well as connect to various third-party services, including music and voice. The Company also generates a small portion of revenue from Partner products and other revenue sources in connection with partnerships, accessories, professional services, licensing, advertising, and subscription revenue. Revenue for module units is related to hardware and embedded software that is integrated into final products that are manufactured and sold by the Company's partners. Software primarily consists of firmware embedded in the products and the Sonos app, which is software that can be downloaded to consumer devices at no charge, with or without the purchase of one of the Company’s products. Products and related software are accounted for as a single performance obligation and all intended functionality is available to the customer upon purchase. The revenue allocated to the products and related software is the substantial portion of the total sale price. Product revenue is recognized at the point in time when control is transferred, which is either upon shipment or upon delivery to the customer, depending on delivery terms.
Service revenue includes revenue allocated to (i) unspecified software upgrades and (ii) cloud-based services that enable products to access third-party music and voice assistant platforms, based on relative standalone selling price, which are each distinct performance obligations and are provided to customers at no additional charge. Unspecified software upgrades are provided on a when-and-if-available basis and have historically included updates and enhancements such as bug fixes, feature enhancements and updates to the ability to connect to third-party music or voice assistant platforms. Service revenue is recognized ratably over the estimated service period.
Significant Judgments
The Company’s contracts with customers generally contain promises to transfer products and services as described above. Determining whether products and services are considered distinct performance obligations that should be accounted for separately requires significant judgment.
Determining the SSP for each distinct performance obligation requires judgment. The Company estimates SSP for items that are not sold separately, which include the products and related software, unspecified software upgrades and cloud-based services, using information that may include competitive pricing information, where available, as well as analyses of the cost of providing the products or services plus a reasonable margin. In developing SSP estimates, the Company also considers the nature of the products and services and the expected level of future services.
Determining the revenue recognition period for unspecified software upgrades and cloud-based services also requires judgment. The Company recognizes revenue attributable to these performance obligations ratably over the best estimate of the period that the customer is expected to receive the services. In developing the estimated period of providing future services, the Company considers past history, plans to continue to provide services, including plans to continue to support updates and enhancements to prior versions of the Company’s products, expected technological developments, obsolescence, competition and other factors. The estimated service period may change in the future in response to competition, technology developments and the Company’s business strategy.
The Company offers sales incentives through various programs consisting primarily of discounts, cooperative advertising and market development fund programs. The Company records cooperative advertising and market development fund programs with customers as a reduction to revenue unless it receives a distinct benefit in exchange for credits claimed by the customer and can reasonably estimate the fair value of the benefit received, in which case the Company records it as an expense. The Company recognizes a liability or a reduction to accounts receivable, and reduces revenue based on the estimated amount of sales incentives that will be claimed by customers. Estimates for sales incentives are developed using the most likely amount and are included in the transaction price to the extent that a significant reversal of revenue would not result once the uncertainty is resolved. In developing its estimate, the Company also considers the susceptibility of the incentive to outside influences, the length of time until the uncertainty is resolved and the Company’s experience with similar contracts. Reductions in revenue related to discounts are allocated to products and services on a relative basis based on their respective SSP. Judgment is required to determine the timing and amount of recognition of marketing funds which the Company estimates based on past practice of providing similar funds.
The Company accepts returns from direct customers and from certain resellers. To establish an estimate for returns, the Company uses the expected value method by considering a portfolio of contracts with similar characteristics to calculate the historical returns rate. When determining the expected value of returns, the Company considers future business initiatives and relevant anticipated future events.
Supplier Concentration
The Company relies on third parties for the supply and manufacture of its products, as well as third-party logistics providers for the distribution of its products. In instances where these parties fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to customers on time, if at all. During fiscal years 2025, 2024 and 2023, approximately 53%, 60% and 58%, respectively, of the Company’s finished goods purchased during each year were from one vendor.
Deferred Revenue and Payment Terms
The Company invoices each order upon hardware shipment or delivery and recognizes revenue for each distinct performance obligation when transfer of control has occurred, which in the case of services, may extend over several reporting periods. Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the consolidated balance sheets. Deferred revenue primarily relates to revenue allocated to unspecified software upgrades and platform services, as well as for newly launched products sold to resellers not recognized until the date of general availability is reached. General availability deferrals are classified as current deferred revenue as the Company starts shipping the product to the reseller within one month prior to the general availability date. The Company classifies deferred revenue as noncurrent if amounts are expected to be recognized as revenue beyond one year from the balance sheet date.
Payment Terms
Payment terms and conditions vary among the Company’s distribution channels although terms generally include a requirement of payment within 30 days of product shipment. Sales directly to customers from the Company’s website are paid at the time of product shipment. Prior to providing payment terms to customers, an evaluation of the customer’s credit risk is performed. Contractual allowances are an offset to accounts receivable.
Research and Development
Research and development expenses consist primarily of personnel-related expenses, consulting and outside professional service costs, tooling and prototype materials and overhead costs. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. To date, software development costs have been expensed as incurred because the period between achieving technological feasibility and the release of the software has been short and development costs qualifying for capitalization have been insignificant.
In-process research and development ("IPRD") assets represent the fair value of incomplete research and development projects obtained as part of a business combination that have not yet reached technological feasibility and are initially not subject to amortization; rather, these assets are subject to impairment considerations of indefinite-lived intangible assets. Upon completion of development, IPRD assets are considered definite-lived intangible assets, transferred to developed technology and are amortized over their useful lives. If a project were to be abandoned, the IPRD would be considered fully impaired and expensed to research and development.
Advertising Costs Advertising costs are expensed as incurred and included in sales and marketing expenses.
Restructuring and Related Costs Costs associated with a restructuring plan generally consist of involuntary employee termination benefits, contract termination costs, and other exit-related costs including costs to close facilities. The Company records a liability for involuntary employee termination benefits when management has committed to a plan that establishes the terms of the arrangement and that plan has been communicated to employees. Costs to terminate a contract before the end of the term are recognized on the termination date, and costs that will continue to be incurred in a contract for the remaining term without economic benefit are recognized as of the cease-use date. Restructuring and related costs may also include the write-down of related assets, including operating lease right-of-use assets, when the sale or abandonment of the asset is a direct result of the plan. Other exit-related costs are recognized as incurred. Restructuring and related costs are recognized as within operating expenses and cost of revenue within the consolidated statements of operations and comprehensive loss and are classified based on the Company's classification policy for each category of operating expense.
Stock-Based Compensation
The Company measures stock-based compensation cost at fair value on the date of grant. Compensation cost for stock options is recognized, on a straight-line basis, as an expense over the period of vesting as the employee performs the related services, net of estimated forfeitures. The Company estimates the fair value of stock option awards using the Black-Scholes option-pricing model and is based on the Company’s closing stock price on the trading day immediately prior to the date of grant. The Company estimates forfeitures based on expected future terminations and will revise rates, as necessary, in subsequent periods if actual forfeitures differ from initial estimates. The fair value of RSUs is based on the Company's closing stock price on the trading day immediately preceding the date of grant. The Company estimates the fair value of performance stock units ("PSU") on the grant date and recognizes compensation expense in the period it becomes probable that performance conditions will be achieved. On a quarterly basis, the Company re-evaluates the assumption of the probability that performance conditions will be satisfied and revises its estimates as appropriate as new or updated information becomes available.
Retirement Plans The Company has a defined contribution 401(k) plan (the "401(k) Plan") for the Company’s U.S.-based employees, as well as various defined contribution plans for its international employees. Eligible U.S. employees may make tax-deferred contributions under the 401(k) plan, but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code of 1986, as amended (the "Code"). The Company matches contributions towards the 401(k) Plan and international defined contribution plans.
Income Taxes
The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the consolidated financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date.
The Company records a valuation allowance when necessary to reduce its deferred tax assets to amounts that are more likely than not to be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would result in a benefit to income taxes.
The Company records uncertain tax positions in accordance with a two-step process whereby (i) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (ii) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes in the consolidated statements of operations and comprehensive loss. The Company has not incurred any interest or penalties related to unrecognized tax benefits in any of the periods presented.
The Company’s provision for (benefit from) income taxes, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits involves the use of estimates, assumptions and judgments. Although the Company believes its estimates, assumptions and judgments to be reasonable, any changes in tax law or its interpretation of tax laws and the resolutions of potential tax audits could significantly impact the amounts provided for income taxes in the Company’s consolidated financial statements. Actual future
operating results and the underlying amount and type of income could differ materially from the Company’s estimates, assumptions and judgments thereby impacting the Company’s financial position and results of operations.
Segment Information
The Company operates as one operating segment as it only reports aggregate financial information on a consolidated basis, accompanied by disaggregated information about revenue by geographic region and product category, to its Chief Executive Officer, who is the Company’s Chief Operating Decision Maker ("CODM"). The CODM reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. The CODM uses consolidated net income (loss) to measure segment profit or loss and make key operating decisions, such as allocation of the budget and monitoring budget versus actual results.
Significant expenses within net income (loss) include cost of revenue, research and development, sales and marketing, and general and administrative, which are each separately presented on the Company’s consolidated statements of operations and comprehensive loss. Other segment items include interest income, interest expense, other income (expense), and provision for income taxes, which are also each separately presented on the Company’s consolidated statements of operations and comprehensive loss. The CODM does not evaluate segment performance or allocate resources using asset information.
Leases
The majority of the Company’s leases are for its office spaces and facilities, which are accounted for as operating leases. The Company leases office space in California, as well as offices in various locations in the U.S., with additional sales, operations, and research and development offices around the world. The Company determines whether an arrangement is a lease at inception if there is an identified asset, and if it has the right to control the identified asset for a period of time. Some of the Company’s leases include options to extend the leases for up to 5 years, and some include options to terminate the leases. The Company's lease terms are only for periods in which it has enforceable rights and are impacted by options to extend or terminate the lease only when it is reasonably certain that the Company will exercise the option. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the lease terms. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases do not include any residual value guarantees or bargain purchase options.
Lease agreements will typically exist with lease and non-lease components, which are accounted for separately. The Company's agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and exclude those which depend on facts or circumstances occurring after the commencement date, other than the passage of time.
As most of the Company’s leases do not contain an implicit interest rate, the Company uses judgment to determine an incremental borrowing rate, which is defined as the rate of interest the Company would have to pay to borrow an amount that is equal to the lease obligations, on a collateralized basis, and over a similar term. The Company takes into consideration the terms of the Company's Credit Facility (as defined in Note 7. Debt), lease terms, and current interest rates to determine the incremental borrowing rate at lease commencement date. At September 27, 2025, the Company's weighted-average discount rate was 5.51%, while the weighted-average remaining lease term was 8.6 years. As part of the supplemental cash flow disclosure, the right-of-use assets obtained in exchange for new operating lease liabilities does not reflect the impact of prepaid or deferred rent.
Recently adopted accounting pronouncements
In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The Company adopted this standard in the fourth quarter of fiscal 2025. Refer to our significant accounting policies above for the impact of adoption.
Recent accounting pronouncements pending adoption
In September 2025, the FASB issued ASU No. 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update modernize the recognition and capitalization framework to reflect current software development practices, including iterative and agile methodologies, by removing references to "development stages". It also clarifies the criteria for capitalization, which begins when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended. The amendments are effective for fiscal years beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. The amendments in this update may be applied utilizing a prospective transition approach, a retrospective transition approach, or a
modified transition approach that is based on the status of the project and whether software costs were capitalized before the date of adoption. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments in this update provide a practical expedient for the application of the current expected credit losses model to current accounts receivable and contract assets. The amendments are effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The transition method is prospective. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure of disaggregated information about significant expenses within relevant income statement captions, such as purchases of inventory, employee compensation, depreciation, and amortization. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. In January 2025, the FASB issued ASU 2025-01, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies that the amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The amendments may be applied retrospectively or prospectively, with early adoption permitted. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the pronouncement to determine the impact it may have on the Company's consolidated financial statements and related disclosures.
v3.25.3
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Sep. 27, 2025
Accounting Policies [Abstract]  
Schedules of Concentration of Credit Risk
As of September 27, 2025, and September 28, 2024, the Company’s customers that accounted for 10% or more of total accounts receivable, net, were as follows:
September 27,
2025
September 28,
2024
Customer A
18 %20 %
Customer B
14 %31 %
Customer C12 %*
*Accounts receivable was less than 10%
The Company’s customer that accounted for 10% or more of total revenue were as follows:
Year Ended
September 27,
2025
September 28,
2024
September 30,
2023
Customer B14 %16 %17 %
Schedule of Property and Equipment
Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware, equipment, and software
3-5 years
Furniture and fixtures
5 years
Tooling and production line test equipment
2-4 years
Leasehold improvements
1-15 years
Product displays
1-3 years
Property and equipment, net consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Tooling and production line test equipment$106,296 $106,174 
Product displays80,545 77,074 
Leasehold improvements45,842 52,112 
Computer hardware, equipment, and software
31,852 39,163 
Furniture and fixtures5,403 5,724 
Total property and equipment269,938 280,247 
Accumulated depreciation and amortization(197,661)(178,099)
Property and equipment, net$72,277 $102,148 
Property and equipment, net by country as of September 27, 2025, and September 28, 2024 were as follows:
September 27,
2025
September 28,
2024
(In thousands)
China$22,320 $31,653 
United States21,988 32,647 
Other countries27,969 37,848 
Property and equipment, net$72,277 $102,148 
Schedule Of Fair Value Input Definition
Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level InputInput Definition
Level 1Quoted prices for identical assets or liabilities in active markets at the measurement date.
Level 2Inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities, in active markets or other inputs that are observable or can be corroborated with market data at the measurement date.
Level 3Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date.
Schedule of Intra-Entity Foreign Currency Balance
Foreign currency remeasurement and transaction gains (losses) are recorded in other income (expense), net as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Foreign currency remeasurement and transaction gains (losses)$(6,456)$9,062 $13,674 
v3.25.3
Financial Instruments (Tables)
12 Months Ended
Sep. 27, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis The following table summarizes cash, cash equivalents and marketable securities by investment category as of September 27, 2025, and September 28, 2024:
September 27, 2025
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash and Cash EquivalentsMarketable Securities
Cash$158,556 $— $— $158,556 $158,556 $— 
Level 1:
Money market funds16,112 — — 16,112 16,112 — 
Subtotal16,112 — — 16,112 16,112 — 
Level 2:
U.S. Treasury securities52,834 32 (8)52,858 — 52,858 
Subtotal52,834 32 (8)52,858 — 52,858 
Total227,502 32 (8)227,526 174,668 52,858 
September 28, 2024
Amortized CostUnrealized GainUnrealized LossEstimated Fair ValueCash and Cash EquivalentsMarketable Securities
Cash$144,184 $— $— $144,184 $144,184 $— 
Level 1:
Money market funds25,548 — — 25,548 25,548 — 
Subtotal25,548 — — 25,548 25,548 — 
Level 2:
U.S. Treasury securities51,304 122 — 51,426 — 51,426 
Subtotal51,304 122 — 51,426 — 51,426 
Total221,036 122 — 221,158 169,732 51,426 
v3.25.3
Revenue and Geographic Information (Tables)
12 Months Ended
Sep. 27, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
Revenue by geographical region also includes the applicable service revenue for software upgrades and cloud-based services attributable to each region, is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Americas$922,941 $1,004,770 $1,048,245 
Europe, Middle East and Africa ("EMEA")441,177 430,428 518,179 
Asia Pacific ("APAC")79,158 82,858 88,831 
Total revenue$1,443,276 $1,518,056 $1,655,255 
Revenue is attributed to individual countries also includes the applicable service revenue for software upgrades and cloud-based services attributable to each country. Revenue by significant countries is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
United States$855,740 $930,286 $971,151 
Other countries587,536 587,770 684,104 
Total revenue$1,443,276 $1,518,056 $1,655,255 
Revenue by product category also includes the applicable service revenue for software upgrades and cloud-based services attributable to each product category. Revenue by major product category is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Sonos speakers$1,121,808 $1,169,604 $1,293,440 
Sonos system products249,237 267,744 285,064 
Partner products and other revenue72,231 80,708 76,751 
Total revenue$1,443,276 $1,518,056 $1,655,255 
v3.25.3
Balance Sheet Components (Tables)
12 Months Ended
Sep. 27, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Accounts Receivable, Allowance for Credit Loss
The following table summarizes changes in the allowance for credit losses for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$2,619 $2,711 $2,744 
Increases382 1,188 1,561 
Write-offs(101)(1,280)(1,594)
Ending balance$2,900 $2,619 $2,711 
Schedule of Changes In Allowance for Sales Incentives
The following table summarizes the changes in the allowance for sales incentives for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$49,122 $29,075 $23,573 
Charged to revenue198,759 183,144 139,657 
Utilization of sales incentive allowance(184,683)(163,097)(134,155)
Ending balance$63,198 $49,122 $29,075 
Schedule of Inventories, Net
Inventories consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Finished goods$153,485 $199,825 
Components17,535 31,680 
Inventories$171,020 $231,505 
Schedule of Property and Equipment
Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets as follows:
Computer hardware, equipment, and software
3-5 years
Furniture and fixtures
5 years
Tooling and production line test equipment
2-4 years
Leasehold improvements
1-15 years
Product displays
1-3 years
Property and equipment, net consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Tooling and production line test equipment$106,296 $106,174 
Product displays80,545 77,074 
Leasehold improvements45,842 52,112 
Computer hardware, equipment, and software
31,852 39,163 
Furniture and fixtures5,403 5,724 
Total property and equipment269,938 280,247 
Accumulated depreciation and amortization(197,661)(178,099)
Property and equipment, net$72,277 $102,148 
Property and equipment, net by country as of September 27, 2025, and September 28, 2024 were as follows:
September 27,
2025
September 28,
2024
(In thousands)
China$22,320 $31,653 
United States21,988 32,647 
Other countries27,969 37,848 
Property and equipment, net$72,277 $102,148 
Schedule of Intangible Assets
The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:
September 27, 2025
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(264)$16 $203 2.50
Technology-based94,419 (19,266)75,153 5.73
Total intangible assets$94,870 $(19,530)$16 $75,356 5.73
September 28, 2024
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(188)$$270 3.50
Technology-based31,480 (17,484)13,996 4.52
Total finite-lived intangible assets31,931 (17,672)14,266 4.51
In-process research and development and other intangible assets not subject to amortization73,770 73,770 
Total intangible assets$105,701 $(17,672)$$88,036 
Schedule of Intangible Assets
The following table reflects the changes in the net carrying amount of the components of intangible assets associated with the Company's acquisition activity:
September 27, 2025
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(264)$16 $203 2.50
Technology-based94,419 (19,266)75,153 5.73
Total intangible assets$94,870 $(19,530)$16 $75,356 5.73
September 28, 2024
Gross Carrying Amount
Accumulated Amortization
Foreign Currency Translation
Net Carrying ValueWeighted-Average Remaining Life
(In thousands, except weighted-average remaining life)
Tradename$451 $(188)$$270 3.50
Technology-based31,480 (17,484)13,996 4.52
Total finite-lived intangible assets31,931 (17,672)14,266 4.51
In-process research and development and other intangible assets not subject to amortization73,770 73,770 
Total intangible assets$105,701 $(17,672)$$88,036 
Schedule of Estimated Future Amortization Expense
The following table summarizes the estimated future amortization expense of the Company's intangible assets as September 27, 2025:
Fiscal years endingFuture Amortization Expense
(In thousands)
2026$13,585 
202713,570 
202813,450 
202912,453 
2030 and thereafter22,298 
Total future amortization expense$75,356 
Schedule of Cloud Computing Arrangements
Cloud Computing Arrangements
Capitalized costs to implement cloud computing arrangements net of accumulated amortization are reported as a component of other noncurrent assets on the Company's consolidated balance sheets and were as follows:
September 27,
2025
September 28,
2024
(In thousands)
Cloud computing implementation costs$27,411 $25,038 
Less: accumulated amortization13,320 9,697 
Cloud computing implementation costs, net$14,091 $15,341 
Schedule of Accrued Expenses
Accrued expenses consisted of the following:
September 27,
2025
September 28,
2024
(In thousands)
Accrued inventory and supply chain costs$37,780 $34,204 
Accrued taxes10,133 19,084 
Accrued advertising and marketing12,429 12,893 
Accrued general and administrative expenses8,923 10,870 
Accrued product development5,912 4,338 
Other accrued payables3,917 6,394 
Total accrued expenses$79,094 $87,783 
Schedule of Changes in Deferred Balances and Expected Revenue Recognition
The following table presents the changes in the Company's deferred revenue balances for the fiscal years ended September 27, 2025, September 28, 2024, and September 30, 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Deferred revenue, beginning of period$82,877 $80,838 $83,470 
Recognition of revenue included in beginning of period deferred revenue(20,086)(19,111)(27,057)
Revenue deferred, net of revenue recognized on contracts in the respective period18,433 21,150 24,425 
Deferred revenue, end of period$81,224 $82,877 $80,838 
Schedule of Remaining Performance Obligations
The Company expects the following recognition of deferred revenue as of fiscal year ending 2025:
For the fiscal years ending
20262027202820292030 and BeyondTotal
(In thousands)
Revenue expected to be recognized$21,771 $18,348 $15,226 $11,658 $14,221 $81,224 
Schedule of Other Current Liabilities
Other current liabilities consist of the following:
September 27,
2025
September 28,
2024
(In thousands)
Reserve for returns$20,383 $20,304 
Warranty liability10,002 10,565 
Short-term operating lease liabilities6,335 7,551 
Other9,387 7,857 
Total other current liabilities$46,107 $46,277 
Schedule of Product Warranty Liability
The following table presents the changes in the Company’s warranty liability for the fiscal years ended September 27, 2025, and September 28, 2024:
September 27,
2025
September 28,
2024
(In thousands)
Warranty liability, beginning of period$10,565 $7,466 
Provision for warranties issued during the period12,324 17,689 
Settlements of warranty claims during the period(12,887)(14,590)
Warranty liability, end of period$10,002 $10,565 
v3.25.3
Leases (Tables)
12 Months Ended
Sep. 27, 2025
Leases [Abstract]  
Schedule of Components of Lease Expense
The components of lease expense were as follows:
Fiscal Years Ended
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Operating lease cost$8,307 $13,565 $12,324 
Short-term lease cost602 873 340 
Variable lease cost4,827 5,193 5,480 
Total lease cost$13,736 $19,631 $18,144 
Schedule of Maturity of Lease Liabilities
The following table summarizes the maturity of lease liabilities under operating leases as of fiscal year ending 2025:
Fiscal years ending
Operating leases
(In thousands)
2026$9,485 
20278,941 
20288,301 
20297,862 
20308,058 
Thereafter33,209 
Total lease payments75,856 
Less imputed interest(16,233)
Total lease liabilities$59,623 
v3.25.3
Stock-Based Compensation (Tables)
12 Months Ended
Sep. 27, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Activity
The summary of the Company’s stock option activity is as follows:
Number of
Options
Weighted-Average Exercise PriceWeighted-Average Remaining Contractual
Term
Aggregate Intrinsic Value
(In years)(In thousands)
Outstanding at September 28, 20247,082,389$14.24 2.8$210 
Exercised(329,674)$13.68 
Forfeited / expired
(1,207,830)$14.20 
Outstanding at September 27, 20255,544,885$14.28 1.5$5,850 
Schedule of Restricted Stock Unit Activity The summary of the Company’s RSU activity is as follows:
Number of
Units
Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at September 28, 202410,763,098$14.79 $130,772 
Granted7,697,575$12.34 
Released(5,709,048)$15.13 
Forfeited(3,974,238)$13.63 
Outstanding at September 27, 20258,777,387$12.96 $134,294 
At September 27, 2025
Units expected to vest7,471,456$12.93 $114,313 
Schedule of Performance Stock Units Activity The summary of the Company’s PSU activity is as follows:
Number of
Units
Weighted-Average Grant Date Fair ValueAggregate Intrinsic Value
(In thousands)
Outstanding at September 28, 2024684,080$18.37 $8,312 
Granted339,837$11.53 
Released(7,194)$17.54 
Performance adjustment
(121,250)$21.80 
Forfeited
(414,935)$16.71 
Outstanding at September 27, 2025480,538$14.11 $7,352 
Schedule of Stock-based Compensation Expense
Total stock-based compensation expense by function category was as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Cost of revenue$6,148 $2,614 $2,038 
Research and development37,060 37,913 35,530 
Sales and marketing15,932 17,499 15,677 
General and administrative27,110 26,268 23,612 
Total stock-based compensation expense$86,250 $84,294 $76,857 
v3.25.3
Income Taxes (Tables)
12 Months Ended
Sep. 27, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Provision For (Benefit From) Income Taxes
The Company’s income (loss) before provision for income taxes for fiscal 2025, 2024 and 2023 were as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Domestic$(70,672)$(56,661)$(9,904)
Foreign20,175 29,510 14,298 
Income (loss) before provision for income taxes$(50,497)$(27,151)$4,394 
Schedule of Provision For (Benefit From) Income Taxes
Components of the provision for income taxes consisted of the following:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Current:
U.S. Federal$3,776 $8,094 $7,507 
U.S. State2,363 4,023 4,947 
Foreign4,500 17,798 2,810 
Total current10,639 29,915 15,264 
Deferred:
U.S. Federal— — — 
U.S. State— — — 
Foreign(18,920)(596)
Total deferred(18,920)(596)
Provision for income taxes$10,647 $10,995 $14,668 
Schedule of Deferred Tax Assets and Liabilities
Components of the Company’s deferred income tax assets and liabilities are as follows:
September 27,
2025
September 28,
2024
(In thousands)
Deferred tax assets
Capitalized research & development$131,858 $107,474 
Research & development tax credit carryforwards51,752 58,156 
Accrued expenses and reserves18,979 17,070 
Deferred revenue14,363 15,374 
Operating lease liability13,165 14,259 
Other capitalized costs12,448 12,030 
Stock-based compensation6,973 8,195 
Foreign net operating loss carryforwards5,293 5,783 
Depreciation4,098 2,991 
U.S. net operating loss carryforwards3,889 2,296 
Other370 592 
Total deferred tax assets263,188 244,220 
Valuation allowance(238,268)(216,365)
Deferred tax assets, net of valuation allowance24,920 27,855 
Deferred tax liabilities
Right-of-use asset(9,788)(10,955)
Intangibles(2,675)(3,392)
Capitalized inventory
(2,074)(3,254)
Total deferred tax liabilities(14,537)(17,601)
Net deferred tax assets
$10,383 $10,254 
Reported as
Deferred tax assets$10,509 $10,314 
Deferred tax liabilities(126)(60)
Net deferred tax assets
$10,383 $10,254 
Schedule of Changes in Valuation Allowance
The following table summarizes changes in the valuation allowance for fiscal 2025, 2024 and 2023:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$216,365 $185,840 $162,267 
Increase during the period21,903 32,573 23,628 
Decrease during the period— (2,048)(55)
Ending balance$238,268 $216,365 $185,840 
Schedule of Effective Income Tax Rate Reconciliation
Reconciliation of U.S. statutory federal income taxes to the Company’s provision for income taxes is as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
U.S. federal income taxes at statutory rate$(10,604)$(5,702)$923 
U.S. state and local income taxes, net of federal benefit and state credits(4,619)(2,496)(841)
Foreign income tax rate differential991 1,544 734 
Stock-based compensation5,068 2,726 104 
Federal research and development tax credits(5,081)(8,240)(7,591)
Unrecognized federal tax benefits457 1,082 184 
Change in tax rate(190)(188)— 
Global intangible low taxed income, net of foreign tax credits715 944 1,234 
Foreign -derived intangible income (FDII) deduction(1,000)(1,519)(6,863)
Subpart F income697 733 1,374 
162(m) executive compensation limitation1,923 1,496 2,513 
Deferred adjustments— 504 — 
Intercompany IP sale— (10,412)— 
Other387 (121)(695)
Change in valuation allowance21,903 30,644 23,592 
Provision for income taxes$10,647 $10,995 $14,668 
Schedule of Changes in Unrecognized Tax Benefits
Change in gross unrecognized tax benefits, excluding interest and penalties, as a result of uncertain tax positions are as follows:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands)
Beginning balance$18,910 $17,619 $17,021 
Increase (decrease) - tax positions in prior periods
(207)147 (566)
Increase - tax positions in current periods904 1,144 1,164 
Ending balance$19,607 $18,910 $17,619 
v3.25.3
Loss Per Share (Tables)
12 Months Ended
Sep. 27, 2025
Earnings Per Share [Abstract]  
Schedule of Net Loss Per Share
The following table sets forth the computation of the Company’s basic and diluted loss per share attributable to common stockholders:
September 27,
2025
September 28,
2024
September 30,
2023
(In thousands, except share and per share data)
Numerator:
Net loss - basic and diluted
$(61,144)$(38,146)$(10,274)
Denominator:  
Weighted-average shares of common stock - basic and diluted
120,753,102 123,218,532 127,702,885 
Loss per share:
Loss per share - basic and diluted
$(0.51)$(0.31)$(0.08)
Schedule of Antidilutive Securities
The following potentially dilutive shares as of the end of each period presented were excluded from the computation of diluted loss per share for the periods presented because including them would have been antidilutive:
September 27,
2025
September 28,
2024
September 30,
2023
Stock options to purchase common stock6,438,3207,756,5729,449,904
Restricted stock units12,387,37512,613,4349,742,444
Performance stock units246,81283,998149,991
Total19,072,50720,454,00419,342,339
v3.25.3
Restructuring and Other Charges (Tables)
12 Months Ended
Sep. 27, 2025
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Costs
The following table summarizes the components of restructuring and other charges:
Fiscal Year Ended
(in thousands)September 27,
2025
September 28,
2024
Cash restructuring charges:
Employee-related costs$19,486 $7,371 
Other restructuring costs (1)
2,084 2,278 
Total cash charges$21,570 $9,649 
Non-cash charges:
Stock-based awards (2)
$4,687 $— 
Asset write-offs
7,233 2,204 
Total non-cash charges$11,920 $2,204 
Total restructuring and other charges$33,490 $11,853 
(1)Other restructuring charges include estimated costs primarily related to rationalization of the Company's product roadmap.
(2)Non-cash charges for stock-based awards were related to modifications for equity awards primarily in connection with the CEO transition. These modifications included accelerated vesting of certain RSUs and an extension of the post-termination exercise period for certain stock options.
The following table summarizes the Company's restructuring and other charges recorded in accrued expenses and accrued compensation within the consolidated balance sheets:

(in thousands)Employee Related Costs
Other
Restructuring Costs
Total
Balance as of September 28, 2024(1)
$2,152 $1,037 $3,189 
Restructuring charges19,486 2,084 21,570 
Cash paid(21,144)(2,835)(23,979)
Balance as of September 27, 2025
$494 $286 $780 
(1)Balance as of September 28, 2024, relates to activities under the 2024 restructuring plan.
Schedule of Restructuring Reserve by Type of Cost
The following table summarizes restructuring and other charges recorded in the Company's consolidated statements of operations and comprehensive loss:
(in thousands)September 27,
2025
September 28,
2024
Cost of revenue
$3,420 $— 
Research and development
12,555 5,743 
Sales and marketing
9,779 2,770 
General and administrative
7,736 3,340 
Total restructuring and other charges
$33,490 $11,853 
v3.25.3
Business Overview (Details)
Sep. 27, 2025
country
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of countries where products distributed 60
v3.25.3
Summary of Significant Accounting Policies - Schedules of Concentration of Credit Risk (Details) - Customer Concentration Risk
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Customer A | Accounts receivable      
Product Information [Line Items]      
Concentration percentage 18.00% 20.00%  
Customer B | Accounts receivable      
Product Information [Line Items]      
Concentration percentage 14.00% 31.00%  
Customer B | Revenue      
Product Information [Line Items]      
Concentration percentage 14.00% 16.00% 17.00%
Customer C | Accounts receivable      
Product Information [Line Items]      
Concentration percentage 12.00%    
v3.25.3
Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)
Sep. 27, 2025
Computer hardware, equipment, and software | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Computer hardware, equipment, and software | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
Furniture and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 5 years
Tooling and production line test equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 2 years
Tooling and production line test equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 4 years
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 1 year
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 15 years
Product displays | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 1 year
Product displays | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
v3.25.3
Summary of Significant Accounting Policies - Narrative (Details)
12 Months Ended
Sep. 27, 2025
USD ($)
segment
Sep. 28, 2024
USD ($)
Sep. 30, 2023
USD ($)
Product Warranty Liability [Line Items]      
Impairment charges $ 0 $ 0 $ 0
Advertising costs 42,800,000 55,800,000 43,900,000
Employer contribution $ 7,800,000 $ 9,500,000 $ 9,500,000
Number of operating segments | segment 1    
Number of reportable segments | segment 1    
Term of option to extend 5 years    
Weighted-average discount rate - operating leases 5.51%    
Weighted-average remaining lease term (years) - operating leases 8 years 7 months 6 days    
European Union | Maximum      
Product Warranty Liability [Line Items]      
Product warranty obligation, term 2 years    
European Union | Minimum      
Product Warranty Liability [Line Items]      
Product warranty obligation, term 1 year    
One vendor | Supplier concentration risk | Inventories      
Product Warranty Liability [Line Items]      
Concentration percentage 53.00% 60.00% 58.00%
v3.25.3
Summary of Significant Accounting Policies - Schedule of Intercompany Foreign Currency Balances (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Product Information [Line Items]      
Foreign currency remeasurement and transaction gains (losses) $ (2,352) $ 7,276 $ 7,335
Other income (expense)      
Product Information [Line Items]      
Foreign currency remeasurement and transaction gains (losses) $ (6,456) $ 9,062 $ 13,674
v3.25.3
Financial Instruments - Cash, Cash Equivalents and Marketable Securities by Investment Category (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash $ 158,556 $ 144,184
Amortized Cost 227,502 221,036
Unrealized Gain 32 122
Unrealized Loss (8) 0
Estimated Fair Value 227,526 221,158
Cash and cash equivalents 174,668 169,732
Marketable securities 52,858 51,426
Level 1:    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 16,112 25,548
Estimated Fair Value 16,112 25,548
Cash and cash equivalents 16,112 25,548
Level 1: | Money market funds    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 16,112 25,548
Estimated Fair Value 16,112 25,548
Cash and Cash Equivalents 16,112 25,548
Level 2:    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 52,834 51,304
Estimated Fair Value 52,858 51,426
Cash and Cash Equivalents 0 0
Unrealized Gain 32 122
Unrealized Loss (8) 0
Marketable securities 52,858 51,426
Level 2: | U.S. Treasury securities    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Amortized Cost 52,834 51,304
Estimated Fair Value 52,858 51,426
Cash and Cash Equivalents 0 0
Unrealized Gain 32 122
Unrealized Loss (8) 0
Marketable securities $ 52,858 $ 51,426
v3.25.3
Financial Instruments - Narrative (Details) - USD ($)
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Fair Value Disclosures [Abstract]    
Debt securities, available-for-sale, noncurrent $ 0 $ 0
Realized gain (loss) 0 0
Accrued interest writeoff $ 0 $ 0
v3.25.3
Revenue and Geographic Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]      
Revenue $ 1,443,276 $ 1,518,056 $ 1,655,255
Sonos speakers      
Disaggregation of Revenue [Line Items]      
Revenue 1,121,808 1,169,604 1,293,440
Sonos system products      
Disaggregation of Revenue [Line Items]      
Revenue 249,237 267,744 285,064
Partner products and other revenue      
Disaggregation of Revenue [Line Items]      
Revenue 72,231 80,708 76,751
Americas      
Disaggregation of Revenue [Line Items]      
Revenue 922,941 1,004,770 1,048,245
Europe, Middle East and Africa ("EMEA")      
Disaggregation of Revenue [Line Items]      
Revenue 441,177 430,428 518,179
Asia Pacific ("APAC")      
Disaggregation of Revenue [Line Items]      
Revenue 79,158 82,858 88,831
United States      
Disaggregation of Revenue [Line Items]      
Revenue 855,740 930,286 971,151
Other countries      
Disaggregation of Revenue [Line Items]      
Revenue $ 587,536 $ 587,770 $ 684,104
v3.25.3
Balance Sheet Components - Summary of Changes in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning balance $ 2,619 $ 2,711 $ 2,744
Increases 382 1,188 1,561
Write-offs (101) (1,280) (1,594)
Ending balance $ 2,900 $ 2,619 $ 2,711
v3.25.3
Balance Sheet Components - Summary of Changes In Allowance for Sales Incentives (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Allowance for Sales Incentives [Roll Forward]      
Beginning balance $ 49,122 $ 29,075 $ 23,573
Charged to revenue 198,759 183,144 139,657
Utilization of sales incentive allowance (184,683) (163,097) (134,155)
Ending balance $ 63,198 $ 49,122 $ 29,075
v3.25.3
Balance Sheet Components - Schedule of Inventories, Net (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finished goods $ 153,485 $ 199,825
Components 17,535 31,680
Inventories $ 171,020 $ 231,505
v3.25.3
Balance sheet Components - Narrative (Detail) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 28, 2024
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Business Combination [Line Items]        
Inventory write down   $ 41.2 $ 33.3  
Depreciation expense   49.6 46.4 $ 42.7
Fixed asset, disposal   35.6 59.9 21.3
Accumulated depreciation and amortization   28.8 55.5 21.1
Loss on disposal   6.8 4.4 0.0
Amortization expenses   3.6 3.5 $ 3.7
Deferred revenue recognized   $ 80.5 $ 81.5  
Mayht Holding Bv Member | In Process Research and Development        
Business Combination [Line Items]        
Provisional information, adjustment, intangibles $ 73.8      
Finite-lived intangible asset, useful life 7 years      
v3.25.3
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 269,938 $ 280,247
Accumulated depreciation and amortization (197,661) (178,099)
Property and equipment, net 72,277 102,148
Tooling and production line test equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 106,296 106,174
Product displays    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 80,545 77,074
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 45,842 52,112
Computer hardware, equipment, and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 31,852 39,163
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 5,403 $ 5,724
v3.25.3
Balance Sheet Components - Property and Equipment by Country (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, net $ 72,277 $ 102,148
China    
Property, Plant and Equipment [Line Items]    
Property and equipment, net 22,320 31,653
United States    
Property, Plant and Equipment [Line Items]    
Property and equipment, net 21,988 32,647
Other countries    
Property, Plant and Equipment [Line Items]    
Property and equipment, net $ 27,969 $ 37,848
v3.25.3
Balance Sheet Components - Schedule of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 94,870 $ 31,931
Accumulated Amortization (19,530) (17,672)
Foreign Currency Translation 16 7
Total future amortization expense $ 75,356 $ 14,266
Weighted-Average Remaining Life 5 years 8 months 23 days 4 years 6 months 3 days
Gross Carrying Amount   $ 105,701
Net Carrying Value   88,036
Indefinite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount   105,701
Net Carrying Value   88,036
In Process Research and Development    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount   73,770
Indefinite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount   73,770
Tradename    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 451 451
Accumulated Amortization (264) (188)
Foreign Currency Translation 16 7
Total future amortization expense $ 203 $ 270
Weighted-Average Remaining Life 2 years 6 months 3 years 6 months
Technology-based    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 94,419 $ 31,480
Accumulated Amortization (19,266) (17,484)
Foreign Currency Translation 0 0
Total future amortization expense $ 75,153 $ 13,996
Weighted-Average Remaining Life 5 years 8 months 23 days 4 years 6 months 7 days
v3.25.3
Balance Sheet Components - Summary of Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Future Amortization Expense    
2026 $ 13,585  
2027 13,570  
2028 13,450  
2029 12,453  
2030 and thereafter 22,298  
Total future amortization expense $ 75,356 $ 14,266
v3.25.3
Balance Sheet Components - Summary of Cloud Computing Arrangements (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Cloud computing implementation costs $ 27,411 $ 25,038
Less: accumulated amortization 13,320 9,697
Cloud computing implementation costs, net $ 14,091 $ 15,341
v3.25.3
Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued inventory and supply chain costs $ 37,780 $ 34,204
Accrued taxes 10,133 19,084
Accrued advertising and marketing 12,429 12,893
Accrued general and administrative expenses 8,923 10,870
Accrued product development 5,912 4,338
Other accrued payables 3,917 6,394
Accrued expenses $ 79,094 $ 87,783
v3.25.3
Balance Sheet Components - Summary of Changes in Deferred Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Contract with Customer, Liability [Roll Forward]      
Deferred revenue, beginning of period $ 82,877 $ 80,838 $ 83,470
Recognition of revenue included in beginning of period deferred revenue (20,086) (19,111) (27,057)
Revenue deferred, net of revenue recognized on contracts in the respective period 18,433 21,150 24,425
Deferred revenue, end of period $ 81,224 $ 82,877 $ 80,838
v3.25.3
Balance Sheet Components - Schedule of Expected Recognition of Deferred Revenue (Details)
$ in Thousands
Sep. 27, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 81,224
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-10-04  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 21,771
Revenue, remaining performance obligation, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-10-03  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 18,348
Revenue, remaining performance obligation, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 15,226
Revenue, remaining performance obligation, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-09-29  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 11,658
Revenue, remaining performance obligation, period 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-09-27  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue expected to be recognized $ 14,221
Revenue, remaining performance obligation, period
v3.25.3
Balance Sheet Components - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Reserve for returns $ 20,383 $ 20,304
Warranty liability 10,002 10,565
Short-term operating lease liabilities $ 6,335 $ 7,551
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Total other current liabilities Total other current liabilities
Other $ 9,387 $ 7,857
Total other current liabilities $ 46,107 $ 46,277
v3.25.3
Balance Sheet Components - Schedule of Warranty Liability (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Movement in Standard Product Warranty Accrual [Roll Forward]    
Warranty liability, beginning of period $ 10,565 $ 7,466
Provision for warranties issued during the period 12,324 17,689
Settlements of warranty claims during the period (12,887) (14,590)
Warranty liability, end of period $ 10,002 $ 10,565
v3.25.3
Leases - Components of Lease Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Leases [Abstract]      
Operating lease cost $ 8,307 $ 13,565 $ 12,324
Short-term lease cost 602 873 340
Variable lease cost 4,827 5,193 5,480
Total lease cost $ 13,736 $ 19,631 $ 18,144
v3.25.3
Leases - Maturity of Lease Liabilities (Details)
$ in Thousands
Sep. 27, 2025
USD ($)
Leases [Abstract]  
2026 $ 9,485
2027 8,941
2028 8,301
2029 7,862
2030 8,058
Thereafter 33,209
Total lease payments 75,856
Less imputed interest (16,233)
Total lease liabilities $ 59,623
v3.25.3
Debt (Details) - Credit Facility - USD ($)
$ in Millions
1 Months Ended
Oct. 13, 2021
Jun. 30, 2023
Sep. 27, 2025
Revolving Credit Facility      
Debt Instrument [Line Items]      
Term of debt 5 years    
Maximum borrowing capacity $ 100.0    
Revolving Credit Facility | Minimum      
Debt Instrument [Line Items]      
Commitment fee percentage   0.20%  
Revolving Credit Facility | Maximum      
Debt Instrument [Line Items]      
Commitment fee percentage   0.275%  
Revolving Credit Facility | Base Rate      
Debt Instrument [Line Items]      
Interest rate, spread on variable rate   1.00%  
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum      
Debt Instrument [Line Items]      
Interest rate, spread on variable rate   0.11%  
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum      
Debt Instrument [Line Items]      
Interest rate, spread on variable rate   0.43%  
Letter of Credit      
Debt Instrument [Line Items]      
Long-term debt     $ 2.4
v3.25.3
Stockholders' Equity (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 27, 2025
Feb. 24, 2025
Nov. 15, 2023
Share Repurchase Program [Line Items]      
Treasury stock withheld for employees' tax withholding requirements (in shares) 2,027,360    
Retirement of treasury stock (in shares) 6,210,511    
2023 And 2025 Stock Repurchase Programs      
Share Repurchase Program [Line Items]      
Repurchase of common stock (in shares) 5,689,219    
Purchase price of common stock $ 80.3    
Average price per share (in dollars per share) $ 14.12    
2023 Stock Repurchase Program      
Share Repurchase Program [Line Items]      
Stock repurchase program, authorized amount     $ 200.0
Stock repurchase program, amount expired   $ 11.1  
2025 Stock Repurchase Program      
Share Repurchase Program [Line Items]      
Stock repurchase program, authorized amount   $ 150.0  
Remaining authorized repurchase amount $ 129.6    
v3.25.3
Stock-Based Compensation - Narrative (Details) - USD ($)
1 Months Ended 12 Months Ended
Jul. 31, 2018
Sep. 27, 2025
Sep. 28, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares)   0 0
Unrecognized stock-based compensation expense   $ 0 $ 0
Stock options to purchase common stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period   48 months  
Exercisable period   10 years  
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized stock-based compensation expense   $ 78,100,000 $ 115,400,000
Unrecognized stock-based compensation expense, period of recognition   2 years 3 months 18 days 2 years 4 months 24 days
Restricted stock units | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period   1 year  
Restricted stock units | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period   4 years  
Performance stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized stock-based compensation expense   $ 3,300,000 $ 200,000
Unrecognized stock-based compensation expense, period of recognition   1 year 3 months 18 days 1 year 6 months
2018 Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of outstanding stock maximum 5.00%    
Shares reserved for future issuance (in shares)   45,881,799  
v3.25.3
Stock-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Number of Options    
Beginning balance (in shares) 7,082,389  
Exercised (in shares) (329,674)  
Forfeited / expired (in shares) (1,207,830)  
Ending balance (in shares) 5,544,885 7,082,389
Weighted-Average Exercise Price    
Beginning balance (in USD per share) $ 14.24  
Exercised (in USD per share) 13.68  
Forfeited / expired (in USD per share) 14.20  
Ending balance (in USD per share) $ 14.28 $ 14.24
Weighted-Average Remaining Contractual Term    
Outstanding 1 year 6 months 2 years 9 months 18 days
Aggregate Intrinsic Value    
Outstanding $ 5,850 $ 210
v3.25.3
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted stock units - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Number of Units    
Outstanding, beginning balance (in shares) 10,763,098  
Granted (in shares) 7,697,575  
Released (in shares) (5,709,048)  
Forfeited (in shares) (3,974,238)  
Outstanding, ending balance (in shares) 8,777,387  
Units expected to vest (in shares) 7,471,456  
Weighted-Average Grant Date Fair Value    
Outstanding, beginning balance (in USD per share) $ 14.79  
Granted (in USD per share) 12.34  
Released (in USD per share) 15.13  
Forfeited (in USD per share) 13.63  
Outstanding, ending balance (in USD per share) 12.96  
Vested and expected to vest - Weighted Average Exercise Price (in dollars per share) $ 12.93  
Aggregate Intrinsic Value    
Aggregate Intrinsic Value $ 134,294 $ 130,772
Units expected to vest $ 114,313  
v3.25.3
Stock-Based Compensation - Performance Stock Units Activity (Details) - Performance stock units - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Number of Units    
Outstanding, beginning balance (in shares) 684,080  
Granted (in shares) 339,837  
Released (in shares) (7,194)  
Performance adjustment (in shares) (121,250)  
Forfeited (in shares) (414,935)  
Outstanding, ending balance (in shares) 480,538  
Weighted-Average Grant Date Fair Value    
Outstanding, beginning balance (in USD per share) $ 18.37  
Granted (in USD per share) 11.53  
Released (in USD per share) 17.54  
Performance adjustment (in USD per share) 21.80  
Forfeited (in USD per share) 16.71  
Outstanding, ending balance (in USD per share) $ 14.11  
Aggregate Intrinsic Value $ 7,352 $ 8,312
v3.25.3
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 86,250 $ 84,294 $ 76,857
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 6,148 2,614 2,038
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 37,060 37,913 35,530
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense 15,932 17,499 15,677
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock-based compensation expense $ 27,110 $ 26,268 $ 23,612
v3.25.3
Income Taxes - Schedule of Income Before Provision For (Benefit From) Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Income Tax Disclosure [Abstract]      
Domestic $ (70,672) $ (56,661) $ (9,904)
Foreign 20,175 29,510 14,298
Income (loss) before provision for income taxes $ (50,497) $ (27,151) $ 4,394
v3.25.3
Income Taxes - Schedule of Provision For (Benefit From) Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Current:      
U.S. Federal $ 3,776 $ 8,094 $ 7,507
U.S. State 2,363 4,023 4,947
Foreign 4,500 17,798 2,810
Total current 10,639 29,915 15,264
Deferred:      
U.S. Federal 0 0 0
U.S. State 0 0 0
Foreign 8 (18,920) (596)
Total deferred 8 (18,920) (596)
Provision for income taxes $ 10,647 $ 10,995 $ 14,668
v3.25.3
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Oct. 01, 2022
Deferred tax assets        
Capitalized research & development $ 131,858 $ 107,474    
Research & development tax credit carryforwards 51,752 58,156    
Accrued expenses and reserves 18,979 17,070    
Deferred revenue 14,363 15,374    
Operating lease liability 13,165 14,259    
Other capitalized costs 12,448 12,030    
Stock-based compensation 6,973 8,195    
Foreign net operating loss carryforwards 5,293 5,783    
Depreciation 4,098 2,991    
U.S. net operating loss carryforwards 3,889 2,296    
Total deferred tax assets 370 592    
Total deferred tax assets 263,188 244,220    
Valuation allowance (238,268) (216,365) $ (185,840) $ (162,267)
Deferred tax assets, net of valuation allowance 24,920 27,855    
Deferred tax liabilities        
Right-of-use asset (9,788) (10,955)    
Intangibles (2,675) (3,392)    
Capitalized inventory (2,074) (3,254)    
Total deferred tax liabilities (14,537) (17,601)    
Deferred tax assets 10,509 10,314    
Deferred tax liabilities (126) (60)    
Net deferred tax assets $ 10,383 $ 10,254    
v3.25.3
Income Taxes - Narrative (Details)
$ in Millions
Sep. 27, 2025
USD ($)
Operating Loss Carryforwards [Line Items]  
Undistributed earnings $ 16.3
Federal | Research tax credit carryforward  
Operating Loss Carryforwards [Line Items]  
Tax credit carryforward 30.1
State  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards 58.2
State | Research tax credit carryforward  
Operating Loss Carryforwards [Line Items]  
Tax credit carryforward 50.2
Foreign  
Operating Loss Carryforwards [Line Items]  
Net operating loss carryforwards $ 37.8
v3.25.3
Income Taxes - Summary of Changes in Valuation Allowance (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Valuation Allowance [Roll Forward]      
Beginning balance $ 216,365 $ 185,840 $ 162,267
Increase during the period 21,903 32,573 23,628
Decrease during the period 0 (2,048) (55)
Ending balance $ 238,268 $ 216,365 $ 185,840
v3.25.3
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Income Tax Disclosure [Abstract]      
U.S. federal income taxes at statutory rate $ (10,604) $ (5,702) $ 923
U.S. state and local income taxes, net of federal benefit and state credits (4,619) (2,496) (841)
Foreign income tax rate differential 991 1,544 734
Stock-based compensation 5,068 2,726 104
Federal research and development tax credits (5,081) (8,240) (7,591)
Unrecognized federal tax benefits 457 1,082 184
Change in tax rate (190) (188) 0
Global intangible low taxed income, net of foreign tax credits 715 944 1,234
Foreign -derived intangible income (FDII) deduction (1,000) (1,519) (6,863)
Subpart F income 697 733 1,374
162(m) executive compensation limitation 1,923 1,496 2,513
Deferred adjustments 0 504 0
Intercompany IP sale 0 (10,412) 0
Other 387 (121) (695)
Change in valuation allowance 21,903 30,644 23,592
Provision for income taxes $ 10,647 $ 10,995 $ 14,668
v3.25.3
Income Taxes - Schedule of Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 18,910 $ 17,619 $ 17,021
(Decrease) - tax positions in prior periods (207)   (566)
Increase - tax positions in prior periods   147  
Increase - tax positions in current periods 904 1,144 1,164
Ending balance $ 19,607 $ 18,910 $ 17,619
v3.25.3
Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Numerator:      
Net loss - basic $ (61,144) $ (38,146) $ (10,274)
Net loss - diluted $ (61,144) $ (38,146) $ (10,274)
Denominator:      
Weighted-average shares of common stock - basic (in shares) 120,753,102 123,218,532 127,702,885
Weighted-average shares of common stock - diluted (in shares) 120,753,102 123,218,532 127,702,885
Loss per share:      
Loss per share - basic (in USD per share) $ (0.51) $ (0.31) $ (0.08)
Loss per share - diluted (in USD per share) $ (0.51) $ (0.31) $ (0.08)
v3.25.3
Loss Per Share - Schedule of Antidilutive Securities (Details) - shares
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially antidilutive securities (in shares) 19,072,507 20,454,004 19,342,339
Stock options to purchase common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially antidilutive securities (in shares) 6,438,320 7,756,572 9,449,904
Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially antidilutive securities (in shares) 12,387,375 12,613,434 9,742,444
Performance stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Potentially antidilutive securities (in shares) 246,812 83,998 149,991
v3.25.3
Commitments and Contingencies (Details)
1 Months Ended
Aug. 08, 2022
patent
complaint
lawsuit
Jun. 11, 2020
patent
Mar. 10, 2017
patent
May 31, 2023
USD ($)
patent
Jan. 31, 2022
patent
Lawsuits Against Google          
Loss Contingencies [Line Items]          
Gain contingency, patents found infringed upon       1 5
Amount awarded to other party | $       $ 32,500,000  
Royalty rate per infringing unit (in dollars per share) | $       $ 2.30  
Google Lawsuits Against Sonos          
Loss Contingencies [Line Items]          
Loss contingency, patents allegedly infringed upon, number 7 5     2
Loss contingency, pending claims, number | complaint 2        
Loss contingency, number of defendants | lawsuit 2        
Loss contingency, patents found not infringed upon, number 1        
Implicit Against Sonos          
Loss Contingencies [Line Items]          
Loss contingency, patents allegedly infringed upon, number     2    
v3.25.3
Restructuring and Other Charges - Narrative (Details)
12 Months Ended
Aug. 14, 2024
Sep. 27, 2025
Restructuring and Related Activities [Abstract]    
Percent of reduction in force 6.00% 12.00%
v3.25.3
Restructuring and Other Charges - Schedule of Restructuring Components and Other Charges (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges $ 33,490 $ 11,853
Total cash charges    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 21,570 9,649
Employee-related costs    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 19,486 7,371
Other restructuring costs    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 2,084 2,278
Total non-cash charges    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 11,920 2,204
Stock-based awards    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 4,687 0
Asset write-offs    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges $ 7,233 $ 2,204
v3.25.3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 27, 2025
Sep. 28, 2024
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges $ 33,490 $ 11,853
Cost of revenue    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 3,420 0
Research and development    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 12,555 5,743
Sales and marketing    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges 9,779 2,770
General and administrative    
Restructuring Cost and Reserve [Line Items]    
Total restructuring and other charges $ 7,736 $ 3,340
v3.25.3
Restructuring and Other Charges - Schedule of Restructuring Activities Recorded in Accrued Expenses and Accrued Compensation (Details)
$ in Thousands
12 Months Ended
Sep. 27, 2025
USD ($)
Restructuring Reserve [Roll Forward]  
Restructuring reserve, beginning balance $ 3,189
Restructuring charges 21,570
Cash paid (23,979)
Restructuring reserve, ending balance $ 780
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of revenue, General and administrative, Research and development, Sales and marketing
Employee Related Costs  
Restructuring Reserve [Roll Forward]  
Restructuring reserve, beginning balance $ 2,152
Restructuring charges 19,486
Cash paid (21,144)
Restructuring reserve, ending balance $ 494
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of revenue, General and administrative, Research and development, Sales and marketing
Other Restructuring Costs  
Restructuring Reserve [Roll Forward]  
Restructuring reserve, beginning balance $ 1,037
Restructuring charges 2,084
Cash paid (2,835)
Restructuring reserve, ending balance $ 286
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of revenue, General and administrative, Research and development, Sales and marketing
v3.25.3
Subsequent Event (Details) - Revolving Credit Facility - Credit Facility - USD ($)
$ in Millions
Oct. 31, 2025
Sep. 30, 2025
Oct. 13, 2021
Subsequent Event [Line Items]      
Maximum borrowing capacity     $ 100.0
Subsequent Event      
Subsequent Event [Line Items]      
Maximum borrowing capacity $ 80.0 $ 100.0