Is the business good?
How good a business is SONO?
Sonos, Inc. earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
14%
Return on invested capital · cost of capital 9.0% · 4.5 points above what the capital costs: growth creates value
- Operating margin
- 2.2%
Operating margin · Technology median 8.0% · 12 months to Q2 2026
- Share count, year on year
- +0.24%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 17%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −2.1% |
| FY2021 | 9.0% |
| FY2022 | 5.1% |
| FY2023 | −1.2% |
| FY2024 | −3.2% |
| FY2025 | −3.5% |
Details›
- Gross margin12 months to Q2 2026
- 45%
- Operating margin12 months to Q2 2026
- 2.2%
- Net margin12 months to Q2 2026
- 1.6%
- Free cash flow margin
- 8.1%
- R&D as % of revenue
- 17%
- Revenue, trailing twelve months
- $1.46B
- Free cash flow, trailing twelve months
- $117M
- Net income, trailing twelve months
- $24M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.