Sonos is raising prices this year to make up for tariff expenses
The company took steps to diversify its supply chain last year, which led to its manufacturing facilities in the two aforementioned countries. It now only relies on Chinese plans for products bound to the US for a limited number of accessories, such as speaker stands. Still, for the third quarter of 2025, tariffs reduced Sonos' gross margin for the third quarter by $2.1 million and its cash flow by $3.5 million. In the fourth quarter of the year, which covers the holiday shopping season, Sonos expects tariffs to reduce its gross margin by $5 million and to remove between $8 to $10 billion from its cash flow.
Overall, Sonos posted a revenue of $344.8 million in the third quarter, which is almost $100 million larger than its revenue for the fourth quarter of 2024. It's not a secret that 2024 was a tough year for the company. It rolled out a major update that broke its app, which led to the delay of product releases as it worked to fix the issue. Former Sonos CEO Patrick Spence even stepped down in the beginning of 2025 and was replaced by ex-Snap executive Tom Conrad.
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