Sonos, Inc.
SONO Technology Consumer Electronics
Sonos, Inc.’s revenue for fiscal 2025 (year ended September 2025) was $1.4 billion, down 4.93% from fiscal 2024. In the quarter to June 2026, revenue grew 8.85%, EPS grew 933.3% and free cash flow grew 23.3%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Sonos, Inc. (SONO) Altman Z-score
Sonos, Inc.'s Altman Z-score for fiscal 2025 is 4.03, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.03 | 0.52 |
| FY2024 | 3.51 | (0.47) |
| FY2023 | 3.98 | 0.23 |
| FY2022 | 3.75 | (2.79) |
| FY2021 | 6.54 | 3.10 |
| FY2020 | 3.45 | (0.02) |
| FY2019 | 3.47 | (0.01) |
| FY2018 | 3.48 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.18 | — | 0.22 | |
| Retained earnings / total assets | (0.14) | — | −0.19 | |
| EBIT / total assets | (0.06) | — | −0.20 | |
| Market value of equity / total liabilities | 4.08 | — | 2.45 | |
| Sales / total assets | 1.75 | — | 1.75 | |
| Altman Z-score | Safe zone | 4.03 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.15 | ||
Z and Z″ put Sonos, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| FXHO UTime Limited compare | 18.2× |
| AXIL AXIL Brands, Inc. compare | 8.8× |
| KOSS Koss Corporation compare | 5.1× |
| SONO Sonos, Inc. | 4.0× |
| UEIC Universal Electronics Inc. compare | 2.8× |
| TBCH Turtle Beach Corporation compare | 2.6× |
| LPL LG Display Co., Ltd. compare | 1.1× |
| GPRO GoPro, Inc. compare | −1.3× |
| VUZI Vuzix Corporation compare | −4.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets