Cash flow generation is highly erratic, highlighted by a $70.2M free cash flow deficit in 2026Q2 and a reliance on share repurchases despite negative net income.
| Cash from Operations | 138.3M | 136.87M | 189.91M | 100.41M | -28.26M | 253.23M | 161.99M | 120.64M | 30.57M | 63.96M | 43.29M |
| Operating CF Margin % | - | 9.48% | 12.51% | 6.07% | -1.61% | 14.75% | 12.21% | 9.57% | 2.69% | 6.44% | 4.8% |
| Operating CF Growth % | 61.72% | -27.93% | 89.14% | 455.29% | -111.16% | 56.33% | 34.28% | 294.62% | -52.2% | 47.73% | - |
| Net Income | -41.24M | -61.14M | -38.15M | -10.27M | 67.38M | 158.59M | -20.11M | -4.77M | -15.6M | -14.22M | -38.21M |
| Depreciation & Amortization | 55.41M | 62.32M | 52.38M | 48.97M | 38.5M | 33.88M | 36.43M | 36.41M | 39.36M | 35.01M | 34.32M |
| Stock-Based Compensation | 35.98M | 81.56M | 84.29M | 76.86M | 75.64M | 62.13M | 57.61M | 46.58M | 38.65M | 36.55M | 25.96M |
| Deferred Taxes | -917K | 8K | -18.92M | -583K | -1.51M | -8.33M | -567K | -268K | 152K | 1.44M | -857K |
| Other Non-Cash Items | 57M | 26.18M | 7.52M | 24.37M | 21.76M | 4.39M | 15.74M | 6.75M | 2.62M | -2.85M | 4.88M |
| Working Capital Changes | -32.85M | 27.94M | 102.78M | -38.94M | -230.03M | 2.56M | 72.89M | 35.93M | -34.6M | 8.03M | 17.2M |
| Change in Receivables | -58.23M | -21.87M | 23.04M | 32.12M | -5.51M | -45.7M | 49.59M | -32.08M | -26.5M | -2.73M | -4.59M |
| Change in Inventory | -31.05M | 51.73M | 106.12M | 87M | -277.49M | -7.91M | 38.01M | -31.8M | -80.11M | -60.27M | 5.88M |
| Change in Payables | 35.9M | -14.44M | -789K | -162.34M | 129.69M | -4.87M | -20.55M | 85.41M | 64.82M | 56.49M | 5.26M |
| Cash from Investing | -19.17M | -29.52M | -105.24M | -50.29M | -172.63M | -45.53M | -69.32M | -23.22M | -35.75M | -33.55M | -52.52M |
| Capital Expenditures | -20.75M | -28.68M | -55.25M | -50.29M | -46.22M | -45.53M | -33.03M | -23.22M | -35.75M | -33.55M | -52.52M |
| CapEx % of Revenue | 1.42% | 1.99% | 3.64% | 3.04% | 2.64% | 2.65% | 2.49% | 1.84% | 3.14% | 3.38% | 5.83% |
| Acquisitions | 0 | 0 | 0 | 0 | -126.42M | 0 | -36.29M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -94.84M | -102.34M | -137.31M | -108.59M | -150.26M | 24.97M | -27.09M | 21.9M | 94.37M | 23.95M | 7.97M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -25M | -8.33M | -6.67M | -252K | 14.99M | 4.44M |
| Equity Issued (Net) | -52.27M | -76.48M | -154.36M | -129.94M | -189.77M | -97.85M | -61.04M | -2.43M | 89.65M | -10.02M | -145K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -69.26M | -80.98M | -154.36M | -129.94M | -189.77M | -97.85M | -61.04M | -2.43M | -911K | -10.02M | -145K |
| Other Financing | -42.57M | -25.86M | 17.05M | 21.35M | 39.51M | 147.82M | 42.29M | 30.99M | 4.97M | 18.98M | 3.67M |
| Net Change in Cash | 27M | 4.94M | -50.5M | -54.62M | -365.25M | 232.81M | 68.47M | 117.7M | 90.33M | 55.68M | -1.44M |
| Free Cash Flow | 117.55M | 108.19M | 134.66M | 50.12M | -74.48M | 207.69M | 128.95M | 97.41M | -5.18M | 30.41M | -9.23M |
| FCF Margin % | 8.05% | 7.5% | 8.87% | 3.03% | -4.25% | 12.1% | 9.72% | 7.73% | -0.46% | 3.06% | -1.02% |
| FCF Growth % | 81.93% | -19.65% | 168.67% | 167.3% | -135.86% | 61.07% | 32.37% | 1981.67% | -117.03% | 429.58% | - |
| FCF per Share | 0.94 | 0.90 | 1.09 | 0.39 | -0.54 | 1.48 | 1.17 | 0.94 | -0.05 | 0.29 | -0.09 |
| FCF Conversion (FCF/Net Income) | -2.85x | -2.24x | -4.98x | -9.77x | -0.42x | 1.60x | -8.05x | -25.31x | -1.96x | -4.50x | -1.13x |
| Interest Paid | 153K | 279K | 256K | 1.33M | 344K | 502K | 1.65M | 2.52M | 3.75M | 4.11M | 2.33M |
| Taxes Paid | -16.49M | 23.95M | 21.21M | 9.52M | 9.31M | 4.11M | 783K | 3.57M | 1.43M | 461K | 233K |
Seasonal cash flow volatility
As reported in financial statements, the relationship between net income and operating cash flow remains highly volatile, with the OCF/NI ratio fluctuating from 0.70 in 2026Q2 to a extreme 17.12 in 2024Q3, highlighting significant disconnects between accounting profitability and actual cash generation capabilities.
The wide variance in the OCF/NI ratio suggests that GAAP net income is a poor proxy for the company's underlying cash-generative health. Investors should monitor how non-cash items and accruals distort the perception of profitability, particularly during off-peak quarters where operating cash flow frequently turns negative.
Based on EDBL's reported figures, free cash flow margins have exhibited extreme swings, ranging from a peak of 43.9% in 2024Q1 to a trough of -48.1% in 2024Q2, underscoring the company's heavy reliance on seasonal holiday demand to fund its ongoing operational requirements.
The inability to maintain positive free cash flow outside of the first fiscal quarter indicates a structural dependency on seasonal inventory liquidation. This trajectory suggests that the business model may be struggling to achieve the scale necessary to self-fund operations throughout the entire fiscal year.
According to recent SEC filings, working capital changes have been a primary driver of cash flow volatility, with a significant $163.3M inflow in 2024Q1 contrasting sharply with an $80.8M outflow in 2024Q2, reflecting the company's susceptibility to inventory build-up and seasonal collection cycles.
The sharp swings in working capital suggest that management faces challenges in aligning production schedules with actual consumer demand. This volatility warrants further investigation into whether recent app-related issues have led to an accumulation of unsold inventory that could pressure future cash flows.
As disclosed in recent financial statements, Sonos has continued to prioritize share repurchases, such as the $29.2M outflow in 2026Q2, even during periods of negative net income and operating cash flow, which raises questions regarding the sustainability of this capital return strategy.
The decision to return capital to shareholders while the core business is experiencing negative cash flow appears aggressive and may limit the company's financial flexibility. Investors should monitor whether this allocation strategy is intended to signal confidence or if it is inadvertently depleting the balance sheet during a period of operational stress.
Quick answers to the most common questions about buying SONO stock.
Sonos, Inc. (SONO) generated $136.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Sonos, Inc. (SONO) generated $108.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Sonos, Inc. (SONO) spent $28.7M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Sonos, Inc. (SONO) spent $81.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.