Shares dropped 5.6% after earnings as investors were disappointed by a cautious outlook and implied deceleration despite revenue growth. While revenue grew 8% year over year, concerns around margin pressure and limited near-term contribution from the new product launch weighed on sentiment.

• Q2 revenue reached $282 million, up approximately 8% year over year and near the top end of guidance.
• Gross profit dollars increased double digits on a GAAP basis; adjusted EBITDA came above midpoint of forecast.
• The newly launched Sonos Play speaker had minimal contribution in Q2, delaying expected impact on growth.
• Pricing adjustments on Aero 100 SL aimed at driving new customer growth, but margins may face pressure given value focus.
• Leadership changes introduced a new COO to streamline operations and accelerate execution amid a cautious outlook.