Sonos Plans Price Increases to Offset Tariff Impact on Earnings
Sonos has announced plans to raise prices across much of its product lineup later this year, citing tariffs as a key factor affecting its financial performance. The company revealed the decision alongside its third-quarter 2025 earnings report, though it has not yet specified which products will see price adjustments or by how much.
The audio equipment maker is facing significant financial pressure due to tariffs imposed by the Trump administration—20% on imports from Vietnam and 19% on those from Malaysia. These tariffs reduced Sonos’ gross margin by $2.1 million and cash flow by $3.5 million in Q3 2025. The company expects an even bigger hit in the fourth quarter, projecting a $5 million reduction in gross margin and an $8 to $10 billion impact on cash flow during the critical holiday shopping season.
To mitigate these challenges, Sonos is evaluating changes to its promotional strategies and has the flexibility to shift production between Vietnam and Malaysia as needed. The company also emphasized plans to diversify its geographic footprint and expand into markets that currently contribute only a small portion of its revenue.
A Sonos spokesperson clarified that not every product in its lineup will see a price hike, though major product categories are likely to become more expensive. The company has already taken steps to reduce reliance on Chinese manufacturing, now only sourcing a limited number of accessories like speaker stands from China for the U.S. market.
The price increases come after a difficult period for Sonos. In 2024, a major software update caused significant issues with its app, delaying product releases and leading to leadership changes. Former CEO Patrick Spence stepped down in early 2025, replaced by ex-Snap executive Tom Conrad.
Despite these challenges, Sonos reported Q3 2025 revenue of $344.8 million, nearly $100 million higher than its Q4 2024 earnings. The company hopes that strategic pricing adjustments and supply chain flexibility will help stabilize its financial performance moving forward.
