Sonos plans to raise prices across its products later this year in order to minimize the impact of tariffs on its earnings, the company has revealed alongside its financial results [PDF] for the third quarter of 2025. It hasn’t listed the products and their new prices yet, but it said that it’s evaluating any changes it might need to its promotional strategies and that it has flexibility to move production between Vietnam and Malaysia as needed. To note, the Trump administration had imposed a 20 percent tariff on imports from Vietnam and a 19 percent tariff on imports from Malaysia. Sonos also said that it will invest on diversifying its geographic footprint and expanding its presence in markets that represent only a small share of its revenue today to drive growth.
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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