Sonos is preparing to raise prices across its global product lineup — including in Australia — following a sharp drop in profits and revenue. The move comes as the US-based audio company, now under new leadership, seeks to offset the impact of new US tariffs and ongoing market headwinds.

In its latest quarterly results, Sonos reported a 13.2% year-over-year decline in revenue, down to US$344.76 million. The company also posted a net loss of US$3.38 million, a stark reversal from the US$3.71 million profit it recorded during the same period last year — a 191.1% swing in profitability.

The weak performance was primarily driven by declining demand for its core speaker business, which contributed US$253.67 million of total revenue. Gross margins also slipped to 43%. The custom installation segment was hit as well, generating just US$17.92 million.

Sonos attributed the disappointing results to a “challenging market dynamic” and ongoing promotional discounting, which hurt both margins and earnings. Its share price dipped 0.45% following the Q3 announcement.

In response, the company plans to implement price increases later this year. While specific products and new pricing have not yet been disclosed, Sonos said it is actively reviewing its promotional strategies and has the flexibility to shift manufacturing between Vietnam and Malaysia to manage tariff exposure.

The move follows the US government’s recent imposition of a 20% tariff on Vietnamese imports and a 19% tariff on Malaysian goods — both key manufacturing hubs for Sonos. The company previously took steps to diversify its supply chain, with Chinese factories now limited to producing only certain accessories like speaker stands for the US market.

To support future growth, Sonos said it will invest in expanding its presence in underdeveloped international markets and further diversify its geographic footprint.

The company has faced a turbulent 2024, including a controversial app update that disrupted product launches and triggered user backlash. That misstep contributed to leadership changes, with CEO Patrick Spence replaced by former Snap executive Tom Conrad.

Let me know if you’d like a punchier or more informal version for a different audience.