Sonos is raising prices this year to make up for tariff expenses

Sonos, the audio equipment company, plans to increase prices across its product line later this year in order to offset the impact of tariffs on its earnings. The company has been affected by the Trump administration's tariffs on imports from Vietnam and Malaysia, where its manufacturing facilities are located. To minimize the impact of tariffs, Sonos is evaluating changes to its promotional strategies and exploring the flexibility to move production between Vietnam and Malaysia. In the third quarter of 2025, tariffs reduced Sonos' gross margin by $2.1 million and its cash flow by $3.5 million. In the fourth quarter, which includes the holiday shopping season, Sonos expects tariffs to reduce its gross margin by $5 million and its cash flow by $8 to $10 million. Sonos also plans to invest in diversifying its geographic footprint and expanding its presence in markets that currently account for a small portion of its revenue, in an effort to drive future growth. The company had a challenging year in 2024, with a major app update causing delays in product releases, and a change in leadership, with the former CEO stepping down and being replaced by an executive from Snap.