Erik Woodring's questions to Sonos Inc (SONO) leadership • Q2 2025
Question
Erik Woodring asked for clarification on the company's tariff exposure, a normalized growth outlook for Q3 excluding the tough Ace headphone launch comparison, the philosophy on product launch cadence versus other priorities, and the strategy for using the company's cash balance.
Answer
Interim CEO Tom Conrad clarified that the vast majority of U.S.-bound production is subject to a paused 10% tariff, not exempted. CFO Saori Casey explained that normalizing for the Ace launch is difficult due to multiple factors and declined to provide a specific figure. Conrad affirmed a cadence of two hardware launches a year is ideal but the current focus is on software to rebuild trust. Casey stated that while shareholder returns are a priority, preserving liquidity is paramount in the near term due to tariff uncertainty.