Sonos designs and sells premium wireless home audio systems, including soundbars, subwoofers, smart speakers, portable speakers, and — as of mid-2024 — over-ear headphones. The core product proposition is a multi-room audio ecosystem where devices play in sync, connect to over 100 streaming services, and integrate with voice assistants, all managed through a single app. Sonos sells through retail partners like Best Buy and Amazon, its own website, and a professional installer channel ("Installer Solutions") that serves high-end residential and light commercial customers and accounted for roughly 22% of FY24 revenue. The company operates in more than 60 countries, with the U.S. and EMEA as its primary markets. Sonos' business model centers on selling premium hardware at mid-40s% gross margins, with revenue driven by two levers: attracting new households through lower-priced gateway products like the Era 100 speaker, and growing lifetime value as customers add devices over time. The average Sonos household owns roughly 3 products, and approximately 45% of annual product registrations come from existing customers, making repeat purchases central to the model. Manufacturing is outsourced to contract manufacturers primarily in Vietnam and Malaysia. Operating expenses are heavily weighted toward R&D, with sales and marketing spending concentrated around the holiday season, which makes Q1 (October–December) by far the largest revenue quarter. Sonos has recently cut its non-GAAP operating expense run rate by over $100M through two rounds of workforce reductions.