#1Q4 & Fiscal Year 2023 Financial Results SONOS November 15, 2023#2Forward Looking Statements This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding our outlook for the fiscal year ending September 28, 2024; our long-term outlook; our long-term focus, financial, growth, and business strategies and opportunities; growth metrics and targets; our business model; new products, product categories and services; profitability and gross margins; market growth and our market share; our incremental revenue opportunity; the macroeconomic environment and our ability to weather it; and other factors affecting variability in our financial results. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors, including, but not limited to: our ability to accurately forecast product demand and effectively manage owned and channel inventory levels; the impact of global economic, market, and political events, including the potential for an extended global recession, continued inflationary pressures, rising interest rates and, in certain markets, foreign currency exchange rate fluctuations; changes in consumer income and overall consumer spending as a result of economic or political uncertainty or conditions; changes in consumer spending patterns; our ability to successfully introduce new products and services and maintain or expand the success of our existing products; the success of our efforts to expand our direct-to-consumer channel; the success of our financial, growth, and business strategies; our ability to meet product demand and manage any product availability delays; supply chain challenges, including shipping and logistics challenges and component supply-related challenges; the resurgence of the COVID-19 pandemic; and the other risk factors set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended July 1, 2023, and our other filings filed with the Securities and Exchange Commission (the "SEC"), copies of which are available free of charge at the SEC's website, www.sec.gov, or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this letter, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events, except to the extent required by law. Non-GAAP Measures We have provided in this presentation financial information that has not been prepared in accordance with US generally accepted accounting principles ("GAAP"). We use these non-GAAP financial measures to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in these non-GAAP financial measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to a key financial metric used by our management in its financial and operational decision-making. Non-GAAP financial measures should not be considered in isolation of, or as an alternative to, measures prepared in accordance with US GAAP. We define adjusted EBITDA as net income (loss) adjusted to exclude the impact of depreciation and amortization, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes, restructuring and abandonment costs and other items that we do not consider representative of our underlying operating performance. We define adjusted EBITDA margin as adjusted EBITDA divided by revenue. We define free cash flow as net cash from operations less purchases of property and equipment and intangible and other assets. We define free cash flow conversion as free cash flow as a percentage of Adjusted EBITDA. We define non-GAAP gross margin as GAAP gross margin, excluding stock-based compensation and amortization of intangible assets. We define Adjusted Operating Expenses as operating expenses less stock-based compensation expense, legal and transaction related costs, amortization of intangibles, and restructuring and abandonment costs. We calculate constant currency growth percentages by translating our current period financial results using the prior period average currency exchange rates and comparing these amounts to our prior period reported results. We do not provide a reconciliation of forward-looking non-GAAP financial measures to their comparable GAAP financial measures because we cannot do so without unreasonable effort due to unavailability of information needed to calculate reconciling items and due to the variability, complexity and limited visibility of the adjusting items that would be excluded from the non-GAAP financial measures in future periods. When planning, forecasting, and analyzing future periods, we do so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for certain items such as stock-based compensation, which is inherently difficult to predict with reasonable accuracy. Stock-based compensation expense is difficult to estimate because it depends on our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and subject to constant change. In addition, for purposes of setting annual guidance, it would be difficult to quantify stock-based compensation expense for the year with reasonable accuracy in the current quarter. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook. 2#3FY23 Highlights 15 RADIOHEAD OK COMPUTER DAK IS NOW • Revenue of $1.66B, -6% y/y (-3% constant currency) driven by partner channel inventory reductions, softer consumer demand in the second half of the year, FX and tough compares due to FY22 backorder fulfillment, partially offset by favorable product mix and the success of new product introductions • Gained significant $ market share in US, UK, and DE home theater category, recorded our highest annual market share since FY19 in both US and DE • Record 3.05 products per household vs. 2.98 LY; ending year in 15.3M homes, with existing households representing 44% of new registrations • Gross margin of 43.3%, -220bps y/y, driven by return to normal level of promotional activity versus FY22, higher component costs, excess component provisions and FX headwind, partially offset by fewer spot component purchases, price increases and lower air freight expense • Adjusted EBITDA of $153.9M, 9.3% margin, -360bps y/y driven by lower revenue, gross margin contraction and ongoing investments in product roadmap • Free cash flow of $50.1M, +$124.6M y/y from -$74.5M in FY22 • Returned $100M to shareholders by repurchasing 6.6M shares, Board announced authorization of additional $200M program Source: internal data, Circana for US, GfK UK and DE Note: Unaudited. Adjusted EBITDA and free cash flow are non-GAAP measures. See appendix for reconciliation of GAAP to non-GAAP measures. 3#4Continued Product Innovation Era 100 - $249 MSRP Only marginally larger than its predecessor, Sonos One, Era 100 boasts a new design and faster processing power, with a next-generation acoustic architecture that delivers detailed stereo sound and more powerful bass Era 300 - $449 MSRP Era 300 delivers an unprecedented spatial audio experience for a single all-in-one speaker. With support for Dolby Atmos, the breakthrough design features six drivers that create a three-dimensional soundstage and make listeners feel like they're inside their music and movies Move 2 - $449 MSRP The best-selling portable speaker has been revamped. Taking inspiration from the acoustic architecture developed for Era 100, Move 2 produces powerful stereo sound and up to 24 hours of battery life - more than twice that of the first generation - in an ultra durable and water-resistant design Sub Mini - $429 MSRP Building on the award-winning Sonos Sub, this wireless subwoofer delivers rich, balanced bass in a more compact and equally iconic design. When paired with recommended speakers, Sub Mini creates a more immersive sound experience Sonos Pro - Announced April 2023 This new software as a service (SaaS) offering gives business owners the power to control Sonos across multiple locations. With this subscription-based solution, business owners get access to a web-based dashboard for remote monitoring and management, commercially-licensed music, and personalized support B#5Expansion of our Brand Brand building efforts with partners, advocates and retailers drives awareness and purchase intent with customers at scale. Deepening connections with the Installed Solutions partners increases brand affinity among the community resulting in higher likelihood to recommend Sonos in key purchase moments. Brand Partnerships More than 30k consumers, industry and press visited the sound experience at the Dolby House during SXSW, March 2023 Advocacy Retail The Era Advocacy campaign enlisted more than 130 influencers, creating 350 pieces of bespoke content that resulted in more than 12M impressions and 10M views Global impact retail partnerships delivered unique brand and product experiences for consumers amplified by local PR and advocate partnerships Installer Solutions The Sonos Professional experience at CEDIA Expo, the premier tradeshow summit for home technology integration professionals, saw over 3,500 integrators, distribution partners, and strategic partners visit the booth IDOby Dolby Dolby - SXSWI SONOS SONOS setup Brazos WALTA S SONOS F SONOS of son Elodear#6#7Fiscal 2023 Financial Summary NET REVENUE $1,261 2019 89 $1,326 ADJUSTED EBITDA 2019 2020 109 2020 $1,717 $1,752 2021 279 2021 2022 227 2022 $1,655 CC: -3% Reported: -6% 2023 154 2023 FY23 revenue adversely affected by partner channel inventory reductions, softer consumer demand in the second half of the year and $39M FX headwind (-220bps y/y), partially offset by favorable product mix and new product introductions FY23 Adjusted EBITDA decline driven by lower revenue, gross margin contraction and ongoing investments in product roadmap Note: $ in millions (unless noted). Adjusted EBITDA and free cash flow are non-GAAP measures. "See appendix for reconciliation of GAAP to non-GAAP measures. GROSS MARGIN 41.8% 2019 97 43.1% FREE CASH FLOW 2019 2020 129 2020 47.2% 2021 208 2021 45.4% 1 2022 2022 43.3% (74) 2023 50 2023 FY23 gross margin was impacted by return to normal level of promotional activity versus FY22, higher component costs, 120 bps FX headwind, and over 100 bps of excess component provisions, partially offset by fewer spot component purchases, price increases and lower air freight expense FY23 FCF turned positive primarily due to working capital improvements 7#8Overview of Key Metrics Fiscal year Sonos households (M) New HHs Products registered (M) Change in registrations Products/households Increase Registrations to existing households Products sold (K) Revenue per product sold Households with 1 product Products per >1 household 2018 7.4 21.0 2.82 36% 5,165 $220 38% 3.94 2019 9.1 1.7 26.1 5.1 2.87 0.04 36% 6,204 $203 38% 4.01 2020 10.9 1.8 31.6 5.5 2.90 0.03 41% 5,806 $228 39% 4.11 2021 12.6 1.7 37.1 5.5 2.95 0.05 46% 6,503 $264 40% 4.25 2022 14.0 1.4 41.8 4.7 2.98 0.03 44% 6,281 $279 40% 4.30 2023 15.3 1.3 46.6 4.8 3.05 0.06 44% 5,725 $289 40% 4.41 Added 1.3 million new households, total ending household base of 15.3 million, +9% y/y Revenue per product sold increased +4% y/y to $289, driven by price increases and favorable product mix, partially offset by increased promotional activity and FX headwinds Registered products grew +11% y/y to 46.6 million registered products ● Registrations to existing households represented 44% of total, consistent with FY22 ● Products per household continues to grow, reaching 3.05 in FY23 O Implied products per household with >1 product grew to 4.41 driven by steady repurchase activity Source: internal data Note: Unaudited. Products per household defined as total registrations divided by total households. Products per >1 household defined as products registered less single product households divided by households with >1 product Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 8#9#10Making Progress to Rightsize Inventories Finished goods % y/y % q/q Components % y/y % q/q Inventories % y/y % q/q 4Q22 $ 406,657 163% 57% $ 47,631 56% (38)% $ 454,288 145% 35% 3Q23 $ 240,117 (7)% (13)% $ 58,029 (24)% 12% $ 298,146 (11)% (9)% Note: $ in thousands (unless noted), unaudited. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 4Q23 $ 281,571 (31)% 17% $ 64,950 36% 12% $ 346,521 (24)% 16% Entering the holidays with $108 million lower inventories compared to 4Q22 due to measures taken to more efficiently manage inventory O Total inventories +16% q/q ahead of holiday quarter Finished goods inventory increased by $41M q/q, +17% Components balance remains elevated relative to historical levels due to past commitments and transition of partnerships within contract manufacturing. It is expected to continue to increase in the near-term before reaching a peak in FY24 10#11Cash Flow & Balance Sheet Highlights Cash flow from operations Capital expenditures % of revenue Free cash flow Free cash flow / Adj EBITDA Ending cash & cash equivalents Total debt YTD23 $ 100.4 $ (50.3) (3.0)% $ 50.1 32.6% $ 220.2 $- YTD22 $ (28.3) $ (46.2) (2.6)% $ (74.5) (32.9)% $ 274.9 $- ● Cash and cash equivalents of $220M, no debt. Key contributors to y/y decrease in cash balance driven by: O $100M in share repurchase partially offset by an improvement in free cash flow generation Cash flow provided by operations of $100M, +$129M y/y from -$28M in FY22 O Driven by working capital improvements mainly related to reductions in our inventory position Capex of $50M, +9% y/y, largely driven by in-store product display investments and manufacturing-related investments to support the launch of new products including Era 100/300 and Move 2, plus future new product introductions (NPIs) Free cash flow of $50M, +$125M y/y from -$75M in FY22 O Completed $100M share repurchase program in FY23; 6.6M shares repurchased at average price of $15.25 per share O Q4 repurchases totaled $55M; 4.0M shares repurchased at average price of $13.71 Largest quarterly repurchase in company history Note: $ in millions (unless noted), unaudited. Free cash flow and Adjusted EBITDA are non-GAAP measures. See appendix for reconciliation of GAAP to non-GAAP measures. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 11#12#13#14#15#16#17#18#19#20#21#22#23#24#25#26#27#28#29#30#31#32#33#34#35#36#37#38#39#40