#1Q3 2022 Financial Summary SONOS August 10, 2022#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 October 1, 2022; our long-term outlook; our long-term focus, financial, growth, and business strategies and opportunities; growth metrics and targets; our business model; new products, services, and partnerships; profitability and gross margins; market growth and our market share; 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, the duration and impact of the COVID-19 pandemic and related mitigation efforts on our industry and supply chain; supply chain challenges, including shipping and logistics challenges, significant limits on component supplies and inflationary pressures; the impact of global economic, market and political events, including the continuing conflict between Russia and Ukraine, foreign currency exchange fluctuations and inflation; changes in consumer income and overall consumer spending as a result of economic or political uncertainty; 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; and the other risk factors set forth under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended April 2, 2022, 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 at 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 Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in the appendix to this presentation.#3Q3 Highlights TE CON Q3 revenue of $372M, -2% from LY (+2% constant currency) driven by softer consumer demand, supply constraints, and unfavorable FX Q3 gross margin of 47.3%, +250 bps from Q2 driven primarily by timing of expenses related to higher component costs +30bps from LY driven by higher selling prices, partially offset by higher component costs Q3 adjusted EBITDA of $42.1M, -10% from LY driven by higher investments in the business and lower revenue Q3 adjusted EBITDA margin of 11.3% Note: Unaudited. See appendix for reconciliation of GAAP to non-GAAP measures.#4Q3 revenue, constant currency growth, and stable profitability Q3 Revenue $249.3 CC: -3% Reported: -4% 3Q20 Q3 Adjusted EBITDA $(2.7) nm 3Q20 $378.7 CC: +45% Reported: +52% 3Q21 $46.7 nm 3Q21 $371.8 CC: +2% Reported: -2% 3Q22 $42.1 -10% 3Q22 Revenue +2.2% constant currency, or -1.8% reported to $371.8M Driven by: O O Softer consumer demand Lapping Roam launch LY, with softer Ray performance Continuation of industry-wide supply chain issues, resulting in supply constraints / ongoing backlog Unfavorable FX The stronger dollar was a $15M headwind in the Q Adjusted EBITDA margin declined 100bps to 11.3% Decline driven by investments in the business and lower revenue Partially offset by GM expansion of 30 bps YoY driven by higher prices (see next slide) Note: $ in millions, unaudited. 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.#5Continued healthy gross margins Gross margin expanded 30 bps YoY driven by: ● Higher selling prices ● ● Partially offset by higher cost of components Gross Margin expanded 250 bps QoQ due to timing of expenses related to higher component costs 44.0% 3Q20 47.0% 3Q21 47.3% 3Q22 Note: Unaudited. 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.#6Investing in the business in Q3 Research and Development (GAAP) % of revenue Sales and Marketing (GAAP) % of revenue General and Administrative (GAAP) Legal and transaction related costs Adjusted General and Administrative (Non-GAAP) % of revenue Total Operating Expenses (GAAP) Legal and transaction related costs Adjusted Operating Expenses (Non-GAAP) % of revenue Note: $ in millions, unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Q3'22 $ 62.5 16.8% $ 64.0 17.2% $ 42.4 7.5 $34.9 9.4% $168.9 7.5 $161.4 43.4% Q3'21 $ 55.6 14.7% $67.2 17.8% $38.3 5.4 $ 33.0 8.7% $161.1 5.4 $155.8 41.1% Y/Y Change 12.5% 210 bps -4.8% (60) bps 10.6% 39.4% 5.9% 70 bps 4.8% 39.4% 3.6% 230 bps ● Adjusted Opex deleverage of 230 bps YoY: R&D +12.5% primarily due product development costs and professional fees, increased headcount, partially offset by lower variable comp O S&M -4.8% primarily due to lower variable comp partially offset by increased headcount and marketing investments G&A ex legal and transaction costs +5.9% due to continued systems and tools investment and increased headcount, partially offset by lower variable comp. This includes investments to replace our legacy ERP system with the new system which went live in the quarter#7Cash 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 YTD22 $75.7 $24.9 1.7% $ 50.7 20.1% $439.7 YTD21 $ 246.7 $34.8 2.6% $211.9 81.1% $ 670.9 Y/Y Change (69.3)% (28.3)% (76.1)% (34.5)% N/A YTD cash flow from operations of $76M, - 69% from LY, mainly due to investments in inventory Share repurchases of $117M YTD; $33M remaining on our $150M authorization We deployed $126M to M&A YTD, closed Mayht acquisition in Q3 2022 Cash and cash equivalents of $440M, no debt Note: $ in millions, unaudited. 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.#8FY22 Outlook THE PLANE 9#9FY22 Outlook: Reduced revenue and adjusted EBITDA guidance, narrowing gross margin range Revenue % growth Gross Margin Adjusted EBITDA Adjusted EBITDA Margin Other Key Assumptions: Tariffs FY21 Actuals $1.717 billion 29% 47.2% $278.6 million 16.2% $4.6 million net tariff benefit Prior FY22 Outlook $1.95 billion - $2.0 billion 14% - 16% 45.5 - 46.0% $290 million - $310 million 14.9% 15.5% Minimal net tariff benefit New FY22 Outlook $1.730 billion - $1.755 billion 1% -2% 45.7 - 45.9% $215 million $230 million 12.4% - 13.1% - Minimal net tariff expense Note: Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. We do not provide a reconciliation of forward-looking non-GAAP measures to their comparable GAAP financial measures. See "Non-GAAP Measures" for more information. FY22 outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. Reducing revenue outlook to $1.730-1.755bn, +1-2% growth (+4-5% constant currency, assumes $50 million FX headwind) Narrowing gross margin range to 45.7-45.9% Reducing Adjusted EBITDA outlook on revenue flow through#10Long Term Opportunity NICOL#11Long Term Financial Targets Due to the uncertain and evolving macroeconomic backdrop, we are extending the timeline beyond FY24 to achieve our previously issued targets Revenue ~$2.5B Gross Margin 45-47% Note: Adjusted EBITDA Margin is a non-GAAP measures. We do not provide a reconciliation of forward-looking non-GAAP measures to their comparable GAAP financial measures. See "Non-GAAP Measures" for more information. Long-term outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. Adjusted EBITDA Margin 15-18%#12Key Drivers of Long Term Growth "The Sonos Flywheel" New household growth + existing household repurchases Expansion of our product offerings Launch at least 2 products per year to delight existing households and attract new ones Large, growing addressable market Just scratching the surface: Currently ~2% share of $96B global audio market¹ and ~9% share of 145M affluent households² in our core markets 1 - Source: Futuresource CY2021. 2- Source: Euromonitor 2021 Core Markets include the United States, Canada, Australia, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland and Poland. Long term secular tailwinds Continued growth in audio and video content consumption and formats Evolution of remote work and impact on how and where consumers live#13Our Long Term Opportunity: Households PLUS Geographic Expansion 348M Households in Core Markets¹ 145M Affluent ($75k+²) Households ~9% Current Penetration of Total Affluent Households 13M Sonos FY21 Households Source: Euromonitor 2021 1. Core Markets include the United States, Canada, Australia, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland and Poland 2. Represents disposable income as defined by the OECD#14Our Long Term Opportunity: Revenue PLUS Audio content, services & business $96B Global Audio $29B Global Home Audio $22B Premium Global Home Audio ~2% Current Penetration of Global Audio Market $1.7B Sonos FY21 Revenue Source: Futuresource CY2021, Premium defined as $100+ wireless speakers, $200+ soundbars, $300+ Hi-Fi systems, $250+ in-wall/in-ceiling speakers, $250+ bookshelf speakers (pairs), and all AV receivers, Floor-standing speakers, home theater speakers and home theater in a box products and Hi-Fi separates#15Appendix DIRES RODY of m#16Non-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 adjusted to exclude the impact of depreciation, stock-based compensation expense, interest income, interest expense, other income (expense), income taxes, 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 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.#17Reconciliation of Net Income (Loss) to Adjusted EBITDA Net income (loss) Add (deduct): Depreciation and amortization Stock-based compensation expense Interest income Interest expense Other income (expense), net Provision for (benefit from) income taxes Restructuring and related expenses(1) Legal and transaction related costs(2) Adjusted EBITDA Revenue Adjusted EBITDA margin Three Months Ended July 2, 2022 $ (597) 8,907 18,779 (429) 196 9,858 (2,068) 7,459 $ 42,105 $ 371,783 11.3% July 3, 2021 $ 17,826 9,065 15,547 (34) 77 (1,998) 858 5,351 $ 46,692 $ 378,672 12.3% Nine Months Ended July 2, 2022 $ 131,451 27,699 57,463 (585) 384 13,541 4,805 17,344 $ 252,102 $ 1,436,046 17.6% July 3, 2021 $ 167,339 25,789 46,755 (114) 525 (4,678) 3,436 (2,611) 25,030 $261,471 $ 1,357,204 19.3% (1) Restructuring and related expenses for the nine months ended July 3, 2021, include a gain of $2.8 million, related to our negotiation for the early termination of a facility lease that was part of the 2020 restructuring plan. The gain represents the difference between the related operating lease liability and previously accrued restructuring expenses versus the early termination payment. (2) Legal and transaction related costs consist of expenses related to our intellectual property litigation against Alphabet Inc. and Google LLC as well as legal and transaction costs associated with our acquisition activity, which we do not consider representative of our underlying operating performance. Note: $ in thousands, unaudited.#18Reconciliation of Cash Flows Provided by (Used in) Operating Activities to Free Cash Flow Cash flows provided by (used in) operating activities Less: Purchases of property and equipment, intangible and other assets Free cash flow Note: $ in thousands, unaudited. Three Months Ended July 2, 2022 $ (6,717) (9,281) $ (15,998) July 3, 2021 $70,786 (14,865) $ 55,921 Nine Months Ended July 2, 2022 $ 75,657 (24,946) $ 50,711 July 3, 2021 $ 246,741 (34,792) $ 211,949#19SONOS