#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#6Responsible Innovation Recognized as one of the best places to work for LGBTQ+ equality by the Human Rights Campaign Foundation. Publishing annual Listen Better Report in the coming weeks, highlighting the progress we've made on our sustainability and social impact work. In fiscal 2023, we advanced our Climate Action Plan to become carbon neutral by 2030 and net zero by 2040. We also disclosed our Scope 1, 2, and 3 greenhouse gas emissions to the Carbon Disclosure Project (CDP). We built sustainability into all three of our new marquee products: Era 100, Era 300, and Move 2. We also introduced Product Environmental Reports to enhance our transparency. These reports provide detailed information about the materials and environmental footprint of each new product. Won Best in Show at the 2023 Dieline Awards for our sustainable paper-based Ray and Sub Mini product packaging. Launched partnership with 1% for the Planet to donate 1% of Certified Refurbished sales to high-impact nonprofits focused on environmental preservation and restoration. Improved our ESG ratings from multiple rating agencies, including from Medium Risk to Low Risk by Sustainalytics. SONOS – Men Panay, Pantà de Era 300 SONOS :0 SONOS Era 100 2023 Listen Better Report SONOS Environmental, Social and Governance at Sonos SONOS 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#9Responsibly Investing to Drive Long Term Growth Y/Y Change 18% 16% (33)% N/A 16% R&D (GAAP) Less: Stock-based compensation expense Less: Amortization of intangibles Less: Restructuring and abandonment costs R&D (Non-GAAP) % of revenue S&M (GAAP) Less: Stock-based compensation expense Less: Amortization of intangibles Less: Restructuring and abandonment costs S&M (Non-GAAP) % of revenue G&A (GAAP) Less: Stock-based compensation expense Less: Legal and transaction related costs Less: Amortization of intangibles Less: Restructuring and abandonment costs Adjusted G&A (Non-GAAP) % of revenue Total Operating Expenses (GAAP) % of revenue Less: Stock-based compensation expense Less: Legal and transaction related costs Less: Amortization of intangibles Less: Restructuring and abandonment costs Adjusted Operating Expenses (Non-GAAP) % of revenue FY23 $ 301.0 35.5 2.0 6.6 $256.9 15.5% $267.5 15.7 5.6 $ 246.2 14.9% $168.5 23.6 33.0 0.1 3.5 $108.4 6.5% $ 737.0 44.5% 74.8 33.0 2.1 15.6 $ 611.5 36.9% FY22 $256.1 30.7 3.0 $ 222.4 12.7% $280.3 15.3 $ 265.0 15.1% $ 170.4 28.0 22.9 0.1 $ 119.5 6.8% $ 706.8 40.3% 74.0 22.9 3.1 $606.9 34.6% 280 bps (5)% 2% N/A N/A (7)% -20 bps (1)% (16)% 44% N/A (9)% -30 bps 4% 420 bps 1% 44% (32)% N/A 1% 230 bps Committed to managing operating expenses (OpEx) while making targeted and responsible investment in product roadmap and category expansion to drive long term growth Announced 7% RIF in mid-June, further O rationalization of real estate footprint and program spend GAAP OpEx dollars +4% y/y: O O Legal and transaction-related costs +44% y/y Adjusted OpEx (Non-GAAP) dollars +1% y/y: Adjusted OpEx (Non-GAAP) deleverage of 230 bps y/y R&D (Non-GAAP) +16% due to full year impact of FY22 headcount growth O O O OpEx (GAAP) deleverage of 420 bps y/y driven by full year impact of FY22 headcount growth, $15.6M of restructuring and abandonment costs, and higher legal and transaction expenses, partially offset by reduced advertising and marketing investment O S&M (Non-GAAP) -7% due to reduced advertising and marketing investment Adjusted G&A (Non-GAAP) -9% due to a reduction in normal course legal expenses Note: $ in millions (unless noted), unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. R&D (non-GAAP), S&M (non-GAAP), Adjusted G&A (non-GAAP) and Adjusted Operating Expenses (non-GAAP) are each non-GAAP measures. 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#12Q4 Highlights SONOS Q4 revenue of $305.1M, -3.5% y/y (-5.1% constant currency) and -18% sequentially Launched Move 2, our new premium portable speaker with stereo sound, deeper base and 24-hour battery life (September) O Move 2 is rated 4.9 out of 5 stars on Sonos.com Q4 gross margin of 42.0%, +270 bps y/y Q4 Adjusted EBITDA of $6.3M, margin of 2.1% Note: Unaudited. Adjusted EBITDA, Adjusted EBITDA Margin and constant currency are non-GAAP measures. *See appendix for reconciliation of GAAP to non-GAAP measures. 12#13Q4 Financial Summary Q4 Revenue $316.3 Reported: -12.0% CC: -6.6% 4Q22 Americas (63% of sales): +1.9% y/y EMEA (29% of sales): -33.7% y/y APAC (8% of sales): -1.6% y/y Q4 Adjusted EBITDA -8.1% margin -$25.6 4Q22 $305.1 Reported: -3.5% CC: -5.1% 4Q23 Americas (67% of sales): +1.9% y/y EMEA (27% of sales): -8.8% y/y APAC (6% of sales): -27.5% y/y $6.3 2.1% margin 4Q23 Revenue -3.5% y/y, or -5.1% constant currency, to $305.1M driven by: O Registrations -13% y/y while products sold -8% y/y O O Demand softening across all regions, partially offset by full supply recovery on AMP in FY23 and by revenue generated by new product introductions. O Registrations declined more than products sold primarily due to the timing of holiday channel fill Favorable mix and price increases caused revenue to decline by less than products sold Adjusted EBITDA increased to $6.3M, margin of 2.1% O Adjusted EBITDA increase was driven by gross margin expansion, lower bonus accrual and reductions of marketing and legal program spend FX was approximately a $4M tailwind to Adjusted EBITDA Source: internal data Note: All comparisons y/y unless otherwise noted. $ in millions (unless noted), unaudited. Adjusted EBITDA, Adjusted EBITDA margin and constant currency 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. 13#14Line of Sight to Material Gross Margin Recovery in FY24 Q4 Gross margin increased +270bps y/y driven by: Fewer spot component purchases, price increases, FX tailwind (110 bps), and lower component costs Partially offset by timing of recognition of contra-revenue related to select channel fill ahead of holiday season and higher excess component provisions ● Expected FY24 Gross Margin Recovery to be Driven By ● Lower component costs, favorable product mix, fewer spot component purchases and lower excess component provisions 39.2% 4Q22 Reported: 42.0%* FX tailwind: 110 bps Excluding FX: 40.9%* *includes over 250bps quarterly headwind from higher than normal excess component provision 4Q23 Note: Unaudited. Gross margin excluding the impact of foreign exchange is a non-GAAP measure. I Excluding FX: 44.5%^ FX headwind: 120 bps Reported: 43.3%^ ^includes over 100bps full year headwind from excess component provision FY23 Expected: 45% to 46% FY24 - Guidance Midpoint 14#15Responsibly Investing to Drive Long Term Growth 4Q23 $65.5 8.2 0.5 0.2 $56.7 18.6% $ 58.6 3.5 R&D (GAAP) Less: Stock-based compensation expense Less: Amortization of intangibles Less: Restructuring and abandonment costs R&D (Non-GAAP) % of revenue S&M (GAAP) Less: Stock-based compensation expense Less: Amortization of intangibles Less: Restructuring and abandonment costs S&M (Non-GAAP) % of revenue G&A (GAAP) Less: Stock-based compensation expense Less: Legal and transaction related costs Less: Amortization of intangibles Less: Restructuring and abandonment costs Adjusted G&A (Non-GAAP) % of revenue Total Operating Expenses (GAAP) % of revenue Less: Stock-based compensation expense Less: Legal and transaction related costs Less: Amortization of intangibles Restructuring and abandonment costs Adjusted Operating Expenses (Non-GAAP) % of revenue 0.2 $ 54.9 18.0% $32.3 5.2 2.9 0.1 $24.0 7.9% $ 156.4 51.3% 16.9 2.9 0.5 0.5 $135.6 44.4% 4Q22 $67.3 8.0 0.5 $ 58.7 18.6% $72.6 3.7 $69.0 21.8% $44.2 6.0 5.5 $32.7 10.3% $184.2 58.2% 17.7 5.5 0.5 $160.4 50.7% Y/Y Change (3)% 2% (3)% N/A (4)% 0 bps (19)% (5)% N/A N/A (20)% -380 bps (27)% (13)% (47)% N/A N/A (27)% -250 bps (15)% -700 bps (5)% (47)% (3)% N/A (15)% -630 bps Committed to managing operating expenses (OpEx) while making targeted and responsible investment in product roadmap and category expansion to drive long term growth O GAAP OpEx dollars -15% y/y: OpEx (GAAP) leverage of 700 bps y/y driven by: lower bonus accrual, ongoing cost savings resulting from RIF and targeted marketing expense reductions partially offset by higher product development costs and depreciation Legal and transaction-related costs -47% y/y Adjusted OpEx (Non-GAAP) dollars -15% y/y: O O O O O Announced 7% RIF in mid-June, further rationalization of real estate footprint and program spend reductions O Adjusted OpEx (Non-GAAP) leverage of 630 bps y/y R&D (Non-GAAP) -4% due to lower bonus accrual, partially offset by product development costs S&M (Non-GAAP) -20% due to lower bonus accrual and reduced marketing expenses Adjusted G&A (Non-GAAP) -27% due to lower bonus accrual and lower normal course legal costs Adjusted OpEx (Non-GAAP) dollars -9% q/q: Sequential decline due to lower bonus accrual and realization of the RIF impact Note: $ in millions (unless noted), unaudited. Percentages and sums have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. R&D (non-GAAP), S&M (non-GAAP), Adjusted G&A (non-GAAP) and Adjusted Operating Expenses (non-GAAP) are each non-GAAP measures. 15#16FY24 Outlook 16#17FY24 Outlook: Balancing Investment to Drive Margin Expansion Revenue % (decline) / growth constant currency GAAP Gross Margin Adjustments¹ Non-GAAP Gross Margin¹ 1 Adjusted EBITDA Adjusted EBITDA Margin FY23 Actuals $1.655 billion (6%) (3%) 43.3% 0.4% 43.7% $153.9 million 9.3% FY24 Outlook $1.6 to 1.7 billion (3%) to 3% (3%) to 3% 45.0% to 46.0% 0.4% 45.4% to 46.4% $150-180 million 9.4% 10.6% Key Assumptions Midpoint of guidance implies O O O Revenue of $1.65 billion (flattish y/y) GAAP Gross Profit of $751 million (+5% y/y) O GAAP Gross Margin of 45.5% (+220 bps y/y) Adjusted EBITDA of $165 million (+7.2% y/y, 10% margin, +70 bps y/y) Revenue guidance assumes O No material recovery in run-rate registration trends observed in 2H23 Revenue from new product introductions of over $100 million, largely from one product in a new, multi-billion dollar category to be launched in 2H24 FY24 Gross margin recovery driven by lower component costs, favorable product mix, and reductions to inventory reserves and component spot buys Note: Adjusted EBITDA, Adjusted EBITDA Margin and constant currency 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. FY24 outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. 1 Non-GAAP gross margin excludes approximately $7 million (0.4% of revenue) of stock-based compensation and amortization of intangible assets included in GAAP gross margin 17#18The Sonos Story 12 18#19Sonos at a Glance 2002 SONOS SONOB SONOS Founded wwwwww 20 Products 10 Locations 2 Services 1,800+ Employees 3,300+ US Patents and Applications 60 Countries distributed $1.66B FY23 Revenue SONOS 19#20Broad Product Portfolio Spanning Variety of Price Points Portables Roam $179 Home Theater Move 2 $449 Amp $699 Ray $279 Components and Architectural All-in-One Speakers Port $449 Era 100 $249 Beam $499 Era 300 $449 Sonance $659 Sonance $659 Five $549 Sonance $879 IKEA SYMFONISK Bookshelf speaker $139 Arc $899 IKEA SYMFONISK Speaker lamp $249 Automotive CXXO Audi IKEA SYMFONISK Picture frame speaker $259 Sub Mini $429 IKEA SYMFONISK Floor lamp speaker $299 Sub $799 20#21Market Position Sonos is differentiated by our unique combination of an open content and control platform with high-quality, premium hardware that spans a variety of form factors, use cases, and price points. No other company has created an interoperable suite of products serving customers in the home and beyond. "Big tech" focused on the adoption of their voice assistants through a range of household devices, including more commoditized audio devices that compromise on privacy, design, and sound experience. Legacy companies have been focused on acoustics and hardware for decades, offering single-product solutions. They lack the software and networking capabilities to compete in the future of audio. Premium Commodity Legacy home audio SONOS Google amazon Walled garden Open platform 21#22Sonos Innovation Is Widely Adopted Sonos founded June 2002 Jan 2002 Sonos demos at D2 June 2004 Jan 2004 Sonos releases digital music system in February 2005 SONOS Jan 2006 Jan 2008 Jan 2010 Jan 2012 Amazon Echo Jan 2014 Denon Heos Lenbrook Bluesound Jan 2016 Google Home Jan 2018 Apple HomePod Present 22#23Yet We Remain the Leader $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc Sonos Sub United States Sonos Beam Source: Circana for US, GfK UK and DE Notes: 1 - EMEA includes UK and DE 2 - Home Theater includes soundbars and wireless subwoofers FY23 Top Ranked Models (by $ share) $150+ Streaming Audio Brand Rank: #2 Top Products in Category Sonos One SL Sonos Amp Sonos Move $200+ Home Theater² Brand Rank: #1 Top Products in Category Sonos Arc Sonos Beam EMEA¹ Sonos Sub $150+ Streaming Audio Brand Rank: #2 Top Products in Category Sonos One SL Sonos One Sonos Move 23#24Why the Sonos Ecosystem Wins "Software Eats Audio" - We have invested over $1.2 billion into R&D over the last 5 years Hardware Sound Design Quality Durability Sounds great, looks beautiful, and lasts + Software Easy to use Reliable All works together Rich patent portfolio System + Services 130+ third-party apps 2 voice providers 2 first-party services (Sonos Radio & Sonos Voice Control) Open platform and choice 24#25Our Innovation Is Protected by a Robust and Growing Patent Portfolio Total Sonos U.S. Patents and Patent Applications (filed over time, cumulative) 2500 2000 1500 1000 500 ● 0 2 2003 V 2004 15 2005 2006 30 2 2007 34 7 2008 35 8 2009 Total U.S. Patent Applications Total U.S. Issued Patents Source: internal data 40 12 2010 68 15 2011 114 21 2012 186 29 2013 307 43 2014 455 109 2015 660 215 2016 778 361 2017 1000 563 2018 1234 756 2019 1497 962 2020 1766 1154 2021 2029 1322 2022 25#26Open Platform Enables Freedom of Choice 130+ Content Partners Spotify pandora® ...deezer amazon music SONOS Radio ►YouTube Music TIDAL Yandex Music Music audible Pocket Casts Calm Clubhouse Home Automation & Home Control Partners CRESTRON Control LUTRON. SAVANT Llegrand JOSH IPORT IKEA SONANCE brilliant SEXIC hansgrohe Voice Assistants Sonos Voice Control Google Assistant amazon alexa 26#27Key Drivers of Long Term Growth 1 Continue to raise the bar in existing product categories "The Sonos Flywheel" New households enter the Sonos ecosystem, and existing households purchase additional products at a steady rate. 2 Enter new product categories Driven by Large growing addressable market Just scratching the surface: Currently ~2% share of $100B global audio market¹ and -9% share of 172M affluent households2 in core markets 3 Expand geographic reach Underpinned by 4 New business initiatives and services Durable secular tailwinds Continued growth in audio and video content consumption and formats Evolution of remote work and impact on how and where consumers live Widespread adoption of immersive object-based audio ("spatial audio") delivered via Dolby Atmos 1- Source: Futuresource CY2022 2- Source: Euromonitor 2023 Core Markets include the United States, Canada, Mexico, Australia, New Zealand, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland, Poland and Luxembourg 27#28Large and Growing Install Base Total Households Existing Households 4.6 1.2 FY2016 5.9 1.3 FY2017 Net New Households 7.4 1.5 FY2018 19% CAGR 9.1 1.7 FY2019 10.9 1.8 FY2020 12.6 1.7 FY2021 14.0 1.4 FY2022 15.3 1.3 FY2023 28#29Framing Our Long Term Opportunity: Households PLUS Geographic Expansion 391M Households in Core Markets¹ 172M Affluent ($75k+²) Households ~9% Current penetration of total affluent households 15M Sonos FY23 Households Source: Euromonitor 2023 1. Core Markets include the United States, Canada, Mexico, Australia, New Zealand, United Kingdom, Germany, Netherlands, Sweden, Denmark, France, Switzerland, Norway, Belgium, Italy, Austria, Spain, Ireland, Finland, Poland and Luxembourg 2. Represents disposable income as defined by the OECD 29#30Our Install Base Continues to Purchase Additional Sonos Products A significant portion of our annual product registrations come from our existing households (HHs), many of which start with just one product. Lifetime value of customers grows as products per HH increases Products registered (M) % to existing households Sonos households (M) New households Products per HH Increase Single product households (M) % of total Multi-product households (M) % of total Products per >1 household Increase 2018 21.0 36% 7.4 2.82 2.8 38% 4.6 62% 3.94 2019 26.1 36% 9.1 1.7 2.87 0.04 3.5 38% 5.6 62% 4.01 0.07 2020 2021 37.1 46% 31.6 41% 10.9 1.8 2.90 0.03 4.2 39% 6.6 61% 4.11 0.10 12.6 1.7 2.95 0.05 5.0 40% 7.5 60% 4.25 0.14 2022 2023 41.8 46.6 44% 44% 14.0 1.4 2.98 0.03 5.6 40% 8.4 60% 4.30 0.05 15.3 1.3 3.05 0.06 6.1 40% 9.2 60% 4.41 0.11 Incremental revenue opportunity: single product HH we have today 6.1 M Single product households x 3.41 Additional products X to reach 4.41 >$6 billion Incremental revenue opportunity $289 FY23 revenue per product sold In addition to converting single product HHs, we believe there is significant room to grow average multi-product HH size beyond 4.41 products. 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. 30#31NEW: A Detailed Look at Customer Behavior and Install Base Monetization Over Time Consistent repurchase behavior across larger cohorts and greater monetization of products sold underscores our conviction to deliver our long term financial targets Cohorts behave similarly over time, regardless of when first purchased Average Registrations per Customer 3.0 2.5 2.0 1.5 1.0 1.7 1.6 Day 1 2.0 1.9 6 months % of customers who have repurchased 2017-2019 2020-2023 2.2 2.0 12 months 6 months 17% 16% 2.3 2.2 18 months 12 months 25% 22% 2017-2019 -2020-2023 2.4 24 months 2.3 18 months 29% 26% 2.6 2.4 30 months Steady repurchase participation: after 3 years, over one-third of customers have repurchased 24 months 33% 29% 30 months 36% 32% 2.7 Source: internal data Note: Unaudited. Cohort defined as average customer/household across respective fiscal year periods 2.4 36 months 36 months 38% 34% Cohort LTV amplified by higher average revenue per product $222 $265 Average revenue per product, FY17-19 Average revenue per product, FY20-23 1.48M Average net new HH, FY17-19 + 1.55M Average net new HH, FY20-23 Greater LTV per Cohort 31#32Launching 2+ Products Annually Drives Household Acquisition & Repurchase Activity We continue to launch new products across our five current categories (all in one, home theater, components, portables and Pro) All in One Home Theater Partner Products/ Components Portables Services/Other FY18 Sonos One Beam (Gen 1) Amp FY19 One SL SYMFONISK Table Lamp & Bookshelf Port Sonos by Sonance FY20 Five Arc Sub (Gen 3) Move Sonos Radio FY21 SYMFONISK Picture Frame Roam Sonos Radio HD FY22 Beam (Gen 2) Ray Roam SL Roam Colors Sonos Voice Control FY23 Era 100 Era 300 Sub Mini SYMFONISK Floor Lamp Move 2 Sonos Pro 32#33Framing Our Long Term Opportunity: Revenue PLUS Audio content, services & business $100B Global Audio $30B Global Home Audio $22B Premium Global Home Audio ~2% Current penetration of global audio market $1.66B Sonos FY23 Revenue Source: Futuresource CY2022, 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 33#34Where We Are & Where We Are Going FY24 Guidance Midpoint $1,650M Revenue 45.5% GAAP Gross Margin $165M Adjusted EBITDA Long Term Financial Targets $2,500M Revenue 45-47% GAAP Gross Margin $375-450M Adjusted EBITDA Note: FY24 Adjusted EBITDA target of $165 million represents 10.0% Adjusted EBITDA margin. Long term targets of $375-450 million represent previously issued Adjusted EBITDA margin targets of 15-18% 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. FY24 and long term outlook only as of the date of this presentation. See "Forward-Looking Statements" for more information. 34#35Diversified Channel Distribution Challenges in the retail environment and changes in consumer shopping patterns have resulted in business mix shifts into higher-margin channels, like DTC and Installer Solutions. (45% combined, +90 bps y/y) Retail and Other % yoy DTC % yoy Installer Solutions (IS) % yoy Total Revenue % yoy % of revenue Retail & Other DTC IS % DTC + IS 2018 830 131 176 1,137 73% 12% 15% 27% 2019 930 12% 154 17% 176 0% 1,261 11% 74% 12% 14% 26% 2020 838 (10%) 284 84% 205 16% 1,326 5% 63% 21% 15% 37% 2021 1,011 21% 416 47% 290 41% 1,717 29% 59% 24% 17% 41% Note: $ in millions (unless noted), unaudited. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. 2022 987 (2%) 395 (5%) 371 28% 1,752 2% 56% 23% 21% 44% 2023 918 (7%) 394 (0%) 343 (7%) 1,655 (6%) 55% 24% 21% 45% Fiscal 2023 y/y comparisons impacted by backlog fulfillment and supply normalization in Fiscal 2022 O Retail & Other (55% of revenue, -90 bps), -7% y/y Adversely affected by partner channel inventory reductions, softening consumer demand, particularly in EMEA and APAC, and FX headwinds DTC (24% of revenue, +130 bps), flat y/y O Growth in the Americas is offset by FX headwinds in EMEA and APAC Installer Solutions (21% of revenue, -40 bps), -7% y/y Decline due to channel destocking throughout Fiscal 2023 O 35#36Summary Financial Overview Americas % y/y EMEA % y/y APAC % y/y Total Revenue % yly % y/y - CC GAAP Gross Profit % GAAP gross margin Non-GAAP Gross Profit % Non-GAAP gross margin Non-GAAP Operating Expenses R&D % of revenue S&M % of revenue Adjusted G&A % of revenue Total Operating Expenses % of revenue Adjusted EBITDA % margin Cash From/(Used in) Operations Capex Free Cash Flow 2018 603 479 55 1,137 489 43.0% 490 43.1% 128 11% 255 22% 77 7% 460 40% 69 6.1% 31 (36) (5) (7%) 2019 678 12% 485 1% 98 78% 1,261 11% 13% 527 41.8% 528 41.9% 154 12% 235 19% 88 7% 476 38% 89 7.0% 121 (23) 97 2020 756 11% 471 (3%) 100 2% 1,326 5% 6% 572 43.1% 573 43.2% 185 14% 229 17% 85 6% 499 38% 109 8.2% 162 (33) 129 2021 981 30% 618 31% 117 18% 119% 1,717 29% 26% 810 47.2% 812 47.3% 204 12% 261 15% 100 6% 565 33% 279 16.2% 253 (46) 208 2022 1,044 6% 578 (7%) 130 11% 1,752 2% 5% 796 45.4% 800 45.7% 222 13% 265 15% 119 7% 607 35% 227 12.9% (28) (46) (74) (33%) 2023 1,048 0% 518 (10%) 89 (32%) 1,655 (6%) (3%) 716 43.3% 723 43.7% 257 16% 246 15% 108 7% 612 37% 154 9.3% 100 (50) 50 2024 - Guidance Midpoint 33% 1,650 0% 0% 751 45.5% 758 45.9% 110% 75% % of Adjusted EBITDA Note: $ in millions (unless noted), CC = constant currency, unaudited. FY24 guidance as of the date of this presentation. Non-GAAP gross profit/margin exclude stock-based compensation and amortization of intangibles allocated to cost of revenue. Non-GAAP operating expense figures exclude excluding stock-based compensation, legal and transaction related fees, amortization of intangibles, and restructuring and abandonment costs. Non-GAAP gross margin excludes amortization of intangible assets and stock-based compensation allocated to GAAP cost of revenue Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. Adjusted EBITDA, Adjusted EBITDA margin and free cash flow are non-GAAP measures. *See appendix for reconciliation of GAAP to non-GAAP measures 649 39% 165 10% 36#37Appendix 37#38Reconciliation of Operating (Loss) Income to Adjusted EBITDA Operating (Loss) Income (GAAP) Stock-based compensation Legal and transaction related costs (1) Amortization of intangibles Restructuring and abandonment costs (2) Adjusted Operating Income (Non-GAAP) Depreciation Adjusted EBITDA (Non-GAAP) Three Months Ended September 30, 2023 $ (28,361) 17,308 2,944 1,493 474 $ (6,142) 12,422 $ 6,280 October 1, 2022 $ (60,064) 18,177 5,529 2,046 $ (34,312) 8,759 $ (25,553) Twelve Months Ended October 1, 2022 September 30, 2023 $ (20,547) 76,857 32,950 6,182 15,649 $ 111,091 42,787 $ 153,878 $ 89,532 75,640 22,873 5,206 $ 193,251 33,298 $ 226,549 Notes: $ in thousands, unaudited 1 - 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. 2- On June 14, 2023, the Company initiated a restructuring plan to reduce its cost base (the "2023 restructuring plan"). The 2023 restructuring plan included a reduction in force involving approximately 7% of its employees, further reducing the Company's real estate footprint, and re-evaluating certain program spend. Total pre-tax restructuring and abandonment costs under the 2023 restructuring plan were $11.4 million, substantially all of which were incurred in the third quarter of fiscal 2023, with nominal amounts to be incurred through the first quarter of fiscal 2024. Total restructuring and abandonment costs for the nine months ended July 1, 2023, include $4.8 million non-recurring lease abandonment charges that were incurred in March 2023, when the Company abandoned portions of its office spaces for the remainder of their respective lease terms in support of operational efficiencies. 38#39Reconciliation of Net (Loss) Income to Adjusted EBITDA Twelve Months Ended September 30, October 1, 2023 2022 (In thousands, except percentages) Net (loss) income Add (deduct): Depreciation and amortization Stock-based compensation expense Interest income Interest expense Other (income) expense, net (Benefit from) provision for income taxes Legal and transaction related costs (1) Restructuring and abandonment costs (2) Adjusted EBITDA Revenue Net (loss) income margin Adjusted EBITDA margin Three Months Ended September 30, October 1, 2023 2022 $ (31,239) 13,915 17,308 (2,661) 149 6,696 (1,306) 2,944 474 $ 6,280 $ 305,147 (10.2)% 2.1% $ (64,067) 10,805 18,177 (1,070) 168 8,364 (3,459) 5,529 $ (25,553) $316,290 (20.3)% (8.1)% $ (10,274) 48,969 76,857 (10,201) 733 (15,473) 14,668 32,950 15,649 $ 153,878 $ 1,655,255 (0.6)% 9.3% $ 67,383 38,504 75,640 (1,655) 552 21,905 1,347 22,873 $ 226,549 $1,752,336 3.8% 12.9% Notes: $ in thousands, unaudited 1 - 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. 2 - On June 14, 2023, the Company initiated a restructuring plan to reduce its cost base (the "2023 restructuring plan"). The 2023 restructuring plan included a reduction in force involving approximately 7% of its employees, further reducing the Company's real estate footprint, and re-evaluating certain program spend. Total pre-tax restructuring and abandonment costs under the 2023 restructuring plan were $11.4 million, substantially all of which were incurred in the third quarter of fiscal 2023, with nominal amounts to be incurred through the first quarter of fiscal 2024. Total restructuring and abandonment costs for the nine months ended July 1, 2023, include $4.8 million non-recurring lease abandonment charges that were incurred in March 2023, when the Company abandoned portions of its office spaces for the remainder of their respective lease terms in support of operational efficiencies. 39#40Reconciliation 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, and intangible assets Free cash flow Note: $ in thousands, unaudited. Three Months Ended October 1, 2022 $ (103,917) (21,269) $ (125,186) September 30, 2023 $ 22,195 (10,201) $ 11,994 Twelve Months Ended October 1, 2022 September 30, 2023 $ 100,406 (50,286) $ 50,120 $ (28,260) (46,216) $ (74,476) 40