Sonos Emerges from Reliability Crisis, Bets on AI and Customer Loyalty for Growth
This analysis is based on original reporting from CX Dive. For daily updates on customer experience and technology, subscribe to the CX Dive newsletter.
Sonos, the audio technology specialist, appears to be navigating out of a turbulent period. The company's path to recovery began after a catastrophic software update in May 2024 eroded user confidence and triggered a leadership shakeup, culminating in the CEO's departure.
"We've spent the last year fundamentally rebuilding our software foundation," said CEO Patrick Conrad during the Q1 2026 earnings call. "Having restored baseline reliability last quarter, we are now positioned to return to growth." The financials show a company in transition: revenue dipped slightly to $546 million, a 1% year-over-year decline. However, CFO Saori Casey noted this represents a significant improvement from the steep drops of 6% and 3% seen in the first and second halves of fiscal 2025, respectively.
The strategy is now twofold. First, Sonos is re-engaging its product roadmap, recently unveiling the Sonos Amp Multi. "For a year, we had no new products to attract customers or drive upgrades," Conrad admitted. "That changes in the second half of 2026." The company promises tighter integration between hardware and software, aiming for a seamless ecosystem where each new addition enhances the whole.
Second, and more critically, Sonos is betting that restored reliability will directly fuel growth through customer advocacy. "System reliability isn't just a quality metric; it's a growth driver," Conrad argued. "When the system works flawlessly, customers trust it, expand it, and recommend it." This focus on advocacy hinges on excellence in performance, ease of use, and customer service.
Yet, Sonos isn't ignoring the future. Conrad outlined an ambitious vision where Sonos becomes a hub for "AI personalities" in the home. Leveraging its vast installed base, the company sees conversational and anticipatory AI as the next frontier. "AI can make the Sonos system smarter and more personal, anticipating your needs with minimal input," Conrad explained, suggesting features that curate content and adjust settings contextually long before voice commands are given.
Industry Voices:
Michael Torres, Tech Analyst at SoundVision Insights: "Sonos's recovery playbook is textbook: fix the core experience first. Their installed base is a massive asset for AI integration, but execution will be everything. They can't afford another misstep."
David Chen, Early Sonos Adopter: "Finally! The last app was so broken it made my expensive speakers useless. I'm cautiously optimistic they've learned their lesson, but 'AI personalities' sound like a solution in search of a problem. Just make the speakers work perfectly, first."
Rebecca Shaw, Retail Partner Manager: "The return to product launches is what the retail channel needs. Reliability stories are hard to sell on a shelf. New hardware, coupled with a stable ecosystem, gives us a compelling narrative again."
Anika Patel, Consumer Rights Advocate: "This 'advocacy' focus feels like PR spin. They compromised customer trust with shoddy software and now want praise for fixing their own mistake? Their growth should be driven by never failing their users so profoundly in the first place."