Sonos Inc
For the period ended Jun 28, 2025. Filed Aug 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 28, 2025 · Filed Aug 6, 2025
SONO$16.41+0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-08.
0001314727-25-000056
Item 2. Management’s discussion and analysis of financial condition and results of operationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-06.
0001314727-25-000074
Item 2. Management’s discussion and analysis of financial condition and results of operationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 90 previous paragraphs and 93 current paragraphs.
57 unchanged; 25 reworded; 11 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
On July 22, 2025, our board of directors appointed Tom Conrad as our new Chief Executive Officer, following his tenure as interim Chief Executive Officer since January 13, 2025. Under Mr. Conrad's direction, we have significantly improved our software products, reorganized our operations to improve our efficiency and effectiveness and recommitted to delivering the kind of premium experience our customers expect. With every new product, software feature and integration, the Sonos platform becomes more powerful and provides greater value to our customers.
Current report
February 2025 (the "2025 restructuring plan") which are expected to result in approximately $20 million in savings during the remainder of fiscal 2025. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information. Furthermore, we remain focused on additional transformation efforts to improve both our operational efficiency and effectiveness. Additionally, during the third quarter of fiscal 2025, we began the process of exiting a partnership with one of our contract manufacturers to consolidate and improve supply chain efficiency. We expect to complete this exit with minimal disruption to our business by the second quarter of fiscal 2026. This exit did not impact the third quarter fiscal 2025. We continue to maintain diversified contract manufacturing partnerships.
Current report
The volume of products sold decreased 10.6% for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, consistent with the decline in revenue.
Current report
Cost of revenue decreased $10.5 million, or 5.1%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to a decrease in products sold and a decrease in product and material costs, partially offset by an increase in inventory-related write-downs.
Current report
Research and development expenses excluding restructuring and other costs decreased $13.2 million, or 17.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, our reorganization efforts, and timing of product development costs.
Current report
Research and development expenses excluding restructuring and other costs decreased $26.9 million, or 11.5%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and our reorganization efforts.
Current report
Sales and marketing expenses excluding restructuring and other costs decreased $7.5 million, or 3.5%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower marketing costs compared to the prior year when we incurred costs associated with our launch of Sonos Ace in June 2024, lower personnel-related costs due to lower headcount, partially offset by increased depreciation costs associated with our product displays, and increased investment in customer experience.
Current report
General and administrative expenses excluding restructuring and other costs decreased $4.5 million, or 13.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, and lower professional and information technology costs as a result of our cost transformation efforts.
Current report
General and administrative expenses excluding restructuring and other costs decreased $30.2 million, or 26.7%, for the nine months ended June 28, 2025, compared to the nine months ended June 29, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, and lower professional and information technology costs as a result of our cost transformation efforts.
Current report
Provision for Income Taxes
Current report
We are subject to income taxes in the United States and foreign jurisdictions in which we operate. Foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rate will vary depending on jurisdictional mix of earnings, and changes in tax laws. In addition, certain U.S. tax regulations subject the earnings of our non-U.S. subsidiaries to current taxation in the United States. Our effective tax rate will be impacted by our ability to claim deductions and foreign tax credits to offset the taxation of foreign earnings in the United States. On July 4, 2025, H.R.1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”) was enacted. We continue to evaluate the bill's impact on our consolidated financial statements.
Removed paragraphs (8)
Previous report
The volume of products sold decreased 8.3% for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, primarily driven by expected declines in units sold of Sonos One and Arc, as well as Roam and Move. These declines were partially offset by the introduction of Arc Ultra and Ace, as well as increases in sales of Era 100.
Previous report
Cost of revenue increased $5.5 million, or 3.9%, for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, primarily due to shift into higher cost products, and the impact of reorganization efforts, partially offset by a decrease in inventory-related write-downs and a decrease in product and material costs.
Previous report
Research and development expenses excluding restructuring and other costs decreased $15.7 million, or 19.5%, for the three months ended March 29, 2025 compared to the three months ended March 30, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and lower product development spend.
Previous report
Research and development expenses excluding restructuring and other costs decreased $13.7 million, or 8.6%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and lower product development spend, partially offset by stock-based compensation expense related to retention of key personnel.
Previous report
Sales and marketing expenses excluding restructuring and other costs increased $2.4 million, or 1.6%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024. This was primarily driven by app recovery spend and depreciation costs associated with our product displays, partially offset by decreased advertising and marketing activity, lower personnel-related costs due to lower headcount, and lower revenue-related sales fees.
Previous report
General and administrative expenses excluding restructuring and other costs decreased $11.8 million, or 29.0%, for the three months ended March 29, 2025 compared to the three months ended March 30, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and a decrease in legal fees mainly related to our IP litigation.
Previous report
General and administrative expenses excluding restructuring and other costs decreased $25.7 million, or 31.9%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount and a decrease in legal fees mainly related to our IP litigation.
Previous report
Provision for (Benefit from) Income Taxes
Reworded paragraphs (25)
Previous wording
During the second half of fiscal 2024, we started a cost transformation initiative aimed at optimizing our investments for sustainable, long-term growth and enhance our agility. We've taken steps to streamline, reorganize and flatten our organizational structures, including workforce reductions of approximately 6% in August 2024 (the "2024 restructuring plan") and approximately 12% in February 2025 (the "2025 restructuring plan"). These restructuring efforts are expected to result in approximately $42.0 million in savings during the remainder of fiscal 2025. Furthermore, we've been working to rationalize our product roadmap and we intend to continue to take steps that drive operating efficiency. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.
Current wording
During the second half of fiscal 2024, we started a cost transformation initiative aimed at optimizing our investments for sustainable, long-term growth and to enhance our agility. We've taken steps to streamline, reorganize and flatten our organizational structures, including workforce reductions of approximately 6% in August 2024 (the "2024 restructuring plan") and approximately 12% in
Previous wording
Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as inflation, ongoing geopolitical conflicts, uncertainty in the markets, volatility in exchange rates, low or negative growth in certain regions, declining consumer sentiment of international customers towards US-based companies as a result of US trade policy, and uncertainty in consumer demand. In addition, our business may be adversely impacted by the potential expansion of tariffs on goods imported into the U.S., as well as any retaliatory tariffs or policies enacted in other countries.
Current wording
Our business and financial performance depend significantly on worldwide economic conditions. We face global macroeconomic challenges such as inflation, ongoing geopolitical conflicts, uncertainty in the markets, volatility in exchange rates, low or negative growth in certain regions, declining consumer sentiment of international customers towards U.S.-based companies as a result of U.S. trade policy, and uncertainty in consumer demand. In addition, our business may be adversely impacted by the potential expansion of tariffs on goods imported into the U.S., as well as any retaliatory tariffs or policies enacted in other countries.
Previous wording
Products sold represents the number of products that are sold during a period, net of returns and includes the sale of products in the Sonos speakers and Sonos system products categories, as well as module units sold through our partnerships from our Partner products and other revenue category. Growth rates between products sold and revenue are not perfectly correlated because our revenue is affected by other variables, such as the mix of products sold during the period, promotional discount activity, the introduction of new products that may have higher or lower than average selling prices, changes to selling prices, as well as the impact of recognition of previously deferred revenue.
Current wording
Products sold represents the number of products that are sold during a period, net of returns and includes units sold from the Sonos speakers and Sonos system products categories, and module units sold through our partnerships from our Partner products and other revenue category. Growth rates between products sold and revenue are not perfectly correlated because our revenue is affected by other variables, such as the mix of products sold during the period, promotional discount activity, the introduction of new products that may have higher or lower than average selling prices, changes to selling prices, the impact of foreign exchange rate fluctuations, as well as the impact of recognition of previously deferred revenue.
Previous wording
(2)Restructuring and other charges for the three and six months ended March 29, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.
Current wording
(2)Restructuring and other charges for the three and nine months ended June 28, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non- recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.
Previous wording
Total revenue increased $7.1 million, or 2.8%, for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, primarily due to the introduction of Arc Ultra in October 2024 and Ace in June 2024, partially offset by softer demand due to challenging market conditions and the impact of unfavorable foreign exchange rates.
Current wording
Total revenue decreased $52.4 million, or 13.2%, for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to lapping the launch of Ace in the previous year and softer demand due to challenging market conditions, partially offset by the introduction of Arc Ultra in October 2024.
Previous wording
Sonos speakers revenue represented 74.9% of total revenue for the three months ended March 29, 2025 and increased 3.9% compared to the three months ended March 30, 2024, primarily driven by the introduction of Arc Ultra and Ace, partially offset by expected declines in sales of Arc. Sonos system products represented 19.5% of total revenue for the three months ended March 29, 2025 and increased 2.6% compared to the three months ended March 30, 2024. Partner products and other revenue represented 5.7% of total revenue for the three months ended March 29, 2025 and decreased 8.9% compared to the three months ended March 30, 2024.
Current wording
Sonos speakers revenue represented 73.6% of total revenue for the three months ended June 28, 2025 and decreased 15.8% compared to the three months ended June 29, 2024, primarily driven by expected declines in sales of Arc, lapping the launch of Ace, and softer demand due to challenging market conditions, partially offset by the introduction of Arc Ultra. Sonos system products represented 21.2% of total revenue for the three months ended June 28, 2025 and decreased 2.7% compared to the three months ended June 29, 2024. Partner products and other revenue represented 5.2% of total revenue for the three months ended June 28, 2025 and decreased 14.1% compared to the three months ended June 29, 2024.
Previous wording
The volume of products sold increased 2.8% for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, primarily driven by the introduction of Arc Ultra and Ace, partially offset by expected declines in sales of Arc.
Current wording
The volume of products sold decreased 15.8% for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, consistent with the decline in revenue.
Previous wording
Total revenue decreased $54.9 million, or 6.3%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, primarily due to softer demand due to market conditions and challenges resulting from our 2024 app rollout, partially offset by the introduction of Arc Ultra in October 2024 and Ace in June 2024.
Current wording
Total revenue decreased $107.3 million, or 8.5%, for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to softer demand due to market conditions and challenges resulting from our 2024 app rollout, partially offset by the introduction of Arc Ultra in October 2024.
Previous wording
Sonos speakers revenue represented 81.6% of total revenue for the six months ended March 29, 2025 and decreased 4.1% compared to the six months ended March 30, 2024, primarily driven by expected declines in sales of Arc and Sonos One, as well as Move. These declines were partially offset by the introduction of Arc Ultra and Ace, as well as Era 100. Sonos system products represented 13.7% of total revenue for the six months ended March 29, 2025 and decreased 17.2% compared to the six months ended March 30, 2024, due to lower sales to our installed solutions channel. Partner products and other revenue represented 4.7% of total revenue for the six months ended March 29, 2025 and decreased 8.0% compared to the six months ended March 30, 2024.
Current wording
Sonos speakers revenue represented 79.2% of total revenue for the nine months ended June 28, 2025 and decreased 7.7% compared to the nine months ended June 29, 2024, primarily driven by expected declines in sales of Arc and Sonos One, as well as Move and Beam. These declines were partially offset by the introduction of Arc Ultra, as well as Era 100. Sonos system products represented 15.9% of total revenue for the nine months ended June 28, 2025 and decreased 12.0% compared to the nine months ended June 29, 2024, due to lower sales to our installed solutions channel. Partner products and other revenue represented 4.9% of total revenue for the nine months ended June 28, 2025 and decreased 10.0% compared to the nine months ended June 29, 2024.
Previous wording
The following table presents the change in revenue for the three and six months ended March 29, 2025 compared with the three and six months ended March 30, 2024:
Current wording
The following table presents the change in revenue for the three and nine months ended June 28, 2025 compared with the three and nine months ended June 29, 2024:
Previous wording
Cost of revenue decreased $15.2 million, or 3.2%, for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, primarily due to a decrease in products sold as well as a decrease in product and material costs, partially offset by a shift into higher cost products, the impact of reorganization efforts, and increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets.
Current wording
Cost of revenue decreased $25.7 million, or 3.8%, for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to a decrease in products sold as well as a decrease in product and material costs, partially offset by a shift into higher cost products, the impact of reorganization efforts, and increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets.
Previous wording
Our gross margin has fluctuated and may, in the future, fluctuate from period to period based on a number of factors, including the mix of products we sell, the mix of channels through which we sell our products, fluctuations of our product and material cost savings, fluctuations in our product and material and logistics markets, product pricing strategies and promotional activity, the foreign currency in which our products are sold, and tariffs and duty costs implemented by governmental authorities.
Current wording
Our gross margin fluctuates from period to period based on a number of factors, including the mix of products we sell, the mix of channels through which we sell our products, fluctuations of our product and material cost savings, fluctuations in our product and material and logistics markets, product pricing strategies and promotional activity, the foreign currency in which our products are sold, and tariffs and duty costs implemented by governmental authorities.
Previous wording
Gross margin decreased 60 basis points for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, primarily due to the impact of reorganization efforts, and the impact of unfavorable foreign exchange rates, partially offset by decreased inventory-related write-downs and decreased product and material costs.
Current wording
Gross margin decreased 490 basis points for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, primarily due to an increase in inventory-related write-downs, the impact of reorganization efforts, and deleverage resulting from lower revenue, partially offset by a decrease in product and material costs.
Previous wording
Gross margin decreased 180 basis points for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, primarily due to unfavorable channel mix, the impact of reorganization efforts, and increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets, partially offset by decreased product and material costs and favorable product mix.
Current wording
Gross margin decreased 270 basis points for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, primarily due to the impact of reorganization efforts, unfavorable channel mix, an increase in inventory-related write-downs, increased depreciation and amortization primarily related to the completion of our Mayht in-process research and development project and related reclassification into finite-lived intangible assets, partially offset by decreased product and material costs and favorable product mix.
Previous wording
(1)Restructuring and other charges for the three and six months ended March 29, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.
Current wording
(1)Restructuring and other charges for the three and nine months ended June 28, 2025, primarily reflect costs associated with our cost transformation initiative including the 2025 restructuring plan and rationalization of our product roadmap, as well as non-recurring CEO transition costs related to modifications to equity awards. See Note 13. Restructuring and Other Charges in the notes to condensed consolidated financial statements for further information.
Previous wording
Sales and marketing expenses excluding restructuring and other costs decreased $0.4 million, or 0.7%, for the three months ended March 29, 2025 compared to the three months ended March 30, 2024. This decrease was primarily driven by lower personnel-related costs due to lower headcount, partially offset by increased depreciation costs associated with our product displays.
Current wording
Sales and marketing expenses excluding restructuring and other costs decreased $9.9 million, or 13.9%, for the three months ended June 28, 2025, compared to the three months ended June 29, 2024. This decrease was primarily driven by lower marketing costs compared to the prior year when we incurred costs associated with our launch of Sonos Ace in June 2024, and lower personnel-related costs due to lower headcount, partially offset by increased depreciation costs associated with our product displays.
Previous wording
General and administrative expenses consist of administrative personnel-related expenses for our finance, legal, human resources and similar personnel, as well as the costs of professional services, information technology, litigation, patents, related overhead, and other administrative expenses.
Current wording
General and administrative expenses consist of administrative personnel-related expenses for our information technology, finance, legal, human resources, and similar personnel, as well as the costs of professional services, information technology, litigation, patents, related overhead, and other administrative expenses.
Previous wording
Interest income for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, decreased due to lower cash balances. Interest expense for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, decreased primarily due to lower interest expense on a foreign income tax obligation. Other income (expense), net for the three months ended March 29, 2025 compared to the three months ended March 30, 2024, increased from other expenses of $3.3 million for the three months ended March 30, 2024 to other income of $0.2 million for the three months ended March 29, 2025 due to foreign currency exchange fluctuations.
Current wording
Interest income for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, decreased due to lower cash balances. Interest expense for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, remained relatively consistent. Other income (expense), net for the three months ended June 28, 2025 compared to the three months ended June 29, 2024, increased from other expenses of $2.5 million for the three months ended June 29, 2024 to other income of $0.7 million for the three months ended June 28, 2025 due to foreign currency exchange fluctuations.
Previous wording
Interest income for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, decreased due to lower cash balances. Other income (expense), net for the six months ended March 29, 2025 compared to the six months ended March 30, 2024, decreased from other income of $7.0 million for the six months ended March 30, 2024 to other expense of $5.8 million for the six months ended March 29, 2025 due to foreign currency exchange fluctuations.
Current wording
Interest income for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, decreased due to lower cash balances. Other income (expense), net for the nine months ended June 28, 2025 compared to the nine months ended June 29, 2024, decreased from other income of $4.5 million for the nine months ended June 29, 2024 to other expense of $5.2 million for the nine months ended June 28, 2025 due to foreign currency exchange fluctuations.
Previous wording
We recognized a tax provision of $11.0 million for the three months ended March 29, 2025, compared to a benefit from income taxes of $0.7 million for the three months ended March 30, 2024. This increase was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax provision for the period ending March 29, 2025 versus the discrete method used to calculate the income tax benefit for the period ending March 30, 2024.
Current wording
We recognized tax provisions of $2.6 million and $8.9 million for the three months ended June 28, 2025 and ended June 29, 2024, respectively. This decrease was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax provision for the period ending June 28, 2025 versus the discrete method used to calculate the income tax provision for the period ending June 29, 2024.
Previous wording
We recognized tax provisions of $4.6 million and $11.2 million for the six months ended March 29, 2025 and March 30, 2024, respectively. This decrease was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax benefit for the period ending March 29, 2025 versus the method used to calculate the income tax provision for the period ending March 30, 2024.
Current wording
We recognized tax provisions of $7.1 million and $20.2 million for the nine months ended June 28, 2025 and June 29, 2024, respectively. This decrease was driven by a change in the prescribed U.S. GAAP method to calculate the interim income tax provision for the period ending June 28, 2025 versus the method used to calculate the income tax provision for the period ending June 29, 2024.
Previous wording
Our operations are financed primarily through cash flows from operating activities. As of March 29, 2025, our principal sources of liquidity consisted of cash flows from operating activities, cash and cash equivalents of $173.2 million, including $72.9 million held by our foreign subsidiaries, marketable securities of $50.3 million, proceeds from the exercise of stock options, and borrowing capacity under the credit facility under our Revolving Credit Agreement. In accordance with our policy, the undistributed earnings of our non-U.S. subsidiaries remain indefinitely reinvested outside of the United States as of March 29, 2025, as they are required to fund needs outside of the United States. In the event funds from foreign operations are needed to fund operations in the United States and if U.S. tax has not already been previously provided, we may be required to accrue and pay additional U.S. taxes to repatriate these funds.
Current wording
Our operations are financed primarily through cash flows from operating activities. As of June 28, 2025, our principal sources of liquidity consisted of cash flows from operating activities, cash and cash equivalents of $201.3 million, including $91.8 million held by our foreign subsidiaries, marketable securities of $52.7 million, proceeds from the exercise of stock options, and borrowing capacity under the credit facility under our Revolving Credit Agreement. In accordance with our policy, the undistributed earnings of our non-U.S. subsidiaries remain indefinitely reinvested outside of the United States as of June 28, 2025, as they are required to fund needs outside of the United States. In the event funds from foreign operations are needed to fund operations in the United States and if U.S. tax has not already been previously provided, we may be required to accrue and pay additional U.S. taxes to repatriate these funds.
Previous wording
Net cash provided by operating activities of $96.5 million for the six months ended March 29, 2025, consisted of net loss of $19.9 million, non-cash adjustments of $85.4 million, and a favorable impact of net changes in operating assets and liabilities of $31.0 million. Non-cash adjustments primarily consisted of stock-based compensation expense, depreciation and amortization, as well as non-cash restructuring and other charges. The net increase in cash from the change in operating assets and liabilities was primarily due to a decrease in inventories of $92.6 million due to seasonality and as the result of measures taken to more efficiently manage inventory, an increase in accrued compensation of $10.5 million, an increase in other liabilities of $5.8 million primarily for provisions for our returns, and a decrease in accounts receivable of $4.7 million. The net increase in cash from the change in operating assets and liabilities was partially offset by a decrease in accounts payable of $83.6 million driven by payments for inventory purchases and payment of a non-recurring non-U.S. income tax due on the intercompany transfer of intellectual property to the U.S.
Current wording
Net cash provided by operating activities of $133.9 million for the nine months ended June 28, 2025, consisted of net loss of $23.3 million, non-cash adjustments of $133.0 million, and a favorable impact of net changes in operating assets and liabilities of $24.3 million. Non-cash adjustments primarily consisted of stock-based compensation expense, depreciation and amortization, as well as non-cash restructuring and other charges. The net increase in cash from the change in operating assets and liabilities was primarily due to a decrease in inventories of $106.2 million due to seasonality and as the result of measures taken to more efficiently manage inventory, a decrease in other assets of $11.6 million, and an increase in accrued compensation of $10.4 million. The net increase in cash from the change in operating assets and liabilities was partially offset by a decrease in accounts payable of $55.3 million due to lower inventory purchases, and an increase in accounts receivable of $49.0 million.
Previous wording
Cash used in investing activities of $17.2 million for the six months ended March 29, 2025, primarily consisted of the purchases of marketable securities of $25.9 million and purchases of property and equipment of $18.7 million mainly related to point-of-sale product displays and manufacturing-related tooling and test equipment to support the launch of new products, partially offset by cash provided by maturities of marketable securities of $27.4 million.
Current wording
Cash used in investing activities of $24.2 million for the nine months ended June 28, 2025, primarily consisted of the purchases of marketable securities of $43.9 million and purchases of property and equipment of $23.4 million mainly related to point-of-sale product displays and manufacturing-related tooling and test equipment to support the launch of new products, partially offset by cash provided by maturities of marketable securities of $43.2 million.
Previous wording
Cash used in financing activities of $74.2 million for the six months ended March 29, 2025, primarily consisted of payments for repurchases of common stock of $60.6 million and payments for repurchases of common stock related to shares withheld for tax in connection with vesting of stock awards of $16.2 million, partially offset by proceeds from the exercise of stock options of $2.7 million.
Current wording
Cash used in financing activities of $78.7 million for the nine months ended June 28, 2025, primarily consisted of payments for repurchases of common stock of $60.6 million and payments for repurchases of common stock related to shares withheld for tax in connection with vesting of stock awards of $20.8 million, partially offset by proceeds from the exercise of stock options of $2.7 million.