Coliseum capital increases stake in Sonos with $1.87 million purchase

Coliseum Capital Management, LLC has expanded its investment in Sonos Inc (NASDAQ:SONO) with a recent acquisition of shares valued at approximately $1.87 million. The purchases occurred on April 3 and April 7, 2025, involving a total of 209,663 shares of Sonos common stock. The shares were acquired at prices ranging from $8.38 to $9.17 per share. According to InvestingPro data, the stock is currently trading near its 52-week low of $7.95, having declined over 52% in the past year.

Following these transactions, Coliseum Capital Management, along with related entities, now holds a significant position in Sonos, owning a total of 12,118,088 shares. This includes shares held directly by Coliseum Capital Partners (WA:CPAP), L.P., and a separate account investment advisory client of Coliseum Capital Management. The company maintains strong liquidity with a current ratio of 1.64 and holds more cash than debt on its balance sheet.

The transactions highlight Coliseum Capital's continued interest in Sonos, a company known for its household audio and video equipment. The firm, based in Rowayton, Connecticut, is a ten percent owner of Sonos, reflecting its substantial investment and confidence in the company's potential. While currently unprofitable, InvestingPro analysis indicates the company is expected to return to profitability this year, with analysts forecasting positive earnings. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial analysis for Sonos through the Pro Research Report.

In other recent news, Sonos Inc. announced a significant reorganization plan, which includes a 12% reduction in its workforce, affecting approximately 200 employees. This move is part of a broader strategy to improve the company's operating model and cost structure, with anticipated restructuring charges between $15 and $18 million. Additionally, Sonos has decided to halt its plans for a new video streaming device, known internally as 'Pinewood,' as interim CEO Tom Conrad reevaluates the company's strategy following a challenging year.

The company has also approved a new $150 million stock buyback program, following the expiration of its previous $200 million program. This initiative will be funded through existing cash reserves and future cash flows. In terms of corporate governance, Sonos shareholders recently ratified KPMG as the company's independent auditor and approved amendments to its Restated Certificate of Incorporation and Bylaws.

Rosenblatt Securities reaffirmed its Buy rating on Sonos, citing a positive outlook and setting a price target of $18.00 ahead of the company's upcoming earnings report. The firm highlighted Sonos' strong brand reputation and potential for innovation as key factors in their valuation. These developments reflect ongoing changes and strategic adjustments within Sonos as it navigates the competitive landscape.

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