TL;DR
Major investor increases stake following 30% decline, showing confidence in company’s turnaround prospects
June 25, 2025
Coliseum Capital Management, a ten-percent owner of Sonos Inc, executed significant insider purchases totaling approximately $4.2 million between June 20 and June 24, 2025, according to Form 4 filings with the Securities and Exchange Commission.
Transaction Details
The investment group, which includes Coliseum Capital Management, Coliseum Capital, Coliseum Capital Partners, Christopher S. Shackelton, and Adam Gray, collectively purchased 423,428 shares across multiple transactions.
The purchases occurred at prices ranging from $9.89 to $10.34 per share, with the stock currently trading at $10.34.
The buying activity was spread across three separate dates: 238,000 shares at a weighted average price of $9.92 on June 20, 73,530 shares at $9.89 on June 23, and 111,898 shares at $10.34 on June 24.
Market Timing and Valuation
The insider buying comes at a strategic time, as Sonos shares have declined over 30% in the past six months. The stock is currently trading below its fair value, suggesting the timing of these purchases may reflect the investors’ confidence in the company’s undervalued position.
Following these transactions, Coliseum Capital’s total holdings in Sonos increased to 13,193,104 shares. The shares are held by Coliseum Capital Partners, L.P. and a separate account investment advisory client of Coliseum Capital Management.
Company Performance and Outlook
The insider confidence aligns with recent positive developments at Sonos. The company reported second-quarter 2025 financial results that surpassed earnings expectations, posting an earnings per share of -$0.18 compared to the forecasted -$0.36.
Revenue reached $260 million, slightly above the anticipated $253.52 million, marking a 3% year-over-year increase.
Sonos has been actively implementing operational reorganization and cost-cutting measures, resulting in a 14% decrease in non-GAAP operating expenses year-over-year.
The company also launched new products, including the ARC Ultra soundbar and ACE headphones, as part of its ongoing product innovation strategy.
Financial Health and Future Prospects
Sonos holds more cash than debt on its balance sheet, and management has been actively buying back shares.
While the company isn’t currently profitable, analysts expect Sonos to return to profitability this year, with multiple analysts recently revising their earnings estimates upward.
Looking ahead, Sonos projects third-quarter revenue between $310 million and $340 million, indicating potential sequential growth of 19-31%.
The company continues to manage tariff impacts by moving most of its U.S.-bound production out of China and remains engaged in ongoing intellectual property litigation against Google.