Sonos, Inc. (SONO)

Sonos's stock experienced volatility in the past six months. In July 2025, Sonos reported a 13.2% year-over-year decline in revenue and a GAAP net loss. In August 2025, Sonos's Q3 revenue topped analyst estimates by 6%. In November 2025, the company reported strong Q4 and fiscal 2025 results, with Q4 revenue growing 13% year-over-year. Sonos's new CEO outlined a strategy to focus on increasing the number of devices per multi-product household. Morgan Stanley upgraded Sonos from Underweight to Equalweight, raising its price target. Activist investor Coliseum Capital Management, LLC, reportedly doubled down on its stake. Sonos was named one of America's Greenest Companies by Newsweek. In December 2025, Sonos (SONO) stock was up 15.2% since its last earnings report. In January 2026, Sonos announced the appointment of three new members to its Board of Directors. Analysts expect Sonos to return to profitability in 2026.

Demand for Sonos products typically exhibits seasonality, with the majority of the company's revenue historically generated in the first fiscal quarter, aligning with the crucial holiday shopping season. New product launches can generate significant demand, but overall sales can be affected by broader market conditions. The consumer electronics market is generally cyclically challenged and highly promotional, particularly impacting the portables category, and macroeconomic headwinds and cuts in discretionary spending can affect sales of premium-priced audio equipment.

Sonos, Inc., based in Santa Barbara, California, is an audio technology company specializing in wireless sound systems for home audio. It operates in the consumer electronics and smart home industries, focusing on designing, developing, manufacturing, and selling premium audio products and services. Sonos emphasizes user experience, sound quality, and integration with music streaming services and voice assistants. Its product lines include wireless speakers, portable speakers, home theater systems, headphones (Sonos Ace), and audio components and accessories. The company also offers Sonos Radio HD as a content provider.

Sonos has a global presence in the Americas, Europe, the Middle East, Africa, and Asia-Pacific, with offices in countries including Australia, Canada, the Netherlands, China, the UK, and Japan. Its products are distributed in over 60 countries, with the United States being its primary market, accounting for 41% of its online revenue in 2024. In fiscal year 2024, the Americas generated $1.0 billion in revenue, EMEA contributed $430.4 million, and Asia Pacific accounted for $82.9 million.

Sonos's brand reputation was significantly impacted by a disastrous app launch in May 2024, which continued to cause fallout throughout 2025. The app was criticized for being buggy, non-responsive, slow, and missing essential features, leading to customer anger and negative social media backlash. This damaged Sonos's reputation, leading to revenue falls and losses. CEO Patrick Spence departed in January 2025 following the challenging app update and revenue dip. Sonos spent an estimated $20 million to $30 million to fix the app and was forced to delay new product launches and lower sales projections. Sonos announced "new commitments" to quality and customer experience in October 2024 to rebuild its deteriorating reputation. Under new CEO Tom Conrad, Sonos is focusing on restoring software quality, strengthening its leadership team, and refining its platform-driven strategy. Sonos was named one of America's Greenest Companies by Newsweek in November 2025.

Sonos, Inc. is largely owned by institutional investors, who hold a substantial portion of the company's shares, ranging from approximately 77% as of May 2025 to over 91% as of September 2025. Major institutional shareholders include BlackRock, Inc., The Vanguard Group, Inc., and Coliseum Capital Management, LLC. Individual investors own about 11% of the company. Kkr Group Partnership LP is listed as the largest individual shareholder.