Activist Investor Coliseum Capital Doubles Down on its Sonos Stake, Adding Another $22 Million
Key Points
Coliseum Capital added 1,737,176 shares of Sonos, with a transaction value of $22.2 million.
The transaction represented an approximately 2.18% shift in 13F reportable assets under management.
The firm's post-trade stake: 14,930,280 shares valued at $236 million.
Sonos is now the fund’s largest holding, accounting for 23% of reportable AUM.
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On Nov. 14, 2025, Coliseum Capital Management, LLC disclosed a buy of 1,737,176 shares in Sonos (NASDAQ:SONO), with an estimated net position change of $93.28 million.
What happened
According to a Securities and Exchange Commission (SEC) filing dated Nov. 14, 2025, Coliseum Capital Management, LLC increased its holdings in Sonos by 1,737,176 shares during the third quarter.
The position’s value rose to $235.9 million at quarter's end, reflecting both additional purchases and stock price appreciation. The fund reported $1.02 billion in 13F reportable assets across 11 equity positions.
What else to know
Coliseum Capital executed a buy, raising its Sonos stake to 23.03% of its 13F assets under management.
Top five holdings after the filing:
- Sonos Inc (NASDAQ:SONO): $235.90 million (23.0% of AUM)
- Herc Holdings Inc (NYSE:HRI): $222.26 million (21.7% of AUM)
- NCR Atleos Corp (NYSE:NATL): $106.28 million (10.4% of AUM)
- MasterBrand Inc (NYSE:MBC): $99.61 million (9.7% of AUM)
- Universal Technical Institute Inc(NYSE:UTI): $88.41 million (8.6% of AUM)
As of Nov. 25, 2025, shares of Sonos were priced at $18.48, up 32% over the past year, outperforming the S&P 500 by 17 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.44 billion |
| Net Income (TTM) | ($61.14 million) |
| Market Capitalization | $2.12 billion |
| Price (as of market close November 25, 2025) | $18.48 |
Company snapshot
Sonos:
- Designs and sells wireless speakers, home theater systems, components, and related accessories, generating most revenue from multi-room audio products.
- Operates a hybrid business model, leveraging both direct-to-consumer sales via its website and third-party retail distribution through approximately 10,000 partner stores and custom installers.
- Sells to residential consumers, seeking high-quality, integrated home audio solutions across the Americas, EMEA, and Asia Pacific regions.
Sonos is a technology company specializing in consumer electronics, with a focus on wireless audio systems.
The company delivers multi-room listening experiences through hardware and software, supported by a global retail and e-commerce presence.
Sonos has an extensive retail distribution network, offering its products through approximately 10,000 third-party retail stores.
Foolish take
Activist investing firm Coliseum Capital Management has been adding to its stake in Sonos since 2022 and continued building this position in its latest quarter.
These more recent purchases are somewhat interesting as Sonos' stock has roughly doubled from its lows in April this year.
This persistent buying, despite the high price tag, could be seen as a bullish sign for investors. However, since Coliseum is typically an activist investor, the buying may be more about building equity and perhaps getting seats on the board, rather than timing a "buy the dip" opportunity.
From a Foolish perspective, I'm not in love with Sonos' stock, as it has struggled to grow revenue and earnings over the last five years.
While it may be a leader in consumer mindshare in its premium audio niche, consistently reporting top-tier customer loyalty and satisfaction figures, it really hasn't done much for investors.
In this sense, it is the perfect investment for an activist like Coliseum, which could try to cut costs, demand cash returns to shareholders, or shake up management at the underperforming company.
Ultimately, hardware consumer goods companies not named Apple (NASDAQ:AAPL) tend to scare me away, so I'm personally not too interested in Sonos. That said, I can see the reasoning behind Coliseum's interest in the company as a quintessential turnaround stock.
Glossary
13F reportable assets: Assets disclosed by institutional investment managers in quarterly SEC Form 13F filings, covering certain U.S.-listed securities.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The ownership interest or proportion of shares held in a company by an investor or fund.
Transaction value: The total dollar amount paid or received in a specific investment trade or purchase.
Outperforming: Achieving better returns than a relevant benchmark, such as the S&P 500 index.
Direct-to-consumer: A sales approach where products are sold directly from the company to end customers, bypassing intermediaries.
Third-party retail distribution: Selling products through independent retailers or partners rather than directly to customers.
Custom installers: Professionals or businesses that set up and integrate technology products, like audio systems, in customers’ homes.
Hybrid business model: A strategy combining multiple sales channels, such as direct and third-party retail, to reach customers.
EMEA: Geographic business region covering Europe, the Middle East, and Africa.
TTM: The 12 months ending with the most recent quarterly report.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Sonos. The Motley Fool recommends Herc. The Motley Fool has a disclosure policy.
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