Sonos Turns a Corner Under Interim CEO Tom Conrad, Eyes Future Growth

Sonos Inc.’s interim Chief Executive Officer, Tom Conrad, expressed renewed optimism about the audio company’s trajectory following significant challenges stemming from past software issues. In a recent interview, Conrad stated, “I’m feeling much more confident that we’ve turned the corner,” highlighting breakthroughs made in the last three months to tackle complex technical hurdles. He is also seeking the position on a permanent basis, having taken the helm in January after the departure of Patrick Spence, who resigned after a widely criticized app revamp.
Last year, an overhaul of Sonos’ iOS and Android apps, alongside the software that connects its hardware, resulted in a string of user complaints about interface glitches and connectivity issues. Many consumers, who had invested heavily in Sonos systems, were frustrated when equipment struggled to play music seamlessly. Recent software updates aim to rectify these persistent problems, including issues with older models like the Play 1 and Play 3, which debuted over a decade ago.
Conrad noted that the latest software release has significantly enhanced app performance compared to prior versions. He anticipates further improvements throughout the year, stating, “We’re on a really good path here,” as the company shifts its focus to refining user experience. He explained that the prior issues stemmed from a broad range of challenges and restructuring within the company, which is now organized functionally rather than by product line, akin to Apple’s model.
Sonos commemorated a challenging anniversary last week, marking one year since the problematic app upgrade that hindered the launch of new products. However, fiscal second-quarter results released on May 7 showed promising signs of recovery, with nearly a 3% revenue increase year-over-year to approximately $260 million. Sonos also maintained steady gross margins despite increased production costs.
Though shares have seen a recent boost of 16%, they remain down 42% since the app’s launch. Conrad, who has implemented a 12% workforce reduction and revamped the organizational structure, emphasized that the primary focus will be on software development for the remainder of this fiscal year, delaying new hardware launches.
Despite setbacks, the Sonos brand has not suffered irreparable damage, with solid sales of the Arc Ultra soundbar and an influx of new customers. To attract these new users, the company recently reduced prices on its Era 100 speakers, leading to a favorable response in the market.
As Sonos navigates the complexities of its recovery while facing challenges from tariffs and competitive pressures, Conrad remains committed to ensuring the app is “fast, reliable, and easy to use.” As the company moves forward, its ability to balance brand restoration and customer expansion will be key to its long-term success.