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Sonder Holdings Inc. Announces First Quarter 2025 Financial Results

1. First Quarter 2025 Revenue decreased 11% to $118.9 million year-over-year. 2. RevPAR increased 13% to $139 despite a 21% drop in bookable nights. 3. Company faces compliance issues with Nasdaq due to late filings. 4. Sonder's net loss increased by 12% to $56.5 million year-over-year. 5. Long-term agreement with Marriott enhances market presence and booking accessibility.

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FAQ

Why Bearish?

Sonder's financial performance shows declining revenues and increasing losses, raising concerns. Previous instances, like delayed filings causing stock drops, highlight risks.

How important is it?

Financial results, particularly revenue decline, directly impact SOND's valuation and investor perception.

Why Short Term?

Immediate compliance issues and financial performance may affect investor sentiment quickly. Past spikes in stock volatility also support a short-term focus.

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SAN FRANCISCO, Aug. 25, 2025 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (Nasdaq: SOND) (“Sonder” or the “Company”), a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler, today announced its financial results for the first quarter 2025, ended March 31, 2025, and filed the related Quarterly Report on Form 10-Q (the “Q1 2025 Form 10-Q”), which can be found on the Company’s website at investors.sonder.com. First Quarter 2025 Financial Highlights1 RevPAR was $139, a 13% increase year-over-yearOccupancy Rate was 83%, a seven percentage point increase year-over-yearBookable Nights were 858,000, a 21% decrease year-over-year, driven by the Company’s Portfolio Optimization Program, as described in the Q1 2025 Form 10-QRevenue was $118.9 million, a 11% decrease year-over-yearNet Loss was $56.5 million, a 12% increase year-over-yearAdjusted EBITDA2 was $(56.7) million, a 1% decrease year-over-yearAdjusted EBITDAR2 was $21.1 million, a 20% decrease year-over-yearCash Used In Operating Activities was $4.4 million, an 89% improvement year-over-yearAdjusted Free Cash Flow2 was $(6.9) million, a 76% increase year-over-yearTotal Cash, Cash Equivalents and Restricted Cash was $66.5 million, which included $43.2 million of restricted cash as of March 31, 2025Live Units were approximately 9,400 as of March 31, 2025Total Portfolio was approximately 10,050 as of March 31, 2025 1 $ figures represent metrics for the three months ended March 31, 2025, except where otherwise noted. % figures represent year-over-year growth for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.2 Adjusted EBITDA, Adjusted EBITDAR, and Adjusted Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Long-Term Strategic Licensing Agreement with Marriott InternationalSonder entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR) (“Marriott”) in August 2024 and completed the full Marriott integration in the second quarter of 2025. As of June 2025, all Sonder properties are available for booking on Marriott’s digital channels and platform, including Marriott.com and the Marriott Bonvoy® mobile app under the new “Sonder by Marriott Bonvoy” collection. Sonder’s properties also participate in the Marriott Bonvoy® travel platform. Notice of Delayed FilingSonder received a deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC (“Nasdaq”) on August 20, 2025 (the "Notice"). The Notice indicated that the Company continues to not be in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Listing Rule”) as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the “Q2 2025 Form 10-Q”), as described more fully in the Company's Form 12b-25 Notification of Late Filing (the “Form 12b-25”) filed with the Securities and Exchange Commission (the "SEC") on August 14, 2025. The Listing Rule requires Nasdaq-listed companies to timely file all required periodic reports with the SEC. The Company previously received a notice on April 24, 2025 from Nasdaq notifying the Company that it no longer complied with the Listing Rule due to the Company’s delinquency in filing its Annual Report on Form 10-K for the annual period ended December 31, 2024 (the “2024 Form 10-K”). The Company filed the 2024 Form 10-K on July 23, 2025. In accordance with Nasdaq’s listing rules, the Company submitted a plan of compliance (the “Plan”) to Nasdaq on June 23, 2025 demonstrating the Company’s ability to regain compliance with the Listing Rule and Nasdaq has the discretion to grant the Company up to 180 calendar days from the due date of the 2024 Form 10-K, or October 13, 2025, to regain compliance. The Company is required to submit an update to the Plan to Nasdaq no later than September 4, 2025. As previously disclosed, the filing of the Q2 2025 Form 10-Q was delayed due to the matters described in the Form 12b-25, including to allow the Company sufficient time to complete its customary accounting and internal control processes and procedures. While the Company can provide no assurances as to timing, the Company will continue to work diligently to complete and file the Q2 2025 Form 10-Q as soon as practicable. About Sonder Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in 40 cities, spanning nine countries, and three continents. To learn more, visit http://www.sonder.com or follow Sonder on Instagram, LinkedIn or X. Download the Sonder app on Apple or Google Play. Media:press@sonder.com Investor:ir@sonder.com  SONDER HOLDINGS INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(in thousands, except share data)     March 31, 2025 December 31, 2024Assets   Current assets:   Cash and cash equivalents$23,329  $20,786 Restricted cash 43,191   51,268 Total cash, cash equivalents and restricted cash 66,520   72,054 Accounts receivable, net of allowance 8,526   13,918 Prepaid expenses 3,646   4,141 Other current assets 9,785   9,733 Total current assets 88,477   99,846 Property and equipment, net 4,383   5,933 Operating lease right-of-use (“ROU”) assets 920,727   1,013,854 Other non-current assets 19,142   17,544   Total assets$1,032,729  $1,137,177     Liabilities and stockholders’ deficit   Current liabilities:   Accounts payable$49,217  $33,724 Accrued liabilities 34,463   32,621 Taxes payable 22,890   22,224 Deferred revenue 101,068   71,729 Other current liabilities 7,155   5,513 Current portion of long-term debt 1,000   1,000 Current operating lease liabilities 168,751   171,736 Total current liabilities 384,544   338,547 Non-current operating lease liabilities 907,266   1,009,169 Long-term debt, net 226,161   217,236 Other non-current liabilities 8,070   8,113 Total liabilities 1,526,041   1,573,065     Mezzanine equity:   Series A redeemable convertible preferred stock 163,434   162,907     Stockholders’ deficit:   Common stock 1   1 Additional paid-in capital 978,855   977,112 Cumulative translation adjustment 4,161   7,360 Accumulated deficit (1,639,763)  (1,583,268)Total stockholders’ deficit (656,746)  (598,795)  Total liabilities and stockholders’ deficit$1,032,729  $1,137,177  SONDER HOLDINGS INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)(in thousands, except share data)   Three months ended March 31, 2025 2024Revenue$118,856  $133,479 Costs and operating expenses:   Cost of revenue (excluding depreciation and amortization) 96,849   100,363 Operations and support 38,032   49,980 General and administrative 26,817   24,285 Research and development 3,938   4,671 Sales and marketing 15,322   19,249 Integration costs 1,539   — Restructuring and other charges —   2,592 Total costs and operating expenses 182,497   201,140   Loss from operations (63,641)  (67,661)    Interest expense, net 9,449   7,323 Lease adjustment gains, net (11,138)  (23,901)Other income, net (6,174)  (783)Total non-operating income, net (7,863)  (17,361)Loss before income taxes (55,778)  (50,300)Provision for income taxes 717   187 Net loss$(56,495) $(50,487)    Basic and diluted net income (loss) per common share$(4.85) $(4.58)    Other comprehensive loss:   Net loss$(56,495) $(50,487)Change in foreign currency translation adjustment (3,199)  (589)Comprehensive loss$(59,694) $(51,076) SONDER HOLDINGS INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)   Three months ended March 31, 2025 2024Cash flows from operating activities:   Net loss$(56,495) $(50,487)Adjustments to reconcile net loss to net cash used in operating activities:   Depreciation and amortization 2,591   4,973 Stock-based compensation 2,269   3,009 Amortization of operating lease ROU assets 49,565   47,249 Lease adjustment gains, net (11,138)  (23,901)Gain on foreign exchange (2,678)  (219)Capitalization of paid-in-kind interest on long-term debt 7,975   6,432 Credit loss expense 2,568   (880)Amortization of debt discounts and issuance costs 1,200   699 Other non-cash activities (120)  228 Changes in:   Accounts receivable, net 2,931   634 Prepaid expenses 513   1,148 Other current and non-current assets 2,894   (1,867)Accounts payable 15,259   5,319 Accrued liabilities 1,752   (82)Taxes payable (3,635)  2,424 Deferred revenue 29,297   20,359 Operating lease ROU assets and operating lease liabilities, net (50,686)  (55,495)Other current and non-current liabilities 1,585   148   Net cash used in operating activities (4,353)  (40,309)Cash flows from investing activities:   Purchase of property and equipment (1,219)  (606)Proceeds on the disposition of property and equipment 260   — Capitalization of internal-use software —   (110)  Net cash provided by (used in) investing activities (959)  (716)Cash flows from financing activities:   Repayment of debt (250)  (250)  Net cash provided by (used in) financing activities (250)  (250)Effects of foreign exchange on cash 28   (344)Net change in cash, cash equivalents, and restricted cash (5,534)  (41,619)Cash, cash equivalents, and restricted cash at beginning of year 72,054   136,497 Cash, cash equivalents, and restricted cash at end of year$66,520  $94,878          SONDER HOLDINGS INC. AND SUBSIDIARIESNON-GAAP FINANCIAL INFORMATION(1) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Cash Used in Operating Activities to Adjusted Free Cash Flow (“Adjusted FCF”)  Three months ended March 31,(in thousands)2025 2024Cash used in operating activities$(4,353) $(40,309)Cash used in investing activities (959)  (716)FCF, including cash paid for lease terminations, restructuring, and professional fees (5,312)  (41,025)Cash received for lease terminations (2,950)  — Cash paid for lease termination costs 861   10,526 Cash paid for restructuring costs —   1,727 Cash paid for non-recurring professional fees —   253 Cash paid for integration costs 543   — Adjusted FCF$(6,858) $(28,519)         Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Loss to Adjusted EBITDA  Three months ended March 31,(in thousands)2025 2024Net loss$(56,495) $(50,487)Interest expense, net 9,449   7,323 Provision for income taxes 717   187 Depreciation and amortization expense 2,591   4,973 EBITDA (43,738)  (38,004)Stock-based compensation 2,269   3,009 Lease adjustment (gains), net (11,138)  (23,901)Integration costs 1,539   — Cash received for lease terminations (2,950)  — Restructuring and other charges —   2,592 Professional fees —   253 Gain on foreign exchange (2,678)  (219)Adjusted EBITDA$(56,696) $(56,270)         Reconciliation of Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA to Adjusted EBITDAR  Three months ended March 31,(in thousands)2025 2024Adjusted EBITDA$(56,696) $(56,270)Operating lease related rent charges 77,819   82,581 Adjusted EBITDAR$21,123  $26,311          (1) See Non-GAAP Financial Measures section for definitions of the Company’s Non-GAAP financial measures. Definitions RevPARRevenue Per Available Room (“RevPAR”) represents the average revenue earned per available night and can be calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by Occupancy Rate. Average Daily Rate represents the average revenue earned per night occupied and is calculated as Revenue divided by Occupied Nights. Occupancy Rate is calculated as Occupied Nights divided by Bookable Nights. Bookable Nights represent the total number of nights available for stays across all Live Units. This excludes nights lost to full building closures of greater than 30 nights. Occupied Nights represent the total number of nights occupied across all Live Units. Live Units & Total PortfolioTotal Portfolio consists of Live Units and Contracted Units. Live Units are defined as units which are available for guests to book. Contracted Units are units for which Sonder has signed real estate contracts, but are not yet available for guests to book. Non-GAAP Financial Measures Adjusted EBITDAAdjusted EBITDA is defined as net income (loss) as adjusted to eliminate the impact of net interest expense, provision (benefit) for income taxes, depreciation and amortization expense, and certain other items as indicated. The exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. The Company believes Adjusted EBITDA is meaningful to investors as it is the primary operating performance measure that the Company focuses on internally to evaluate its core operating performance. Adjusted EBITDA provides a consistent basis for comparison across reporting periods by excluding interest, taxes, depreciation and amortization, and certain non-recurring or non-operational items, such as lease adjustment gains, net, restructuring and other related charges, and professional fees related to discrete projects such as fees associated with the integration in connection with the strategic licensing agreement with Marriott and restatement activities. It serves as a key measure for the Company to align its financial performance with its internal financial planning and analysis. Adjusted EBITDARAdjusted EBITDAR is defined as Adjusted EBITDA adjusted for operating lease related rent charges. The Company believes Adjusted EBITDAR is meaningful to investors as it is an operating performance measure that further enables the Company to assess its operating performance independent of operating leases, offering insights into its cash flow and performance. Adjusted Free Cash FlowAdjusted Free Cash Flow (“Adjusted FCF”) is defined as cash used in operating activities plus cash provided by (used in) investing activities, excluding the impact of lease terminations, restructuring, non-recurring professional fee charges and integration costs related to non-operational activities. The most directly comparable GAAP financial measures are cash used in operating activities when combined with cash provided by (used in) investing activities. The Company’s near-term focus is to reach sustainable positive Adjusted FCF as described in its Cash Flow Positive Plan in the Annual Report on Form 10-K. The Company believes Adjusted FCF is meaningful to investors as it is the primary liquidity measure that the Company focuses on internally to evaluate its progress towards the objectives outlined in its Cash Flow Positive Plan. The Company believes that achieving its goals around this measure will put it on a path to financial sustainability and will help fund its future growth. In addition, Adjusted FCF may not provide a complete understanding of the Company’s cash flow as a whole. As such, this measure should be reviewed in conjunction with the Company’s GAAP cash flow. Presentation of these measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as “could,” "estimate," “expect,” “intend,” “may,” “plan,” "potentially," or “will” or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company’s financial performance, key performance metrics and other cost optimization measures, operational and strategic initiatives, the Company’s long-term strategic licensing agreement with Marriott, information concerning possible or assumed future financial or operating results and measures, the timing of the Company’s submission of an update to the Plan, the duration of any extension that may be granted by Nasdaq, the ability to meet Nasdaq’s requirements, and the possibility of additional delays in the filing of periodic reports. These forward-looking statements are not guarantees of future performance, conditions or results. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including the risks and uncertainties described in the Company’s reports filed with the Securities and Exchange Commission, and under the heading “Risk Factors” in its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at www.sec.gov. The forward-looking statements contained herein are only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.

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