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Sonder Holdings Inc. Announces Second Quarter 2025 Financial Results

1. Sonder's RevPAR increased by 13% year-over-year to $184. 2. Sonder's occupancy rate rose to 86%, while bookable nights fell 21%. 3. Revenue decreased by 11% year-over-year to $147.1 million. 4. Net loss narrowed significantly from previous year to $44.5 million. 5. Integration with Marriott's booking platform enhances property visibility.

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FAQ

Why Bullish?

Sonder's strategic licensing agreement with Marriott and improved occupancy rate are positive indicators for future performance, despite revenue decline. Similar past integrations (e.g., Airbnb) have bolstered brand visibility and sales.

How important is it?

The financial improvements and strategic partnerships suggest potential growth, warranting investor interest in SOND.

Why Short Term?

The immediate effects of improved occupancy and Marriott's integration can be observed in the upcoming quarters, likely boosting revenues in the short-term.

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MARABNB
October 14, 2025 16:18 ET  | Source: Sonder Holdings Inc. SAN FRANCISCO, Oct. 14, 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 second quarter 2025, ended June 30, 2025, and filed the related Quarterly Report on Form 10-Q (the “Q2 2025 Form 10-Q”), which can be found on the Company’s website at investors.sonder.com. Second Quarter 2025 Financial Highlights1 RevPAR was $184, a 13% increase year-over-yearOccupancy Rate was 86%, a six percentage point increase year-over-yearBookable Nights were 798,000, a 21% decrease year-over-year, driven by the Company’s Portfolio Optimization Program, as described in the Q2 2025 Form 10-QRevenue was $147.1 million, a 11% decrease year-over-yearNet Loss was $44.5 million, a 236% decrease year-over-yearAdjusted EBITDA3 was $(2.6) million, a 83% increase year-over-yearAdjusted EBITDAR3 was $58.6 million, a 1% increase year-over-yearCash Used In Operating Activities was $19.6 million, a 40% improvement year-over-yearAdjusted Free Cash Flow3 was $(17.5) million, a 29% decrease year-over-yearTotal Cash, Cash Equivalents and Restricted Cash was $71.0 million, which included $43.8 million of restricted cash as of June 30, 2025Live Units were approximately 8,300 as of June 30, 2025Total Portfolio was approximately 8,990 as of June 30, 2025 Second Quarter 2025 Year-to-Date Financial Highlights2 RevPAR was $161, a 13% increase year-over-yearOccupancy Rate was 84%, a seven percentage point increase year-over-yearBookable Nights were 1,656,000, a 21% decrease year-over-year, driven by the Company’s Portfolio Optimization Program, as described in the Q2 2025 Form 10-QRevenue was $265.9 million, a 11% decrease year-over-yearNet Loss was $101.0 million, a 469% decrease year-over-yearAdjusted EBITDA3 was $(59.3) million, a (20.3)% increase year-over-yearAdjusted EBITDAR3 was $79.8 million, a 5% decrease year-over-yearCash Used In Operating Activities was $24.0 million, an 67% improvement year-over-yearAdjusted Free Cash Flow3 was $(24.4) million, a 54.2% decrease year-over-year Long-Term Strategic Licensing Agreement with Marriott International Sonder entered into a long-term strategic licensing agreement with Marriott International, Inc. (“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. About SonderSonder (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 37 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  1 $ figures represent metrics for the three months ended June 30, 2025, except where otherwise noted. % figures represent year-over-year growth for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.2 $ figures represent metrics for the six months ended June 30, 2025, except where otherwise noted. % figures represent year-over-year growth for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.3 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.  SONDER HOLDINGS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(in thousands)  June 30, 2025 December 31, 2024Assets   Current assets:   Cash and cash equivalents$27,130  $20,786 Restricted cash 43,828   51,268 Total cash, cash equivalents and restricted cash 70,958   72,054 Accounts receivable, net of allowance 12,003   13,918 Prepaid expenses 2,597   4,141 Other current assets 11,605   9,733 Total current assets 97,163   99,846 Property and equipment, net 4,387   5,933 Operating lease right-of-use (“ROU”) assets 882,139   1,013,854 Other non-current assets 21,118   17,544 Total assets$1,004,807  $1,137,177     Liabilities and stockholders’ deficit   Current liabilities:   Accounts payable$49,193  $33,724 Accrued liabilities 36,167   32,621 Taxes payable 23,471   22,224 Deferred revenue 96,150   71,729 Other current liabilities 19,822   5,513 Current portion of long-term debt 1,000   1,000 Current operating lease liabilities 162,349   171,736 Total current liabilities 388,152   338,547 Non-current operating lease liabilities 867,816   1,009,169 Long-term debt, net 217,922   217,236 Other non-current liabilities 16,142   8,113 Total liabilities 1,490,032   1,573,065     Mezzanine equity:   Series A redeemable convertible preferred stock 230,212   162,907     Stockholders’ deficit:   Common stock 1   1 Additional paid-in capital 971,552   977,112 Cumulative translation adjustment (2,704)  7,360 Accumulated deficit (1,684,286)  (1,583,268)Total stockholders’ deficit (715,437)  (598,795)Total liabilities and stockholders’ deficit$1,004,807  $1,137,177   SONDER HOLDINGS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)(in thousands, except share data)  Three months ended June 30, Six months ended June 30,  2025   2024   2025   2024 Revenue$147,085  $164,601  $265,941  $298,080 Costs and operating expenses:       Cost of revenue (excluding depreciation and amortization) 80,975   94,652   177,824   195,015 Operations and support 37,996   46,411   76,028   96,391 General and administrative 6,740   29,272   33,557   53,557 Research and development 3,863   4,393   7,801   9,064 Sales and marketing 17,707   21,572   33,029   40,821 Integration costs 2,143   —   3,682   — Restructuring and other charges 4,541   —   4,541   2,592 Total costs and operating expenses 153,965   196,300   336,462   397,440 Loss from operations (6,880)  (31,699)  (70,521)  (99,360)        Interest expense, net 1,648   8,016   11,097   15,339 Lease adjustment gains, net (5,325)  (71,123)  (16,463)  (95,024)Loss on preferred stock issuance 43,842   —   43,842   — Other income, net (2,342)  (1,576)  (8,516)  (2,359)Total non-operating expense (income), net 37,823   (64,683)  29,960   (82,044)Income (loss) before income taxes (44,703)  32,984   (100,481)  (17,316)Provision (benefit) for income taxes (180)  237   537   424 Net income (loss)$(44,523) $32,747  $(101,018) $(17,740)        Basic and diluted net income (loss) per common share$(3.96) $2.94  $(8.44) $(1.59)        Other comprehensive income (loss):       Net income (loss)$(44,523) $32,747  $(101,018) $(17,740)Change in foreign currency translation adjustment (6,865)  1,395   (10,064)  806 Comprehensive income (loss)$(51,388) $34,142  $(111,082) $(16,934)  SONDER HOLDINGS INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(in thousands)  Six months ended June 30,  2025   2024 Cash flows from operating activities:   Net loss$(101,018) $(17,740)Adjustments to reconcile net loss to net cash used in operating activities:   Depreciation and amortization 4,586   9,965 Stock-based compensation 803   4,788 Amortization of operating lease ROU assets 64,845   89,252 Lease adjustment gains, net (16,463)  (95,024)Gain on foreign exchange (7,181)  (1,058)Capitalization of paid-in-kind interest on long-term debt 11,555   13,385 Credit loss expense 1,366   483 Amortization of debt discounts/premium and issuance costs 506   1,625 Loss on preferred stock issuance 43,842   — Other non-cash activities (811)  1,341 Changes in:   Accounts receivable 1,190   (3,003)Prepaid expenses 1,577   (203)Other current and non-current assets (3,303)  (224)Accounts payable 13,959   9,283 Accrued liabilities 2,978   929 Taxes payable 21   1,639 Deferred revenue 24,106   14,843 Operating lease ROU assets and operating lease liabilities, net (69,831)  (103,560)Other current and non-current liabilities 3,302   192 Net cash used in operating activities (23,971)  (73,087)Cash flows from investing activities:   Purchase of property and equipment (2,653)  (2,092)Proceeds on the disposition of property and equipment 450   — Proceeds of key money investment 7,500   — Capitalization of internal-use software —   (117)Net cash provided by (used in) investing activities 5,297   (2,209)Cash flows from financing activities:   Repayment of debt (500)  (505)Proceeds from debt financing —   10,000 Payment of debt issuance costs —   (578)Proceeds from preferred stock issuance 17,980   — Net cash provided by financing activities 17,480   8,917 Effects of foreign exchange on cash 98   (995)Net change in cash, cash equivalents, and restricted cash (1,096)  (67,374)Cash, cash equivalents, and restricted cash at beginning of year 72,054   136,497 Cash, cash equivalents, and restricted cash at end of year$70,958  $69,123   SONDER HOLDINGS INC. AND SUBSIDIARIESNON-GAAP FINANCIAL INFORMATION(1) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Cash Used in Operating Activities to Adjusted Free Cash Flow (“Adjusted FCF”)  Three months ended June 30, Six months ended June 30,(in thousands) 2025   2024   2025   2024 Cash used in operating activities$(19,618) $(32,778) $(23,971) $(73,087)Cash provided by (used in) investing activities 6,256   (1,493)  5,297   (2,209)FCF, including cash paid for lease terminations, restructuring, and professional fees (13,362)  (34,271)  (18,674)  (75,296)Cash received from key money investment (7,500)  —   (7,500)  — Cash received for lease terminations (800)  —   (3,750)  — Cash paid for lease termination costs 464   2,243   1,325   12,769 Cash paid for restructuring costs 2,693   712   2,693   2,439 Cash paid for non-recurring professional fees —   6,624   —   6,877 Cash paid for integration costs 1,012   —   1,555   — Adjusted FCF$(17,493) $(24,692) $(24,351) $(53,211) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Income (Loss) to Adjusted EBITDA  Three months ended June 30, Six months ended June 30,(in thousands) 2025   2024   2025   2024 Net income (loss)$(44,523) $32,747  $(101,018) $(17,740)Interest expense, net 1,648   8,016   11,097   15,339 Provision (benefit) for income taxes (180)  237   537   424 Depreciation and amortization expense 1,995   4,992   4,586   9,965 EBITDA (41,060)  45,992   (84,798)  7,988 Stock-based compensation (1,466)  1,779   803   4,788 Lease adjustment gains, net (5,325)  (71,123)  (16,463)  (95,024)Cash received for lease terminations (800)  —   (3,750)  — Integration costs 2,143   —   3,682   — Loss on preferred stock issuance 43,842   —   43,842   — Restructuring and other charges 4,541   —   4,541   2,592 Non-recurring professional fees —   6,624   —   6,877 Gain on foreign exchange (4,503)  (839)  (7,181)  (1,058)Adjusted EBITDA$(2,628) $(17,567) $(59,324) $(73,837) Reconciliation of Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA to Adjusted EBITDAR  Three months ended June 30, Six months ended June 30,(in thousands) 2025   2024   2025   2024 Adjusted EBITDA$(2,628) $(17,567) $(59,324) $(73,837)Operating lease related rent charges 61,261   75,580   139,080   158,162 Adjusted EBITDAR$58,633  $58,013  $79,756  $84,325  (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 stock-based compensation expense, lease adjustment gains, net, cash received for lease terminations, integration costs, loss on preferred stock issuance, gain on foreign exchange, restructuring and other related charges and non-recurring 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 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, operational and strategic initiatives, the Company’s long-term strategic licensing agreement with Marriott, and information concerning possible or assumed future financial or operating results and measures. 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 and are incorporated by reference herein. 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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