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 Highlights(1)
-- RevPAR was $139, a 13% increase year-over-year
-- Occupancy Rate was 83%, a seven percentage point increase year-over-year
-- Bookable 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-Q
-- Revenue was $118.9 million, a 11% decrease year-over-year
-- Net Loss was $56.5 million, a 12% increase year-over-year
-- Adjusted EBITDA2 was $(56.7) million, a 1% decrease year-over-year
-- Adjusted EBITDAR2 was $21.1 million, a 20% decrease year-over-year
-- Cash Used In Operating Activities was $4.4 million, an 89% improvement
year-over-year
-- Adjusted Free Cash Flow2 was $(6.9) million, a 76% increase
year-over-year
-- Total Cash, Cash Equivalents and Restricted Cash was $66.5 million, which
included $43.2 million of restricted cash as of March 31, 2025
-- Live Units were approximately 9,400 as of March 31, 2025
-- Total 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 International
Sonder entered into a long-term strategic licensing agreement with Marriott International, Inc. $(MAR)$ ("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$(R)$ mobile app under the new "Sonder by Marriott Bonvoy" collection. Sonder's properties also participate in the Marriott Bonvoy(R) travel platform.
Notice of Delayed Filing
Sonder 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 SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, December 31,
2025 2024
------------ --------------
Assets
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 SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
(in thousands, except share data)
Three months ended March 31,
2025 2024
------------------- -----------------
Revenue $ 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
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