# Sonder Holdings Inc. (SOND) Q1 2025 Financial Results Summary
**Release Date:** August 25, 2025
Sonder Holdings Inc. (Nasdaq: SOND), a global brand specializing in premium, design-forward apartments and boutique hotels, has announced its financial results for the first quarter of 2025, ending March 31, 2025. Below is a summary of the key metrics and highlights from the report.
### Financial Highlights
– **Revenue:**
– Total revenue for Q1 2025 was **$118.9 million**, marking an **11% decrease** year-over-year from **$133.5 million** in Q1 2024.
– **Net Loss:**
– The company reported a net loss of **$56.5 million**, which indicates a **12% increase** compared to a net loss of **$50.5 million** in the same quarter last year.
– **Revenue Per Available Room (RevPAR):**
– RevPAR stood at **$139**, representing a **13% increase** year-over-year.
– **Occupancy Rate:**
– The occupancy rate was reported at **83%**, a rise of **7 percentage points** compared to **76%** in Q1 2024.
– **Bookable Nights:**
– Bookable nights fell to **858,000**, reflecting a **21% decrease** year-over-year, primarily due to the Company’s Portfolio Optimization Program.
– **Adjusted EBITDA:**
– Adjusted EBITDA was reported at **($56.7 million)**, a decrease of **1%** from **($56.3 million)** in Q1 2024.
– **Adjusted EBITDAR:**
– The adjusted EBITDAR was **$21.1 million**, down by **20%** compared to **$26.3 million** in Q1 2024.
– **Cash Used in Operating Activities:**
– Cash used in operating activities was **$4.4 million**, an **89% improvement** year-over-year, signaling a recovery in operational cash flow.
– **Adjusted Free Cash Flow:**
– The adjusted free cash flow stood at **($6.9 million)**, marking a **76% increase** from **($28.5 million)** in Q1 2024.
– **Total Cash:**
– As of March 31, 2025, Sonder held total cash, cash equivalents, and restricted cash of **$66.5 million**, including **$43.2 million** of restricted cash.
– **Live Units:**
– The company reported approximately **9,400 live units** available for booking as of the end of the quarter.
– **Total Portfolio:**
– Sonder’s total portfolio grew to approximately **10,050 units** as of March 31, 2025.
### Strategic Developments
– **Long-Term Licensing Agreement with Marriott:**
– Sonder has entered into a long-term strategic licensing agreement with Marriott International, which has now integrated all Sonder properties into Marriott’s digital channels and platforms as of June 2025.
### Nasdaq Compliance Matters
– **Notice of Deficiency:**
– Sonder has received a deficiency notification letter from Nasdaq regarding its delayed filing of the Quarterly Report on Form 10-Q for Q2 2025 and prior filings for Q1 2025 and the 2024 Form 10-K.
– **Compliance Plan:**
– The company submitted a compliance plan to Nasdaq and will need to demonstrate its ability to regain compliance by October 13, 2025.
### Dividend and Share Repurchase Activities
– No quarterly dividend was declared during this period, and no share repurchase activities were noted in the financial report.
### Conclusion
Despite facing challenges with revenue, net loss, and decreased bookable nights, Sonder has highlighted improvements in cash management and occupancy rates. The strategic partnership with Marriott represents a significant development that aims to enhance its market presence while the company navigates Nasdaq compliance issues.
| 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 |
| 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 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 |
| March 31, 2025 | December 31, 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 |
