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Sonder Holdings (SOND)
NASDAQ:SOND
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Sonder Holdings (SOND) AI Stock Analysis

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SOND

Sonder Holdings

(NASDAQ:SOND)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
$0.50
▼(-1.96% Downside)
Sonder Holdings faces significant challenges with negative profitability, high financial leverage, and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weaken its valuation. The stock's overall score reflects these substantial risks, with financial performance and technical analysis being the most significant factors.

Sonder Holdings (SOND) vs. SPDR S&P 500 ETF (SPY)

Sonder Holdings Business Overview & Revenue Model

Company DescriptionSonder Holdings (SOND) is a technology-driven hospitality company that specializes in providing high-quality, professionally managed accommodations for travelers. Operating primarily in the short-term rental sector, Sonder leverages its proprietary technology to offer a seamless booking experience and a consistent standard of service across a diverse portfolio of properties, including apartments, lofts, and homes in key urban markets worldwide. The company aims to blend the convenience of hotel services with the comfort and authenticity of home-like stays, catering to business and leisure travelers alike.
How the Company Makes MoneySonder generates revenue primarily through the booking of its accommodations, charging guests a nightly rate for stays. The company employs a revenue model that includes direct bookings through its website and mobile app, as well as partnerships with online travel agencies (OTAs) that facilitate additional bookings. Key revenue streams include premium pricing for high-demand locations, ancillary services such as cleaning fees, and partnerships with property owners for revenue-sharing agreements. Sonder also focuses on optimizing occupancy rates and utilizing dynamic pricing strategies to maximize earnings. Additionally, the company benefits from strategic partnerships with travel-related businesses and platforms, enhancing its visibility and customer acquisition efforts.

Sonder Holdings Financial Statement Overview

Summary
Sonder Holdings is experiencing revenue growth, but profitability remains a challenge with negative margins. The balance sheet shows high leverage, raising financial stability concerns. Cash flow management is improving slightly, yet remains negative. The company must focus on improving profitability and financial stability to enhance its financial health.
Income Statement
45
Neutral
Sonder Holdings has shown a consistent increase in revenue over the years, with a notable revenue growth rate of 3.19% from 2023 to 2024. However, the company is still struggling with profitability, as indicated by its negative net profit margin of -36.06% and gross profit margin of 39.27% for 2024. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.
Balance Sheet
30
Negative
The balance sheet reveals significant financial leverage, with a high debt-to-equity ratio due to negative stockholders' equity. The equity ratio is also negative, indicating that liabilities exceed assets, which poses a financial risk. Despite these challenges, the company has maintained a stable asset base over the years.
Cash Flow
40
Negative
Sonder Holdings has experienced negative free cash flow consistently, with a decline from -$123.27 million in 2023 to -$132.33 million in 2024. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, the company reduced its negative operating cash flow slightly, showing some progress in managing cash outflows.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue606.65M621.27M602.07M464.98M234.15M115.68M
Gross Profit232.92M244.03M209.17M137.37M31.82M-21.32M
EBITDA-7.29M-3.87M-64.33M-56.60M-232.34M-226.85M
Net Income-230.09M-224.09M-295.67M-245.03M-293.95M-250.32M
Balance Sheet
Total Assets1.03B1.14B1.52B1.50B148.48M177.52M
Cash, Cash Equivalents and Short-Term Investments23.33M20.79M95.76M246.62M69.73M121.47M
Total Debt1.30B1.40B1.76B1.49B208.49M42.06M
Total Liabilities1.69B1.57B1.90B1.60B344.40M678.38M
Stockholders Equity-493.31M-435.89M-376.70M-101.48M-195.92M-500.86M
Cash Flow
Free Cash Flow-96.99M-132.33M-123.27M-180.01M-200.98M-217.35M
Operating Cash Flow-93.27M-129.22M-110.90M-149.01M-179.95M-202.50M
Investing Cash Flow5.49M5.73M-12.36M-30.99M-21.03M-14.85M
Financing Cash Flow59.85M59.85M-32.23M400.60M148.57M226.56M

Sonder Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.51
Price Trends
50DMA
1.29
Negative
100DMA
1.78
Negative
200DMA
2.05
Negative
Market Momentum
MACD
-0.20
Positive
RSI
26.72
Positive
STOCH
16.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOND, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.29, and below the 200-day MA of 2.05, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 26.72 is Positive, neither overbought nor oversold. The STOCH value of 16.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOND.

Sonder Holdings Risk Analysis

Sonder Holdings disclosed 69 risk factors in its most recent earnings report. Sonder Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sonder Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$203.05M12.763.06%
54
Neutral
$77.67M10.73%44.69%
54
Neutral
$1.74B8.09%43.02%
38
Underperform
$8.92M-0.03-5.28%-30.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SOND
Sonder Holdings
0.51
-3.48
-87.22%
INTG
The Intergroup
36.05
21.81
153.16%
GHG
Greentree Hospitality Group
1.96
-0.77
-28.21%
SHCO
Soho House & Co
8.90
3.45
63.30%

Sonder Holdings Corporate Events

Shareholder Meetings
Sonder Holdings Postpones 2025 Annual Stockholders’ Meeting
Neutral
Nov 5, 2025

On November 5, 2025, Sonder Holdings Inc. announced the postponement of its 2025 annual stockholders’ meeting, originally scheduled for November 6, 2025. The company will inform stockholders of the new meeting date in compliance with applicable requirements.

The most recent analyst rating on (SOND) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Sonder Holdings stock, see the SOND Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Sonder Holdings Faces Nasdaq Listing Compliance Issue
Negative
Oct 24, 2025

On October 21, 2025, Sonder Holdings Inc. received a notice from Nasdaq indicating that the company no longer meets the Nasdaq Listing Rule 5450(b)(3)(C) requirement, which mandates a minimum Market Value of Publicly Held Shares (MVPHS) of $15,000,000. The company has until April 20, 2026, to regain compliance, although this notice does not immediately affect the listing or trading of its common stock or publicly traded warrants on the Nasdaq Global Select Market.

The most recent analyst rating on (SOND) stock is a Sell with a $1.00 price target. To see the full list of analyst forecasts on Sonder Holdings stock, see the SOND Stock Forecast page.

Sonder Holdings Reports Mixed Q2 2025 Results
Oct 15, 2025

Sonder Holdings Inc. (NASDAQ: SOND) is a global brand offering premium, design-forward apartments and boutique hotels tailored for the modern traveler, with properties in 37 cities across nine countries and three continents.

Business Operations and StrategyExecutive/Board Changes
Sonder Holdings Expands Board with Two New Directors
Neutral
Sep 25, 2025

On September 19, 2025, Sean Aggarwal resigned from the Board of Directors of Sonder Holdings Inc., a company in the hospitality industry, without any disagreements related to the company’s operations. Subsequently, on September 23, 2025, the Board expanded to eight members with the appointment of Paul Stewart Aronzon and Jeffrey Stein as Class I directors. Both new directors bring extensive experience in corporate restructuring and financial advisory roles, potentially strengthening Sonder Holdings’ strategic direction and governance structure.

The most recent analyst rating on (SOND) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sonder Holdings stock, see the SOND Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Sonder Holdings Evaluates Strategic Alternatives Amid Leadership Changes
Neutral
Sep 16, 2025

On September 16, 2025, Sonder Holdings Inc. announced that its management and board of directors are evaluating financing and strategic alternatives with the help of financial advisor Moelis & Company LLC and outside counsel. Additionally, Martin Picard, the Chief Real Estate Officer, resigned to potentially participate with investors in bidding on the company, while interim CEO Janice Sears will oversee operations.

The most recent analyst rating on (SOND) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sonder Holdings stock, see the SOND Stock Forecast page.

Sonder Holdings Reports Mixed Q1 2025 Results
Aug 26, 2025

Sonder Holdings Inc. is a global brand offering premium, design-forward apartments and boutique hotels, catering to the modern traveler across 40 cities in nine countries.

Delistings and Listing ChangesRegulatory Filings and Compliance
Sonder Holdings Receives Nasdaq Deficiency Notice
Negative
Aug 25, 2025

Sonder Holdings Inc. announced that it received a deficiency notice from Nasdaq on August 20, 2025, due to its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. The company has previously faced similar compliance issues with Nasdaq due to delays in filing its Annual Report for 2024 and the first quarter report for 2025. Despite these challenges, Sonder has submitted a compliance plan to Nasdaq and continues to work towards resolving these delays. The notice does not immediately affect the trading of Sonder’s stock on the Nasdaq Global Select Market.

The most recent analyst rating on (SOND) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Sonder Holdings stock, see the SOND Stock Forecast page.

Sonder Holdings Delays Quarterly Report Filing
Aug 14, 2025

Sonder Holdings Inc. has announced a delay in filing its Form 10-Q (Quarter Report) for the financial period ending March 31, 2025. The delay is primarily due to accounting errors related to the valuation and impairment of operating lease right of use assets, which necessitated a restatement of previous financial statements. The company is working on completing its customary accounting and internal control processes for the delayed report. Sonder Holdings anticipates filing the report as soon as practicable. Despite the delay, the company does not expect any significant changes in its financial results. The company is actively working to comply with Nasdaq’s listing requirements, and the notification was signed by Rahul Thumati, the Interim Chief Accounting Officer.

Executive/Board Changes
Sonder Holdings CFO Michael Hughes Resigns
Neutral
Aug 14, 2025

On August 8, 2025, Michael Hughes, the Chief Financial Officer of Sonder Holdings Inc., resigned from his position, effective August 15, 2025. His resignation is not due to any issues with accounting or financial reporting. Janice Sears, the interim Chief Executive Officer, will temporarily take over his duties until a successor is found.

Business Operations and StrategyPrivate Placements and Financing
Sonder Holdings Secures $24.54M in New Financing
Positive
Aug 7, 2025

On August 5, 2025, Sonder Holdings Inc. entered into a Note and Warrant Purchase Agreement, issuing $24.540 million in units to institutional buyers and investors. This financing move, which includes senior secured promissory notes and warrants, aims to support the company’s working capital and general corporate purposes. Additionally, Sonder entered into a Loan Agreement with Marriott International to replace certain fees owed, further securing its financial position. These agreements reflect strategic financial maneuvers to strengthen Sonder’s operational capabilities and market positioning, with implications for stockholder approvals and potential adjustments in its equity structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 07, 2025