Sonder Holdings (SOND) AI Stock Analysis

• Market Cap: $21.96M
• Dividend Yield: N/A
• Average Volume (3M): 30.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.13
• Revenue Growth: -1.33%
• EPS Growth: 36.19%
• Country: US
• Employees: 1,642
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 13,308,481
• 10 Day Avg. Volume: 59,051
• 30 Day Avg. Volume: 30,461
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.00
• Price Target Upside: 21.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: $2.00 ▲(21.21% Upside)

Sonder Holdings faces significant financial challenges, with high leverage and negative profitability impacting its financial performance score. The technical analysis indicates a bearish trend, and the valuation is unattractive due to ongoing losses. However, recent corporate events, including new financing and strategic partnerships, provide some positive outlook. The overall score reflects these mixed factors, with financial performance being the most significant concern.

Sonder Holdings Business Overview & Revenue Model

Company Description

Sonder Holdings Inc. (SOND) is a hospitality company that operates in the travel and lodging industry. The company provides a range of accommodation options including apartments, hotel rooms, and vacation rentals, which are professionally managed and designed to offer a unique travel experience. Sonder's properties are equipped with modern amenities and are located in various cities around the world, catering to both leisure and business travelers. The company emphasizes technology-driven operations, offering seamless check-in and check-out processes and a mobile-first customer experience.

How the Company Makes Money

Sonder Holdings generates revenue primarily through the rental of its managed properties to guests. The company operates on a model where it leases properties from real estate owners, transforms them into high-quality accommodations, and rents them out to travelers. Revenue is earned from nightly rates charged to guests, which can vary based on location, property type, and demand. In addition to direct bookings through its own platform, Sonder also partners with third-party travel websites and online travel agencies to reach a wider audience. The company may engage in revenue-sharing agreements or pay commissions to these partners. Furthermore, Sonder's emphasis on operational efficiency and technology integration helps reduce costs and enhance profitability.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	623.22M	621.27M	602.07M	464.98M	234.15M	115.68M
Gross Profit	238.31M	244.03M	209.17M	137.37M	31.82M	-21.32M
EBITDA	-64.25M	-3.87M	-64.33M	-56.60M	-232.34M	-226.85M
Net Income	-296.76M	-224.09M	-295.67M	-245.03M	-293.95M	-250.32M
Balance Sheet
Total Assets	1.22B	1.14B	1.52B	1.57B	148.48M	177.52M
Cash, Cash Equivalents and Short-Term Investments	26.96M	20.79M	95.76M	246.62M	69.73M	121.47M
Total Debt	1.45B	1.18B	1.76B	1.49B	208.49M	42.06M
Total Liabilities	1.75B	1.57B	1.90B	1.59B	344.40M	678.38M
Stockholders Equity	-536.94M	-435.89M	-376.70M	-19.95M	399.72M	-500.86M
Cash Flow
Free Cash Flow	-129.56M	-132.33M	-123.27M	-180.01M	-24.26M	-217.35M
Operating Cash Flow	-127.32M	-129.22M	-110.90M	-149.01M	-2.67M	-202.50M
Investing Cash Flow	-2.35M	5.73M	-12.36M	-30.99M	-21.59M	-14.85M
Financing Cash Flow	-2.70M	59.85M	-32.23M	400.60M	148.57M	226.56M

Sonder Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1.65 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 2.07, and below the 200-day MA of 2.45, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 31.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOND.

Sonder Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	77 Outperform	5.48B	29.20	43.14%	3.25%	37.98%	32.17%
GHG	64 Neutral	213.20M	14.22	7.54%	3.97%	0.00%	0.00%
CHH	59 Neutral	5.00B	17.02	-1173.06%	1.06%	1.67%	35.34%
SHCO	54 Neutral	1.73B	-29.19	16.88%	―	7.89%	67.07%
SOND	42 Neutral	$21.96M	―	78.49%	―	-1.33%	36.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sonder Holdings Corporate Events

Sonder Holdings Receives Nasdaq Deficiency Notice

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.

Sonder Holdings CFO Michael Hughes Resigns

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.

Sonder Holdings Secures $24.54M in New Financing

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.

Sonder Holdings Appoints Janice Sears as Interim CEO

On June 24, 2025, Sonder Holdings announced a leadership transition with Janice Sears appointed as Interim CEO, succeeding Francis Davidson. This change marks a significant shift as the company seeks a new CEO to leverage positive business trends, following Davidson’s transformative leadership and integration with Marriott International.

Sonder Holdings Completes Integration with Marriott

On June 17, 2025, Sonder Holdings Inc. completed its integration with Marriott International, allowing its properties to be booked through Marriott’s digital channels under the ‘Sonder by Marriott Bonvoy’ collection. This integration enables Sonder to utilize Marriott’s global sales and marketing capabilities, offering Marriott Bonvoy members the ability to earn and redeem points at Sonder properties, potentially enhancing Sonder’s market reach and customer engagement.

Sonder Holdings Increases Authorized Shares for Growth

On June 6, 2025, Sonder Holdings Inc. increased its authorized shares from 409,309,144 to 462,921,255, following approval from its stockholders at a special meeting. This strategic move, which aligns with Nasdaq Listing Rules, is expected to enhance the company’s capital structure and provide flexibility for future growth initiatives.