Sonder Holdings (SOND) AI Stock Analysis

• Market Cap: $29.01M
• Dividend Yield: N/A
• Average Volume (3M): 244.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.18
• Revenue Growth: 3.19%
• EPS Growth: 44.88%
• Country: US
• Employees: 1,642
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Travel Lodging
• EPS (TTM): N/A
• Shares Outstanding: 13,308,481
• 10 Day Avg. Volume: 78,365
• 30 Day Avg. Volume: 244,338
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.23
• Enterprise Value/Market Cap: 41.06
• Enterprise Value/Revenue: 4.26
• Enterprise Value/Gross Profit: -29.70
• Enterprise Value/Ebitda: -2.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: $2.00 ▼(-5.66%Downside)

Sonder Holdings' financial performance is a significant concern, with ongoing profitability and leverage issues. Technical analysis indicates a bearish trend, and valuation metrics highlight undervaluation due to persistent losses. While corporate events have mixed impacts, the overall score is primarily driven by financial and technical analysis challenges.

Sonder Holdings Business Overview & Revenue Model

Company Description

Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and professionals in North America, Europe, and the Middle East. As of December 31, 2021, it had approximately 7,600 live units across 38 markets and 10 countries, as well as approximately 10,500 additional contracted units. The company is headquartered in San Francisco, California.

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 shows revenue growth but struggles with profitability, as indicated by negative margins and high financial leverage. The company also faces cash flow issues, though there is slight improvement in managing cash outflows.

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

Sonder Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.12 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.19, and below the 200-day MA of 2.72, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.85 is Neutral, neither overbought nor oversold. The STOCH value of 7.55 is Positive, 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	80 Outperform	$4.62B	26.65	44.99%	3.86%	42.60%	27.14%
CHH	71 Outperform	$5.84B	19.15	-661.94%	0.91%	2.75%	40.83%
GHG	65 Neutral	$232.49M	15.22	7.89%	3.88%	―	―
Sector *	61 Neutral	$16.08B	9.94	-8.64%	3.35%	1.36%	-20.44%
SOND	42 Neutral	$29.01M	―	78.49%	―	3.19%	44.88%
INTG	―	$23.83M	―		―	―	―
SHCO	49 Neutral	$1.24B	―	49.70%	―	7.27%	20.45%

Sonder Holdings Corporate Events

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.

Sonder Holdings Faces Nasdaq Deficiency Notification

Sonder Holdings Inc. announced on May 29, 2025, that it received a deficiency notification from Nasdaq due to delays in filing its quarterly and annual reports for 2025 and 2024, respectively. The company has 60 days to submit a compliance plan and is working to rectify the situation, although the notice currently does not affect the trading of its stock.