Sonder Holdings 2025 Q2 Earnings Sharp Net Loss Amid Strategic Shifts

Sonder Holdings (SOND) reported its fiscal 2025 Q2 earnings on Oct 14th, 2025, showcasing a sharp deterioration in profitability despite positive operational metrics like strong RevPAR growth and occupancy rates. The results missed expectations with a significant net loss and revenue decline.

Despite a 13% year-over-year increase in RevPAR and an 86% occupancy rate, the company reported a 10.6% revenue drop to $147.09 million and swung to a net loss of $44.52 million, representing a 236% deterioration from a year ago.

Revenue
Sonder Holdings' total revenue for the second quarter of 2025 declined by 10.6% to $147.09 million compared to the same period in 2024. This decrease was attributed to a strategic shift in the company’s Portfolio Optimization Program, which led to a 21% reduction in Bookable Nights. Specifically, the company earned $57.35 million in direct revenue and $89.73 million in indirect revenue, both segments reflecting the broader trend of unit reduction and margin-focused asset management.

Earnings/Net Income
The company swung from a profit to a loss in 2025 Q2, with earnings per share turning negative at $3.96, compared to $2.94 in 2024. The net loss of $44.52 million marked a 236% year-over-year decline, underscoring the financial challenges faced by the company despite operational improvements in cash flow and cost discipline.

Price Action
The stock of Sonder Holdings has experienced a significant decline in the period following the earnings report, with a 2.28% drop in a single trading day, a 20.85% drop over the past week, and a 44.32% decline month-to-date as of the report date.

Post Earnings Price Action Review
The post-earnings price action reflects broader investor skepticism despite CEO Alex Schultz's emphasis on the value of the Portfolio Optimization Program in enhancing asset quality. The strategic reduction in units, while contributing to the drop in Bookable Nights by 21%, aligns with long-term goals of selective unit reductions and margin improvement. Schultz highlighted the successful integration with Marriott International, noting that all Sonder properties are now available on Marriott's platforms under the “Sonder by Marriott Bonvoy” collection, which is expected to enhance brand visibility and guest access. Despite a net loss of $44.5 million, he noted a 40% improvement in cash used in operating activities and a continued focus on cost discipline and portfolio optimization.

Additional News
Sonder Holdings recently announced a significant partnership with Marriott International in August 2024, completing the full integration by Q2 2025. This long-term strategic licensing agreement allows all Sonder properties to be booked on Marriott’s digital platforms, including Marriott.com and the Bonvoy mobile app under the “Sonder by Marriott Bonvoy” collection. This integration is expected to expand the company’s brand reach and bookings, leveraging Marriott’s extensive customer base and global platform. The company also reported a 40% improvement in cash used in operating activities, reinforcing its commitment to cost discipline and operational efficiency. Additionally, Sonder continues to refine its portfolio through the Portfolio Optimization Program, which is designed to enhance margin improvement and operational efficiency by strategically reducing units and focusing on premium assets. This strategic focus is expected to continue shaping the company’s financial trajectory in the coming quarters.