Sonder Holdings 2025 Q1 Earnings Worsening Losses Amid Revenue Drop

Sonder Holdings reported disappointing results for the first quarter of 2025, with both revenue and earnings falling short of expectations. The company posted a wider-than-expected net loss per share and did not provide forward guidance, raising concerns about its financial recovery path.

Sonder Holdings reported total revenue of $118.86 million for Q1 2025, a decline of 11.0% compared to $133.48 million in the same period in 2024. Direct revenue accounted for $41.51 million, while indirect revenue contributed $77.35 million, representing the two main revenue streams for the quarter.

The company's losses widened significantly, with a net loss of $56.49 million in Q1 2025, a 11.9% increase from the $50.49 million loss in the prior-year quarter. On a per-share basis, the loss rose to $4.85 from $4.58, marking a 5.9% increase in per-share losses. The earnings reflect continued challenges in improving profitability.

The stock price of Sonder Holdings rose 4.42% on the latest trading day, but declined 1.56% for the week and fell 19.57% month-to-date, reflecting mixed investor sentiment.

A post-earnings trading strategy that involved buying shares after the revenue decline would have resulted in a severe loss, with a return of -94.70% over the past three years, significantly underperforming the benchmark. The strategy’s Sharpe ratio of -0.47 highlighted the high risk, while the maximum drawdown of 0.00% suggested the strategy had no room for further recovery.

CEO Paul Schicht emphasized progress in Q1 despite ongoing challenges, highlighting a strategic partnership as a key step in expanding brand visibility and access. He reiterated the company’s focus on executing strategic priorities to regain compliance with Nasdaq listing requirements and improve financial performance.

Sonder Holdings did not provide forward-looking guidance in the report and reiterated that its Q2 2025 Form 10-Q filing had been delayed to allow for the completion of certain processes. The company remains focused on updating its compliance strategy with Nasdaq and has a defined path to regain compliance with Listing Rule 5250(c)(1).

Additional News
On August 18, 2025, Seeking Alpha reported that access to the latest stock news for Sonder Holdings was restricted, potentially due to technical or compliance issues. While no major corporate changes or financial announcements were disclosed in the restricted content, the lack of accessible information has raised questions among investors. No recent M&A activity, C-level executive changes, or dividend/buyback announcements were reported. The absence of public disclosures complicates investor assessments of the company’s strategic direction during a critical period of financial review and compliance efforts.