Sonder Holdings Reports Q2 Results with Significant Revenue

Sonder Holdings (SOND) reported Q2 revenue of $147.1 million, with a GAAP EPS of -$3.96. The company operates in the Travel & Leisure industry, but its financial health indicators suggest significant challenges, including a Z-Score indicating distress and a debt-to-equity ratio of -1.75. Sonder's financial health grades highlight several risks, including a low Piotroski F-Score and high volatility.

Sonder Holdings Inc. (SOND), a leading global brand of premium, design-forward apartments and intimate boutique hotels, reported its second-quarter 2025 financial results on October 14, 2025, in a company press release. The company's Q2 revenue stood at $147.1 million, representing a 11% decrease year-over-year (YoY). Despite this decline, Sonder's RevPAR (Revenue Per Available Room) increased by 13% YoY to $184, and the occupancy rate climbed to 86%, a six percentage point increase from the previous year.

Sonder's financial health indicators, however, paint a concerning picture. The company reported a net loss of $44.5 million for the quarter, a 236% increase YoY from a net profit of $32.7 million in Q2 2024. This loss was driven by a 21% decrease in bookable nights, attributed to Sonder's Portfolio Optimization Program. Additionally, Sonder's adjusted EBITDA3 was $(2.6) million, an 83% increase YoY, while its adjusted EBITDAR3 was $58.6 million, a 1% increase YoY.

Sonder's financial challenges are further underscored by its debt-to-equity ratio of -1.75 and a low Piotroski F-Score, which suggests high risk and potential distress, according to a TS2 article. The company's Altman Z-Score of -3.0 places it in a distress zone with potential bankruptcy risk. Sonder's stock price has been volatile, with significant fluctuations in recent months, including a 70% year-to-date decline. Despite these challenges, Sonder announced a partnership with TreviPay to launch "Sonder Billing," a 30-day net invoicing program for corporate travelers.

Sonder's integration with Marriott's platform, making all its properties bookable via Marriott Bonvoy channels, is a strategic move to expand its customer reach. However, market sentiment around SOND remains cautious, with analysts pulling back on their ratings and price targets.