Executive Summary

Sonder did not report Q3 2025 financial results or hold an earnings call; instead, management announced on Nov 10 an immediate wind‑down of operations and intent to initiate Chapter 7 liquidation in the U.S., following Marriott’s Nov 9 termination of the “Sonder by Marriott Bonvoy” licensing agreement due to Sonder’s default .
The last reported quarter (Q2 2025) showed improving unit economics: RevPAR rose to $184, occupancy to 86%, and Adjusted EBITDA improved to $(2.6)M from $(17.6)M YoY; however, revenue fell 11% YoY to $147.1M and net loss was $(44.5)M .
Liquidity remained constrained (Q2 cash, cash equivalents and restricted cash $71.0M, including $43.8M restricted), and Nasdaq compliance issues escalated (MVPHS deficiency Oct 21; prior filing delays), culminating in the wind‑down decision .
Near‑term stock reaction drivers were dominated by the Marriott termination and bankruptcy developments rather than fundamentals; management warned equity holders could face significant or complete loss through the proceedings .

What Went Well and What Went Wrong

Pricing/mix and utilization improved in Q2: RevPAR increased to $184 (+13% YoY) and occupancy reached 86% (+6ppt YoY) as portfolio optimization removed underperforming supply .
Adjusted EBITDA trend improved meaningfully in Q2 to $(2.6)M from $(17.6)M in Q2 2024, reflecting cost controls and portfolio actions .
Expansion of B2B capabilities: TreviPay partnership launched “Sonder Billing” to offer 30‑day net terms and VAT‑compliant invoicing for corporate travelers in the U.S., Canada, and UK, aiming to bolster corporate demand and cash flow efficiency .

Strategic partnership breakdown: Marriott terminated the licensing agreement on Nov 9, materially reducing distribution and triggering Sonder’s immediate wind‑down and planned liquidation .
Liquidity and listing pressure: MVPHS deficiency notice (Oct 21) added to earlier compliance issues tied to delayed 10‑Q filings, underlining strained liquidity and governance control lapses .
Demand/supply contraction: Bookable Nights and Live Units declined through H1 2025 (Q2 Bookable Nights 798k, Live Units ~8.3k), partly by design via portfolio optimization but contributing to revenue down 11% YoY in Q2 .

Note: Q3 2025 results were not reported; company moved to wind‑down before issuing an 8‑K 2.02 or press release for Q3 2025 .

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$162.0	$118.856	$147.085	NR
Net Income ($USD Millions)	$(179.391)	$(56.495)	$(44.523)	NR
Adjusted EBITDA ($USD Millions)	$(12.397)	$(56.696)	$(2.628)	NR
RevPAR ($)	$176	$139	$184	NR
Occupancy (%)	85%	83%	86%	NR
Live Units (EoP)	~10,100	~9,400	~8,300	NR
Adjusted Free Cash Flow ($USD Millions)	$(10.735)	$(6.858)	$(17.493)	NR
Total Cash, Cash Equivalents & Restricted ($USD Millions)	$76	$66.520	$70.958	NR

KPIs and portfolio context:

Bookable Nights: 922k (Q3’24) ; 858k (Q1’25) ; 798k (Q2’25) .
Total Portfolio (Live + Contracted): ~11,200 (Q3’24) ; ~10,050 (Q1’25) ; ~8,990 (Q2’25) .

NR = Not Reported due to wind‑down and bankruptcy actions preceding Q3 disclosure .

Metric	Period	Previous Guidance	Current Guidance	Change
All metrics	Q3 2025 and beyond	Not provided	Company initiating immediate wind‑down; expects Chapter 7 liquidation of U.S. business; intends international insolvency proceedings	Withdrawn/Not applicable
Distribution partnership	Ongoing	Integration with Marriott digital channels completed in Q2’25	Marriott terminated licensing agreement Nov 9, 2025	Terminated

No Q3 2025 earnings call transcript was issued; the period was dominated by wind‑down actions .

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
Marriott integration / distribution	Integration completed; all properties available on Marriott channels as of June 2025	Marriott terminates licensing agreement Nov 9, 2025	Deteriorated sharply
Liquidity/Nasdaq compliance	Notices of late filings and plan to regain compliance (Q1/Q2 filings slippage)	MVPHS deficiency (Oct 21, 2025); impending delisting upon bankruptcy	Deteriorated
Portfolio optimization	Bookable Nights down YoY due to portfolio optimization; Live Units reduced	Wind‑down supersedes optimization; operations to cease	Superseded by liquidation
Corporate/B2B channel	Launch of “Sonder Billing” with TreviPay to support corporate demand (Oct 15)	Unclear under wind‑down; not a going‑concern priority	Neutral to negative

“We are devastated to reach a point where a liquidation is the only viable path forward… unexpected challenges in aligning our technology frameworks [with Marriott] resulted in significant, unanticipated integration costs, as well as a sharp decline in revenue… contributed to a substantial and material loss in working capital.” — Janice Sears, Interim CEO (Nov 10, 2025) .
“As of June 2025, all Sonder properties are available for booking on Marriott’s digital channels and platform.” — Q2 2025 release .
“The third quarter [2024] was pivotal for Sonder… portfolio and cost optimization efforts drove year‑over‑year RevPAR growth of 14%… Adjusted EBITDA improvement of 69% and Adjusted Free Cash Flow improvement of 33%.” — Francis Davidson, Co‑Founder & CEO (Q3 2024) .

No Q3 2025 earnings call or transcript was issued prior to the wind‑down and bankruptcy filings; no Q&A or guidance clarifications available .

S&P Global consensus for Q3 2025 was unavailable; therefore, no vs‑consensus comparisons can be presented for revenue, EPS, or EBITDA (Values from S&P Global were not available via our estimates tool).

The narrative shifted decisively from improving unit economics in Q2 to solvency risk in Q3: Marriott’s agreement termination removed critical distribution and precipitated a rapid wind‑down .
Equity recovery prospects are bleak; management cautioned shareholders could face significant or complete loss as Chapter 7 advances and Nasdaq delisting is expected .
Operational metrics showed progress into Q2 (higher RevPAR/occupancy, near‑breakeven Adjusted EBITDA), but revenue contraction, constrained liquidity, and compliance issues persisted .
Portfolio optimization reduced supply (Live Units ~8.3k in Q2 vs ~10.1k in Q3’24), supporting pricing but compressing Bookable Nights and revenue base .
B2B initiatives (TreviPay) were promising tactically but could not offset the structural impact of partnership termination and liquidity shortfalls .
With Q3 results NR and formal wind‑down underway, fundamental valuation is largely moot; focus shifts to bankruptcy process outcomes and creditor recoveries .

Q1 2025: Revenue $118.9M; Net loss $(56.5)M; RevPAR $139; Occupancy 83%; Live Units ~9,400; Adjusted EBITDA $(56.7)M; Adjusted FCF $(6.9)M; total cash, cash equivalents & restricted $66.5M .
Q2 2025: Revenue $147.1M; Net loss $(44.5)M; RevPAR $184; Occupancy 86%; Live Units ~8,300; Adjusted EBITDA $(2.6)M; Adjusted FCF $(17.5)M; total cash, cash equivalents & restricted $71.0M .