# EDGAR Filing Document

**Accession Number:** 0001819395
**File Stem:** 0001819395-25-000106
**Filing Date:** 2025-8
**Character Count:** 32889
**Document Hash:** 77c8c2f157d2360b7b20623de04e01d7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001819395-25-000106.hdr.sgml**: 20250825

**ACCESSION NUMBER**: 0001819395-25-000106

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250820

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250825

**DATE AS OF CHANGE**: 20250825

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sonder Holdings Inc.
- **CENTRAL INDEX KEY:** 0001819395
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS, ROOMING HOUSE, CAMPS & OTHER LODGING PLACES [7000]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 852097088
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39907
- **FILM NUMBER:** 251251862

**BUSINESS ADDRESS:**
- **STREET 1:** 447 SUTTER ST. SUITE 405, #542
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108
- **BUSINESS PHONE:** 617-300-0956

**MAIL ADDRESS:**
- **STREET 1:** 447 SUTTER ST. SUITE 405, #542
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94108

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sonder Holdings, Inc.
- **DATE OF NAME CHANGE:** 20220119

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Gores Metropoulos II, Inc.
- **DATE OF NAME CHANGE:** 20200728

?xml version='1.0' encoding='ASCII'? son-20250820

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of report (Date of earliest event reported): August 20, 2025**

**SONDER HOLDINGS INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | | |
|:---|:---|:---|:---|
| **Delaware** | **Delaware** | **001-39907** | **85-2097088** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(I.R.S. Employer**<br>**Identification No.)** |
| **447 Sutter St., Suite 405 #542** | **447 Sutter St., Suite 405 #542** | | |
| **San Francisco,**  | **California** | | **94108** |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | | **(Zip Code)** |

---

**(617) 300-0956**

(Registrant's telephone number, including area code)

**Not Applicable**

**(**Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a–12 under the Exchange Act (17 CFR 240.14a–12)

☐ Pre–commencement communications pursuant to Rule 14d–2(b) under the Exchange Act (17 CFR 240.14d–2(b))

☐ Pre–commencement communications pursuant to Rule 13e–4(c) under the Exchange Act (17 CFR 240.13e–4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading**<br>**Symbols** | **Name of each exchange**<br>**on which registered** |
| Common Stock, par value $0.0001 per share | SOND | The Nasdaq Stock Market LLC |
| Warrants, each 20 warrants exercisable for one share of Common Stock at an exercise price of $230.00 per share | SONDW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02 Results of Operations and Financial Condition.**

On August 25, 2025, Sonder Holdings Inc. (the "Company") issued a press release (the "Press Release") announcing its financial results for the first quarter ended March 31, 2025. A copy of the Press Release is furnished as Exhibit 99.1 and is incorporated by reference herein.

The information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into any filings of the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 3.01&nbsp;&nbsp;&nbsp;&nbsp;Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.**

As previously disclosed in a Form 12b-25 Notification of Late Filing (the "Form 12b-25") filed by the Company on August 14, 2025, the Company is delayed in filing its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 (the "Q2 2025 Form 10-Q") with the Securities and Exchange Commission (the "SEC").

On August 20, 2025, the Company received a notice (the "Notice") from The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that, because the Company is delinquent in filing the Q2 2025 Form 10-Q and remains delinquent in filing the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025 (the "Q1 2025 Form 10-Q"), the Company does not comply with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule"), which requires companies with securities listed on Nasdaq to timely file all required periodic reports with the SEC. The Notice has no immediate effect on the listing or trading of the Company's common stock or publicly traded warrants on the Nasdaq Global Select Market.

The Company previously received notices from Nasdaq on (i) April 24, 2025 notifying the Company that it no longer complied with the Listing Rule due to the Company's delinquency in filing its Annual Report on Form 10-K for the annual period ended December 31, 2024 (the "2024 Form 10-K") and (ii) May 23, 2025 notifying the Company that it no longer complied with the Listing Rule due to the Company's delinquency in filing the Q1 2025 Form 10-Q and remains delinquent in filing the 2024 Form 10-K. The Company filed the 2024 Form 10-K on July 23, 2025 and the Q1 2025 Form 10-Q on August 25, 2025.

In accordance with Nasdaq's listing rules, the Company submitted a plan of compliance (the "Plan") to Nasdaq on June 23, 2025 demonstrating the Company's ability to regain compliance with the Listing Rule and Nasdaq has the discretion to grant the Company up to 180 calendar days from the due date of the 2024 Form 10-K, or October 13, 2025, to regain compliance. The Company is required to submit an update to the Plan to Nasdaq no later than September 4, 2025.

As previously disclosed, the filing of the Q2 2025 Form 10-Q was delayed due to the matters described in the Form 12b-25, including to allow the Company sufficient time to complete its customary accounting and internal control processes and procedures. While the Company can provide no assurances as to timing, the Company will continue to work diligently to complete and file the Q2 2025 Form 10-Q as soon as practicable.

*Caution Regarding Forward-Looking Statements*

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as "could," "estimate," "expect," "intend," "may," "plan," "potentially," or "will" or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company's plan to regain compliance with Nasdaq's rules, the Company's plans and expectations about the completion and filing of the periodic reports, and the timing thereof. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including but not limited to, the timing of the Company's submission of a Plan, Nasdaq's acceptance of the Plan, the duration of any extension that may be granted by Nasdaq, the potential inability to meet Nasdaq's requirements, the Company's preparation of the periodic reports, the possibility of additional delays in the filing of the periodic reports, and the other risks and uncertainties described in the Company's SEC reports and under the heading "Risk Factors" in its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available at www.sec.gov. These forward-looking statements speak only as of the date of this report. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this report.

**Item 9.01 Financial Statements and Exhibits.**

**(d)&nbsp;&nbsp;&nbsp;&nbsp;**Exhibits

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---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | [Press Release dated August](q12025earningsrelease.htm)[25](q12025earningsrelease.htm)[, 2025](q12025earningsrelease.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURE**

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | Sonder Holdings Inc. | Sonder Holdings Inc. |
| Date: August 25, 2025 | By: | /s/ Rahul Thumati |
|  | Name: | Rahul Thumati |
|  | Title: | Interim Chief Accounting Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Sonder Holdings Inc. Announces First Quarter 2025 Financial Results**

SAN FRANCISCO – August 25, 2025 – Sonder Holdings Inc. (Nasdaq: SOND) ("Sonder" or the "Company"), a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler, today announced its financial results for the first quarter 2025, ended March 31, 2025, and filed the related Quarterly Report on Form 10-Q (the "Q1 2025 Form 10-Q"), which can be found on the Company's website at investors.sonder.com.

**First Quarter 2025 Financial Highlights**<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• RevPAR** was $139, a 13% increase year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Occupancy Rate** was 83%, a seven percentage point increase year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Bookable Nights** were 858,000, a 21% decrease year-over-year, driven by the Company's Portfolio Optimization Program, as described in the Q1 2025 Form 10-Q

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue** was $118.9 million, a 11% decrease year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net Loss** was $56.5 million, a 12% increase year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA**<sup>2</sup> was $(56.7) million, a 1% decrease year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDAR**<sup>2</sup> was $21.1 million, a 20% decrease year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Cash Used In Operating Activities** was $4.4 million, an 89% improvement year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted Free Cash Flow**<sup>2</sup> was $(6.9) million, a 76% increase year-over-year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total Cash, Cash Equivalents and Restricted Cash** was $66.5 million, which included $43.2 million of restricted cash as of March 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Live Units** were approximately 9,400 as of March 31, 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total Portfolio** was approximately 10,050 as of March 31, 2025

**Long-Term Strategic Licensing Agreement with Marriott International**

Sonder entered into a long-term strategic licensing agreement with Marriott International, Inc. (NASDAQ: MAR) ("Marriott") in August 2024 and completed the full Marriott integration in the second quarter of 2025. As of June 2025, all Sonder properties are available for booking on Marriott's digital channels and platform, including Marriott.com and the Marriott Bonvoy® mobile app under the new "Sonder by Marriott Bonvoy" collection. Sonder's properties also participate in the Marriott Bonvoy® travel platform.

**Notice of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q for Second Quarter**

Sonder received a deficiency notification letter from the Listing Qualifications Staff of The Nasdaq Stock Market LLC ("Nasdaq") on August 20, 2025 (the "Notice"). The Notice indicated that the Company continues to not be in compliance with Nasdaq Listing Rule 5250(c)(1) (the "Listing Rule") as a result of its failure to timely file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Q2 2025 Form 10-Q"), as described more fully in the Company's Form 12b-25 Notification of Late Filing (the "Form 12b-25") filed with the Securities and Exchange Commission (the "SEC") on August 14, 2025. The Listing Rule requires Nasdaq-listed companies to timely file all required periodic reports with the SEC.

The Company previously received notices from Nasdaq (i) on April 24, 2025 notifying the Company that it no longer complied with the Listing Rule due to the Company's delinquency in filing its Annual Report on Form 10-K for the annual period ended December 31, 2024 (the "2024 Form 10-K") and (ii) May 23, 2025 notifying the Company that it no longer complied with the Listing Rule due to the Company's delinquency in filing the Q1 2025 Form 10-Q and remained delinquent in filing the 2024 Form 10-K. The Company filed the 2024 Form 10-K on July 23, 2025.

In accordance with Nasdaq's listing rules, the Company submitted a plan of compliance (the "Plan") to Nasdaq on June 23, 2025 demonstrating the Company's ability to regain compliance with the Listing Rule and Nasdaq has the discretion to grant the Company up to 180 calendar days from the due date of the 2024 Form 10-K, or October 13, 2025, to regain compliance. The Company is required to submit an update to the Plan to Nasdaq no later than September 4, 2025.

<sup>1</sup> $ figures represent metrics for the three months ended March 31, 2025, except where otherwise noted. % figures represent year-over-year growth for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.

<sup>2</sup> Adjusted EBITDA, Adjusted EBITDAR, and Adjusted Free Cash Flow are non-GAAP financial measures. See "Non-GAAP Financial Measures" for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

------

As previously disclosed, the filing of the Q2 2025 Form 10-Q was delayed due to the matters described in the Form 12b-25, including to allow the Company sufficient time to complete its customary accounting and internal control processes and procedures. While the Company can provide no assurances as to timing, the Company will continue to work diligently to complete and file the Q2 2025 Form 10-Q as soon as practicable.

**<u>About Sonder</u>**

Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in 40 cities, spanning nine countries, and three continents.

To learn more, visit http://www.sonder.com or follow Sonder on Instagram, LinkedIn or X.

Download the Sonder app on Apple or Google Play.

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**SONDER HOLDINGS INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

*(in thousands, except share data)*

---

| | | |
|:---|:---|:---|
| | March 31, 2025 | December 31, 2024 |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $23329 | $20786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 43191 | 51268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cash, cash equivalents and restricted cash | 66520 | 72054 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance | 8526 | 13918 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 3646 | 4141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 9785 | 9733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 88477 | 99846 |
| Property and equipment, net | 4383 | 5933 |
| Operating lease right-of-use ("ROU") assets | 920727 | 1013854 |
| Other non-current assets | 19142 | 17544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1032729 | $1137177 |
| **Liabilities and stockholders' deficit** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $49217 | $33724 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 34463 | 32621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | 22890 | 22224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 101068 | 71729 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 7155 | 5513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 168751 | 171736 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 384544 | 338547 |
| Non-current operating lease liabilities | 907266 | 1009169 |
| Long-term debt, net | 226161 | 217236 |
| Other non-current liabilities | 8070 | 8113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1526041 | 1573065 |
| Mezzanine equity: |  |  |
| Series A redeemable convertible preferred stock | 163434 | 162907 |
| Stockholders' deficit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 978855 | 977112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cumulative translation adjustment | 4161 | 7360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (1639763) | (1583268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (656746) | (598795) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' deficit | $1032729 | $1137177 |

---

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**SONDER HOLDINGS INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

*(in thousands, except share data)*

---

| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| | 2025 | 2024 |
| Revenue | $118856 | $133479 |
| Costs and operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue (excluding depreciation and amortization) | 96849 | 100363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations and support | 38032 | 49980 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 26817 | 24285 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 3938 | 4671 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales and marketing | 15322 | 19249 |
| &nbsp;&nbsp;&nbsp;&nbsp;Integration costs | 1539 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and other charges |  | 2592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and operating expenses | 182497 | 201140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (63641) | (67661) |
| Interest expense, net | 9449 | 7323 |
| Lease adjustment gains, net | (11138) | (23901) |
| Other income, net | (6174) | (783) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-operating income, net | (7863) | (17361) |
| Loss before income taxes | (55778) | (50300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 717 | 187 |
| Net loss | $(56495) | $(50487) |
| Basic and diluted net loss per common share | $(4.85) | $(4.58) |
| Other comprehensive loss: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(56495) | $(50487) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in foreign currency translation adjustment | (3199) | (589) |
| Comprehensive loss | $(59694) | $(51076) |

---

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**SONDER HOLDINGS INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

*(in thousands)*

---

| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| | 2025 | 2024 |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(56495) | $(50487) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 2591 | 4973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 2269 | 3009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of operating lease ROU assets | 49565 | 47249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease adjustment gains, net | (11138) | (23901) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on foreign exchange | (2678) | (219) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization of paid-in-kind interest on long-term debt | 7975 | 6432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit loss expense | 2568 | (880) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discounts and issuance costs | 1200 | 699 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-cash activities | (120) | 228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 2931 | 634 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 513 | 1148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current assets | 2894 | (1867) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 15259 | 5319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 1752 | (82) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes payable | (3635) | 2424 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 29297 | 20359 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease ROU assets and operating lease liabilities, net | (50686) | (55495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current and non-current liabilities | 1585 | 148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (4353) | (40309) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (1219) | (606) |
| &nbsp;&nbsp;&nbsp;Proceeds on the disposition of property and equipment | 260 |  |
| &nbsp;&nbsp;&nbsp;Capitalization of internal-use software |  | (110) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (959) | (716) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Repayment of debt | (250) | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (250) | (250) |
| Effects of foreign exchange on cash | 28 | (344) |
| Net change in cash, cash equivalents, and restricted cash | (5534) | (41619) |
| Cash, cash equivalents, and restricted cash at beginning of year | 72054 | 136497 |
| Cash, cash equivalents, and restricted cash at end of year | $66520 | $94878 |

---

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**SONDER HOLDINGS INC. AND SUBSIDIARIES**

**NON-GAAP FINANCIAL INFORMATION**<sup>(1)</sup>

**<u>Reconciliation of Non-GAAP Financial Measure: Reconciliation of Cash Used in Operating Activities to Adjusted Free Cash Flow ("Adjusted FCF")</u>**

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| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| ***(in thousands)*** | 2025 | 2024 |
| Cash used in operating activities | $(4353) | $(40309) |
| Cash used in investing activities | (959) | (716) |
| &nbsp;&nbsp;&nbsp;FCF, including cash paid for lease terminations, restructuring, and professional fees | (5312) | (41025) |
| Cash received for lease terminations | (2950) |  |
| Cash paid for lease termination costs | 861 | 10526 |
| Cash paid for restructuring costs |  | 1727 |
| Cash paid for non-recurring professional fees |  | 253 |
| Cash paid for integration costs | 543 |  |
| &nbsp;&nbsp;Adjusted FCF | $(6858) | $(28519) |

---

**<u>Reconciliation of Non-GAAP Financial Measure: Reconciliation of Net Loss to Adjusted EBITDA</u>**

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| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| ***(in thousands)*** | 2025 | 2024 |
| Net loss | $(56495) | $(50487) |
| Interest expense, net | 9449 | 7323 |
| Provision for income taxes | 717 | 187 |
| Depreciation and amortization expense | 2591 | 4973 |
| EBITDA | (43738) | (38004) |
| Stock-based compensation | 2269 | 3009 |
| Lease adjustment (gains), net | (11138) | (23901) |
| Integration costs | 1539 |  |
| Cash received for lease terminations | (2950) |  |
| Restructuring and other charges |  | 2592 |
| Professional fees |  | 253 |
| Gain on foreign exchange | (2678) | (219) |
| Adjusted EBITDA | $(56696) | $(56270) |

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**<u>Reconciliation of Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA to Adjusted EBITDAR</u>**

---

| | | |
|:---|:---|:---|
| | Three months ended March 31, | Three months ended March 31, |
| ***(in thousands)*** | 2025 | 2024 |
| Adjusted EBITDA | $(56696) | $(56270) |
| Operating lease related rent charges | 77819 | 82581 |
| Adjusted EBITDAR | $21123 | $26311 |

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<sup>(1)</sup> See Non-GAAP Financial Measures section for definitions of the Company's Non-GAAP financial measures.

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**<u>Definitions</u>**

<u>RevPAR</u>

**Revenue Per Available Room** ("RevPAR") represents the average revenue earned per available night and can be calculated either by dividing revenue by Bookable Nights, or by multiplying Average Daily Rate by Occupancy Rate. **Average Daily Rate** represents the average revenue earned per night occupied and is calculated as Revenue divided by Occupied Nights. **Occupancy Rate** is calculated as Occupied Nights divided by Bookable Nights. **Bookable Nights** represent the total number of nights available for stays across all Live Units. This excludes nights lost to full building closures of greater than 30 nights. **Occupied Nights** represent the total number of nights occupied across all Live Units.

<u>Live Units & Total Portfolio</u>

**Total Portfolio** consists of Live Units and Contracted Units. **Live Units** are defined as units which are available for guests to book. **Contracted Units** are units for which Sonder has signed real estate contracts, but are not yet available for guests to book.

**<u>Non-GAAP Financial Measures</u>**

<u>Adjusted EBITDA</u>

**Adjusted EBITDA** is defined as net income (loss) as adjusted to eliminate the impact of net interest expense, provision (benefit) for income taxes, depreciation and amortization expense, and certain other items as indicated. The exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. The Company believes Adjusted EBITDA is meaningful to investors as it is the primary operating performance measure that the Company focuses on internally to evaluate its core operating performance. Adjusted EBITDA provides a consistent basis for comparison across reporting periods by excluding interest, taxes, depreciation and amortization, and certain non-recurring or non-operational items, such as lease adjustment gains, net, restructuring and other related charges, and professional fees related to discrete projects such as fees associated with the integration in connection with the strategic licensing agreement with Marriott and restatement activities. It serves as a key measure for the Company to align its financial performance with its internal financial planning and analysis.

<u>Adjusted EBITDAR</u>

**Adjusted EBITDAR** is defined as Adjusted EBITDA adjusted for operating lease related rent charges. The Company believes Adjusted EBITDAR is meaningful to investors as it is an operating performance measure that further enables the Company to assess its operating performance independent of operating leases, offering insights into its cash flow and performance.

<u>Adjusted Free Cash Flow</u>

**Adjusted Free Cash Flow** ("Adjusted FCF") is defined as cash used in operating activities plus cash provided by (used in) investing activities, excluding the impact of lease terminations, restructuring, non-recurring professional fee charges and integration costs related to non-operational activities. The most directly comparable GAAP financial measures are cash used in operating activities when combined with cash provided by (used in) investing activities. The Company's near-term focus is to reach sustainable positive Adjusted FCF as described in its Cash Flow Positive Plan in the Annual Report on Form 10-K. The Company believes Adjusted FCF is meaningful to investors as it is the primary liquidity measure that the Company focuses on internally to evaluate its progress towards the objectives outlined in its Cash Flow Positive Plan. The Company believes that achieving its goals around this measure will put it on a path to financial sustainability and will help fund its future growth. In addition, Adjusted FCF may not provide a complete understanding of the Company's cash flow as a whole. As such, this measure should be reviewed in conjunction with the Company's GAAP cash flow.

Presentation of these measures are not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

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**<u>Forward-Looking Statements</u>**

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as "could," "estimate," "expect," "intend," "may," "plan," "potentially," or "will" or similar expressions and the negatives of those terms. These statements include, but are not limited to, statements relating to the Company's financial performance, key performance metrics, operational and strategic initiatives, the Company's long-term strategic licensing agreement with Marriott, information concerning possible or assumed future financial or operating results and measures, the timing of the Company's submission of an update to the Plan, the duration of any extension that may be granted by Nasdaq, the ability to meet Nasdaq's requirements, and the possibility of additional delays in the filing of periodic reports. These forward-looking statements are not guarantees of future performance, conditions or results. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including the risks and uncertainties described in the Company's reports filed with the Securities and Exchange Commission, and under the heading "Risk Factors" in its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available at www.sec.gov and are incorporated by reference herein. The forward-looking statements contained herein are only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.

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