Sonder (SOND 0.43%), an operator of tech-enabled short-term rental and hotel accommodations, released its fourth quarter fiscal 2024 results on July 23, 2025. The headline from the release: adjusted EBITDA loss improved by 51% and net income turned positive, though revenue missed the prior year by a small margin. GAAP revenue totaled $161 million, edging down 2.0% from last year, with a bottom-line swing to $4.55 per share (GAAP), mostly driven by a one-time gain related to a preferred stock forward contract. The quarter reflected management's progress on cost control and unit performance, offset by a shrinking portfolio and continued negative cash flow.
| Metric | Q4 2024 | Q4 2023 | Y/Y Change |
|---|---|---|---|
| EPS – Basic and Diluted (GAAP) | $4.55 | ($10.20) | N/M |
| Revenue (GAAP) | $161 million | $164 million | (2.0%) |
| Adjusted EBITDA | ($20.0 million) | ($41.7 million) | 51.4% |
| Adjusted Free Cash Flow | ($25.6 million) | ($36.8 million) | (30.4%) |
| RevPAR (USD) | $180 | $151 | 19.2% |
Understanding Sonder's Business and Recent Focus
Sonder operates in the hospitality sector, offering short-term rental apartments and hotel-like stays through a technology-driven platform. The company manages a portfolio of leased units in urban markets, aiming to deliver a consistent guest experience via online and app-based booking and guest support.
Recently, Sonder's strategy centers on two priorities: deepening its partnership with Marriott to expand booking channels, and optimizing its property portfolio through exits from loss-making or underperforming units. To succeed, the company must improve unit profitability, keep occupancy rates high, and navigate both competitive and regulatory demands in diverse markets.
Fourth Quarter Performance and Key Moves
A main development was the swing to a net profit—$31 million (GAAP)—driven not by core operations but by a non-cash, one-time $92 million gain tied to a forward contract on preferred shares issued in August 2024. Operational metrics paint a more measured picture: the company again reported an adjusted EBITDA (non-GAAP) loss of $20 million, though it narrowed from $42 million in Q4 2023. Adjusted free cash flow (non-GAAP), though still negative, improved significantly in the quarter and for fiscal 2024.
Revenue per available room (RevPAR), a vital hospitality performance metric showing earned revenue per bookable room, climbed 19% year over year to $180, reflecting strong demand in a smaller, more curated portfolio. Bookable Nights—a count of nights available to book across the portfolio—fell 18% year-over-year as Sonder intentionally shrank its property base through its optimization program. Fewer rooms meant top-line revenue (GAAP) dropped slightly, but higher RevPAR and better occupancy helped profitability metrics improve.
The strategic licensing agreement with Marriott, a hotel brand, was completed and as of June 2025, guests can book Sonder properties through Marriott’s channels. While this distribution channel should broaden exposure and boost future bookings, the benefits are not fully visible in these quarterly results. Marriott also made a $15.0 million investment in Sonder during the transition period under the Marriott Agreement.
Cost control featured prominently due to the property portfolio reshaping. Operations and support costs (GAAP) fell sharply from $58.5 million to $42.7 million. Impairment losses of $13.2 million (GAAP) were also recorded, reflecting property exits.
Looking Ahead: Guidance and Watch Points
Management did not provide specific forward financial guidance for the upcoming quarter or year. The release highlighted a continued focus on reaching sustainable positive adjusted free cash flow, as described in its "Cash Flow Positive Plan," but no concrete targets or outlook figures were issued. The company expects to benefit in coming quarters from the full implementation of Marriott platform integration and ongoing cost discipline efforts.
Sonder continues to face material risks, particularly around liquidity and debt. Only $21 million of its $72 million cash balance remained unrestricted as of December 31, 2024, while long-term debt (GAAP) rose to $217 million as of December 31, 2024. Continued access to new capital and successful execution of its partnerships and portfolio strategies are critical for future stability.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
