Sonder Holdings receives Nasdaq compliance warning

Published 29/05/2025, 21:14
Sonder Holdings receives Nasdaq compliance warning

SAN FRANCISCO - Sonder Holdings Inc. (NASDAQ: SOND), a hospitality company known for its design-forward accommodations, has been notified by Nasdaq of non-compliance with its listing rules due to delayed regulatory filings. The company, currently trading at $1.82 and showing concerning financial metrics according to InvestingPro data, disclosed on May 23, 2025, that it had received a deficiency letter from Nasdaq for not filing its quarterly report on time.

Previously, on April 24, 2025, Sonder was informed by Nasdaq of its non-compliance due to the late filing of its annual report for the year ended December 31, 2024. The company is now required to submit a compliance plan within 60 days from the first notice to regain conformity with Nasdaq’s requirements. Nasdaq may grant Sonder an extension until October 13, 2025, to file the overdue documents. InvestingPro analysis reveals the company operates with a significant debt burden of $1.45 billion and faces challenges in making interest payments.

The delay in filing the Q1 2025 Form 10-Q, as explained in the company’s Form 12b-25, was attributed to the need for additional time to complete standard accounting and internal control processes. Sonder has communicated its intention to submit a compliance plan and is working to complete and file the 2024 Form 10-K and the Q1 2025 Form 10-Q promptly, although it has not provided specific assurances regarding the timing. The company’s financial health score is rated as WEAK by InvestingPro, with concerning metrics including a negative EBITDA of -$158 million and a current ratio of 0.22.

Sonder, which began operations in 2014, operates premium apartments and boutique hotels in over 41 cities across nine countries. The brand emphasizes a seamless, tech-enabled service experience through its app, which offers guests features like self-service check-in and 24/7 support.

This news is based on a press release statement and reflects the current situation regarding Sonder’s compliance with Nasdaq’s listing rules. The company’s future filings will determine its ability to maintain its listing on the Nasdaq Stock Market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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