Sonder Holdings Inc.
SONDQ Consumer Cyclical Lodging
Sonder Holdings Inc.’s revenue for fiscal 2024 (year ended December 2024) was $621.3 million, up 3.19% from fiscal 2023. In the quarter to June 2025, revenue fell 10.6%, EPS fell 234.7% and free cash flow grew 39.1%, each against the same quarter a year earlier. Revenue growth for five consecutive years.
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Sonder Holdings Inc. (SONDQ) Altman Z-score
Sonder Holdings Inc.'s Altman Z-score for fiscal 2024 is −2.17, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2024 | −2.17 | (0.45) |
| FY2023 | −1.72 | (0.37) |
| FY2022 | −1.35 | 11.78 |
| FY2021 | −13.13 | — |
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.21) | — | −0.25 | |
| Retained earnings / total assets | (1.39) | — | −1.95 | |
| EBIT / total assets | (0.16) | — | −0.53 | |
| Market value of equity / total liabilities | 0.02 | — | 0.01 | |
| Sales / total assets | 0.55 | — | 0.55 | |
| Altman Z-score | Distress zone | −2.17 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −7.36 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ATAT Atour Lifestyle Holdings Limited Sponsored ADR compare | 6.8× |
| CHH Choice Hotels International, Inc. compare | 3.1× |
| HTHT H World Group Limited Sponsored ADR compare | 2.0× |
| WH Wyndham Hotels & Resorts compare | 1.7× |
| UOKAF MDJM Ltd. compare | 1.6× |
| GHG GreenTree Hospitality Group Ltd. Sponsored ADR compare | 0.6× |
| INTG The Intergroup Corporation compare | 0.5× |
| CVEO Civeo Corporation compare | −1.0× |
| SONDQ Sonder Holdings Inc. | −2.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets