Key Takeaways Sabre's Q4 revenues grew 3% to $667M, beating estimates on higher bookings and rates.Normalized adjusted EBITDA climbed to $119M, with a 110-bps margin improvement to 17.8%.The company expects revenues to grow in the mid-single-digit percentage range in 2026.Sabre Corporation (SABR) shares were trading 36% higher during the pre-market session today after the company reported better-than-expected results for the fourth quarter of 2025. SABR reported an adjusted loss of 1 cent per share for the ...

Sabre (SABR) reported $666.53 million in revenue for the quarter ended December 2025, representing a year-over-year decline of 6.7%. EPS of -$0.01 for the same period compares to -$0.08 a year ago.The reported revenue represents a surprise of +2.02% over the Zacks Consensus Estimate of $653.36 million. With the consensus EPS estimate being -$0.07, the EPS surprise was +84.62%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Core Insights - Sabre is positioning itself as an "AI-native" company, leveraging its extensive travel data and proprietary capabilities to enhance its marketplace and support agentic AI solutions [6][4][5] Company Developments - Virgin Australia is the first airline to implement Sabre's Concierge IQ solution, which can manage complex inquiries and tasks like rebooking and refunds, and is also available through a ChatGPT plugin for other travel partners [1] - BizTrip, an AI-native travel management company, is utilizing Sabre's travel marketplace and APIs to streamline corporate travel processes, with a conversational interface planned for launch in Q2 2026 [2] - Sabre's executives highlighted the launch of agentic APIs and a multi-channel platform designed for large language model (LLM) consumption, indicating a significant shift in travel commerce [3] Financial Performance - In Q4 2025, Sabre reported a 3% year-over-year increase in total revenue, with distribution revenue rising by $27 million (5%) due to higher bookings and favorable rates [8] - The company's normalized adjusted EBITDA for Q4 2025 was $119 million, reflecting a 10% year-over-year increase, with a margin expansion of 107 basis points to 18% [9] - For the full year, Sabre's revenue reached $2.8 billion, a 1% increase year-over-year, with normalized adjusted EBITDA of $536 million, also up 10% [10] Strategic Initiatives - Sabre has made significant progress in deleveraging, paying down over $1 billion in debt during 2025, resulting in a pro forma net leverage decline of approximately 25% [12] - The company anticipates mid-single-digit volume and revenue growth for 2026, driven by share gains and new solutions, with IT solutions revenue expected to grow in the same range [14] - Sabre's leadership changes include the promotion of Garry Wiseman to President of Product and Engineering, indicating a focus on innovation and AI [13] Future Outlook - For 2026, Sabre expects pro forma adjusted EBITDA of approximately $585 million, while maintaining flat technology and SG&A expenses through an inflation offset program [15] - The company projects negative free cash flow of $70 million for 2026, primarily due to restructuring costs, but anticipates near breakeven cash flow excluding these costs [16] - Management is optimistic about mid-single-digit revenue growth in 2027, with sustained adjusted EBITDA growth and positive free cash flow expected [17]

Financial Data and Key Metrics Changes - In 2025, normalized adjusted EBITDA increased by 10% year-on-year, with the normalized adjusted EBITDA margin expanding by 166 basis points to 19% [25][9] - Total revenue for 2025 was $2.8 billion, up 1% year-on-year, driven primarily by growth in distribution revenue [25][22] - Pro forma free cash flow for the fourth quarter was $116 million, a year-on-year increase of $45 million [24][9] - The company ended the year with a strong cash balance of $910 million, which includes $98 million in restricted cash for debt repayments in the first quarter of 2026 [10][25] Business Line Data and Key Metrics Changes - Air distribution bookings grew by 4% year-on-year in the fourth quarter, with a total growth of 7% in December [12][22] - Hotel distribution bookings increased by 5% year-on-year to 42 million, with gross hotel booking value exceeding $20 billion annually [13][12] - Sabre Payments was one of the fastest-growing businesses, with gross spend on the platform increasing by more than 35% year-on-year [11] Market Data and Key Metrics Changes - The company recorded double-digit year-on-year growth in normalized adjusted EBITDA and generated positive pro forma free cash flow [9] - NDC (New Distribution Capability) represented approximately 4% of total air distribution bookings, with expectations for acceleration in 2026 [12][22] - The company expects mid-single-digit volume growth for both 2026 and 2027, driven by continued share gains and growth in NDC bookings [28][32] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in the travel ecosystem [6][7] - Recent executive leadership changes were announced to align talent and investments with the AI strategy [8] - The company aims to leverage its extensive travel data and proprietary logic to become essential in an AI-first world [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance despite challenges in 2025 [5] - The outlook for 2026 includes expectations for mid-single-digit revenue growth and continued improvements in operational efficiency [28][32] - Management highlighted the importance of maintaining operational delivery and R&D while managing costs through an inflation offset program [56][57] Other Important Information - The company paid off over $1 billion in debt in 2025, reducing pro forma net leverage by approximately 25% compared to year-end 2024 [9][26] - The company has no large debt maturities until 2029, with over 90% of its debt maturing in 2029 or later [10][26] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities from AI might evolve? - Management indicated that the next stage involves demonstrating the end-to-end experience of conversational commerce in travel, with partnerships like Mindtrip and PayPal enhancing the customer experience [40][41] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace allows for faster response times compared to direct connects, making it a valuable partner for AI companies [49][50] Question: Can you elaborate on the inflation offset program? - The program aims to keep key cost items flat while driving efficiency, with a focus on leveraging geographical advantages and embedding AI into the workforce [56][57]

Financial Data and Key Metrics Changes - In 2025, normalized Adjusted EBITDA increased by 10% year-on-year, reaching $536 million, with the normalized Adjusted EBITDA margin expanding by 166 basis points to 19% [25][9] - Total revenue for 2025 was $2.8 billion, reflecting a 1% year-on-year growth, primarily driven by distribution revenue growth [22][25] - Pro forma free cash flow for the fourth quarter was $116 million, a year-on-year increase of $45 million [24] Business Line Data and Key Metrics Changes - Air distribution bookings grew by 4% year-on-year in the fourth quarter, with a total growth of 7% in December [12][22] - Hotel distribution bookings increased by 5% year-on-year, reaching 42 million, with gross hotel booking value exceeding $20 billion annually [13] - Sabre Payments was one of the fastest-growing businesses, with gross spend on the platform increasing by more than 35% year-on-year [11] Market Data and Key Metrics Changes - NDC (New Distribution Capability) adoption reached approximately 4% of total air distribution bookings, with 15 live integrations added during the year [12] - The company expects mid-single-digit volume growth for both 2026 and 2027, driven by continued share gains and growth in NDC bookings [28][32] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in enhancing travel workflows [6][7] - Recent executive leadership changes were announced to align with the new AI strategy, including the promotion of Garry Wiseman to President of Product and Engineering [8] - The company aims to leverage its extensive travel data and proprietary logic to become essential in the evolving AI ecosystem [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance, despite challenges faced in 2025 [5] - The outlook for 2026 includes expectations for mid-single-digit revenue growth, driven by share gains and the introduction of new solutions [28][32] - Management highlighted the importance of maintaining operational delivery and R&D while managing costs through an inflation offset program [56][57] Other Important Information - The company paid off over $1 billion in debt in 2025, significantly improving its capital structure and reducing pro forma net leverage by approximately 25% compared to year-end 2024 [9][26] - The company ended 2025 with a strong cash balance of $910 million, which includes $98 million in restricted cash for debt repayments [10][25] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities from AI might evolve? - Management indicated that the next stage involves demonstrating the end-to-end experience of conversational commerce in travel, with partnerships like Mindtrip and PayPal enhancing the customer experience [36][41] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace allows for faster response times and better content management compared to direct connects, which can be costly for suppliers [47][50] Question: Can you elaborate on the inflation offset program? - The program aims to keep key cost items flat despite inflation, focusing on efficiency and productivity improvements through geographical leverage and AI integration [53][56] Question: How is corporate travel performing, and where is the strength coming from? - Corporate travel is showing positive signs across both traditional players and new entrants, indicating a healthier market environment compared to the previous year [80] Question: What is the outlook for free cash flow and discussions with debt holders? - Management expects to generate positive free cash flow in 2027, with a strong cash balance and no large maturities until 2029 [76][64]

Sabre (NasdaqGS:SABR) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Speaker7Good morning, and welcome to Sabre's full year and fourth quarter 2025 earnings conference call. My name is Olivia, and I'll be your operator. As a reminder, please note today's call is being recorded. I will now turn the call over to the Senior Vice President of Finance, Roshan Mendis. Please go ahead, sir.Speaker8Good morning, and welcome to our full year and fourth quarter 2025 earnings call. This morning, we issued an earn ...

Core Insights - Sabre (SABR) reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.07, representing an earnings surprise of +84.62% [1] - The company posted revenues of $666.53 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.02%, but down from $714.72 million year-over-year [2] - Sabre shares have declined approximately 31% since the beginning of the year, contrasting with the S&P 500's zero return [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $742.1 million, and for the current fiscal year, it is $0.12 on revenues of $2.86 billion [7] - The estimate revisions trend for Sabre was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software and Services industry, to which Sabre belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Q4 and FY 2025 Earnings Report 18 February 2026 ©2026 Sabre GLBL Inc. All rights reserved. 1 Forward-looking statements Forward-looking Statements Certain statements herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements about trends, future events, uncertainties and our plans and expectations of what may happen in the future, including regarding the Company's plan for long-ter ...

Workforce and Business Operations - Sabre Corporation's workforce was reduced by approximately 17% following the sale of its Hospitality Solutions business, resulting in a total of 4,650 employees as of December 31, 2025[35]. - The company operates a business-to-business travel marketplace called Sabre Mosaic Marketplace, which integrates travel content from various suppliers with a large network of travel buyers[16]. - The company generates revenue through various streams, including distribution revenue from bookings made through its global distribution system (GDS), SaaS and hosted solutions, software licensing, and professional service fees[22][23][24][25]. - Sabre's customer base includes airlines, hotels, travel agencies, and corporate travel departments, with varying phases of adopting NDC strategies[21]. - A significant portion of travel buyer agreements, approximately 15% to 20%, is up for renewal each year, impacting revenue stability[57]. - The company relies on relationships with a limited number of large travel buyers, making it vulnerable to changes in their demand or business practices[55]. - The company has divested its Hospitality Solutions business, which may not yield the anticipated strategic and financial benefits, potentially impacting future growth[75]. Technology and Innovation - In 2024, Sabre launched SabreMosaic Airline Technology, an AI-enabled platform designed to help airlines create and sell personalized content to travelers[17]. - Sabre's growth strategy focuses on innovation and enhancing customer relationships, including the integration of new distribution capability (NDC) and expanding product lines[18]. - The company must continue to innovate and evolve its offerings to remain competitive in a rapidly changing travel technology market[44]. - The company is investing in the development of SabreMosaic Airline Technology, which is expected to impact revenue positively in future years[161]. Financial Performance and Risks - Revenue is highly dependent on transaction volumes in the global travel industry, particularly air travel, which significantly affects financial performance[42]. - The company faces pricing pressure from travel suppliers, leading to potential revenue and margin declines due to negotiations for lower fees[49]. - Financial instability among travel suppliers, including airlines, could lead to increased payment delays or defaults, negatively impacting cash flow[50]. - The company has $4.3 billion of outstanding indebtedness as of December 31, 2025, which may affect cash flow and operational capabilities[102]. - The company’s financial performance may be adversely affected by rising interest rates, which have already increased interest expenses significantly[106]. - The company anticipates a material negative impact on financial results and liquidity due to changing market conditions, with approximately $248 million of principal due or committed to be redeemed early under current debt facilities[212]. Cybersecurity and Compliance - The company has faced cybersecurity incidents, including unauthorized data extraction, which have not yet materially impacted financial conditions but could lead to significant future costs and reputational harm[87]. - The company has implemented measures to protect critical systems and data, but these protections are not comprehensive for all systems, potentially leading to significant recovery costs in the event of a disaster[83]. - Compliance with PCI Data Security Standards is essential for maintaining credit card processing services, with significant costs associated with compliance that may increase over time[63]. - Regulatory compliance regarding personal data protection is increasingly complex and could lead to significant operational costs and liabilities[52]. - The company is involved in various legal proceedings that could incur substantial costs and divert management's attention, potentially impacting financial results[64]. Market Conditions and Competition - The company faces competition from other global travel marketplace providers, local distribution systems, and direct distribution by travel suppliers[26]. - The travel industry is seasonal, with revenue typically peaking in the first and third quarters and declining significantly in the fourth quarter due to holiday travel patterns[33]. - The company is exposed to risks from adverse global economic conditions, including inflation, reduced consumer confidence, and increased tariffs, which could negatively impact travel demand[98]. - The company faces significant risks related to international operations, including political instability, regulatory changes, and currency fluctuations[101]. Debt and Liquidity Management - The company may need to incur additional indebtedness in the future, which could intensify existing risks associated with its current debt levels[103]. - The company has sufficient resources to fund liquidity requirements over the next twelve months, including approximately $248 million in principal payments due or committed for early redemption under current debt facilities[158]. - The company repaid $96 million of debt using cash from its balance sheet[213]. - Proceeds of $822 million from the sale of Hospitality Solutions were used to pay down debt and add approximately $135 million of cash to the balance sheet[213]. Revenue and Cost Management - Revenue for the year ended December 31, 2025, was $2,770,983, an increase of $26,138 or 1% compared to 2024[189]. - Adjusted Net Loss from continuing operations for 2025 was $(14,835), improving from $(75,858) in 2024[186]. - Cost of revenue, excluding technology costs, increased by $60,712 or 5% to $1,206,987 in 2025[192]. - Selling, general and administrative expenses decreased by $18,571 or 3% to $557,401 in 2025[194]. - Free Cash Flow for 2025 was $(191,751), a decline from $(9,278) in 2024[186]. Strategic Priorities and Future Outlook - The company has established strategic priorities to achieve sustainable long-term growth in response to changing needs of airline, hotel, and agency customers[157]. - The company anticipates continued growth in global share as it invests in technology and expands content and product functionality[164]. - Recent industry air distribution volume growth has leveled off, which may impact the company's growth rate moving forward[157].

Sabre's fourth quarter and full year 2025 earnings materials available on its Investor Relations website [Accessibility Statement] Skip NavigationSOUTHLAKE, Texas, Feb. 18, 2026 /PRNewswire/ -- Sabre Corporation ("Sabre") (NASDAQ: SABR) today announced financial results for the quarter ended December 31, 2025. Sabre has posted its fourth quarter and full year 2025 earnings release and earnings presentation to its Investor Relations webpage at [investors.sabre.com/financial-information/quarterly results]. Th ...