Group 1 - Sabre Corporation announced a new agreement with Travelin.Ai, allowing access to SabreMosaic Travel Marketplace, which includes traditional airfares, NDC offers, low-cost carrier content, and lodging options [1] - The partnership enables travel management companies (TMCs) to book business trips with leisure components, tapping into a $1 trillion market [1] - Sabre's operating margin improved by 6 percentage points year-over-year in Q2 2025, attributed to disciplined cost management and lower technology costs from cloud migration [2] Group 2 - The company is focused on reducing leverage and fueling sustainable growth through innovation, with new business volumes scaling [2]

Core Insights - Sabre Corporation is launching agentic solutions for travel, leveraging its travel data cloud to enable AI-driven retailing in the travel industry [1][2][7] Group 1: Agentic Solutions and APIs - The new agentic-ready APIs are powered by a proprietary Model Context Protocol (MCP) server, which acts as a universal translator for AI agents in travel technology [2][6] - These APIs will facilitate real-time shopping, booking, servicing, and optimization of travel, moving agentic AI from concept to practical application [2][3] Group 2: Customer Pain Points and Use Cases - The initial focus of these capabilities will be on flights, hotels, and post-booking services, addressing common customer pain points that consume time and patience [3][4] - Potential applications include an IROPS Call-Centre Proxy Agent for rebooking, a Hotel Ops Agent for confirming late arrivals, and an Expense Filing Agent for managing receipts [4] Group 3: Sabre IQ and Data Utilization - Sabre IQ serves as the systemic AI layer, utilizing Large Language Model (LLM) technology to enhance understanding and interaction in natural language [5][6] - The AI layer is supported by Sabre's Travel Data Cloud, which contains over 50 petabytes of travel intelligence, providing a rich foundation for AI capabilities [5] Group 4: Integration and Business Value - The new agentic capabilities are integrated into SabreMosaic, allowing seamless adoption by airlines, agencies, and developers without compromising scale or trust [6] - This integration aims to automate complex workflows, reduce servicing costs, and enhance opportunities for personalized offers, ultimately delivering real business value [6][7]

Core Insights - The article emphasizes that direct airline connections in corporate travel may not deliver the promised benefits and can lead to unexpected costs and complexities [1][8] Misconceptions about Direct Airline Connections - **Misconception 1 - Cheaper fares? Almost never**: Direct connections are often marketed as the cheapest option, but a Sabre analysis found that SabreMosaic Travel Marketplace provided equal or lower fares in over 90% of searches, with 41% being cheaper than direct [3][11] - **Misconception 2 - More content direct? Think again**: Airlines claim that direct NDC APIs offer richer content, but they use the same NDC APIs provided to Sabre, leading to content fragmentation and visibility issues for travel managers [4][11] - **Misconception 3 - A smoother experience? Not for corporates**: Direct connects are presented as modern solutions, but they create inconsistent booking experiences, which can be problematic for corporate travel that requires reliability and compliance [5][11] - **Misconception 4 - Built for the future? Not at scale**: Airlines promote direct connects as future-ready, but they cannot handle the scale of business travel effectively, risking visibility and access to all available fares [6][11] SabreMosaic Travel Marketplace - The SabreMosaic Travel Marketplace integrates content from 38 NDC airlines, over 150 low-cost carriers, and more than 420 EDIFACT carriers, providing corporate buyers with a comprehensive and consistent platform [10]

Core Insights - Sabre Corporation has entered into a new agreement with Travelin.Ai, a next-generation corporate booking platform [1] - The agreement allows Travelin.Ai to access the SabreMosaic Travel Marketplace, which includes traditional airfares, NDC offers, low-cost carrier content, lodging options, and Sabre's Lodging AI capabilities [1] Company Summary - Sabre Corporation is a leading global travel technology company [1] - The partnership with Travelin.Ai enhances Sabre's offerings in the corporate travel sector [1] Industry Summary - The agreement signifies a trend towards integrating advanced technology in corporate travel booking platforms [1] - Access to a diverse range of travel options and AI capabilities may improve efficiency and user experience in the travel industry [1]

Core Insights - Sabre Corporation has renewed a long-term partnership with oneworld, enhancing its PRISM platform's role in corporate travel data and analytics [1][3] - PRISM is utilized by over 30 airlines and alliances, processing over 13 million tickets monthly from more than 4,500 sources across 160+ countries [2] - The renewal signifies Sabre's commitment to providing insight-driven travel technology solutions and positions the company for further expansion within the oneworld network [3] Company Overview - Sabre Corporation is a leading technology provider in the travel industry, headquartered in Southlake, Texas, serving customers in over 160 countries [4] - The company focuses on harnessing speed, scale, and insights to empower airlines, hoteliers, and agencies in retailing, distributing, and fulfilling travel [4] Partnership Details - The partnership with oneworld involves 14 major airlines, enhancing the travel experience for frequent flyers through various benefits [5] - PRISM's capabilities include over 350 reports, automated peer analysis, and a patented decision science framework, enabling airlines to optimize their corporate sales programs [2][3]

Core Viewpoint - The turnaround story for Sabre (NASDAQ: SABR) is perceived to be running out of time, leading to a downgrade of the stock [1]. Group 1 - Sabre's stock was downgraded due to concerns about its turnaround potential [1]. - The article suggests that the company may face challenges in achieving its turnaround goals [1]. Group 2 - The author has a background as a hedge fund analyst and has conducted extensive research in Latin American markets [2]. - The focus is on identifying high-quality compounders and growth stocks at reasonable prices in both the US and developed markets [2].

Core Insights - Sabre Corporation (SABR) shares fell nearly 35.7% following weaker-than-expected Q2 2025 results, missing all prior management guidance [1][9] - The company reported an adjusted loss of 2 cents per share, compared to a Zacks Consensus Estimate of break-even earnings, although the loss narrowed from 6 cents in the previous year [1][2] Financial Performance - Sabre's Q2 2025 revenues were $687.2 million, missing the Zacks Consensus Estimate of $705.3 million and reflecting a 1% year-over-year decline [2][9] - Distribution revenues decreased by 1% to $546 million, impacted by lower air bookings and a slight decrease in average booking fees, partially offset by increased hotel distribution bookings [3] - IT Solutions revenues were $141 million, down 2% year-over-year, attributed to customer demigrations, though offset by increased license fee revenues [4] - Normalized adjusted EBITDA was $127.2 million, improving from $120 million year-over-year but falling short of the previous guidance of approximately $140 million [5] Cash Flow and Balance Sheet - As of the end of June, Sabre had cash, cash equivalents, and restricted cash totaling $447 million, down from $672 million in the previous quarter [6] - Cash used in operating activities during Q2 amounted to $218 million, resulting in negative free cash flow of $240 million [6] Updated Guidance - For FY25, Sabre now expects pro-forma revenues to grow in the low single-digit percentage range, a reduction from earlier expectations of double-digit growth [7] - Pro-forma adjusted EBITDA is now forecasted between $530 million and $570 million, down from approximately $630 million previously [8] - The company anticipates generating pro-forma free cash flow in the range of $100-$140 million, a decrease from earlier forecasts of over $200 million [8] Q3 Outlook - Sabre has initiated guidance for Q3, expecting pro-forma revenue growth in the low-to-mid single-digit percentage range and pro-forma adjusted EBITDA between $140 million and $150 million [10]

Core Insights - Sabre reported revenue of $687.15 million for the quarter ended June 2025, reflecting a 10.4% decline year-over-year and a surprise of -2.58% compared to the Zacks Consensus Estimate of $705.31 million [1] - The company's EPS was -$0.02, an improvement from -$0.05 in the same quarter last year, with no EPS surprise against the consensus estimate of $0 [1] Financial Performance Metrics - Travel Solutions - Air Bookings were 75.53 million, below the average estimate of 79.36 million [4] - Total Bookings in Travel Solutions reached 90.3 million, compared to the estimated 94.61 million [4] - Passengers Boarded in Travel Solutions totaled 171.35 million, slightly below the estimate of 173.95 million [4] - Lodging, Ground and Sea Bookings were 14.76 million, compared to the average estimate of 15.25 million [4] - Distribution Revenue in Travel Solutions was $545.77 million, below the estimate of $567.37 million, marking a year-over-year change of -0.9% [4] - Overall Revenue for Travel Solutions was $687.15 million, compared to the estimated $708.09 million, reflecting a year-over-year change of -1.1% [4] - IT Solutions Revenue within Travel Solutions was $141.38 million, slightly above the estimate of $140.72 million, with a year-over-year change of -2.1% [4] Stock Performance - Sabre's shares have returned -6.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $687 million, a decrease of 1% year on year [19] - Normalized adjusted EBITDA increased by 6% year on year, with a normalized adjusted EBITDA margin improvement of approximately 120 basis points to around 19% [21] - Total debt was reduced by over $1 billion, or nearly 20%, and the company expects to reduce year-end 2025 net leverage by approximately 50% compared to year-end 2023 [7][25] Business Line Data and Key Metrics Changes - Air distribution bookings declined by 1% year on year, with growth strategies contributing eight points of growth offset by a nine-point decline in the base business [8][9] - Hotel distribution bookings grew by 2% in the quarter, with the attachment rate to air bookings improving by 100 basis points to 34% [10] - In IT Solutions, passengers boarded increased by 1% year on year, contributing to normalized adjusted EBITDA growth of 6% [11] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly affecting air distribution bookings, which fell short of expectations [8] - The GDS industry experienced a decline in corporate bookings relative to leisure, impacting overall GDS volumes [9] - The company has a higher exposure to corporate and government travel, which has underperformed compared to leisure travel [41][62] Company Strategy and Development Direction - The company is focused on generating free cash flow and deleveraging the balance sheet while driving sustainable growth through innovative technology solutions [5][18] - The transformation into a modern, open travel marketplace is underway, with significant progress in multi-source content and NDC connections [12][55] - The company anticipates a six-month delay in launching a new multi-source low-cost carrier solution due to execution delays [16][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the incremental industry weakness observed in June and July, leading to a revised outlook for air distribution bookings growth [14][15] - The company expects the GDS industry trends to stabilize over time, despite current challenges [14] - Management remains optimistic about the long-term growth potential, citing strong demand for new business initiatives [18][60] Other Important Information - The company closed the sale of its Hospitality Solutions business on July 3, 2025, with proceeds primarily used to pay down debt [22][25] - Pro forma free cash flow was reported as negative $2 million for the quarter, with cash on the balance sheet exceeding $600 million post-sale [22][25] Q&A Session Summary Question: Why was the prior guidance so optimistic given the consistent headwinds? - Management noted that while growth strategies remained constant, market conditions changed, leading to a more cautious outlook [34][35] Question: Is the middle scenario of guidance considered the base case? - Management indicated that they have not provided a weighting on the scenarios but believe the current trading environment aligns more with the middle scenario [36][37] Question: What factors are causing the decline in GDS bookings? - Management highlighted that corporate travel impacts GDS bookings more significantly than leisure travel, and current market conditions are temporary rather than structural [40][41] Question: What is the strategy for NDC agreements and growth? - The company has 38 live NDC connections and is focused on integrating various content types to enhance its offerings [54][67] Question: How does the company expect to manage operating costs moving forward? - Management emphasized strong cost discipline and anticipated reductions in technology expenses due to ongoing transformation initiatives [47][49]

Financial Performance - Q2 2025 revenue was $687 million, a decrease of 1% year-over-year[17, 33] - Normalized Adjusted EBITDA increased by 6% year-over-year to $127 million[19, 34] - Hotel B2B Distribution saw a 4% year-over-year growth in Gross Booking Value (GBV), reaching approximately $5 billion in Q2 2025[22] - Digital Payments platform processed approximately $5 billion in gross spend during Q2 2025, representing a 44% year-over-year increase[22] Bookings and Passengers - Total distribution bookings reached 90 million, down 1% year-over-year[17] - Air distribution bookings totaled 76 million, a decrease of 1% year-over-year[17, 18] - Hotel distribution bookings increased by 2% year-over-year[17, 19] - Passengers boarded increased by 1% year-over-year, reaching 171 million[17] Debt and Cash Flow - The company paid down over $1 billion of debt year-to-date, reducing gross debt to approximately $43 billion and net debt to approximately $37 billion[16] - The company expects to reduce year-end 2025 pro forma net leverage by approximately 50% from year-end 2023[16, 44] - Pro forma free cash flow was negative $2 million for Q2 2025[34] - The company expects approximately $100 million to $140 million in pro forma free cash flow for full year 2025[36] Outlook - The company anticipates air distribution bookings growth in the second half of 2025 to be between +4% and +10%[25]