Global Business Travel (GBTG) - 2025 Q3 - Quarterly Results

Financial Performance - American Express Global Business Travel (Amex GBT) reported a 13% year-over-year revenue growth, reaching $674 million in Q3 2025[2] - Adjusted EBITDA increased by 9% year-over-year to $128 million, with an adjusted EBITDA margin of 19%[2] - The company raised its full-year 2025 revenue guidance to approximately $2.705 billion - $2.725 billion, reflecting a 12% year-over-year growth[9] - Revenue for the three months ended September 30, 2025, was $674 million, an increase of 12.9% compared to $597 million in the same period of 2024[32] - Adjusted Gross Profit for the same period was $404 million, up from $360 million, maintaining an Adjusted Gross Profit Margin of 60%[32] - Adjusted EBITDA for the three months ended September 30, 2025, was $128 million, compared to $118 million in 2024, with an Adjusted EBITDA Margin of 19%[33] - Full-year 2025 Adjusted EBITDA guidance is expected to be approximately $512 million, with significant adjustments for interest expense, taxes, and restructuring costs[42] Travel Revenue and Growth - Travel revenue grew by 10% due to a 19% increase in transaction growth and a 23% increase in total transaction value (TTV)[10] - The company anticipates 19% to 21% revenue growth and $615 million to $645 million in adjusted EBITDA for full-year 2026[9] Expenses and Cash Flow - Total operating expenses rose by 16% to $662 million, largely due to the CWT acquisition and related restructuring initiatives[10] - Free cash flow decreased by 33% to $38 million, primarily due to lower net cash from operating activities following the CWT acquisition[10] - Free Cash Flow for the three months ended September 30, 2025, was $38 million, down from $59 million in 2024, with net cash from operating activities at $71 million[39] - Full-year 2025 Free Cash Flow guidance is projected to be between $210 million and $240 million, after accounting for property and equipment purchases of $120 million to $130 million[44] - Total operating expenses for the three months ended September 30, 2025, were $662 million, compared to $570 million in 2024, leading to Adjusted Operating Expenses of $548 million[34] Acquisition and Synergies - The acquisition of CWT, closed on September 2, 2025, is expected to generate $155 million in identified synergies[10] - The company anticipates restructuring costs of approximately $70 million and integration expenses of $60-$65 million for the full year 2025[42] Net Loss and Debt - Net loss improved by 52% year-over-year to $62 million, reflecting lower non-operating expenses[2] - Net loss for the three months ended September 30, 2025, was $62 million, an improvement from a net loss of $128 million in 2024, resulting in a Net Loss Margin of (9)%[33] - As of September 30, 2025, Net Debt was $962 million, an increase from $848 million as of December 31, 2024, with a Net Debt to LTM Adjusted EBITDA ratio of 1.9x[40] Technology and Innovation - The company is focusing on AI initiatives to enhance customer experience and productivity, with 82% of transactions being digital[10]